43.8% of market participants said they hold more AMC Preferred Equity (NYSE:APE) over AMC Entertainment Inc. (NYSE:AMC) common shares.
Shareholders were given 1 APE for every 1 AMC share they held, but investors say they are now holding more of AMC’s equity than common shares.
APE has allowed the company to raise capital from shareholders since it couldn’t issue more common shares based on voting rights.
The equity is down -56% since its debut but has skyrocketed nearly +140% in 2023.
Those in favor of APE see an opportunity to squeeze short sellers attacking the equity.
However, other shareholders say there should have been a vote on the dividend as it created further losses for shareholders.
23.7% of market participants said they hold more AMC shares than they do APE, which means these investors either continued to purchase more AMC shares after the dividend or have sold some APE shares to manage their losses.
32.5% of market participants said they hold an equal amount of both AMC and APE shares, suggesting they have neither bought or sold or may have purchased the same amount equally.
How many AMC shareholders are still buying?
AMC stock news today – Market news, business news + more.
Out of more than 1,000 market participants, 67.5% said they have accumulated more AMC or APE shares as of January of 2023.
Although it’s fair to mention the percentage of AMC shareholders still buying in 2023 could be higher.
Market participants who said they hold an equal amount of both AMC and APE shares could have purchased more of each security equally this new year, although that statistic is unaccounted for.
AMC Entertainment stock is up nearly +40% this year-to-date, a big win for fresh investors holding both stocks in 2023.
What does this case study show us?
AMC stock is known for its incredible +3,000% gains in 2021.
Shareholders continue to hold and buy the stock to recreate the events that took AMC to a record all-time high.
Since the inception of APE, we’ve seen AMC’s volume fall twice its average daily trading volume.
AMC Entertainment had an average intraday volume of 66 million prior to APE, currently at 31 million.
APE has an average daily trading volume of 32 million, which shows us how the creation of the equity has spread the value of investors’ portfolios thin, and the momentum.
AMC’s pipeline has been divided in half with its equity APE, limiting the total trading volume that goes into squeezing short sellers betting against AMC common shares.
In 2021, there was full force in volume going into AMC Entertainment in efforts to trigger a short squeeze.
Volume has now been divided with the introduction of APE.
CEO Adam Aron said shareholders will be able to vote on converting APE back into AMC common shares, several months after the company was able to successfully capitalize on its strategy.
Market News: Should you invest in the movie theatre industry?
The movie theatre industry is no longer struggling to attract movie lovers back to the big screen.
While pandemic lockdowns threatened the existence of thriving cinemas, rapidly growing numbers of attendees have continued to grow over the past two years.
The only thing movie theatres are missing is more movie titles, says CEO of AMC Entertainment Adam Aron.
Last year, the industry leader had a 33% increase in attendees from Q3 of 2021, seating more than 53 million guests in Q3 of 2022 alone.
The company has also shown massive progress as debt is substantially cut every year.
AMC’s debt seems to be the #1 problem for Wall Street.
If AMC is able to eliminate this burden, the company might be able to offer more incentives to its shareholders again, such as a cash paying dividend like prior years.
AMC and APE Shares Bounce Back from Record Lows
AMC and APE shares are making a big comeback beginning of the new year already.
AMC Entertainment Holdings, Inc. (NYSE:AMC) shares have managed to rise above its low of $3.86 to $5.80, respectively.
The movie theatre’s equity APE (NYSE:APE) fell below $0.70 in December but has managed to rise to current levels around $3.
Shares of AMC are up more than +47% in the past month while APE’s are up nearly +115%.
AMC Entertainment stock has been a buy for quite a while now given the high probability that it has bottomed.
Although shares can always come back down to retest key levels, an increase in trading volume is suggesting that more investors have begun to buy the movie theatre stock again.
As “Avatar: The Way of Water” gets closer to the $2 billion mark at the worldwide box office, James Cameron says it’s a reminder that moviegoers still value the theatrical experience in an era of streaming dominance.
“I’m thinking of it in the terms of we’re going back to theaters around the world. They’re even going back to theaters in China where they’re having this big COVID surge. We’re saying as a society, ‘We need this! We need to go to theaters.’ Enough with the streaming already! I’m tired of sitting on my ass. Source:Variety.
