Tag: Adam Aron Twitter (Page 1 of 3)

AMC CEO Reflects on “Meme Stock” Frenzy of 2021

Market News Daily - AMC CEO Reflects on "Meme Stock" Frenzy of 2021.
Market News Daily – AMC CEO Reflects on “Meme Stock” Frenzy of 2021.

AMC Entertainment (NYSE:AMC) CEO Adam Aron reflects on the “meme stock” frenzy of 2021 and expresses his optimism towards the company’s future.

Today, AMC stock is up more than 32% year-to-date and has survived some of the most challenging seasons a business in its unique circumstances could have gone through.

In an interview with The Wrap, Adam Aron says he recalls when the company almost ran out of cash with only four to six weeks of cash on hand.

AMC came close to collapsing during the pandemic lockdowns when AMC Entertainment went from generating several millions per month to $0 in an instance.

“We almost ran out of cash five different times. We had times where we had just four to six weeks of cash on hand”, the CEO said.

AMC Entertainment was able to raise $5 billion from March 2020 to March 2021.

The biggest help came in January when retail investors flooded the market and purchased shares of AMC stock en masse, sending AMC shares from $2 per share to $20 per share.

“That’s a big reason we’re standing here today,” says Adam Aron.

AMC Entertainment Prepares for Pre-Pandemic Levels

Adam Aron told The Wrap that he sees Hollywood returning to something approximating pre-Covid levels of regular theatrical releases.

There were only 70 wide releases in 2022 compared to 140 in 2019, and that number is already around 100 for 2023 so far.

According to The Wrap, Adam Aron believes that AMC is out of the woods today.

“Overall box offic is up by about 1/3 compared to 2022.

If the theatrical industry overall ends up with between $8.5 billion and $10 billion for the year, AMC will have a significant recovery.”

However, Adam Aron, like many professionals in the industry, doesn’t believe that the domestic box office will reach pre-Covid levels until 2024 the earliest and 2025 the latest.

“The box office is on a positive ramp, and if we have the ability to raise cash if we need to, I have no real fear,” said Adam Aron.

Analysts Are Now Predicting Big Growth for AMC Entertainment

Analyst firm Benchmark raised its growth estimates for AMC Entertainment Friday, citing better-than-expected domestic box office performance.

AMC will be reporting its fiscal first-quarter results before market open on May 5.

Benchmark now estimates that AMC will report first-quarter revenue of $912 million, up from its prior estimate of $831 million.

Analysts surveyed by FactSet are looking for first-quarter revenue of $930 million.

“Domestic box office exceeded our expectations,” Benchmark analyst Mike Hickey wrote in a note released Friday.

The analyst firm also raised its estimate for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to a loss of $37 million from its prior estimate of an $86 million loss.

Analysts surveyed by FactSet are looking for an EBITDA loss of $33 million.

Benchmark currently has a hold rating for AMC Entertainment.

Benchmark’s Hickey expects AMC to raise capital as soon as the settlement is resolved.

“We think AMC will immediately tap the capital markets on a successful transaction,” he wrote. “The capital raise would likely be used to provide relief to AMC’s significant net debt obligations.”

Related: Amazon and Apple Are Now Contributing Billions to Movie Industry

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AMC CEO Adam Aron Curses Mainstream Media

AMC CEO Adam Aron Curses Mainstream Media
Market News Daily: AMC CEO Adam Aron Curses Mainstream Media.

AMC Entertainment (NYSE:AMC) CEO Adam Aron has cursed two mainstream media outlets in the past week.

The CEO expressed his anger on Twitter as bigger media outlets continue to report misinformation about the movie theater chain company.

In March, Adam Aron put MarketWatch on the spotlight when it was reporting APE (NYSE:APE) at a 93.79 billion market cap.

“Market Watch currently showing 93.79 billion APEs outstanding. Clearly WRONG, wildly so. We are calling them now demanding this get corrected immediately. Also reviewing many other data sources to check for accuracy. So curse-word-here irresponsible that they publish false info,” said the CEO on Twitter.

Robinhood (NASDAQ:HOOD) and other brokerages were also reporting AMC Entertainment at a $417 billion market cap and even $421 billion market cap.

