APE is now trading below $1.
Short sellers have been able to attack AMC’s Preferred Equity through the use of overleveraged shorting methods.
APE recently made #1 on Yahoo’s “Top Most Shorted Stock List“.
The equity closed at $0.98 per share and fell as low as $0.90 on Wednesday.
Majority of the market pumped during JPow’s announcement but both AMC and APE finished red on the day despite above average trading volume.
APE had an exceptional amount of buying power reaching 62.8 million, it’s average trading volume is 16.2 million.
The manipulation of APE in the market has shareholders looking at the CEO.
Citigroup’s Ties with APE and AMC Entertainment
AMC Entertainment announced that it would hire Citigroup to help it sell 425 million APE shares.
This comes from the movie theatre chain’s strategy to capitalize from its shareholders to pay down debt.
Shareholders have argued in the past that the issuance of APE should have been voted for.
AMC Entertainment was able to successfully and legally claim a fraction of shareholder’s hard-earned capital in order to keep raise cash.
While there are shareholders who are willing to give their entire paycheck to the company, others weren’t too happy with the move.
Now it’s been disclosed that Citigroup has been shorting AMC Entertainment for the better part of over two years now.
Citigroup’s 13F-HR filing shows the company has been selling shares while trading put options in the derivatives market.
Meanwhile, the bank has also been downgrading AMC’s share price and promoting it in the media.
That’s right, the partner that is helping AMC sell APE shares has also been capitalizing from shorting the company.
Shareholders Look to Adam Aron for Answers
While there are shareholders that have total trust in AMC’s CEO Adam Aron, there are others who simply want answers.
Shareholders are invested in AMC Entertainment in order to capitalize from the company, but it currently seems to be the other way around.
AMC Entertainment just launched their online merchandise store, which is incredibly bullish for the company as it allows them to venture into other income streams.
This however does not prevent certain shareholders from wanting answers on APE’s dilution and massive suppression in share price.
Still, majority of shareholders seem to hold on to the CEO’s statement when he said to not confuse his silence with inaction.
But I’m curious to know what you think.
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