Tag: AMC News (Page 1 of 29)

New Report: August Saw Whopping $129 Million in AMC FTDs

Market News Today - New Report: August Saw Whopping $129 Million in AMC FTDs.
Market News Today – New Report: August Saw Whopping $129 Million in AMC FTDs.

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.

AMC FTDs Latest Report.
AMC FTDs Latest Report.

“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

Market News Today - New Report: August Saw Whopping $129 Million in AMC FTDs.
Market News Today – New Report: August Saw Whopping $129 Million in AMC FTDs.

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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Market News Today - New Report: August Saw Whopping $129 Million in AMC FTDs.
Market News Today – New Report: August Saw Whopping $129 Million in AMC FTDs.

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AMC Just Raised $325 Million in Brand New Equity

Market News Today - AMC Just Raised $325 Million in Brand New Equity.
Market News Today – AMC Just Raised $325 Million in Brand New Equity.

AMC Entertainment (NYSE:AMC) just raised $325 million in brand new equity according to the company’s latest report.

The company announced late Wednesday that it has completed its previously disclosed at-the-market (“ATM”) equity offering launched on September 6, 2023. AMC raised approximately $325.5 million of new equity capital through the sale of 40 million shares, before commissions and fees, at an average price of approximately $8.14 per share.

“The Company intends to use the net proceeds, if any, from the sale of the Common Stock pursuant to the Equity Distribution Agreement to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness (including expenses, accrued interest and premium, if any) and for general corporate purposes.”

Hedge fund CEO Bruce Richards said his team anticipated AMC Entertainment to raise as much as $8 billion with $1 billion being more probable, though it was far from it.

The company stock is up more than +3% on Thursday and nearly +7% in the past five trading days.

“The completion of this ATM equity offering significantly boosts AMC’s cash reserves, addresses current liquidity concerns, and fortifies the balance sheet.

When coupled with the third quarter to-date 39% surge in industry box office compared to the same period last year and the record-breaking success of the highly anticipated TAYLOR SWIFT THE ERAS TOUR concert film, the proceeds from the ATM equity offering allow AMC to continue along its successful recovery glidepath through changing market dynamics, including the ongoing strikes by writers and actors, and capitalize on opportunities to further strengthen its balance sheet,” said the company.

Commenting on the capital raise, AMC President and CEO Adam Aron said, “The successful completion of this equity offering marks another significant milestone for AMC.

Raising more than $325 million in gross proceeds has bolstered our ability to survive and then thrive.

As we navigate the recovery phase of our industry, this infusion of capital provides us with flexibility to assist us in navigating the waters ahead and continue delivering the magic of movies to our guests.”

Other Comments From CEO Adam Aron

Market News Today - AMC Just Raised $325 Million in Brand New Equity.
Market News Today – AMC Just Raised $325 Million in Brand New Equity.

“I am delighted to share this extremely important news with all of you.

AMC has successfully raised $325 million of new equity capital through the issuance of 40 million shares via our at-the-market equity raise, which started September 6 and which now has been completed.

This material increase to our cash position means that any talk of immediate and imminent financial collapse right now by AMC is moot.  

We still have many challenges, including Hollywood must resolve the current actors and writers strikes.

But regardless, AMC is now a much stronger company given our increased level of cash.  

Like you, the coming together of AMC common and preferred stock along with the reverse stock split in August decreased both my number of owned and granted-but-unvested AMC shares/units.

So, I currently have an economic interest in more than 800,000 AMC shares now, rather than the more than 8 million AMC shares and APE units previously.   

In turn, that means I personally experienced the great pain felt by all AMC shareholders at the recent decline in our stock price.   

Looking though to our clearly having extended AMC’s viability, it is comforting to know that AMC has strengthened our company by so significantly increasing our cash on hand,” Adam Aron said on Twitter.

Also Read: AMC Short Interest Has Now Begun to Increase Again

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Market News Today - AMC Just Raised $325 Million in Brand New Equity.
Market News Today – AMC Just Raised $325 Million in Brand New Equity.

