BREAKING: Evergrande is on the brink of default. Several key procedures are aligning in regards to an AMC MOASS.
If Evergrande defaults, it could lead to a massive global stock market meltdown.
And with AMC’s new increased negative beta, AMC has the perfect setup for a massive rebound.
BlackRock and the Swiss National Bank just bulked up on their AMC holdings.
Adam Aron is scheduled to incrementally sell some stock?
Apes, this is massive news.
If you sold your AMC stock recently you’re going to wish you had held on.
Welcome to Franknez.com – today’s news is a collection of events that point towards the highly anticipated AMC MOASS event.
Let’s get started!
Evergrande Is On The Brink of Default
According to a press release, Evergrande has defaulted via. AP News.
However, the company has not defaulted any of its offshore debt obligations, according to Daily Sabah.
Although, it is worth mentioning that the DMSA is preparing bankruptcy proceedings against Evergrande and calls on all bond investors to join it.
Blockworks has also confirmed bankruptcy proceedings have begun taking place.
The New York Times confirms Evergrande has defaulted as of 12/9.
The last time news on Evergrande’s debt crisis made it headlines, the stock markets bled heavy.
The U.S Federal Reserve warned Tuesday that China’s property sector could pose global risk.
Evergrande owes millions to U.S financial institutions and investors.
With institutions facing massive losses, liquidity issues begin to arise resulting in stock market chaos.
Evergrande’s default news is a developing story that only get’s worse and worse for the company.
Be sure to subscribe to the blog for updates.
AMC’s Negative Beta Surges To -9.80
A beta less than 0 indicates a reverse relation to the market and is an extreme occurrence according to Investopedia.
Why is this important?
Because when the majority of stocks go down, AMC will have the opposite effect contrary to the rest of the market.
Well, AMC just received an updated negative beta score of -9.80, source.
The company had a negative beta score of close to -4 earlier this past summer.
In general, negative beta stocks tend to do better when the stock market declines.
Any stock market crash that occurs, say one caused by an Evergrande default, could launch a negative beta stock’s share price such as AMC’s opposite of the market.
In simpler terms, a stock market crash would skyrocket a negative beta stock.
Although negative beta stocks have more risk, the rewards are also significantly higher.
Financial Institutions Buy Massive Amounts of AMC Shares
As AMC’s negative beta continues to get further from 0, we have large financial institutions such as BlackRock and the Swiss National Bank loading up on AMC shares.
In a time where the probability of a stock market crash is increasing by the day, these two massive financial institutions are buying this negative beta stock.
In a recent 13F filing, BlackRock increased their position by 31.28% bringing their AMC shares to a total of 40 million shares.
Notably, the Teacher Retirement System of Texas also increased their position by 73%.
In another 13F filing, we see that the Swiss National Bank increased their AMC positions by a whopping 138.16%.
They now hold close to 2 million AMC shares as of this month, November.
You can find the massive list of other financial institutions buying AMC stock here.
It’s No Coincidence Institutions Are Buying AMC Stock
The last time we saw heavy institutional buying was before June’s big runup to $72 per share.
The fact that Evergrande poses a risk to global markets means buying a negative beta stock such as AMC could be a way for financial institutions to hedge against any major losses.
On the flip side, it could be a way for financial institutions to cash in massive gains from an AMC MOASS play.
I presume financial institutions will be taking profits on the way up and on the way down.
Which leads to the final point.
Is Adam Aron Selling AMC Stock?
Adam Aron announced mid this year that he would be selling stock later this year under a program filed through the SEC.
These incremental and automatic transactions will occur in the months to come.
His first automatic transaction occurred on Tuesday, where the CEO is using these profits to diversify his assets and offset capital gains taxes.
The silverback has a plan to begin distributing profits in other wealth building assets in the months to come.
In a time where AMC’s share price can drastically change at any moment, it’s easy to see why this executive would set an automatic “cash-in” system.
If there’s anything we can gain from Adam’s actions, it’s that he sees major profit opportunities in the short-term future.
Will The AMC MOASS Finally Happen?
Our financial system faces systemic risk and AMC’s rare negative beta score is a ticking time-bomb for an explosive upswing.
Financial institutions are buying AMC stock like citizens were emptying grocery stores during the pandemic lockdowns.
And now we see Adam Aron share his plan to take profits in the months to come.
An AMC MOASS could be underway.
I’m willing to hold this stock to see this incredible event play through.
Leave me a comment below.
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