In recent news, Netflix’s showing of Glass Onion in movie theaters cost the streaming service $200 million for taking it out too early.
Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.
The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.
The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.
Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.
Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.
The strange release for “Glass Onion” also prompted industry insiders to question the streamer’s theatrical release strategy.
CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue. “
Amazon is Investing Billions in the Movie Theatre Industry
Stock Market News: Amazon plans to invest billions in Movie Theatre Industry.
Amazon plans to invest more than $1 billion per year into theatrical distribution releases per Bloomberg news.
Amazon.com Inc. will be investing billions of dollars to produce movies that will release in theatres, according to people familiar with the company’s plans.
This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.
The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.
Amazon is still sorting out this strategy said people who asked not to be identified.
That number of releases puts Amazon on par with major studios such as Paramount Pictures.
CNBC says this is a positive sign for the movie theatre industry.
“While a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business, which has struggled in the wake of the pandemic.”
For more AMC stock news and updates,join the newsletter to receive weekly market news and notifications straight to your inbox.
Market News: How hedge funds manipulate the stock market.
Hedge funds have been manipulating the stock market for decades.
But it wasn’t until now that a community has risen to raise awareness of market injustices.
The shorting of both AMC and GameStop stock have uncovered a number of nefarious strategies used against retail investors.
What is the SEC doing to regulate these financial entities?
We’re here to find out.
Welcome to Franknez.com – The blog that fights for retail investors. Today we’re discussing how hedge funds manipulate the stock market and what the SEC is doing about it.
Let’s get started!
Overleveraging Borrowed Shares
Hedge funds have an incredible supply of short shares available to borrow.
This advantage has allowed them to manipulate a stock’s share price by initiating short-ladder attacks.
While supply and demand are pushing a stock’s price up, hedge funds short the stock using an insane amount of leverage.
This predatorial strategy has yet to be announced as illegal nor has it been addressed by the SEC.
Off Exchange Trading
Hedge funds and market makers are getting away with being able to trade and swap stock in foreign exchanges where the stock’s price isn’t required to be disclosed.
They’re taking retail orders and, in a way, manipulating the circulating supply by not reporting accurate transactions.
We’ve seen this happen with Barclays.
Barclays CEO, Jes Staley – Hedge fund manipulation
Reports by Finra have been made public detailing multiple fines on Barclays for inaccurate books and records.
Barclays is one of Citadel’s clearing houses.
Off exchange trading where transactions aren’t displayed on the list market such as the NYSE is a massive problem the SEC is still trying to figure out.
AMC and GameStop have had an incredible amount of FTDs, or failure-to-delivers.
These are orders that have not been executed in options, and are usually a result of a ‘short party’ not owning or not having all of the underlying asset.
This has led retail investors to the educated assessment that synthetic shares are floating in the market; shares known as naked shares used to short a stock.
According to Investopedia, “Despite being made illegal after the 2008–09 financial crisis, naked shorting continues to happen because of loopholes in rules and discrepancies between paper and electronic trading systems.”
Naked shorting has gone mainstream with CNBC’s Melissa Lee and Fox Business’s Charles Payne bringing light to this predatorial practice in the market.
Retail investors must use their voice to address these issues to the SEC.
According to The Fool, you should invest in this or that “instead”.
We’ve seen the headlines countless times.
The Motley Fool is a source that provides its subscribers with hand-picked stocks with potential gains.
With tremendous respect, stick to what you do.
The integrity of this company is to help investors pick winning stocks, not to divert them from a stock due to its potential upside that can cause hedge fund partners to lose billions of dollars.
And that’s exactly what happened.
No matter how many times mainstream media outlets tried to divert retail investors from buying AMC stock, it cost hedge funds a lot of money all year.
And at the same time, a lot of retail investors have a lot of unrealized gains.
This ladies and gentlemen is how the media has tried to manipulate the performance of a stock.
This influence can sway a new retail investor from adding to the surging volume of shares being purchased in the market.
To the new retail investor – make your financial decisions based on your own due diligence.
Not on what media sources get paid to write about.
