AMC Entertainment (NYSE:AMC) CEO has now provided shareholders with a new update on the high volume of FTDs this year.
After investors expressed their concerns on social media regarding the company’s alarming number of FTDs and days on the NYSE Threshold Securities List, Adam Aron finally published a long overdue statement.
Between March and April, the CEO announced that the company had contacted both FINRA and the NYSE to look closely at the trading of their stock primarily due to the high number of FTDs.
Investors flooded the Twitter post below tagging AMC CEO Adam Aron requesting for answers.
In addition to the overwhelming amount of requests from investors, ‘FTDs’ began to trend on Twitter, further fueling the concerns online.
“Many of you are incensed by the high number of “Fail to Deliver” AMC shares, and that AMC again has been on the Threshold List for multiple weeks. We repeatedly have gone to the NYSE and FINRA, and did so again in July, to put and keep this entire situation on their radar,” said the CEO on FTDs today.
While skeptics continue to request for material proof of such communications, other investors feel at ease knowing the CEO is in part taking action against this manipulative force in the market.
On Tuesday, July 11th, AMC fails-to-deliver hit a record high of $60,019,141, or approximately 14,155,458 total FTDs that day.
While July’s full report is still updating, we can see that the month carried out an average of 12 million AMC FTDs per day.
AMC stock is currently up +23% this year-to-date and down more than -71% in the past year.
Why AMC FTDs Are Important to Shareholders
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
“Sometimes there are fails to deliver, and a fail to deliver is when you don’t have the ability to prove that you borrowed the stock legally before you actually shorted it”, said Yahoo’s Senior Markets and Data Reporter Jared Blikre.
He says a company joining the NYSE Threshold Securities List is a clear indication of manipulation in the market, primarily through ‘naked short selling’, which is something Wes Christian says is a worldwide problem.
AMC Entertainment has remained on the NYSE Threshold Securities List for 25 consecutive days now, which means that the SEC has once again violated its 13-day threshold rule.
Once a ticker has remained on the NYSE Threshold Securities List for 13 consecutive days, the broker-dealer must immediately close out all fail-to-deliver positions by purchasing shares in the open market.
However, AMC has not seen any type of major price action in the market that would indicate FTDs have been purchased nor has it been delisted from the threshold list.
The hopes are that AMC CEO Adam Aron continues to update shareholders on FTDs from FINRA and the NYSE’s viewpoint.
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Leave your thoughts below!
SOS with CEO AA. He is All talk but no action. He needs to provide proof that he is doing something to provide the shareholder’s some answers to why the stock value is not showing increased price action! He is starting to run AMC into the ground and the shareholders are losing everything that they have invested into AMC.
Maybe we need a new CEO that can work better with the AMC shareholders!
Would be to our best interest to actually see a copy of the correspondence Adam Aron made on our behalf,to the SEC…jes sayn
This would be great