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AMC Short Interest Has Now Begun to Increase Again

Market News Today - AMC Short Interest Has Now Begun to Increase Again.
Market News Today – AMC Short Interest Has Now Begun to Increase Again.

AMC short interest has now begun to increase again after it had significantly dropped following the company’s approved proposals.

Shares of the movie theatre company have now fallen to a 52-week low despite bullish investor sentiment.

On Tuesday, AMC short interest was reported at 11.52% — however, short interest increased to 16.74% on Wednesday, indicating new short positions.

Short squeeze score also rose from 70 to 73 on Wednesday.

According to Ortex, ‘Short Score’ uses a multi-factor model that incorporates multiple short-related metrics, with a higher score indicating that the stock is heavily-shorted and has other characteristics that increase the possibility of a short squeeze occurring.

AMC’s short score had peaked at 95 back in July prior to AMC’s dilutive proposals.

Will AMC Entertainment have a chance at squeezing again?

Well, that will depend on whether investors are able to conjure up massive buying momentum like they did during the ‘meme stock’ frenzy of 2021.

The short interest is coming back up now, which indicates short sellers are certainly there.

Squeezing them out would require price action to move up, but this would require loads of buying pressure.

Investors are questioning how AMC’s short interest dropped so low without seeing any major price action like in 2021 when shares spiked to all-time highs.

Now many, though not all, are looking at AMC CEO Adam Aron for answers, urging the CEO to look into the possibility of foul play in the market.

Here are the latest developments happening with AMC Entertainment.

Also Read: More Than 50% of AMC Stock is Now Trading Off Exchange This Month

AMC Will Now Raise Cash To Pay Down Debt

Market News Today - AMC Short Interest Has Now Begun to Increase Again.
Market News Today – AMC Short Interest Has Now Begun to Increase Again.

AMC Entertainment announced last week that it has entered a new agreement with Citigroup, Barclays, B Riley Securities, and Goldman Sachs to periodically sell shares.

“The Company intends to use the net proceeds, if any, from the sale of the Common Stock pursuant to the Equity Distribution Agreement to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness (including expenses, accrued interest and premium, if any) and for general corporate purposes.”

AMC will now sell up to 40,000,000 shares to raise money according to the latest SEC filing.

Each Sales Agent will receive compensation of up to 2.5% of the gross sales price of the Common Stock sold through it as a Sales Agent under the Equity Distribution Agreement, and the Company has agreed to reimburse the Sales Agents for certain specified expenses.

The Company has also agreed to provide the Sales Agents with customary indemnification and contribution rights.

The Company is not obligated to sell any Common Stock under the Equity Distribution Agreement and may at any time suspend solicitation and offers under the Equity Distribution Agreement.

The Equity Distribution Agreement may be terminated by the Company at any time by giving written notice to the Sales Agents for any reason or by each Sales Agent at any time, with respect to such Sales Agent only, by giving written notice to the Company for any reason,” says the filing.

“The Company intends to use the net proceeds, if any, from the sale of the Common Stock pursuant to the Equity Distribution Agreement to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness (including expenses, accrued interest and premium, if any) and for general corporate purposes.”

Also Read: Here Is The Latest AMC Stock Price Prediction From Analysts

Is AMC Entertainment Recovering?

AMC Stock News Today - Franknez.com.
AMC Stock News Today – Franknez.com.

The SEC filing comes after AMC announced the upcoming film centered around Taylor Swift’s concert tour, Taylor Swift | The Eras Tour, which earned $26 million dollars in advance ticket sales less than three hours after tickets first went on sale.

“AMC is still recovering from the Covid-19 pandemic which temporarily shuttered most theaters across the country and shifts in the industry with more films going directly to streaming.

However, the movie industry recently saw the fourth largest box office weekend in U.S. history with the blockbuster releases of Barbie and Oppenheimer“, says Forbes.

AMC has not announced a timeline for when this offering could begin.

However, the company said it plans to use the proceeds of the stock sale to pay down its debt.

In recent news, Wedbush upgraded AMC Entertainment from ‘underperform’ to ‘neutral’ with analysts currently looking at a 17.98% upside, Nasdaq reports.

