Will Shareholder value recover after AMC Entertainment’s (NYSE:AMC) newly approved proposals?
Shareholder value has dropped significantly and now investors are looking at CEO Adam Aron and other anonymous social media influencers for answers, but especially at our regulators.
AMC stock fell nearly -11% on Monday and is currently down more than -59% following the 1-for-10 reverse stock split and APE conversion.
Last week, Wedbush upgraded AMC Entertainment from ‘underperform’ to ‘neutral’ with analysts currently looking at a 17.98% upside, Nasdaq reported.
However, AMC stock has only fallen to all-time lows — many shareholders continue to voice concerns surrounding the suppression of the movie theatre stock and conclude some type of fraud is at play.
In the past month, we’ve seen a series of events that have led to rather alarming signals from the market, one being the number of days AMC has been on the NYSE Threshold Securities List.
As of Friday, AMC has now been on the threshold list for 45 consecutive days.
No signs of regulation from the SEC has been spotted — the major sign being a purchasing of shares in the market after 13-consecutive days being listed, which the SEC has now violated.
“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’.
Will shareholder value recover after AMC’s newly approved proposals? Unless investors are able to drive enough momentum to trigger short sellers to close, as seen in 2021, it’s a flip of a coin.
But I’m curious to hear what you think, leave a comment down below.
Also Read: What New MULN and BBIG Reverse Splits Have Taught Us
Latest AMC Stock News and Updates Today
Financial analytics firm Ortex is now reporting a massive drop in AMC short interest, an indication that short sellers have closed their positions. Is this a mistake on their end?
The drop represents a -47.65% decline in short interest with figures such as utilization also dropping another -42.48% according to the firm’s data.
On social media, AMC investors argue that the data is not accurate.
Here’s what Ortex says about its short interest data:
“In the US, stock exchanges only publish short interest data twice a month and this data is also delayed by eight trading days, leaving investors in the dark regarding daily short selling activity.
In addition, in Europe, financial institutions are only required to flag to the local regulator whenever they go over or back under certain thresholds.
This provides valuable and timely additional data but only on positions above the reporting threshold.
ORTEX add these flags intra-day as soon as the regulator publishes them, aggregates an institution’s overall current short position and lists all the latest flags so users get an accurate idea of latest sentiment.
ORTEX Short interest data is sourced from the world’s largest combined pool (over 700k pools of liquidity) of Agent Lenders, Prime Brokers, and Broker-Dealers who submit their inventory.
As the US exchange data is delayed ORTEX fills this void with daily up‑to‑date information from the global securities finance market and enables users to gauge changes in investor sentiment.
This data is updated by 7.30am EST each day with current stock borrows, meaning you won’t find more timely or accurate data.
ORTEX looks at the number of shares being borrowed, because you need to borrow a stock in order to short it.
In addition to seeing how many shares are out on loan (both as the actual numbers of shares, as a percentage of free-float and as a ratio of average volume (DTC)), this dataset also shows the average interest rate for current loans (Cost to Borrow) as well as the utilization.
Utilization shows how many percent of the lendable shares are currently lent out.”
Also Read: Everything You Need to Know About an AMC Short Squeeze
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