August saw a record high of $129 million in AMC FTDs according to the latest data by Stocksera.
The $129 million dollar amount in AMC FTDs is equivalent to a total of 50,780,515 FTDs (non-cumulative).
The month finished with more than 130K FTDs, though the $129 million in FTDs was the highest spike seen in August.
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 remained on the NYSE Threshold Securities List for 50 consecutive days before being removed.
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, a rule that has been violated multiple times this year.
In April, AMC hit all-time highs when FTDs soared between 17 million and 18 million, equaling $85.4 million (non-cumulative).
However, August saw the most AMC FTDs this year so far, a problem retail investors suggest must be looked at.
But what do you think? Are these simply just market mechanics? Or is something fraudulent happening with AMC’s incredibly high number of FTDs? Leave your thoughts in the comment section down below.
Other AMC Entertainment News and Updates
The CEO of AMC Entertainment (NYSE:AMC), Adam Aron, has addressed shareholders in a new message on Twitter.
The company recently announced that it raised $325 million in brand new equity to bolster its liquidity and pay down its debt.
At the end of this week’s trading, AMC Entertainment finished up more than +13% with shares peaking at $8.91 on Thursday.
However, shares fell nearly -7% on Monday.
“You have sent me over 5,000 comments in response to the tweets I wrote just in the past two days.
I try to read them all, or as many as I can. As should be expected, many are positive, many are negative. This may surprise you but I genuinely appreciate receiving all of it, the good but also the bad. Why? Because you own our company.
It is important that I understand what you think –both the favorable and the unfavorable.
At the same time, it is absolutely vital that after distilling all of your feedback, I actually do and action what I think is in the best interests of all of our shareholders,” Adam Aron said on Twitter.
While I am as frustrated as any of you are by the challenges that AMC still faces 42 long months after Covid forced the closure of all of our theatres, that frustration is greatly outweighed by my pride that AMC is still alive and fighting… that AMC is still leading and innovating… and that AMC is eminently stronger with our now greatly increased cash reserves.
How many times have the naysayers and prophets of doom predicted with certainty that AMC would fail? So far, we have proven them wrong. Over and over again. Wrong, wrong, wrong. In my view, AMC has an exciting future ahead, as our industry continues on its long glide path to eventual recovery and as AMC continues to take bold action to be out front.
In the language and customs of the 18th century, a message like this one would be signed “Your humble and obedient servant.”
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Gary Gensler is investigating. His findings will cause the AMC share price to soar.
Limiting short sellers, and banning borrowed shares.
New legislation will ban quiverquantative insider trading, and any lawmakers or congress deemed in violation will suffer dire consequences.
Leave your thoughts below.