Investor sentiment at the moment remains quite strong, even if shares of the company have fallen.

Fundamentals have now become more important than ever to shareholders, as it seems to be the key to eliminating the Wall Street short thesis.

But I’m curious to know your thoughts – is AMC Entertainment still the play of the decade?

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Market News Today - AMC Short Interest Has Now Begun to Increase Again.
Market News Today – AMC Short Interest Has Now Begun to Increase Again.

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Will Shareholder Value Recover After AMC’s New Proposals?

Market News Daily - Will Shareholder Value Recover After AMC's New Proposals?
Market News Daily – Will Shareholder Value Recover After AMC’s New Proposals?

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

Market News Daily - Will Shareholder Value Recover After AMC's New Proposals?
Market News Daily – Will Shareholder Value Recover After AMC’s New Proposals?

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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Market News Today - Will Shareholder Value Recover After AMC's New Proposals?
Market News Today – Will Shareholder Value Recover After AMC’s New Proposals?

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Ortex Now Reports A Massive Drop in AMC Short Interest

Market News Daily - Ortex Now Reports A Massive Drop in AMC Short Interest.
Market News Daily – Ortex Now Reports A Massive Drop in AMC Short Interest.

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

Why Did Short Interest Drop in AMC?

Market News Daily - Ortex Now Reports A Massive Drop in AMC Short Interest.
Market News Daily – Ortex Now Reports A Massive Drop in AMC Short Interest.

According to Investopedia, short interest is often an indicator of current market sentiment.

An increase in short interest often signals that investors have become more bearish, while a decrease in short interest signals that they have become more bullish.

So, does this mean we might see AMC Entertainment stock finally skyrocket like it did in 2021?

“Changes in short interest, and even extremes, may not lead to significant price changes in a timely fashion.

A stock can stay at an extreme reading for long periods or a major price decline.

A short squeeze occurs when a high number of short sellers attempt to cut their losses and exit their short positions by purchasing their borrowed shares due to panic about potential losses.

Also, a short squeeze often occurs if a stock price rises,” per Investopedia.

Hedge fund CEO Bruce Richards now says he’s ‘super bullish’ on AMC following its APE conversion.

However, AMC stock has fallen more than -57% in the past week alone and is currently down more than -66% this year-to-date.

AMC shareholders allege crime is suppressing shares of the movie theatre company from rising.

But what do you think? Will we see a reversal towards the upside soon? Is a letter to shareholders urgent now more than ever? Leave your thoughts below.

Also Read: AMC Stock: The SEC Has Now Violated Threshold Rule

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Market News Today - Ortex Now Reports A Massive Drop in AMC Short Interest.
Market News Today – Ortex Now Reports A Massive Drop in AMC Short Interest.

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Will APE Now Trigger an AMC Short Squeeze Soon?

Market News Daily - Will APE Now Trigger an AMC Short Squeeze Soon?
Market News Daily – Will APE Now Trigger an AMC Short Squeeze Soon?

Will APE now trigger an AMC short squeeze soon? The Street says an AMC short squeeze is now more likely to occur due to rising retail demand.

On Wednesday, AMC’s volume skyrocketed to 197 million while APE’s volume followed suit, surging past 134 million.

AMC stock fell more than -23% while APE stock fell nearly -8% intraday despite this massive spike in trading volume.

Another reason the former Jim Cramer-owned media site says an AMC short squeeze is likely is due to the incredibly high cost to borrow.

AMC’s max cost to borrow has reached upwards of 1,006%, per Ortex data.

Similarly, S3 Partners, a financial analytics firm has also reiterated this same thesis.

“Although the threat of significant share dilution is obviously bearish, the upshot on AMC’s share price is still hard to guess.

With borrowing fees closing in on 1000%, any upward trend in AMC’s price could spell disaster for bears.

Given the tremendous short pressure on AMC and the tremendous attention the stock is receiving from retail traders, high volatility and high trading volume are to be expected.

