Tag: AMC Stock Reddit (Page 1 of 9)

New Report: AMC Cost to Borrow Surges Up to 1000%

Market News Daily - AMC Cost to Borrow Skyrockets to 1,000%.
Market News Daily – AMC Cost to Borrow Skyrockets to 1000%.

AMC Entertainment (NYSE:AMC) stock has reached a max cost to borrow of more than 1,000% (1.04k%), per Ortex data.

The last time AMC’s CTB surged past 1,000% was back in April and early July.

AMC’s cost to borrow average is currently reported at 974.83%, respectively.

The cost to borrow, per Ortex, is the annualized percent of interest on loans, typically borrowed by brokers and hedge funds.

This percentage figure may change on a daily basis and level out through its ‘cost to borrow average’.

According to the Securities Lending Agreement (SLA), this fee must be charged prior to the stock being borrowed.

Short sellers rely on brokers to have stock shares available to borrow. 

Stocks on the hard-to-borrow list may not be short-sellable or have higher stock loan fees, hence why we’re seeing AMC’s cost to borrow at 1,000%.

AMC Entertainment is in high demand, both for short sellers and long investors.

But with fees this high, is it really worth shorting the movie theatre company?

AMC Entertainment stock is currently down -4.58% this year-to-date.

Here are the latest developments happening with AMC Entertainment today.

[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”]

AMC Shareholders Have Now Saved The Movie Theatre Company Again

Market News Daily - AMC Cost to Borrow Skyrockets to 1000%.
Market News Daily – AMC Cost to Borrow Skyrockets to 1000%.

AMC shareholders have now saved the movie theatre company again after two major proposals were finally passed following an exhausting lawsuit.

A reverse stock split and conversion of APE shares to common stock will now go into effect later this August.

AMC’s 1-for-10 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.

CEO Adam Aron says these dilutive proposals will help AMC Entertainment raise plenty of cash to survive another catastrophic event.

“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.

Also Read: AMC Is Now Hit With a New Class Action Lawsuit

Why Does AMC Stock Keep Getting Shorted?

AMC cost to borrow 1000% news.

AMC Entertainment continues to be a strong target by Wall Street, but why?

Movie theatres are no longer dead, and AMC Entertainment is no longer on the brink of going bankrupt.

Giants Amazon and Apple are now investing billions of dollars in the movie theatre industry, which is going to bring more movie titles to cinemas across the country including industry leader AMC Entertainment.

Today, AMC’s short interest is high at 28.48%.

AMC’s cost to borrow has surged as high as 1,000% — showing there is a scarcity of shares to borrow and a high demand to short the stock.

CEO Adam Aron has stated that the only thing the company needs to enter profitability again is more movie titles, and they’re coming.

So why does Wall Street continue to overleverage themselves and fight the movie theatre chain?

I’d love to hear your thoughts in the comment section below.

Also Read: Everything You Need to Know About an AMC Short Squeeze

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Market News Daily - AMC Cost to Borrow Skyrockets to 1000%.
Market News Today – AMC’s Cost to Borrow Skyrockets to 1,000%.

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Adam Aron Speaks on AMC’s New Reverse Stock Split

Market News Daily - Adam Aron Speaks on AMC's New Reverse Stock Split.
Market News Daily – Adam Aron Speaks on AMC’s New Reverse Stock Split.

Adam Aron is addressing shareholders on AMC Entertainment’s (NYSE:AMC) upcoming reverse stock split, which has been temporarily denied by a judge in court.

“We could be seeing an indication that the judge wanted the timeline to more fully run its course vs. rushing the conversion process”, said Wall Street analyst Eric Wold.

An AMC reverse stock split seems to still very well be on its way due to more than 87% of shareholders approving the proposal; however, its process is momentarily on hold.

Despite majority of shareholders voting ‘yes’ for a reverse stock split and APE conversion, there are investors who have been vocal about their concerns with the proposals.

But CEO Adam Aron says investors have absolutely nothing to worry about.

Today we’re breaking down what the CEO is saying about AMC’s reverse stock split and what it could mean for shareholders.

Adam Aron on Reverse Stock Split (Update)

AMC CEO Adam Aron reads your comments and concerns on social media.

On Sunday, the CEO made the following statement:

“Some misunderstand the 1-for-10 reverse stock split, approved by 87% of March 14 votes, saying we are “stealing 90%” of your shares. You forget that the share price rises 10-fold at that time. EXACTLY the same as trading ten $1 bills for one $10 bill. Either way, you have $10.”

