Tag: AMC News (Page 1 of 58)

GameStop Short Sellers Now Down A Whopping $1 Billion

GameStop short sellers are now down a whopping $1 billion in May according to new data from S3 Partners analysts.

Shares of the gaming company soared more than 66% on Monday, hitting nearly $37 from a previous close of $17.39.

GME stock is currently up more than 183% in the past month alone.

Media speculates GameStop shares rose due to the return of iconic investor, Keith Gill, AKA Roaring Kitty.

Shares of AMC Entertainment stock also rose by more than 50% on Monday, hitting $4.44 from its previous close of $2.95.

The movie theatre stock is currently up 79% in the past month alone.

According to financial analytics firm, S3 Partners, GameStop short sellers have accumulated approximately $1 billion in paper losses.

“GameStop shorts are down in estimated $1 billion in May paper losses with todays +50% pop in early trading,” said Matthew Unterman on X.

“@S3Partners multi-factor squeeze risk score has been registering a max of 100 every day since May 3rd.”

S3’s Squeeze Score overlays the significant components for a squeeze, higher financing costs and unrealized losses, to their Crowded Score to identify shorted stocks with higher short-side volatility and identifies stocks that have the necessary conditions to be “squeezed”.

Squeeze Scores of 70-100 identify squeezable stocks, and scores over 90 have a significantly higher risk of a squeeze and the potential for the resulting buy-to-covers to pushing stock prices even higher, according to the companies website.

With Roaring Kitty back, does this mean meme stocks are about to blow up again based on hype and momentum again?

I’d love to hear your thoughts on this. Leave a comment down below.

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Also Read: South Korea Now Finds Banks Pursued Illegal Shorting Scheme

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Market News Today - GameStop Short Sellers Now Down A Whopping $1 Billion.
Market News Today – GameStop Short Sellers Now Down A Whopping $1 Billion.

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Citi, Goldman, Extend AMC’s Covenant Waiver to 2024: What it Means

CEO Adam Aron said Citi, Goldman Sachs, and Credit Suisse have extended AMC’s covenant waiver to March 31st of 2024.

“This is a reflection of AMC’s recovery being well under way… a vote of confidence in AMC by our banks that we much welcome. Thank you Citi, Goldman, and Credit Suisse”, said AMC Entertainment (NYSE:AMC) CEO Adam Aron in January of 2023.

So, what exactly is a covenant waiver extension and what does this mean for AMC Entertainment?

What is a Covenant Waiver?

A covenant waiver is when a lender temporarily forgives a borrower’s breach of a loan covenant.

In AMC’s case, the lenders are Citi, Goldman Sachs, and Credit Suisse.

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.

Financial Covenants Explained

Covenant requirements are conditions the borrower must regularly meet throughout the term to demonstrate their creditworthiness to the lender.

Lenders frequently use certain financial tests that serve as indicators of the borrower’s repayment ability.

Failure to meet these tests violates the covenant and constitutes loan default.

In AMC Entertainment’s case, lenders have waived, or forgiven AMC’s breach of contract, per their loan covenant and extended it to March 31st 2024.

What Does This Mean for AMC Entertainment?

AMC News Today.
AMC News today.

For AMC Entertainment, a covenant waiver will allow the business to run operations under its debt contracts with Citi, Goldman Sachs, and Credit Suisse until 2024.

If the company fails to meet its debt obligations, or financial covenant requirements, then the loans are subject to default.

This puts AMC Entertainment in a tricky position in terms of what they can and cannot do or say.

Which also explains why the CEO cannot raise awareness of the manipulative shorting of the company stock.

It’s very likely that speaking out on such topics may violate these covenant agreements.

Some retail investors have scrutinized Adam Aron for not speaking out on naked shorts like other CEO’s are doing today.

But this news may provide shareholders with more perspective on why that is.

Is AMC Entertainment Being Held Hostage by Lenders?

Citigroup currently holds call options representing 0 of underlying shares valued at $0 USD and put options representing 55,000 of underlying shares valued at $383,000 USD.

Source: Fintel.

