AMC Stock: AMC & the Rise of Money Hungry Stock Memes
Sales of actions aimed at small investors are becoming increasingly popular as companies try to achieve gains of the driven day traders , that is to Reddit power .
Stock sales targeting retailers are hitting the stocks of cash-hungry memes like AMC Entertainment Holdings Inc.
AMC dropped 40% on Thursday after announcing another offering this week. This time is an offer the market price implementing the assistance strategy historically unusual to sell shares directly on the open market, where the operators had pointed to an increase of 2,850% this year thanks to the proximity Wednesday.
VIDEO: AMC STOCK: THEY ARE OFFICIALLY FORCED TO COVER!!
Another favorite of day traders, Express Inc. fell 26% on Thursday after announcing its offer to the market. Traditional equity offerings are almost exclusively sold to institutional investors, but the retail boom has prompted these private issuers to offer their financing to all buyers.
This year, according to Bloomberg data, market offers worth 40 billion dollars were announced in the US. This deal is booked for the biggest year in history and has already topped the annual balance sheet for every year except 2020, when retail sales exploded at the height of the pandemic freeze.
Memetic stocks such as Hertz Global Holdings Inc. and Tesla Inc. made market bids when their stock rebounded, even when the pandemic reached equilibrium. Leaves. After the gap between Wednesday’s closing price and Wall Street’s 12-month target reached a record 92%.
It’s even more pronounced than GameStop Corp’s 76% void. after announcing a record $1 billion bid in April, the company announced its latest market bids. Express reached 37% of the agreed goal.
AMC’s recovery has resulted in high-level investment warnings, perhaps the most serious, by the company itself.
“The new unpredictability and our present market costs mirror an energetic business and market. Regardless of our core business, macroeconomic and industry fundamentals, we don’t know how long this dynamic will last.
The company said in a statement Said that on Thursday night, when AMC said it had completed its stock sale plan and raised $587.4 million at an average price of about $50, the stock reduced its losses.85 per share. The shares were trading at about $44.65 at 1:23 pm in New York City.
AMC shares mobilized after fruition of the offer deal program to raise almost $590 million The stock was sold at a normal cost of $50.85 beneath its present level however well over its intraday low.
Shares of AMC Entertainment Holdings Inc. traded in positive territory during the day after the theater operator announced it had completed its 11.55 million-share sale program about six hours after its announcement, as the company experimented with the recent commercial race to raise capital.
AMC shares rose 7.3% in volatile afternoon trading at -2.69% but offset earlier losses of 39.8%. The rally comes after shares rose 95.2% on Wednesday and 417.8% in the last seven trading sessions, also due to renewed interest in the shares.
The stock paused three times due to volatility in the first half hour after opening.
AMC said in a statement released at 12:58 pm ET that it has completed the ” to market ” (ATM) program, which was posted on an 8-K file with the Securities and Exchange Commission at 7:04 am.
Just before AMC announced the end of its stock sale program, shares fell about 23 percent.
The company said it raised approximately $587.4 million by selling shares at an average price of $50.85 . While this price was about 24% below the current level, it is 25.9% above the intraday low of $37.66. According to FactSet, the price was closer to the volume-weighted average price of $52.95 at the time of printing .
“The addition of an additional $587.4 million in new capital on top of the $658.5 million raised earlier this quarter results in a total capital increase of $1,246 billion in the second quarter, adding to AMC’s strong and strong track record. improves, and flexibility provides invaluable value for reacting to potential challenges and seizing exciting opportunities in the future,” said CEO Adam Aron.
Shares were up 557.2 percent year-to-date, while movie operator Cinemark Holdings Inc. CNK shares were up -5.75% on 16.6% and the S&P 500 index on 16.6%. SPX, -0.30% increased to 5.7%.
AMC had completed the ATM agreement with sales agents B. Riley Securities Inc. and Citigroup Global Markets Inc. would be equivalent to approximately $14.7 million.
