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Can it happen in SGX; then some of us may huat from this madness!
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Saudi wealth fund PIF raises $1b from stake sale in telecom firm STC
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1 hour ago
More than 3M retail investors owning 80% of AMC. Well done CEO for long-term investing story!
ReplyDeleteHi Uncle8888,
ReplyDeleteWhat the BT article didn't say was that Mudrick Capital had already flipped the 8.5m shares by the time AMC was announcing the sale. Mudrick only held those shares for about 3 days. And as it unloaded the shares, someone leaked to Bloomberg that Mudrick felt the shares were overpriced.
During the last meme stonk episode in Jan, Mudrick had quickly converted $100M of AMC convertible bonds (that it loaned to AMC during the height of 2020 pandemic) into shares & immediately sold them to Redditors. All in, Mudrick has made US$200M from selling & flipping AMC shares.
Besides Mudrick (a specialty hedge fund focusing on distressed companies & bad-to-less-bad plays), Dalian Wanda and Silver Lake also sold all or most of their AMC stocks for fat multi-hundred-million dollar profits.
No prizes for guessing who took the shares on the other side of the trades! 🤣
At least AMC mgmt is being honest when filing with SEC last Thursday to sell another 11.55M shares:-
"We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last. Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment."
AMC is telling you NOT to buy their stocks! 😂
But one thing I have to give AMC mgmt is taking advantage to raise millions for the company besides their own pockets; Gamestop didn't seem to capitalise on it & their CEO left after selling US$12M shares in the company.
As for their gimmicky AMC Investor Connect (free popcorn, occasional special screenings, emails from the CEO), I doubt the speculators are really interested --- turnover is so high that the entire 3.2M retail shareholders on average only hold the stock for 3.8 days before selling. And then maybe buying & selling ... again. Unlikely most of them will hold on to shares to participate in AMC Investor Connect.
The way to increase share price for the long term is to create consistent & sustainable value for customers, not gimmicks.