Yahoo Finance & InvestorPlace
Platforms such as Yahoo Finance & InvestorPlace have also had their fair share of negative headlines to try and divert the public from skyrocketing AMC to the moon.
With InvestorPlace even throwing a jab at GME investors saying, “If You’ve Made Money On GameStop, You’re Not An Investing Genius”.
Perhaps not, but I’m pretty certain these investors are wealthier than the person who came up with that punchline.
These media sources have been discouraging new retail investors from investing in AMC since the beginning of the year although the stock is up year-to-date!
Manipulation In the Stock Market
Robing Hood? Stock market manipulation
I’m sure you’ve all heard of the Robinhood scandal.
This is another form of manipulation in the stock market caused by the halt of buying power.
Robinhood prevented its users from buying stocks such as AMC and GME (GameStop) during GME’s bull run.
Although restrictions aren’t as tight anymore, we’re beginning to see trusted and beloved companies get exposed as hedge funds worst nightmares become a reality.
Today we’re seeing more people learn about how the stock market moves.
If more of the public is to understand how hedge funds pose a risk to our economy and businesses, we must expose these financial institutions for who they really are.
Franknez.com fights The Fool, Yahoo Finance, and InvestorPlace
Franknez.com is fighting for the community against malpractice from all news media shunning AMC, GameStop, and other retail favorites.
This platform will serve as a positive media outlet for the community and only spread factual documentation, and news related cited-sources.
I will not encourage retail investors to take a position in any stock.
However, I will outline the facts and evidence to help you make your own personal financial decision.
How can retail investors bring awareness to the community?
Retail investors can expose false information on social media to shine light on manipulation tactics driven by hedge fund partners.
Sharing factual and positive articles relating to the performance or analytics of a particular stock is another way the investing community can stay united.
Franknez.com is a platform for the community.
Market News Published Daily
For more stock market, business news and updates,join the newsletterto receive weekly market news and notifications straight to your inbox.
Franknez.com is the media blog that keeps retail investors informed.
The news carries weight going into the first quarter of 2023 after the company’s partnership with industry leader, Randy Marion Automotive Group.
Momentum in the past month has compounded as more investors begin to discover price targets from experts and analysts.
Mullen Automotive’s stock price forecast targets a high of $24.15, mid of $23.46, and low of $23.23.
“Mullen Automotive is set up for a short squeeze that may not begin if the company cannot issue some favorable news in the next few weeks,” said MarketBeat analysts in January.
Could MULN stock be the next GME, AMC, or even HKD?
These stocks surged 1,500%, 3,000%, and 20,000%.
MULN Bullish Trend
In the past month, MULN stock has had one particularly strong bullish trend; its call options vs put options ratio.
This market sentiment is what makes Mullen Automotive stock stand out from many others in the market.
It has an extremely high bullish conviction.
On Friday alone, we can see the stock had a total of 131.62K call options and 11.22K put options.
Will MULN shares surge this week? – Mullen Automotive stock news today.
That’s nearly 12 times more call options than put options.
And this is a trend we’ve seen all throughout the new year so far.
Both retail investors and institutional investors are majority long on the company.
But Mullen Automotive will need to continue to prove itself to institutional buyers for heavier buying pressure to push the stock past $0.44, a strong resistance level.
MULN stock tested $0.44 in January and again during the first week of February.
Shares rejected $0.44 coming back down to $0.39 before bouncing back to $0.40 on Friday.
This means that even as shares fall, buyers are picking up the dips.
A break past $0.44 could create the chain reaction the stock needs to make its way to $0.60 and to $1.
Will MULN Stock Go Up This Week?
MULN stock has proven to be extremely bullish this year-to-date.
If shares are able to maintain above $0.42 this week, it’s highly probable that the stock will continue to rise.
In a war between bears and bulls, bulls are in the lead, but they’ll need to maintain that buying pressure if they are to see $1 per share before Nasdaq’s deadline in March.
Are you holding Mullen Automotive stock this year?
Are you a long-term shareholder?
Leave your thoughts in the comment section below.
Market News Published Daily
FrankNez News Today – Will MULN stock go up this week?
For more stock market, business news and updates,join the newsletter to receive weekly market news and notifications straight to your inbox.
Franknez.com is the media blog that keeps retail investors informed.