Investors are questioning why the reverse stock split in the first place if ‘nothing’ truly changes.

“In your comments, some fear that after a RS, short pressure could cause price to go back down. But you neglect that it is EVERY bit as easy to short a stock priced at $3.00 as it is on a stock priced at $30. A RS itself has NOTHING to do with any subsequent prices afterwards,” said the CEO on Twitter.

Here are just a few of the things that investors have pointed out in regard to the RS.

What Shareholders Should Know

➡️ While the CEO is right that the value (on paper) won’t change, market conditions today have been incredibly biased towards the downside and have been ever since AMC almost filed for bankruptcy in 2021 — we’ve seen AMC’s share price plummet from insiders selling, as well as institutions heavily shorting the stock.

➡️ On the other hand, AMC’s share price will now have to rise 10 times more from where it trades at the time of the reverse stock split in order for shareholders to break even or become profitable again.

➡️ AMC is currently trading at $5.05. Say an investor breaks even at $12, $22, $33, or $44 per share pre-RS. In a reverse stock split, AMC’s price would be at $50.50, but investors would have 10 times less shares which means the value of their portfolio would be the same. Those who would have broken even at $12, $22, $33, or $44 (ex.) would now break even at $120, $220, $330, and $440 per share with a reverse stock split.

➡️ For AMC Entertainment to trade at these numbers, big liquidity that can override heavy dark pool volume must come into the market first, much larger than the volume we saw in 2021 when shares rose to an all-time high of $72 per share.

Can AMC reach $120-$440 or more?

Absolutely, but the question is why hasn’t it prior to this reverse stock split?

The answer remains the same post a RS — hedge funds and market makers have been suppressing the stock’s true demand and shares from rising.

Liquidity in today’s market has also dropped drastically compared to the heights of the market in 2021.

Ultimately, it’s going to be big buying pressure like we saw in 2021 to trigger price action and short sellers to close.

Final Thoughts on Adam Aron’s Take on AMC’s Reverse Stock Split

An AMC reverse stock split is going to help the company tremendously!

The company will be able to raise a lot of capital very quickly and use it to pay down its debt or towards other innovative initiatives.

However, a risk AMC CEO Adam Aron is not discussing, which is very important to shareholders, is how attractive the stock may or may not be post a reverse stock split.

Many investors purchased the stock at $40, $50, $60, and $70 per share, expecting shares to continue rising.

Will shareholders buy a $50 share while having 10x less shares in efforts to drive the stock up again?

Or is it more attractive to buy shares at a lower price with bigger volume due to stocks being much more affordable?

Because if there’s one thing we learned from 2021 it’s that big buying pressure is what triggered shares to rise, ultimately squeezing a percentage of short sellers from their positions.

AMC’s reverse stock split has already been approved, but I’m curious to understand your thoughts on the CEOs comments – leave a comment down below.

Related: AMC Gets Back on The Threshold Securities List

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Market News Today - Is Amazon buying AMC Entertainment?
Market News Today – Adam Aron Speaks on AMC’s New Reverse Stock Split.

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AMC Entertainment Acquires 9.1% Stake in National CineMedia

Market News Daily - AMC Entertainment Acquires 9.1% Stake in National CineMedia.
Market News Daily – AMC Entertainment Acquires 9.1% Stake in National CineMedia.

AMC Entertainment (NYSE:AMC) just acquired a 9.1% stake in National CineMedia, Inc. (NASDAQ:NCMI).

Shares of National CineMedia jumped more than +130% after hours on Monday; AMC shares closed the day up nearly +7%.

An SEC filing discloses AMC Entertainment now owns a whopping 16,581,829 shares of NCMI stock, a 9.1% stake in the company.

National CineMedia is an American cinema advertising company.

NCM displays ads to U.S. consumers in movie theaters, online and through mobile technology.

NCM presents cinema advertising across a digital in-theater network across a variety of movie theatres worldwide.

In May 2014, Screenvision entered into a merger agreement with NCM for US$375 million.

The merger was blocked by the Department of Justice over antitrust concerns, since Screenvision and NCM together would supply advertising to 34,000 of the nation’s 39,000 movie theaters.

In March 2015, Screenvision and NCM terminated their deal and NCM paid Screenvision a $26.8 million termination payment.

NCMI Stock Price Today.
NCMI Stock Price Today.

National CineMedia, Inc. Ownership

Market News Daily - AMC Entertainment Acquires 9.1% Stake in National CineMedia.
Market News Daily – AMC Entertainment Acquires 9.1% Stake in National CineMedia.

