AMC: Hedge Fund 1-0 Reddit Army

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AMC: Hedge Fund 1-0 Reddit Army

seekingalpha2021-06-03

Summary Shares of AMC surged 23% on news of a private share placement. Private share placements dilute shareholders and AMC's price should have gone down, not surged. It looks as if this hedge fund ...

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超群yibo
·2021-06-03
Some one out there must be eventually holding to the high priced shares. This is the game.
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- AnaiAnaiReplying to超群yibo:
  ok
  2021-06-03
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- AnaiAnaiReplying to超群yibo:
  yes
  2021-06-03
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- 超群yibo:
  ya. May be
  2021-06-03
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Jerrywong76
·2021-06-03
The short interest is 14%. How many hedge funds are still trying to cover their positions? Apes together strong. HODL! ??
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交流道的小赢熊
·2021-06-03
Lmao at this FUD article. It should be HF 1 - 77 Reddit Army
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Stonker
·2021-06-03
If u hv been trackIng articles from seeking alpha long enough especially in the last week - they are just hedgie shills paid to create FUD amongst retail folks...dont ever fall for it...diamond hands until the deck clears one by one first AMC next GME...the naked shorts are wayyyy too deep and scrambling...more to come
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Stellaching
·2021-06-03
Haha
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Stonker
·2021-06-03
WTF what a dumb article..the article is missing the whole pointStupid reporter failed to report Mudrick hedgie boy got into a 3% premium trade to get out at 20% gain when it was all along overvalued...overvalued when bought overvalued when sold...same same at current levels 20% up is non material at this level of valuation....they were simply trying to close out their naked shorts and then someArticle again misses the whole damn point -its no longer a trade based in fundamentals..it is simply a short squeeze ratting out the naked hands that got too greedy - a punishment at the highest intellectual level...its time we the people own the markets...not the goddamn son*#%^itch mother$&^%*#s hedgie boys...so its AMC: Hedge Fund 0-2000 Reddit Army and counting :-) say my name
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Manualauto
·2021-06-03
had a good laugh
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TotoPangan
·2021-06-03
I dont believe in RSI.If amc will become bearish only for short period of time.Overall this is long term buy and HODL.
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DiamondsHand
·2021-06-03
Death
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BpchuA
·2021-06-03
Cool
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dandan_4896
·2021-06-03
Possible considering they say short squeeze no happen yet
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asdine
·2021-06-03
Haha
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- dandan_4896:
  Possible considering they say short squeeze no happen yet
  2021-06-03
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cruzer
·2021-06-03
Up up
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Natbrosial
·2021-06-03
apes together
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Natbrosial
·2021-06-03
HAHAHAH
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jemmie
·2021-06-03
I don't think u understand the ape mindset and this is probably one of the news articles to induce fear in retail investors. Obviously Murdrick made profits dumping the shares but if they were to hold a day long they would have doubled their investment. I don't see this as a win worth bragging.
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hawshy
·2021-06-03
Apes together Strong!
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- asdine:
  apes
  2021-06-03
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SaveHK
·2021-06-03
Make hedge fund pay lah....they have make lots of money from us.
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- RichTea:
  even cannot make them bankrupt also must let HF bleed hard
  2021-06-03
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Konnyaku
·2021-06-03
.
