Tag: APE (Page 1 of 2)

Two Institutional Investors Have Now Increased Positions in AMC

Market News Daily - Two Institutional Investors Have Now Increased Positions in AMC.
Market News Daily – Two Institutional Investors Have Now Increased Positions in AMC.

Two institutional investors have now increased their positions in AMC Entertainment (NYSE:AMC) stock prior to its highly anticipated $APE conversion.

According to FactSet data, Jane Street Capital and National Bank Financial have increased their positions in AMC Entertainment Holdings Inc,.

Trading firm Jane Street Capital increased its AMC position to just under 6.1 million shares, after acquiring just over 5.8 million shares in the second quarter, and now holds just under 1.2% of shares outstanding, FactSet data show.

National Bank Financial increased its position to just over 3.2 million shares, after acquiring just under 3 million shares, and now has just over 0.6% of shares outstanding.

Other institutions such as Susquehanna Financial Group, lowered its position to just over 2.2 million shares, after selling just over three million shares and now has just over 0.4% of shares outstanding.

AMC’s top institutional holder is The Vanguard Group Inc., with almost 9.6% of shares outstanding, followed by BlackRock Fund Advisors , with almost 3.6%, according to FactSet data.

The top mutual fund holders of AMC are the Vanguard Total Stock Market ETF VTI, with just over 3.1% of shares outstanding and the Vanguard Small Cap Index Fund , with almost 2.6% of shares outstanding, reports MW.

The movie theatre company’s CTB, or Cost to Borrow, has now surged to over 1,000% again, which is the annualized percent of interest on loans, typically borrowed by brokers and hedge funds.

Despite growing fundamentals, AMC Entertainment continues to be a target for Wall Street short sellers.

What we would like to see is Wall Street get their asses handed to them like we saw in 2021.

“Our ongoing progress is obvious and ever so encouraging.

Combining AMC’s commitment to innovation with a notable increase in both the number and quality of movie titles from our studio partners, movie theatres are once again captivating audiences and driving attendance back to AMC theatres.

AMC theatres across the globe welcomed more than 66 million guests in the second quarter of 2023, our highest quarterly attendance number since the fourth quarter of 2019,” said CEO Adam Aron.

Also Read: Goldman Sachs Gives AMC a New Price Target of $175

Adam Aron Speaks on the Importance of Raising Cash This Year

Market News Daily - Two Institutional Investors Have Now Increased Positions in AMC.
Market News Daily – Two Institutional Investors Have Now Increased Positions in AMC.

AMC shareholders have once again saved the world’s largest movie theatre chain in the world.

The company’s approved dilutive proposals will allow AMC Entertainment to raise enough cash to withstand another apocalyptic event, as seen with the pandemic.

“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.

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.

For more AMC Entertainment news and updates, join the newsletter below. Or opt in for ‘push notifications’. You can also follow me on social media using the links below.

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Market News Today - Two Institutional Investors Have Now Increased Positions in AMC.
Market News Today – Two Institutional Investors Have Now Increased Positions in AMC.

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Will Shorts Be Forced to Close Positions in APE?

Market News: Here's the latest on AMC and APE stock.
Market News: Here’s the latest on AMC and APE stock | APE short squeeze update.

A new proposal by CEO Adam Aron has been circulating the retail community where shareholders will get to vote on the conversion of APE equity to AMC common shares.

Shareholders are anticipating short sellers will close their positions in APE if the conversion to AMC common shares is approved.

While no official voting proxy has been distributed amongst shareholders, the talks are certainly on the table.

A second proposal will allow shareholders to vote on a 1-for-10 reverse stock split.

So far, more than 72% of shareholders said in a poll they’d vote ‘YES’ for the split.

You can read more about what a reverse stock split signifies for a company here.

Will shorts be forced to close their positions in APE if the conversion is approved?

There’s a very strong probability of that being the case.

Let’s discuss it.

Related: How Big Could an AMC Short Squeeze Potential Surge?

What Happens to Shorted Stock During a Merge?

APE short squeeze news and updates.
APE short squeeze news and updates.

In the case of APE and AMC, the merge between the equity and common shares may temporarily increase the share price of AMC stock.

This is where short sellers are caught in a bind.

Short sellers betting against the company would see big losses during the surge of the newly reflected share price.

Short sellers will have the option to close out their positions completely prior to the conversion or keep holding their position.

While they will not be obligated to close out their positions, they are at higher risk from momentum taking over and further escalating rising share prices.

Here is where shareholders have the opportunity to buy in heavily to keep short sellers from only pushing the price down after the merge.

As short sellers begin to fear the tide turning against them, the buyback of shares will result in a short squeeze.

If shareholders fail to create momentum, then short sellers may identify weakness in buying power and further add to their short positions.

Is an APE Short Squeeze Over?

APE short squeeze news and updates.
APE short squeeze news and updates.

Not quite.

There’s a strong possibility short sellers close their positions in APE prior to a conversion (if approved by shareholders).

In doing so, they avoid seeing share prices rise and the probability of having losing positions during the merge.

APE momentarily became the #1 most short stock according to Yahoo Finance.

In the past week, APE has surged more than 150% with heavy buying volume.

Is it possible this was caused by a few shorts closing?

Perhaps, but an APE short squeeze prior the conversion is still very possible.

Despite so much market uncertainty happening today, both AMC and APE have fair shots at squeeze short sellers from their positions.

So far, this has been one of the biggest catalysts for a short squeeze.