Amongst AMC Entertainment, other National CineMedia owners include Cinemark Holdings, Regal Entertainment Group, Standard General L.P., BlackRock, and WASATCH Advisors, per Fintel data.

NCMI reported a positive quarterly cash flow of $12.10 million for September 2022.

AMC Entertainment CEO Adam Aron has yet to make an announcement on AMC acquiring a 9.1% stake in National CineMedia at the time of this publication.

The CEO recently shared news that the company had its busiest weekend of 2023 and the company’s third busiest weekend since December 2019.

Latest AMC Stock News

“WHAT A WEEKEND. It’s official. Record revenues for AMC at our U.S. theatres on Easter weekend thanks to strong attendance and superb food and beverage sales. 3.6 million people watched Mario, Air Jordan and more stories on the big screen at AMC! The path to recovery continues,” said the CEO on Twitter.

AMC Entertainment made the following statement:

“AMC, the largest theatrical exhibitor in the United States and the world, today announced it enjoyed its busiest weekend so far in 2023, as more than 3.6 million guests attended a movie at an AMC location in the United States from Friday to Sunday.

The strong audience turnout gave AMC its third busiest Friday to Sunday weekend since December of 2019.

Since reopening in 2020, two of AMC’s top three revenue days occurred this past weekend, including Saturday, which was AMC’s highest revenue day in the United States since theatres reopened.

The weekend attendance was driven by a slate of titles that appealed to a broad range of moviegoing audiences, led by the opening weekend of THE SUPER MARIO BROS. MOVIE, which set box office records of its own this weekend.

New release AIR, and strong holdovers from DUNGEONS AND DRAGONS: HONOR AMONG THIEVES and JOHN WICK: CHAPTER 4 also helped drive weekend attendance.”

[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 - AMC Entertainment Acquires 9.1% Stake in National CineMedia.
Market News Today – AMC Entertainment Acquires 9.1% Stake in National CineMedia.

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Amazon and Apple Are Now Contributing Billions to Movie Industry

Amazon and apple are now contributing billion to movie industry
Market News Daily: Amazon and Apple are now contributing billions to the movie industry.

Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) are now contributing billions of dollars to the movie theatre industry.

This is a great development for AMC Entertainment (NYSE:AMC), the largest movie theatre chain in the world.

“Experts are now projecting that ticket sales will be off about 15% from before the pandemic (with 15% less product) and just about every studio is ramping up output.

After years of negotiations and failed experiments, theater chains and movie studios have reached something of a truce.

Studios will debut most of their movies in theaters and can now make them available at home within a few weeks,” says Bloomberg.

Oh, how the tide has changed.

But will the Wall Street short narrative change?

AMC’s short interest for example continues to rise, currently at 24.98%.

AMC Entertainment stock has dropped -43% in the past month despite being up more than +9% this year-to-date.

Let’s discuss the latest developments happening with Amazon, Apple, and AMC.

Amazon Studios Set to Release “AIR” in Theatres

Amazon Studios has its first-ever original movie debuting in theatres globally on April 5th, 2023.

AIR tells the story of the game-changing partnership between Nike and a then-rookie named Michael Jordan.

Insider information surfaced in November last year that Amazon was planning to invest billions of dollars in the movie theatre industry.

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.

CNBC commented:

“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.”

So far, Amazon Studios has 4 original movie titles coming out with dates still to be determined.

Apple to Invest $1 Billion Per Year in Theatrical Titles

Apple to invest $1 billion in Movie Theatres
Amazona and Apple will bring revenue to AMC in theatrical releases.

The movie theatre industry, including the world’s largest movie theatre chain AMC Entertainment, will receive an additional $1 billion per year in theatrical titles from Apple.

Aside from Amazon, Apple’s investment will bring AMC Entertainment more revenue in theatrical releases.

This will allow the theatre chain to continue tackling its debt and continue working towards becoming a profitable company again.

AMC CEO Adam Aron says that the only challenge the theatre chain currently faces is not having enough movie titles to premier.

The investment by Amazon and Apple is a massive win for AMC.

Apple’s investment is part of the tech company’s efforts to raise its profile in Hollywood and lure subscribers to its streaming service, Apple TV+, Bloomberg reported, citing people familiar with the matter.

The commitment to longer theatrical releases is a way for the company to appease talent, who want their projects on the big screen, and drum up awareness for its streaming platform, which is estimated to have between 20 million and 40 million users.