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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AMC","symbol_name":"AMC院线","start_time":0,"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","article_id":"1178258633","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","pubTimestamp":1622709110,"columns":[],"sourceInfo":null,"weMediaInfo":null,"summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"AMC":"AMC院线"},"translate_title":"AMC：对冲基金1-0红迪军团","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMC":0.9},"content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":118317692,"gmtCreate":1622719119416,"gmtModify":1704189609092,"author":{"id":"3576231291459124","authorId":"3576231291459124","name":"超群yibo","avatar":"https://static.tigerbbs.com/6594cf6901beda8fdf0f00a0e5853f18","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3576231291459124","authorIdStr":"3576231291459124"},"htmlText":"Some one out there must be eventually holding to the high priced shares. This is the game.&nbsp;","listText":"Some one out there must be eventually holding to the high priced shares. This is the game.&nbsp;","text":"Some one out there must be eventually holding to the high priced shares. This is the game.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":4,"repostSize":0,"link":"https://ttm.financial/post/118317692","repostId":1178258633,"repostType":4,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4563060,"gmtCreate":1622722232686,"gmtModify":1663227880435,"authorId":3583884958321017,"author":{"id":3583884958321017,"idStr":"3583884958321017","authorId":3583884958321017,"name":"AnaiAnai","avatar":"https://static.tigerbbs.com/8b0d0d8e20a4082ac0bc6a98756546ec","vip":1,"crmLevel":1,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":3576231291459124,"repliedAuthor":{"id":3576231291459124,"idStr":"3576231291459124","authorId":3576231291459124,"name":"超群yibo","avatar":"https://static.tigerbbs.com/6594cf6901beda8fdf0f00a0e5853f18","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"objectId":118317692,"type":1,"supId":4562595,"prevId":4563024,"content":"ok","text":"ok","html":"ok"},{"id":4563042,"gmtCreate":1622722168925,"gmtModify":1663227880245,"authorId":3583884958321017,"author":{"id":3583884958321017,"idStr":"3583884958321017","authorId":3583884958321017,"name":"AnaiAnai","avatar":"https://static.tigerbbs.com/8b0d0d8e20a4082ac0bc6a98756546ec","vip":1,"crmLevel":1,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":3576231291459124,"repliedAuthor":{"id":3576231291459124,"idStr":"3576231291459124","authorId":3576231291459124,"name":"超群yibo","avatar":"https://static.tigerbbs.com/6594cf6901beda8fdf0f00a0e5853f18","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"objectId":118317692,"type":1,"supId":4562595,"prevId":4563024,"content":"yes","text":"yes","html":"yes"},{"id":4563024,"gmtCreate":1622722090351,"gmtModify":1663227877530,"authorId":3576231291459124,"author":{"id":3576231291459124,"idStr":"3576231291459124","authorId":3576231291459124,"name":"超群yibo","avatar":"https://static.tigerbbs.com/6594cf6901beda8fdf0f00a0e5853f18","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":118317692,"type":1,"supId":4562595,"prevId":0,"content":"ya. May be","text":"ya. May be","html":"ya. May be"},{"id":4562595,"gmtCreate":1622720124566,"gmtModify":1663227875668,"authorId":3583884958321017,"author":{"id":3583884958321017,"idStr":"3583884958321017","authorId":3583884958321017,"name":"AnaiAnai","avatar":"https://static.tigerbbs.com/8b0d0d8e20a4082ac0bc6a98756546ec","vip":1,"crmLevel":1,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":118317692,"type":1,"supId":0,"prevId":0,"content":"short time?","text":"short time?","html":"short time?"}],"langContent":"EN"},{"id":118303305,"gmtCreate":1622717206007,"gmtModify":1704189557169,"author":{"id":"3567209468158570","authorId":"3567209468158570","name":"Jerrywong76","avatar":"https://static.tigerbbs.com/cb628024b8bf8a62db30a806c6571a54","vip":1,"crmLevel":7,"crmLevelSwitch":0,"idStr":"3567209468158570","authorIdStr":"3567209468158570"},"htmlText":"The short interest is 14%. How many hedge funds are still trying to cover their positions? Apes together strong. HODL! ??","listText":"The short interest is 14%. How many hedge funds are still trying to cover their positions? Apes together strong. HODL! ??","text":"The short interest is 14%. How many hedge funds are still trying to cover their positions? Apes together strong. HODL! ??","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118303305","repostId":1178258633,"repostType":2,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118976870,"gmtCreate":1622716530390,"gmtModify":1704189547023,"author":{"id":"3566284972281751","authorId":"3566284972281751","name":"交流道的小赢熊","avatar":"https://static.tigerbbs.com/ef065ddae505e347229c193751c11188","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":5,"crmLevelSwitch":0,"idStr":"3566284972281751","authorIdStr":"3566284972281751"},"htmlText":"Lmao at this FUD article. It should be HF 1 - 77 Reddit Army","listText":"Lmao at this FUD article. It should be HF 1 - 77 Reddit Army","text":"Lmao at this FUD article. It should be HF 1 - 77 Reddit