The CEO had no comments on Robinhood though users did report the broker eventually fixed AMC’s market cap.

But the latest misinformation by Benzinga really upset the CEO.

Last month, reports came out about Amazon considering the acquisition of AMC Entertainment.

Amazon insiders said these were real talks within the company but that neither party had any real offers on the table.

Here is where Benzinga messed up.

Benzinga Reports False Information about AMC

Benzinga AMC
Market News Daily: AMC CEO Adam Aron Curses Mainstream Media.

The media company was reporting on its website that AMC Entertainment was acquired by Amazon.com on Tuesday, March 28, 2023.

Benzinga later made the following statement:

“A Benzinga stock profile page inadvertently displayed information about AMC Entertainment and Amazon that originated from a rumor reported by another media outlet earlier this week.

The stock page should have noted the unconfirmed nature of the information and the language has been removed.”

But AMC’s CEO wasn’t content with the statement.

Adam Aron cursed the media outlet on social media stating the following:

“It is longstanding company policy not to comment on M&A rumors and speculation. Comment once, you have to do it always. But then comes along this DUCKING web site. Obviously the information highlighted in orange did not happen on March 28! #AreTheseDUCKERSjustDumbOrEvil

“Many 4-letter words rhyme with DUCK. Buck, Cuck, Huck, Luck, Muck, Puck, Suck, Tuck,Yuck. Can you think of any four letter word I forgot to include? To paraphrase the talented and always lively Samuel L. Jackson, “I am aghast and angry http://Benzinga.com, you Mother Duckers.”

The CEO later said, “the 2023 award for Dumbest Most Incompetent Web Site on the Planet goes to… http://Benzinga.com! While it issued a correction after we shamed them Sunday, I do not see an apology. But that doesn’t matter because we would not have accepted it. Shameful contemptible conduct!”

Apes Have Warned the CEO of Mainstream Media

In the past, apes have warned the CEO of mainstream media misconduct.

Now Adam Aron is getting a taste of what shareholders have been putting up with and reporting for years now.

For too long, the CEO neglected to acknowledge the manipulation of the media and other reports related to the company’s stock.

Perhaps this will lead AMC CEO Adam Aron to go down the rabbit hole of the injustices occurring in his company stock.

But I’m curious to know what you think.

Leave your thoughts below.

AMC Entertainment stock is down more than -22% on Tuesday.

[stock_market_widget type=”chart” template=”basic” color=”#5679FF” assets=”AMC” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” display_currency_symbol=”true” api=”yf”]

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Market News Today - Is Amazon buying AMC Entertainment?
Market News Today – AMC CEO Adam Aron Curses Mainstream Media.

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Robinhood Reports AMC at $417 Billion Market Cap

Robinhood is reporting AMC at a $417 billion market cap and more. CEO Adam Aron says they are reviewing sources to check for accuracy.
Market News Daily – Robinhood Reports AMC at $417 Billion Market Cap.

Robinhood (NASDAQ:HOOD) and other brokerages have been reporting AMC Entertainment (NYSE:AMC) at a $417 billion market cap and even $421 billion market cap.

This puts AMC Entertainment up with Facebook in terms of market cap, per the reportings.

Many shareholders have been sharing screenshots of what CEO Adam Aron believes to be discrepancies from these brokers.

The CEO said on Friday data sources are under review for accuracy after several sources, including MarketWatch, were reporting the company’s equity APE (NYSE:APE) of also having a 93.79 billion market cap.

Both AMC and APE are displaying what shareholders believe to be the true value of the securities.

Few skeptics have written off the data as simply ‘glitches’ from brokers.

AMC CEO Adam Aron has demonstrated displeasure towards these reports.

“Market Watch currently showing 93.79 billion APEs outstanding. Clearly WRONG, wildly so. We are calling them now demanding this get corrected immediately. Also reviewing many other data sources to check for accuracy. So curse-word-here irresponsible that they publish false info,” said the CEO on Twitter.

Adam Aron has previously shown a strong dislike for market manipulation talks, urging investors to focus on AMC’s fundamentals instead.

