Tag: AMC Stock Reddit (Page 1 of 23)

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.

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

Market News Published Daily

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

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

Franknez.com is the media site that keeps retail investors informed.

You can also follow Frank Nez on TwitterInstagramFacebook, or LinkedIn for daily posts.


Franknez.com

You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.


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

Market News Published Daily

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

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

Franknez.com is the media site that keeps retail investors informed.

You can also follow Frank Nez on TwitterInstagramFacebook, or LinkedIn for daily posts.


Franknez.com

You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.


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.”

Market News Published Daily

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

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

Franknez.com is the media site that keeps retail investors informed.

You can also follow Frank Nez on TwitterInstagramFacebook, or LinkedIn for daily posts.


Franknez.com

You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.


« Older posts

© 2024 Franknez.com

Theme by Anders NorenUp ↑