Sales represented approximately 2.6% of outstanding shares.
The company plans to use proceeds from the sale of shares for general business purposes, which may include paying debts, buying games or making investments.
AMC admitted in its 8-K file that recent ” extreme swings ” in its shares were accompanied by reports of ” strong and unusual interest from retail investors, including on social media and online forums .” Thus, AMC’s stock sales plan includes a notice to retail investors :
“We believe that the recent volatility and our current market prices reflect market and business dynamics unrelated to our underlying business, macro or industry fundamentals and we do not know how long will this dynamic last?”-the company said in a statement . “In this case, we do not recommend that you invest in our Class A common stock unless you are willing to take the risk of losing all or most of your investment.
AMC’s stocks reverse losses as the movie chain makes another stock sale
Shares of AMC Entertainment reversed their losses on Thursday after the retail darling said it completed a stock offering announced today that raised $587.4 million in additional shares.
The movie chain’s shares rose 6% to about $67 in the afternoon, after losing more than a third of its value that morning.
The company said it announced a $11.55 million share offering at an average price of about $50.85 per share before the market opens.
AMC took advantage of its share price increase to complete two share offerings in three days. In announcing the latest issue, he said he wasn’t sure how long his career would last and warned investors of the risks involved.
AMC’s share price nearly doubled on Wednesday to a record $62.55, thanks in part to a surge in buying by private investors.
Market prices reflect market and business dynamics that have nothing to do with our core business, macroeconomics or industry fundamentals. We don’t know how long these dynamics will last,” the company said in a statement.
Several Wall Street analysts said that the AMC is already overvalued, and many institutional traders have indicated that avoid stocks a popular destination for traders for reddits WallStreetBets and other forums flow .
“In these circumstances, we do not recommend that you invest in our Class A common stock unless you are willing to risk losing all or a substantial portion of your investment,” AMC said, reiterating a warning from supervisors. Year on the potential dangers of these populations.
Wednesday’s record price was 30 times higher than AMC’s trading level in late 2020 and came a day after Mudrick Capital issued 8.5 million shares , which the hedge fund rebounded at a profit .
“The company is currently dumping stocks during the rebound because these prices will not last forever. So why not take this opportunity to consolidate your balance and raise capital,” said Bright Trading trader Dennis Dick.
AMC said in January it had secured nearly $1 billion in new funds and cash since mid-December and continued with other issues, including both this week.
Increased broadcasting and competition from theaters means the reopening of the US economy is unlikely to boost AMC’s performance, said David Trainer, CEO of investment research firm New Constructs.
“AMC’s business was going in the wrong direction even before the Covid-19 pandemic… We believe AMC shares are worth $0 a share, given the low earnings, the dilution of stock supply from recent events and the mountain of debts. coach.
AMC shares continued to rise as they attracted attention, in line with calls from retail investors to buy stocks and options to buy certain “meme stocks”.
These investors care little about a company’s fundamentals and have focused on short-term high-yield stocks to force bearish investors to reverse their losing bets.
The surprising gains hurt those who bet against AMC shares, though some analysts say bearish investors hold the lion’s share.
According to S3 Partners, short-term interest on AMC on Wednesday night was 89.98 million shares, up from 90.87 at the end of Tuesday. Bearish investors fell over the year on Wednesday by $5.2 billion, according to the company.
Meanwhile, AMC’s connections tell a different story of its actions.
While prices have rebounded thanks to the company’s new access to capital, they remain on difficult ground. For example, a $600 million bond maturing at 5.75% and maturing in 2025 traded at 80 cents on the dollar on Thursday.
Among other big games, the so-called “Memes”, increased the US stake in BlackBerry Ltd by 13%, while GameStop Corp by 4% and Koss Corp were down 4%. %
Rapid pressure from GameStop in January raised regulatory concerns about the broker’s stability, and the National Securities Clearing Corp subsequently called for a tightening of the deposit rules that brokers must post before options expire.