Army","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118976870","repostId":1178258633,"repostType":2,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118945544,"gmtCreate":1622715944288,"gmtModify":1704189536408,"author":{"id":"3575285094262582","authorId":"3575285094262582","name":"Stonker","avatar":"https://static.tigerbbs.com/30eb7dc58172a5e840d654113620cc49","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3575285094262582","authorIdStr":"3575285094262582"},"htmlText":"If u hv been trackIng articles from seeking alpha long enough especially in the last week - they are just hedgie shills paid to create FUD amongst retail folks...dont ever fall for it...diamond hands until the deck clears one by one first AMC next GME...the naked shorts are wayyyy too deep and scrambling...more to come","listText":"If u hv been trackIng articles from seeking alpha long enough especially in the last week - they are just hedgie shills paid to create FUD amongst retail folks...dont ever fall for it...diamond hands until the deck clears one by one first AMC next GME...the naked shorts are wayyyy too deep and scrambling...more to come","text":"If u hv been trackIng articles from seeking alpha long enough especially in the last week - they are just hedgie shills paid to create FUD amongst retail folks...dont ever fall for it...diamond hands until the deck clears one by one first AMC next GME...the naked shorts are wayyyy too deep and scrambling...more to come","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118945544","repostId":1178258633,"repostType":2,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118946608,"gmtCreate":1622715766604,"gmtModify":1704189532964,"author":{"id":"3583107295640646","authorId":"3583107295640646","name":"Stellaching","avatar":"https://static.tigerbbs.com/44d42c6d30a2e5188558d76b1f45f1c2","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3583107295640646","authorIdStr":"3583107295640646"},"htmlText":"Haha","listText":"Haha","text":"Haha","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118946608","repostId":1178258633,"repostType":4,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118943182,"gmtCreate":1622715634546,"gmtModify":1704189528707,"author":{"id":"3575285094262582","authorId":"3575285094262582","name":"Stonker","avatar":"https://static.tigerbbs.com/30eb7dc58172a5e840d654113620cc49","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3575285094262582","authorIdStr":"3575285094262582"},"htmlText":"WTF what a dumb article..the article is missing the whole pointStupid reporter failed to report Mudrick hedgie boy got into a 3% premium trade to get out at 20% gain when&nbsp;it was all along overvalued...overvalued when bought overvalued when sold...same same at current levels 20% up is non material at this level of valuation....they were simply&nbsp;trying to close out their naked shorts and then someArticle again&nbsp;misses the whole damn point -its no longer a trade based in fundamentals..it is simply a short squeeze ratting out the naked hands that got too greedy - a punishment at the highest intellectual level...its time we the people own the markets...not the goddamn son*#%^itch mother$&amp;^%*#s hedgie boys...so its AMC: Hedge Fund 0-2000 Reddit Army and counting :-) say my name","listText":"WTF what a dumb article..the article is missing the whole pointStupid reporter failed to report Mudrick hedgie boy got into a 3% premium trade to get out at 20% gain when&nbsp;it was all along overvalued...overvalued when bought overvalued when sold...same same at current levels 20% up is non material at this level of valuation....they were simply&nbsp;trying to close out their naked shorts and then someArticle again&nbsp;misses the whole damn point -its no longer a trade based in fundamentals..it is simply a short squeeze ratting out the naked hands that got too greedy - a punishment at the highest intellectual level...its time we the people own the markets...not the goddamn son*#%^itch mother$&amp;^%*#s hedgie boys...so its AMC: Hedge Fund 0-2000 Reddit Army and counting :-) say my name","text":"WTF what a dumb article..the article is missing the whole pointStupid reporter failed to report Mudrick hedgie boy got into a 3% premium trade to get out at 20% gain when it was all along overvalued...overvalued when bought overvalued when sold...same same at current levels 20% up is non material at this level of valuation....they were simply trying to close out their naked shorts and then someArticle again misses the whole damn point -its no longer a trade based in fundamentals..it is simply a short squeeze ratting out the naked hands that got too greedy - a punishment at the highest intellectual level...its time we the people own the markets...not the goddamn son*#%^itch mother$&^%*#s hedgie boys...so its AMC: Hedge Fund 0-2000 Reddit Army and counting :-) say my name","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118943182","repostId":1178258633,"repostType":2,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118924885,"gmtCreate":1622714652247,"gmtModify":1704189508790,"author":{"id":"3574893533413432","authorId":"3574893533413432","name":"Manualauto","avatar":"https://static.tigerbbs.com/91f0683a5d8a748cefa82461e0f4c8a1","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3574893533413432","authorIdStr":"3574893533413432"},"htmlText":"had a good laugh","listText":"had a good laugh","text":"had a good laugh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118924885","repostId":1178258633,"repostType":2,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118930048,"gmtCreate":1622711545184,"gmtModify":1704189442376,"author":{"id":"3574071010805586","authorId":"3574071010805586","name":"TotoPangan","avatar":"https://static.tigerbbs.com/9816579d9ab825a195bac875bd6e23e8","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"3574071010805586","authorIdStr":"3574071010805586"},"htmlText":"I dont believe in RSI.If amc will become bearish only for short period of time.Overall this is long term buy and HODL.","listText":"I dont believe in RSI.If amc will become bearish only for short period of time.Overall this is long term buy and HODL.","text":"I dont believe in RSI.If amc will become bearish only for short period of time.Overall this is long term buy and HODL.