Tag: AMC (Page 1 of 69)

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.

“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

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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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.

“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?

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.

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

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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.

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AMC Speaks on Short Sellers Covering Prior to New 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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