Placing a short bet on AMC may seem perfectly logical given the upcoming APE conversion, but shorts have been burned many times betting against this retail favorite, reports The Street.

Will AMC squeeze after the APE conversion? I’d love to hear your thesis.

Recently two institutions have purchased shares of AMC stock prior to its approved conversion.

Hedge fund CEO Bruce Richards also says he’s ‘super bullish’ on AMC’s new APE conversion.

In the end, whether or not investors manage to trigger a short squeeze, AMC Entertainment will benefit from raising billions in cash.

According to CEO Adam Aron, the only way to eliminate the Wall Street short thesis is by improving the company’s fundamentals.

Also Read: The SEC Approves New Disclosures From Big Hedge Funds

AMC Speaks on Short Sellers Covering Prior to New Conversion

Market News Daily - Will APE Now Trigger an AMC Short Squeeze Soon?
Market News Daily – Will APE Now Trigger an AMC Short Squeeze Soon?

Last week, AMC Entertainment published a statement to shareholders relating to short sellers closing prior to the new APE conversion.

Will short sellers be required to cover their positions before the Reverse Stock Split and Conversion?

According to AMC’s new 8-K filing, AMC expects that the deliveries under stock borrowing arrangements will be adjusted in the regular way to account for the Reverse Stock Split or, in the case of contracts on APEs, the Conversion.

However, AMC states that it “does not determine and is unable to provide interpretive advice on the impact of these events on the contractual terms governing stock borrowing arrangements.”

How will short sellers be affected by the Litigation Settlement Payment?

“AMC does not determine and is unable to provide interpretive advice on the impact of the Litigation Settlement Payment on the contractual terms
governing stock borrowing arrangements.”

AMC’s reverse stock split will go into effect on Thursday, August 24.

The conversion of APE shares into AMC common stock will occur the following day, Friday August 25.

The litigation settlement will then take place on Monday, August 28.

Will there be large failure-to-deliver (“FTDs”) like when the APE was distributed?

AMC Entertainment states that while they cannot predict the trading impact of these corporate events, given the significant transactions that will occur over successive trading days, it is possible there will be large FTDs like when the APE was distributed.

What do you think will occur upon converting? Leave your thoughts below.

[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 - Will APE Now Trigger an AMC Short Squeeze Soon?
Market News Today – Will APE Now Trigger an AMC Short Squeeze Soon?

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AMC’s New Conversion to Now Proceed After Rejected Appeal

Market News Daily - AMC's New Conversion to Now Proceed After Rejected Appeal.
Market News Daily – AMC’s New Conversion to Now Proceed After Rejected Appeal.

AMC Entertainment’s (NYSE:AMC) new conversion may now proceed after a court rejected an appeal to halt the company’s proposal.

Last week, AMC Entertainment was hit with a new lawsuit following its approved settlement after months of dealing with litigation.

CNBC reported that a holder of APEs said in the lawsuit, which was filed late on Monday but hit the public docket on Tuesday of last week, that APEs investors are being shortchanged in the settlement that was approved the week prior.

However, the Delaware Supreme Court rejected the request to halt the plan pending the appeal.

It’s “unclear how long impediments to AMC’s ability to raise capital would continue if the status quo were preserved pending appeal,” the court said Monday in an en banc order signed by Chief Justice Collins Seitz Jr, Bloomberg Law reports.

“And finally, the Objector has identified issues for appeal that can be decided post-closing without risking the serious harm that AMC might suffer if settlement approval is delayed.

Under these circumstances, a status quo order pending appeal is not warranted.

How, therefore, it is ordered that the motion for a status quo order pending appeal is DENIED,” the filing concluded.

AMC stock fell more than -23% on Monday while APE stock fell an additional -6%.

Hedge fund CEO Bruce Richards now says he’s ‘super bullish’ on AMC’s new APE conversion as the proposed rule is expected to go into effect this coming Thursday.

Richards is rather enthusiastic about AMC Entertainment’s ability to raise as much as $8 billion, though he states his team thinks $1 billion to $2 billion is more realistic.