Some shareholders are rather confused by the CEOs reactions, who alleged people of possibly photoshopping their screenshots.

This has led shareholders to encourage Adam Aron to begin looking into the manipulation of AMC stock.

AMC FINRA and NYSE FTD Update

Earlier in March, Adam Aron announced that the company has contacted both FINRA and the NYSE to look closely at the trading of their stock.

“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.

Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”

But Adam Aron nor AMC have released a formal document confirming the claims reaching out to the NYSE or FINRA.

This has led some investors to speculate the announcement was aimed at getting shareholders to vote yes for the proposals that have now been passed.

Investors have not heard back on an update from the CEO on what FINRA or the NYSE had to say about the alarming number of FTDs, which are usually a clear sign of naked shorting, per Investopedia and Business Insider.

What we know is that AMC was removed from the NYSE Threshold Securities List shortly after Adam Aron’s announcement — the stock plunged shortly after.

This is contrary to what the SEC rules say is supposed to happen once a security is listed after 13 consecutive days.

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Market News Today - Robinhood Reports AMC at $417 Billion Market Cap.
Market News Today – Robinhood Reports AMC at $417 Billion Market Cap.

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AMC Stock: CEO is Tired of Manipulation Talks

Market News Daily: AMC CEO fatigued by manipulation talks.

AMC Entertainment (NYSE:AMC) CEO Adam Aron touches on billions of synthetic shares and market manipulation.

For years now, AMC shareholders have stuck to their convictions on a mother of all short squeezes (MOASS) due to the alarming amount of overleveraged shares out in the market that institutions still have to buy back.

AMC Entertainment stock has been shorted in the past by some of the biggest short sellers on Wall Street, though now they are playing both sides to hedge their bets.

Notorious short seller Citadel has a long history of market manipulation, Chairman Gary Gensler says more than 50% of trading goes through dark pools, and Patrick McConloguge, an ex-Citadel data scientist says the game is rigged and that rules are tailored to benefit hedge funds.

But AMC CEO Adam Aron says that is not the company’s problem, despite thousands of investors urging the company to take an activist role in lifting the suppression that keeps the stock price from rising.

Investors managed to raise AMC shares from $2 to $20, and from $5 to $72 per share — though halts and other forms of suppression limited how high the stock was allowed to go.

Shareholders have felt cheated ever since and have urged AMC’s CEO to take legal action against naked shorts like other CEOs are currently doing.

But AMC’s CEO has recently expressed a strong message towards the manipulation occurring in his company stock.

And quite frankly, the CEO expresses he’s tired of investors talking about it.

Let’s dive right into it.

AMC CEO on Billions of Synthetic Shares

AMC CEO Adam Aron on Synthetic Shares.
AMC CEO Adam Aron on Synthetic Shares.

In August 2022, just moments before the debut of AMC’s Preferred Equity, APE, Adam Aron released the following statement:

“Candidly, I’ve seen no evidence so-called fake or synthetic shares exist. But many of you disagree. This preferred equity dividend goes ONLY to company issued shares. So, it will have the impact of a “share count” or unique dividend many of you have sought.”

This alarmed many investors at the time with a few die-hard followers calling anyone who mentioned this news as ‘bot’, ‘shill’, or ‘fud’ — completely unnecessary of course but it paints the environment well.

Other Twitter influencers promised shareholders APE was the catalyst to an epic short squeeze but failed to explain the equity’s true purpose.

In other words, only a half-truth was being spread within the community which caused shareholders to hold even deeper losses.

A video surfaced on social media of Adam Aron speaking on market manipulation that has many investors somewhat divided — though it shouldn’t.

And I’ll explain why in a moment.

The CEO says, “guys, don’t believe everything you read on Twitter. Yes, it’s true that we have a lot of short sellers who have sold our shares short, but all that stuff that you read about market manipulation, and fail to delivers, and all this other stuff, there’s billions of synthetic shares out there — that’s not our problem.”

Adam Aron said on Twitter the company had reached out to the NYSE and FINRA to look into the high number of FTDs but failed to provide any sort of letter confirming the claims.

Shareholders are confused to say the least with what the CEO had to say during one of his events.