But it’s going to require retail investors to play their part.

Leave your thoughts below

Are you holding AMC and APE?

Leave your thoughts below.

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

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APE Shares Surge +180% in The Past 5 Trading Days

Market News: AMC Preferred Equity (APE) rises.
Market News: AMC Preferred Equity (APE) rises.

APE shares have surged more than 180% in the past 5 trading days.

Volume has been a massive component to helping push the equity on an uptrend.

The question is why APE?

AMC shares are down -16.63% in the past 5 trading days and trading at $4.06.

The unusual occurrence began after CEO Adam Aron announced shareholders would receive the chance to vote on two new proposals.

  1. The conversation of APE equity back to AMC common shares.
  2. And approval of a 1:10 reverse stock split.

Recently, the demand for AMC’s Preferred Equity (APE) has been much higher than that of AMC Entertainment shares.

Are short sellers beginning to close out their positions in APE?

Or is this simply volume from retail?

Let’s discuss it.

APE Short Interest Today

APE’s short interest today is at 8.60%, which is still relatively high, though it’s possible it may have come down.

Yahoo Finance listed APE as the #1 most shorted stock earlier in December.

Now we’re seeing the equity surge more than 180% in the past few days based on volume.

APE shares rose 75% before the Christmas holiday with volume reaching more than 177 million, up 158 million in trading volume from its average of 19.6 million.

On Tuesday, we’re seeing big trading volume come in with more than 55 million in the first hour and a half.

AMC APE Share Price Today.
AMC APE Share Price Today | APE shares surge.

Will APE shares continue to rise?

There seems to be a discrepancy where we’re seeing AMC and APE’s charts mirror each other, but the complete opposite way.

While APE shares rise, AMC shares fall, especially when looking at the past 5-day trading charts.

AMC VS APE | APE shares surge.

It’s hard to say whether what we’re seeing with APE is shorts closing when we look at AMC’s chart directly next to APE.

It’s almost as if value is being extracted from AMC into APE.

And according to a Nasdaq report, only 0.18% of institutions are currently holding APE shares, so where is this volume coming from?

Have you purchased APE shares in the past 5 days?

Leave a comment down below.

What do you think of these two discrepancies between AMC and APE shares?

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APE Shares Rise More Than 75%: Will They Keep Rising?

Market News: Will APE shares keep rising?
Market News: Will APE shares keep rising? APE Stock News + updates.

APE shares rose more than 75% on Thursday.

Volume skyrocketed past 177.6 million, up 158 million in trading volume from its average of 19.6 million.

Shares rose from $0.67 its previous closing day to $1.20.

The equity is currently up 5% after hours.

So, what happened?

And can we expect APE shares to continue rising?

Let’s discuss it.

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The Latest on APE Stock

APE stock (AMC’s Preferred Equity) has been the topic highlight since its inception earlier this summer.

AMC Entertainment was able to raise several million dollars from the equity to pay down its debt.

The price of the equity has since come down drastically as short sellers piled in forcing share prices to a low of $0.65.

APE stock price today
APE stock price today – APE stock news and updates.

And just as the possibility of the equity merging with AMC is announced, APE share surge more than 75% reaching $1.20.

CEO Adam Aron announced on Twitter today that there will be a shareholder vote to convert APE equity to AMC common shares.

He also commented on the possibility of a 1-for-10 reversal stock split for AMC stock.

It’s the biggest news in the AMC community thus far.

So, why did APE shares rise so much today?

And where did so much trading volume come from?

Retail investors are speculating insider buying triggered the massive price surge and heavy volume.

Others are alleging it’s the company’s way of injecting value back into the equity before APE re-merges with AMC common stock.

The truth is, it’s hard to say.

APE was never intended to be a valuable asset for investors, but more so a valuable asset for AMC Entertainment as a company.

Will APE Shares Keep Rising?

If insiders are injecting the equity with value before shareholders vote for the merge of APE and AMC, then it’s very possible the equity may continue to rise.

As of right now, where the immense amount of volume came from is undetermined.

What’s certain is many shareholders weren’t too happy about the creation of APE in the first place as it created unnecessary loss for shareholders.

Here are the CEO’s comments published on Twitter:

“Also, APEs worked exactly as intended to let us raise needed cash, buy back debt, explore M&A. But a huge discount in APE market price vs common stock must be addressed. We’ll hold a shareholder vote. It’s time to convert APE preferred into AMC common to eliminate that discount.”

APE shares have been massively shorted to cents, AMC stock is now trading below $5, a solution has to be addressed.

And so it has.

Adam Aron is proposing a 1-for-10 reversal stock split where shareholders will get left with 1 share of AMC for every 10 shares they hold in exchange for a higher share price.

The idea is to give shareholders the illusion of a higher share price by reducing the number of shares they hold.

The value of an individual’s portfolio would remain the same amount.

However, if an investor holds 10 shares of AMC, they will convert to 1 share.

If an investor holds 100 shares of AMC, after a 1-for-10 reverse split they will hold 10 shares.

All for the sake of making the value of AMC shares appear much higher.

With AMC currently trading around $4.50, a 1-for-10 reverse stock split would mean the stock will then trade at $45 per share.

Leave your thoughts below

I’m curious to hear your thoughts on what’s currently occurring with AMC Entertainment and its APE shares.

How do you feel about the entire situation at hand?

Leave your thoughts below for the community to see.

Related: Adam Aron Address Falling APE Shares

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