“I wouldn’t worry about the writers strike, and the box office numbers look like record numbers to us, and greater than pre-covid number, in terms of revenue, so, we’re super bullish, but think about that,” he told CNBC last week.

Also Read: Two Institutional Investors Have Now Increased Positions in AMC

AMC Speaks on Short Sellers Covering Prior to New Conversion

Market News Daily - AMC's New Conversion to Now Proceed After Rejected Appeal.
Market News Daily – AMC’s New Conversion to Now Proceed After Rejected Appeal.

AMC Entertainment is answering questions on short sellers covering prior to its newly approved conversion proposal.

Will short sellers be required to cover their positions before the Reverse Stock Split and Conversion?

According to AMC’s new 8-K filing, AMC expects that the deliveries under stock borrowing arrangements will be adjusted in the regular way to account for the Reverse Stock Split or, in the case of contracts on APEs, the Conversion.

However, AMC states that it “does not determine and is unable to provide interpretive advice on the impact of these events on the contractual terms governing stock borrowing arrangements.”

How will short sellers be affected by the Litigation Settlement Payment?

“AMC does not determine and is unable to provide interpretive advice on the impact of the Litigation Settlement Payment on the contractual terms
governing stock borrowing arrangements.”

AMC’s reverse stock split will go into effect on Thursday, August 24.

The conversion of APE shares into AMC common stock will occur the following day, Friday August 25.

The litigation settlement will then take place on Monday, August 28.

Will there be large failure-to-deliver (“FTDs”) like when the APE was distributed?

AMC Entertainment states that while they cannot predict the trading impact of these corporate events, given the significant transactions that will occur over successive trading days, it is possible there will be large FTDs like when the APE was distributed.

Also Read: Goldman Sachs Gives AMC a New Price Target of $175

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Market News Today - AMC's New Conversion to Now Proceed After Rejected Appeal.
Market News Today – AMC’s New Conversion to Now Proceed After Rejected Appeal.

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New Report: July Has Now Seen $60,000,000 in AMC FTDs

Market News Daily - New Report: July Has Now Seen $60,000,000 in AMC FTDs.
Market News Daily – New Report: July Has Now Seen $60,000,000 in AMC FTDs.

The latest report issued by Stocksera shows July saw a massive spike in AMC FTDs amounting to more than $60,000,000.

On Tuesday, July 11th, AMC fails-to-deliver hit a record high of $60,019,141, or approximately 14,155,458 total FTDs that day.

While July’s full report is still updating, we can see that the month carried out an average of 12 million AMC FTDs per day.

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.

AMC FTDs July
AMC FTDs July Report – Franknez.com.

“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 has remained on the NYSE Threshold Securities List for 40 consecutive days now, which means that the SEC has once again violated its 13-day threshold rule.

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.

However, AMC has not seen any type of major price action in the market that would indicate FTDs have been purchased nor has it been delisted from the threshold list.

Is There Naked Shorting in AMC?

Market News Daily - New Report: July Has Now Seen $60,000,000 in AMC FTDs.
Market News Daily – New Report: July Has Now Seen $60,000,000 in AMC FTDs.

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

“If a hedge fund releases a short report on a stock, they can short it, but they have to pay a borrowing fee.

They have to borrow it from somebody so they don’t engage in naked short selling, which increases the amount of shares and the float of the company.

Now market makers like those at the New York Stock Exchange– Citadel is one. They can engage in naked short selling, and it’s perfectly legal. It’s part of their market-making duties to provide liquidity for a stock,” reports Blikre.

All signs point towards naked shorting in AMC Entertainment stock; however, AMC CEO Adam Aron seems to differ.

The CEO has stated in the past that he’s seen no evidence whatsoever of manipulation or ‘synthetic shares’ in the market.

Adam Aron announced in April that the company had contacted both FINRA and the NYSE to look closely at the trading of their stock primarily due to the high number of FTDs, though no update was ever given to shareholders since.

Ironically, AMC’s Hycroft recently opened an investigation with reason to believe that the company has been targeted by illegal short selling which has also led investors to believe that AMC could possibly be working on something behind-the-scenes.