Is the CEO is experiencing fear, uncertainty, and doubt?

In another video, the CEO can be heard telling a shareholder, “You don’t know what you’re talking about. You’re just wrong. You’re just wrong across the board. There are no synthetic shares.”

Despite not being one of the most peppy AMC updates, it sure is something worth raising awareness about.

What the CEO says and what you have seen are going to reinforce your conviction or lack thereof.

However, there are always two sides to a coin.

In the full video, you can also hear the CEO state that essentially running the company fundamentally is more important than the manipulation happening in the company stock.

The clips are rubbing many investors the wrong way but shouldn’t be take completely out of context.

Still, investors feel the CEO should not discuss market injustices if he’s not willing to tackle them.

Why is This Important?

Market News Daily: Adam Aron tired of market manipulation talks.
Market News Daily: Adam Aron tired of market manipulation talks.

There are millions of investors out there who have witnessed the market manipulation single handedly for years and now they’re being told it’s not important — or rather it doesn’t exist, when real data, reports, and whistleblowers have stated otherwise.

Though the CEOs controversial statements might have investors divided, it shouldn’t.

In the end, a shareholder is a shareholder and everyone has a choice to make based on what’s happening in the market and with the company.

Some shareholders are indifferent, simply waiting to collect profits when shorts start closing their positions.

AMC’s short interest is still high at 23.60%.

The short interest was lower when AMC shares ran up to its all-time high of $72 per share in 2021.

Time will tell where AMC’s share price goes from here on out.

What do you make of AMC’s CEO’s thoughts on the manipulation?

Was this the proper way to address shareholders and the community who have been fighting for change in the financial system?

Out of the market injustices that have occurred ever since the ‘meme stock’ frenzy, ‘We The Investors’ has established a legitimate voice for the retail community and has been able to speak to Chairman Gary Gensler on concerns and issues investors are currently facing.

We’ve also been able to raise enough awareness to bring certain issues to light by bigger media outlets, ensuring your voice is heard.

Leave your thoughts below.

Originally published on March 15, 2023.

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Market News Today - AMC CEO Fed Up with Manipulation Talks
Market News Today – AMC CEO tired of Manipulation Talks.

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AMC Stock: SEC Violates 13-Day Threshold List Rule

Market News Daily: SEC violates 13-day threshold list rule - AMC Stock.
Market News Daily: SEC violates 13-day threshold list rule – AMC Stock.

AMC Entertainment (NYSE:AMC) stock has now spent more than 25 trading days on the Threshold Securities List.

This means the SEC (Securities and Exchange Commission) is in direct violation of the 13-day threshold rule.

What is the 13-day threshold rule?

A broker-dealer with fail-to-deliver positions for 13 consecutive settlement days must immediately close out the ‘FTD’ position by purchasing shares in the open market.

There has been no ‘buy’ back of these AMC FTDs nor have we seen the company get removed from the NYSE Threshold Securities List.

AMC FTDs spiked up to more than $36 million in FTDs last month, through the report is still in the process of updating via T+35.

Last week, AMC Entertainment CEO said he asked FINRA and the NYSE to look closely at their stock due to the amounting FTDs.

“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.

Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”

AMC Stock:  SEC violates 13-day threshold list rule.
AMC Stock: SEC violates 13-day threshold list rule.

A buyback of shares in the lit market would result in price action driving share prices up.

In the past month, AMC stock has fallen by nearly -15%.

What are FTDs?

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.

Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.

According to Investopedia, AMC failure-to-delivers can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

Is the SEC Complicit in Market Injustices?

According to Patrick McConlogue, an ex-Citadel Data Scientist, rules tend to heavily favor hedge funds over the average investor.

Known for exposing Citadel during the ‘meme stock’ frenzy, Patrick says “the game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game.”

Many investors refuse to believe that FINRA or the NYSE will attend to AMC’s CEO Adam Aron in regard to the violation of the 13-day threshold rule.

These institutions have more power than the SEC themselves, how could these rules be enforced?

AMC shareholders are demanding a formal letter from the CEO showing proof of contact with our regulators.

No update since the initial announcement has been made public so far.

