Tag: AMC (Page 1 of 69)

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

Market News Daily - Hedge Fund CEO Now Says He's Super Bullish on New APE Conversion.
Market News Daily – Hedge Fund CEO Now Says He’s Super Bullish on New APE Conversion.

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.

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.

On Tuesday, AMC stock rose more than +8% while APE shares rose nearly +2%.

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.

[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 Speaks on Short Sellers Covering Prior to New Conversion

Market News Daily - Hedge Fund CEO Now Says He's Super Bullish on New APE Conversion.
Market News Daily – Hedge Fund CEO Now Says He’s Super Bullish on New APE Conversion.

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

Shares of the company fell more than -30% after hours last Friday as APE shares rose +30%.

On Monday, AMC stock fell more than -33% while APE shares rose nearly +18%.

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 - Hedge Fund CEO Now Says He's Super Bullish on New APE Conversion.
Market News Today – Hedge Fund CEO Now Says He’s Super Bullish on New APE Conversion.

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