“Based on the findings of ShareIntel’s analysis to date, we are deeply concerned that Hycroft may have been the target of a market manipulation scheme involving illegal short selling,” the report said.

But I’m curious to know your thoughts — leave a comment down below.

For more market news and updates, join the newsletter below. More than 10,000 readers have already joined this year. Share this article to raise awareness.

Also Read: “The Game is Rigged”, Says Ex-Citadel Data Scientist

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Market News Today - New Report: July Has Now Seen $60,000,000 in AMC FTDs.
Market News Today – New Report: July Has Now Seen $60,000,000 in AMC FTDs.

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Two Institutional Investors Have Now Increased Positions in AMC

Market News Daily - Two Institutional Investors Have Now Increased Positions in AMC.
Market News Daily – Two Institutional Investors Have Now Increased Positions in AMC.

Two institutional investors have now increased their positions in AMC Entertainment (NYSE:AMC) stock prior to its highly anticipated $APE conversion.

According to FactSet data, Jane Street Capital and National Bank Financial have increased their positions in AMC Entertainment Holdings Inc,.

Trading firm Jane Street Capital increased its AMC position to just under 6.1 million shares, after acquiring just over 5.8 million shares in the second quarter, and now holds just under 1.2% of shares outstanding, FactSet data show.

National Bank Financial increased its position to just over 3.2 million shares, after acquiring just under 3 million shares, and now has just over 0.6% of shares outstanding.

Other institutions such as Susquehanna Financial Group, lowered its position to just over 2.2 million shares, after selling just over three million shares and now has just over 0.4% of shares outstanding.

AMC’s top institutional holder is The Vanguard Group Inc., with almost 9.6% of shares outstanding, followed by BlackRock Fund Advisors , with almost 3.6%, according to FactSet data.

The top mutual fund holders of AMC are the Vanguard Total Stock Market ETF VTI, with just over 3.1% of shares outstanding and the Vanguard Small Cap Index Fund , with almost 2.6% of shares outstanding, reports MW.

The movie theatre company’s CTB, or Cost to Borrow, has now surged to over 1,000% again, which is the annualized percent of interest on loans, typically borrowed by brokers and hedge funds.

Despite growing fundamentals, AMC Entertainment continues to be a target for Wall Street short sellers.

What we would like to see is Wall Street get their asses handed to them like we saw in 2021.

“Our ongoing progress is obvious and ever so encouraging.

Combining AMC’s commitment to innovation with a notable increase in both the number and quality of movie titles from our studio partners, movie theatres are once again captivating audiences and driving attendance back to AMC theatres.

AMC theatres across the globe welcomed more than 66 million guests in the second quarter of 2023, our highest quarterly attendance number since the fourth quarter of 2019,” said CEO Adam Aron.

Also Read: Goldman Sachs Gives AMC a New Price Target of $175

Adam Aron Speaks on the Importance of Raising Cash This Year

Market News Daily - Two Institutional Investors Have Now Increased Positions in AMC.
Market News Daily – Two Institutional Investors Have Now Increased Positions in AMC.

AMC shareholders have once again saved the world’s largest movie theatre chain in the world.

The company’s approved dilutive proposals will allow AMC Entertainment to raise enough cash to withstand another apocalyptic event, as seen with the pandemic.

“AMC must be in a position to raise equity capital. I repeat, to protect AMC’s shareholder value over the long term, we MUST be able to raise equity capital.

That is especially the case now with the added uncertainty caused by the writers and actors strikes, which could delay the release of movies currently scheduled for 2024 and 2025.

If we are unable to raise equity capital, the risk materially increases of AMC conceivably running out of cash in 2024 or 2025, or of AMC being unable to satisfactorily refinance and stretch out the maturity of some of our debt (which is required of us beginning as early as 2024.)

The risk of financial collapse is not whimsical. Cineworld/Regal, the second largest movie theatre chain in the world, fell into bankruptcy and their equity holders were essentially wiped out. Bed, Bath and Beyond which was viewed as the third most watched meme stock, also fell into bankruptcy and their equity holders also were essentially wiped out.