Related: Credit Suisse Warns Investors of Naked Short Covering

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AMC Stock:  SEC violates 13-day threshold list rule.
AMC Stock: SEC violates 13-day threshold list rule.

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AMC Demands FINRA to Look at Skyrocketing FTDs

Market News Daily: AMC Demands FINRA and NYSE Look into Stock.
Market News Daily: AMC Demands FINRA and NYSE Look into Stock.

AMC Entertainment (NYSE:AMC) CEO announced that the company has contacted both FINRA and the NYSE to look closely at the trading of their stock.

“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.

Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”

AMC failure-to-delivers (FTDs) have been begun to rise again.

FTDs topped 6.8 million in February (non-cumulative), amounting to more than $36 million in failed to close orders.

The data is still being reported which means there’s a possibility we may see higher FTDs once February’s entire month has been processed.

AMC Entertainment demands FINRA and NYSE to look into FTDs.
AMC Entertainment demands FINRA and NYSE to look into FTDs.

Now AMC’s CEO Adam Aron is demanding FINRA and the NYSE to look into the company’s alarming FTDs.

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.

Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.

According to Investopedia, AMC failure-to-delivers can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

Investors say there’s a major conflict of interest when Citadel Clearing LLC processes retail orders worldwide.

Adam Aron Demands FINRA and NYSE Look into AMC Stock

AMC Demands FINRA to Look at Skyrocketing FTDs
Market News Daily: AMC Demands FINRA to Look at Skyrocketing FTDs.

Ever since the Genius Group (GNS) CEO Roger Hamilton publicly began calling out short sellers and #NakedShorts, AMC shareholders have been hoping for Adam Aron to also join the fight.

While Adam Aron may be binded to what he can and cannot say, this is the closes we’ve see the CEO to join shareholders in an activist role.

The CEO has been criticized for not speaking out on market injustices, even after skyrocketing reports of FTDs in the company stock.

And although the CEO has said in the past he has never seen any signs of ‘synthetic shares’ floating around, today’s news requesting FINRA and the NYSE to look into the company stock is a massive win for activist investors.

There is no longer denial, now there is acceptance of an important part of market structure that must be thoroughly investigated by our regulators.

But I’m curious to know how you feel about this investigation.

Do you think this will lead Adam Aron to dive into the rabbit hole?

Do you applaud the CEO for taking this unexpected approach?

Leave your thoughts in the comment section down below.

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Market News Today - AMC Demands FINRA to Look at Skyrocketing FTDs
Market News Today – AMC Demands FINRA to Look at Skyrocketing FTDs.

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AMC CEO Adam Aron Hints at Destroying Short Thesis

Market News Daily: AMC Entertainment CEO hints at destroying Wall Street short thesis.
Market News Daily: AMC Entertainment CEO Adam Aron hints at destroying Wall Street short thesis.

AMC Entertainment (NYSE:AMC) CEO Adam Aron just hinted at destroying the short thesis.

The movie theatre chain has been under attack by short sellers since before the pandemic.

However, short sellers saw an opportunity when the world’s largest movie theatre chain closed its doors in 2020 due to the pandemic lockdowns.

Adam Aron says the company went from earning millions per month to $0 overnight during the wake of the Coronavirus pandemic.

When retail investors found how high the short interest data in AMC was, they piled up to squeeze short sellers from their positions by purchasing shares of the movie theater chain en masse.

At first, investors were able to drive AMC’s stock price to $20 in January.

Then, shareholders saw AMC stock hit an all-time high of $72 per share in June.

Since then, low borrow fees have made it easier for short sellers to bring the stock back down.

But now that short borrow fees have skyrocketed, retail investors have clearer runway to squeeze short sellers again.

Adam Aron on an AMC Short Squeeze

Adam Aron AMC Short Squeeze
AMC Entertainment CEO Adam Aron hints at destroying Wall Street short thesis.

AMC CEO Adam Aron has said in the past that to his personal knowledge, there are no synthetic AMC shares (naked shares used to illegally drive the price of a share down).

Genius Group (GNS) CEO Roger Hamilton, who is leading a group of CEOs to take legal action against short sellers and toxic lenders has reached out to Adam Aron in efforts to fight market injustices.