The bank has been selling shares while playing put options in order to profit from the drops they’re triggering in the market.

On November 7th, 2022, Citigroup dropped AMC’s price target from $3.13 per share to $1.20 per share and used the media to promote the price target.

Just a month prior to Citi’s price hit, Credit Suisse said in October AMC shares are worth less than $1.

The banks are making their money which means it’s going to be up to the company and shareholders to prove the Wall Street short thesis wrong.

But I’m interested in hearing your thoughts.

Leave a comment down below.

Market News Published Daily

Market News Today - FrankNez News, Business News + more.
Market News Today – FrankNez News, Business News + more.

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AMC CEO Now Identified As Extortion Bid Victim

AMC Entertainment CEO Adam Aron has now been identified as a terrible extortion bid victim that took place last year.

The CEO released a public statement on Thursday of a ‘vigorous federal criminal investigation’, which resulted in the extortionist being arrested, convicted of a felony, and spending nearly a year in jail.

Sakoya Blackwood, 35, was charged in a Manhattan federal court indictment with trying to extort AMC CEO Adam Aron out of up to $300,000 to keep her quiet about his sexual escapades, and about a false claim she threatened to make about him having sex with a minor.

Prosecutors have said in a court filing that in addition to that CEO, Blackwood “targeted numerous other potential victims — all wealthy and high-profile men — using fictitious identities, while camouflaging her ownership of the accounts deployed in her catfishing scheme.”

Because she came to the United States from Jamaica as a child without legal immigration status, Blackwood now faces the risk of being deported and separated from her 12-year-old daughter, her lawyer said in a court filing.

Prosecutors in a court filing said Blackwood tried to extort the victim by threatening to “falsely tell the world” that the movie theatre CEO “had sex with a minor.”

That claim was “a blatant lie which she invented out of whole cloth,” the filing noted.

But what was true were sexually explicit photos and messages the CEO shared with Blackwood as she posed in electronic communications as a former romantic partner of the victim.

Blackwood then pretended to be a vengeful ex-boyfriend and employees of media outlets – a deception knows as ‘catfishing’.

“For many months, the defendant kept the Victim suffering from the constant fear that his life would be ruined. She taunted him with the prospect of releasing embarrassing materials and, even worse, false accusations that he had sex with someone who was underage,” the filing said.

Official Statement From AMC CEO Adam Aron

Market News Today - AMC CEO Now Identified As Extortion Bid Victim.
Market News Today – AMC CEO Now Identified As Extortion Bid Victim.

“Because you are so important to me, there is a matter I want to share with you.

By definition, I live my life in the public eye. 

Unfortunately, last year I became the victim of an elaborate criminal extortion by a third party who was unknown to me related to false allegations about my personal life.

Rather than give in to blackmail, I personally engaged counsel and other professional advisors and reported the matter to law enforcement.

I did so knowing I risked personal embarrassment.

But with my access to resources, if I did not stand up against blackmail, who could?

A vigorous federal criminal investigation ensued which resulted in the extortionist being arrested, convicted of a felony, and spending nearly a year in jail.

At the time of the arrest, the U.S. Attorney for the Southern District of New York commended my having reported the matter to the FBI and the U.S. Department of Justice.  

This was entirely a personal matter. 

I was asked by law enforcement to keep this matter confidential during their investigation and subsequent court case.  

Shortly after the extortionist’s July 2023 sentencing, I informed AMC’s Board of Directors which thoroughly reviewed these events with independent outside counsel at WilmerHale.

As I said above, this indeed was entirely a personal matter, and the matter is closed.

I could not end this message without again thanking you for your support — as well as emphasizing my extreme gratitude to the U.S. Attorney’s Office for the Southern District of New York and to the FBI for their diligent, skillful, and professional handling of this unfortunate matter.”

Also Read: CoinCodex Now Predicts AMC to Soar Whopping +500% by 2024

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Market News Today - AMC CEO Now Identified As Extortion Bid Victim.
Market News Today – AMC CEO Now Identified As Extortion Bid Victim.

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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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