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118930048","repostId":1178258633,"repostType":4,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118995626,"gmtCreate":1622711403565,"gmtModify":1704189438608,"author":{"id":"3578113539215777","authorId":"3578113539215777","name":"DiamondsHand","avatar":"https://static.tigerbbs.com/bbb5d1bf66dee2f5259e3d141daff82e","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3578113539215777","authorIdStr":"3578113539215777"},"htmlText":"Death","listText":"Death","text":"Death","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118995626","repostId":1178258633,"repostType":4,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118906652,"gmtCreate":1622710756176,"gmtModify":1704189423074,"author":{"id":"3575867013914101","authorId":"3575867013914101","name":"BpchuA","avatar":"https://static.tigerbbs.com/dd3500e66cc249b4480fcc30d7cd6409","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3575867013914101","authorIdStr":"3575867013914101"},"htmlText":"Cool","listText":"Cool","text":"Cool","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118906652","repostId":1178258633,"repostType":4,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118076393,"gmtCreate":1622710274012,"gmtModify":1704189410654,"author":{"id":"3576232257279797","authorId":"3576232257279797","name":"dandan_4896","avatar":"https://static.tigerbbs.com/d8b00e27a4dd6f248e38c3d78f21f188","vip":1,"crmLevel":2,"crmLevelSwitch":1,"idStr":"3576232257279797","authorIdStr":"3576232257279797"},"htmlText":"Possible considering they say short squeeze no happen yet","listText":"Possible considering they say short squeeze no happen yet","text":"Possible considering they say short squeeze no happen yet","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118076393","repostId":1178258633,"repostType":4,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118079756,"gmtCreate":1622710110875,"gmtModify":1704189405737,"author":{"id":"3582074828081294","authorId":"3582074828081294","name":"asdine","avatar":"https://static.tigerbbs.com/1de6a3b69cd62b99233606d7c5500508","vip":1,"crmLevel":5,"crmLevelSwitch":0,"idStr":"3582074828081294","authorIdStr":"3582074828081294"},"htmlText":"Haha","listText":"Haha","text":"Haha","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/118079756","repostId":1178258633,"repostType":4,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4560563,"gmtCreate":1622710267281,"gmtModify":1635390144689,"authorId":3576232257279797,"author":{"id":3576232257279797,"idStr":"3576232257279797","authorId":3576232257279797,"name":"dandan_4896","avatar":"https://static.tigerbbs.com/d8b00e27a4dd6f248e38c3d78f21f188","vip":1,"crmLevel":2,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":118079756,"type":1,"supId":0,"prevId":0,"content":"Possible considering they say short squeeze no happen yet","text":"Possible considering they say short squeeze no happen yet","html":"Possible considering they say short squeeze no happen yet"}],"langContent":"EN"},{"id":118079640,"gmtCreate":1622710085280,"gmtModify":1704189404914,"author":{"id":"3585717311854083","authorId":"3585717311854083","name":"cruzer","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3585717311854083","authorIdStr":"3585717311854083"},"htmlText":"Up up","listText":"Up up","text":"Up up","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118079640","repostId":1178258633,"repostType":4,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118079332,"gmtCreate":1622710068126,"gmtModify":1704189404588,"author":{"id":"3570155789044622","authorId":"3570155789044622","name":"Natbrosial","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3570155789044622","authorIdStr":"3570155789044622"},"htmlText":"apes together&nbsp;","listText":"apes together&nbsp;","text":"apes together","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118079332","repostId":1178258633,"repostType":2,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118070153,"gmtCreate":1622710036472,"gmtModify":1704189403117,"author":{"id":"3570155789044622","authorId":"3570155789044622","name":"Natbrosial","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3570155789044622","authorIdStr":"3570155789044622"},"htmlText":"HAHAHAH","listText":"HAHAHAH","text":"HAHAHAH","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118070153","repostId":1178258633,"repostType":2,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118048274,"gmtCreate":1622709812098,"gmtModify":1704189395314,"author":{"id":"3581767186680148","authorId":"3581767186680148","name":"jemmie","avatar":"https://static.tigerbbs.com/a4dec4a0576ef7e54edd75ad8197ee90","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":7,"crmLevelSwitch":1,"idStr":"3581767186680148","authorIdStr":"3581767186680148"},"htmlText":"I don't think u understand the ape mindset and this is probably one of the news articles to induce fear in retail investors. Obviously Murdrick made profits dumping the shares but if they were to hold a day long they would have doubled their investment. I don't see this as a win worth bragging.