“It may boil down to this. Many of you are frustrated, strongly urging us to address market forces that you are convinced are unfair. We continuously think about what actions would be wise and CREDIBLE. Certainly good ideas: Build up our cash reserves and smartly lead AMC forward,” said Adam Aron on Twitter.

Some investors believe AMC’s debt covenants are restricting the CEO from speaking publicly about the short seller stock manipulation happening with AMC since the lenders themselves are short on AMC Entertainment stock.

Debt covenants are restrictions that lenders (creditors, debt holders, investors) put on lending agreements to limit the actions of the borrower (debtor), AMC Entertainment.

In other words, debt covenants are agreements between a company (AMC) and its lenders (Citi, Goldman, Credit Suisse) that the company will operate within certain rules set by the lenders.

Should a borrower violate a covenant, such as not maintaining a certain interest coverage ratio or engaging in unpermitted business activities, it may constitute a loan default, per The Balance.

Destroying the Short Thesis

On Twitter, Adam Aron responded directly to a user regarding AMC’s short thesis.

The user said, “Shorts attack companies they feel they can destroy. If you become a successful company you destroy a short’s thesis hence no logical reason to continue shorting. This is @CEOAdam strategy and the only strategy that has ever worked in the history of the market! #AMC#AMCSqueeze.”

To which the CEO answered:

“Joe, you nailed it. I could not have put it better myself”.

Adam Aron has made it clear that his way to tackle the short thesis is strictly through a fundamental process and strategy.

Some investors argue that he could tackle the short thesis both through fundamentals and legal action.

But as Roger Hamilton has stated, it might be best for a company to get their finances in order before proceeding with such a task.

Do you believe AMC Entertainment will end the short thesis once and for all?

Leave your thoughts in the comment section below.

Related: AMC Failure-to-Delivers Are Skyrocketing Through the Roof

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Market News Today - AMC Stock News Today
Market News Today – AMC Stock News Today.

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Adam Aron Urges Retail to Vote ‘Yes’ for Dilution

Market News Today: AMC CEO Adam Aron is urging shareholders to vote 'yes' to dilution.
Market News Today: AMC CEO Adam Aron is urging shareholders to vote ‘yes’ to dilution.

AMC Entertainment Holdings Inc. (NYSE:AMC) CEO Adam Aron is urging shareholders to vote ‘yes’ on the proposals during the next shareholder meeting, one being dilution.

“A link to the proxy filed with the SEC on our March 14 shareholder meeting. AMC’s Board & I strongly believe the proposals are crucial for AMC’s future. We unanimously recommend that you #VoteYesAMC. They are in the best interest of AMC & our shareholders,” said Adam Aron on Twitter.

The first proposal would dilute the stock by increasing the number of shares from 524,173,073 to 550,000,000.

Many shareholders are on board with doing what the company says is necessary to move forward in 2023.

Diluting the stock could help AMC Entertainment raise more cash for example.

Other shareholders want to know from the CEO how the company plans to utilize this capital, though only very little is known; debt has been AMC’s primary focus to tackle.

AMC Shareholder Meeting Proposals

AMC shareholder meeting
AMC stock dilution news.

Below are the three proposals being presented for AMC’s shareholder meeting.

Proposal 1

Proposal No. 1: To approve an amendment to our Third Amended and Restated Certificate of Incorporation (our “Certificate of Incorporation”) to increase the total number of authorized shares of Common Stock from 524,173,073 shares of Common Stock to 550,000,000 shares of Common Stock (the “Share Increase Proposal”);

This proposal will dilute AMC Entertainment stock, but it’s essential for the company’s growth whether shareholders like it or not.

Voting ‘no’ on proposal 1 could stunt the company’s capabilities to raise cash short-term.

Voting ‘yes’ will allow the company to raise capital to stay afloat, though it means AMC’s share price may plummet as a result.

This is why the second proposal will offset the share price without affecting the value of shareholder’s portfolios.