Fortunately, at AMC, we have been much smarter, much more agile and much more skillful. We have risen to every Covid challenge heretofore, and I have every confidence in our continued ability to successfully navigate through these complicated times,” Adam Aron said in a July letter.

Hedge fund CEO Bruce Richards now says he’s ‘super bullish’ on AMC’s new APE conversion as the proposed rule is expected to go into effect next Thursday.

For more AMC Entertainment news and updates, join the newsletter below. Or opt in for ‘push notifications’. You can also follow me on social media using the links below.

[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 - Two Institutional Investors Have Now Increased Positions in AMC.
Market News Today – Two Institutional Investors Have Now Increased Positions in AMC.

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AMC Is Now Hit With a New Class Action Lawsuit

Market News Daily - AMC Is Now Hit With a New Class Action Lawsuit.
Market News Daily – AMC Is Now Hit With a New Class Action Lawsuit.

AMC Entertainment (NYSE:AMC) has now been hit with a new class action lawsuit following its approved settlement after months of dealing with litigation.

CNBC reports that a holder of APEs said in the lawsuit, which was filed late on Monday but hit the public docket on Tuesday, that APEs investors are being shortchanged in the settlement that was approved on Friday.

AMC did not respond to a request for comment.

AMC agreed to settle its previous class action by holders of common stock by providing them with additional shares worth an estimated $129 million.

The company’s reverse stock split is scheduled to go into effect on Thursday, August 24.

The conversion of APE shares into AMC common stock will occur the following day, Friday August 25.

And the litigation settlement will then take place on Monday, August 28.

Shareholders of common AMC stock had initially claimed that the company rigged a shareholder vote against them.

“The lawsuit adds to months of legal turmoil for the company. Objections to shareholder class action settlements are rare, but AMC received thousands from investors who questioned claims about the company’s dire finances.

The settlement was initially rejected by a Court of Chancery judge in July before the judge signed off on a revised deal on Friday,” said CNBC.

AMC stock has fallen more than -3% on Wednesday while APE shares have only risen +0.25%.

Despite a new AMC class action lawsuit, hedge fund CEO Bruce Richards now says he’s ‘super bullish’ on AMC’s new APE conversion as the proposed rule is expected to go into effect next Thursday.

[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”]

Hedge Fund CEO Now Says He’s Super Bullish on New APE Conversion

Market News Daily - AMC Is Now Hit With a New Class Action Lawsuit.
Market News Daily – AMC Is Now Hit With a New Class Action Lawsuit.

Bruce Richards is the CEO of Marathon Asset Management, which manages a family of investment programs focused on credit strategies including hedge funds, managed accounts, single-client funds and collateralized loan, and debt obligation vehicles.

Richards is rather enthusiastic about AMC Entertainment’s ability to raise as much as $8 billion, though he states his team thinks $1 billion to $2 billion is more realistic.

“I wouldn’t worry about the writers strike, and the box office numbers look like record numbers to us, and greater than pre-covid number, in terms of revenue, so, we’re super bullish, but think about that,” he told Squawk on Tuesday.

“We can make a +17% return, +10% on the cash, and the +25% price pop on price, and we can make this return, we think it’s a high tang return for taking senior bank debt risk in a very top of capital structure of AMC. We think the smartest play for AMC is actually buying the bank debt which is going to parr, which is offering these staggering returns for the unit of risk that you’re taking.

Richards says that AMC is great company and joked that he tried to get in to see Barbie and Oppenheimer but that he was turned away at the door twice due to tickets being sold out.

“I will go before the summer is over, I promise”, he stated.

Richards’ optimism certainly brings forth an excitement that hasn’t been seen in quite some time.

Will this APE conversion trigger an AMC short squeeze? I’m curious to know what you think.

Market News Published Daily 📰

Market News Today - AMC Is Now Hit With a New Class Action Lawsuit.
Market News Today – AMC Is Now Hit With a New Class Action Lawsuit.

Join the newsletter ⬅️ to receive daily stock market news, business news and updates straight to your inbox; more than 10,000 readers have joined!

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