Bloomberg reports that Amazon and Apple must collaborate with various studios who have the knowledge of releasing films in theatres since they cannot release films in theatres on their own yet.

“That’s why Warner Bros. is releasing Creed III and Air abroad, and why Paramount will still distribute Scorsese’s Killers of the Flower Moon for a fee.”

Positive News for AMC Entertainment and Cinema Industry

Amazon and Apple’s contribution to the movie theatre industry is just what AMC Entertainment needed.

What are your thoughts on the latest developments?

Wall Street can no longer fight for the ‘movie theatres are dead’ narrative.

Do you think this will be a game change for AMC Entertainment?

Leave your thoughts below.

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Market News Daily: Amazon and Apple are now contributing billions to the movie industry.
Market News Daily: Amazon and Apple are now contributing billions to the movie industry.

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AMC CEO Says Data Sources Are Under Review for Accuracy

Market News Daily - AMC CEO Says Data Sources Are Under Review for Accuracy.
Market News Daily – AMC CEO Says Data Sources Are Under Review for Accuracy.

AMC CEO Adam Aron says data sources are under review for accuracy after several sources, including MarketWatch, were reporting the company’s equity APE (NYSE:APE) having a 93.79 billion market cap.

That’s more than 20 times its ‘accurate’ 4.60 billion market cap reported by Yahoo Finance.

“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.

Screenshots of other wild reports have surfaced on social media, which has angered the CEO.

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

But it seems the market might just expose itself to Adam like it did to others, such as Roger Hamilton of Genius Group and Patrick Byrne of Overstock.

The CEO said, “many Twitter reports to me indicating 9.3 trillion APEs are outstanding or we have a $409 billion market cap. Clearly both WRONG. Either a data service inexcusably is in error or someone criminally photoshopped bogus numbers. To the extent possible, we’ll aggressively chase this.”

Will these discrepancies lead AMC CEO Adam Aron into the rabbit hole of market manipulation or naked shorting?

Many shareholders are certainly hoping so.

Recent AMC Stock Manipulation News

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.”

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.

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

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.

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Market News Today - AMC CEO Says Data Sources Are Under Review for Accuracy.
Market News Today – AMC CEO Says Data Sources Are Under Review for Accuracy.

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AMC Stock Plunges After Being Removed from the Threshold List

AMC Removed Threshold List
Market News Daily – AMC removed from threshold list.

AMC Entertainment (NYSE:AMC) stock plunges after being removed from the NYSE Threshold Securities List; this should not be happening.

The SEC (Securities and Exchange Commission) violated the 13-Day Threshold List Rule after AMC remained listed for more than 25 consecutive days.

AMC CEO Adam Aron said on Twitter he asked the NYSE and FINRA to look into the stock due to the alarming amount of FTDs in market.

But the CEO never publicly demonstrated a letter confirming the bold claims.

Videos have surfaced of the CEO scrutinizing any talks about market manipulation during an in-theatre event.

Yahoo Finance published a segment on AMC being on the threshold list highlighting the cause being due to naked short selling.

“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.”

The problem is naked short selling isn’t ‘legal’ and it takes advantage of a company’s stock price by driving shares down even when demand from retail buyers is high.

Naked short selling isn’t supposed to be illegal from a regulatory perspective and legal whenever Wall Street decides it to be.

Shares of AMC Entertainment fell -15% on Tuesday.

AMC stock went from being up more than +110% this year to now being up only +18%.

[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”]

What Should Have Happened Instead?

The 13-Day Threshold Rule states that 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.

AMC’s share price should have surged in a buy-back or ‘repurchase’ of shares in the lit exchange.

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.

Market News Today – AMC removed from threshold list.

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.

This is a direct result of naked short selling in a company stock, according to Yahoo Finance.

So far, there’s been zero positive impact on the price from AMC being removed from the threshold list.

The only thing shareholders can do now is wait for the approved proposals to go into effect after AMC’s lawsuit has concluded.

Leave your thoughts on what’s happening with AMC today

The company has been through a lot, and so have shareholders.

Shareholders are either more level-headed than they ever were before, or more fearful — and it’s quite easy to see on social media.

How is AMC Entertainment standing in your eyes?

Is this just another bump on the road like we’ve seen in the past with AMC stock?

Or does it seem a little more serious?

Leave your thoughts below and share this article to get your voice heard.

Market News Published Daily

Market News Today - AMC removed from threshold list.
Market News Today – AMC removed from threshold list.

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