Proposal 2

Proposal No. 2: To approve an amendment to our Certificate of Incorporation to effectuate a reverse stock split at a ratio of one share of Common Stock for every ten shares of Common Stock, which together with the Share Increase Proposal, shall permit the full conversion of all outstanding shares of Series A Preferred Stock into shares of Common Stock (the “Reverse Split Proposal” and collectively with the Authorized Share Increase Proposal, the “Charter Amendment Proposals”);

A 1-for-10 reverse stock split will decrease the number of shares investors hold while raising AMC’s share price by 10x.

Shareholder who own 10 shares of AMC will own 1 share of AMC priced at $50 instead of owning 10 shares priced at $5 per share.

The value won’t change, but the number of shares and share price will.

A higher share price buys AMC Entertainment time.

Proposal 3

Proposal No. 3: To approve one or more adjournments of the Special Meeting, if necessary, to permit further solicitation of proxies if there are not sufficient votes at the time of the Special Meeting to approve and adopt the Charter Amendment Proposals (the “Adjournment Proposal”).

This gives AMC the right to approve these proposals should there not be sufficient votes.

Related: Adam Aron Says AMC Critics Are Fundamentally Wrong

APE Conversion to AMC Stock

Market News Today - APE conversion to AMC stock.
Market News Today – APE conversion to AMC stock – Adam Aron urges retail to vote yes to dilution.

For APE share to convert into AMC stock, shareholders will need to vote ‘yes’ on both the first and second proposals.

Here’s a statement from the company’s filing:

In order to effect the conversion of APEs into Common Stock, stockholders must approve BOTH the Share Increase Proposal and the Reverse Split Proposal. The Share Increase Proposal alone will not create sufficient authorized Common Stock, without the Reverse Split Proposal, to enable the conversion to occur. Nor will the Reverse Split Proposal alone satisfy the terms of the Series A Preferred Stock to enable the conversion to occur.

AMC shareholders will be receiving a proxy link from their brokers where they will be able to cast their votes on all three proposals.

What are your thoughts on these proposals?

Leave a comment down below.

Source: Proxy statement.

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Market News Today – AMC stock dilution, APE conversion to AMC stock + more.

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Adam Aron Says AMC Critics Are Fundamentally Wrong

Market News: AMC CEO Adam Aron pushes back.
Market News: AMC CEO Adam Aron pushes back.

AMC Entertainment Holdings Inc., (NYSE:AMC) CEO Adam Aron said so-called ‘experts’ thinking streaming dooms movie theatres are so fundamentally incorrect.

“So WRONG. Our problem is major studios released a lot fewer movies in 2021 & 2022 than in pre-pandemic years,” said the CEO.

Wall Street continues to push the short thesis on AMC, failing to acknowledge the fundamental growth of the company over the past two years.

Retail investors say overleveraged short sellers won’t give in even after the company begins to generate positive cash flow.

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AMC Entertainment currently has -$218.88 million in ‘free cash flow’ with at least $2 billion in debt.

The company has been able to reduce its debt with the sale of APE and raise cash through the equity too.

Recently, the company launched its online merchandise store and plans to launch its first credit card and branded popcorn retail business this quarter.

These are just a few of the efforts the company is making to increase its revenue.

Developments Pushing the Movie Industry Forward

Market News Today: Developments in the movie theatre industry.
Market News Today: Developments in the movie theatre industry.

Amazon is planning 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.”

Also Read: Goldman Says Bigger Short Squeezes Coming Since Meme Stock Frenzy

Streaming Didn’t Kill Movie Theatres

On the contrary, streaming platforms are beginning to figure out that they need movie theatres even as popularity in streaming has grown.

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.

Netflix’s showing of Glass Onion in movie theaters cost the streaming service $200 million for taking it out too early.

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.

Disney’s Bob Igor on Streaming and Movie Theatre Industry

“The streaming business, which I believe is the future and has been growing, is not delivering basically the kind of profitability or bottom line results that the linear business delivered for us over a few decades,” Iger said.

In the interim, Disney hopes to cushion that short fall by continuing to rely on traditional forms of distribution, releasing movies on the big screen, where it recently scored blockbuster successes with “Avatar: The Way of Water” and “Black Panther: Wakanda Forever”.

Related: Naked Shorting: Roger Hamilton Reaches Out to AMC CEO

Market News Published Daily

For more stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

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