&nbsp;","listText":"I don't think u understand the ape mindset and this is probably one of the news articles to induce fear in retail investors. Obviously Murdrick made profits dumping the shares but if they were to hold a day long they would have doubled their investment. I don't see this as a win worth bragging.&nbsp;","text":"I don't think u understand the ape mindset and this is probably one of the news articles to induce fear in retail investors. Obviously Murdrick made profits dumping the shares but if they were to hold a day long they would have doubled their investment. I don't see this as a win worth bragging.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118048274","repostId":1178258633,"repostType":2,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":118049479,"gmtCreate":1622709703891,"gmtModify":1704189392237,"author":{"id":"3566915563903863","authorId":"3566915563903863","name":"hawshy","avatar":"https://static.tigerbbs.com/ab808bbe887fa3fe215f0532ca314534","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":7,"crmLevelSwitch":1,"idStr":"3566915563903863","authorIdStr":"3566915563903863"},"htmlText":"Apes together Strong!&nbsp;","listText":"Apes together Strong!&nbsp;","text":"Apes together Strong!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/118049479","repostId":1178258633,"repostType":2,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4560540,"gmtCreate":1622710146083,"gmtModify":1663227867329,"authorId":3582074828081294,"author":{"id":3582074828081294,"idStr":"3582074828081294","authorId":3582074828081294,"name":"asdine","avatar":"https://static.tigerbbs.com/1de6a3b69cd62b99233606d7c5500508","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":118049479,"type":1,"supId":0,"prevId":0,"content":"apes","text":"apes","html":"apes"}],"langContent":"EN"},{"id":118055816,"gmtCreate":1622709482535,"gmtModify":1704189385766,"author":{"id":"3570678493691973","authorId":"3570678493691973","name":"SaveHK","avatar":"https://static.tigerbbs.com/89b74f5799a23844400ed6de94296d38","vip":1,"crmLevel":4,"crmLevelSwitch":0,"idStr":"3570678493691973","authorIdStr":"3570678493691973"},"htmlText":"Make hedge fund pay lah....they have make&nbsp;lots of money from us.","listText":"Make hedge fund pay lah....they have make&nbsp;lots of money from us.","text":"Make hedge fund pay lah....they have make lots of money from us.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/118055816","repostId":1178258633,"repostType":4,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4562074,"gmtCreate":1622717745297,"gmtModify":1635338656062,"authorId":3580611966360609,"author":{"id":3580611966360609,"idStr":"3580611966360609","authorId":3580611966360609,"name":"RichTea","avatar":"https://static.tigerbbs.com/17f24d7c1ce49657326aac3bf4f42040","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":118055816,"type":1,"supId":0,"prevId":0,"content":"even cannot make them bankrupt also must let HF bleed hard","text":"even cannot make them bankrupt also must let HF bleed hard","html":"even cannot make them bankrupt also must let HF bleed hard"}],"langContent":"EN"},{"id":118055389,"gmtCreate":1622709477941,"gmtModify":1704189385118,"author":{"id":"3574212617517822","authorId":"3574212617517822","name":"Konnyaku","avatar":"https://static.tigerbbs.com/151457cadab3ed8bda3b475e79b505f0","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":2,"crmLevelSwitch":1,"idStr":"3574212617517822","authorIdStr":"3574212617517822"},"htmlText":".&nbsp;","listText":".&nbsp;","text":".","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/118055389","repostId":1178258633,"repostType":4,"repost":{"id":"1178258633","kind":"news","pubTimestamp":1622709110,"share":"https://ttm.financial/m/news/1178258633?lang=&edition=fundamental","pubTime":"2021-06-03 16:31","market":"us","language":"en","title":"AMC: Hedge Fund 1-0 Reddit Army","url":"https://stock-news.laohu8.com/highlight/detail?id=1178258633","media":"seekingalpha","summary":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dil","content":"Summary\n<ul>\n <li>Shares of AMC surged 23% on news of a private share placement.</li>\n <li>Private share placements dilute shareholders and AMC's price should have gone down, not surged.</li>\n <li>It looks as if this hedge fund just monetized the Reddit army.</li>\n</ul>\n<img src=\"https://static.tigerbbs.com/072cd9d13e01f3f3defe064d4bcf6589\" tg-width=\"1536\" tg-height=\"1024\">Photo by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued&nbsp;8,500,000 shares&nbsp;for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have&nbsp;serious anxiety&nbsp;regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n<img src=\"https://static.tigerbbs.com/eda20bf9503e3abf095e0fb05639597b\" tg-width=\"1267\" tg-height=\"727\">(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n<img src=\"https://static.tigerbbs.com/188015773070c85dac8627ef00d7320a\" tg-width=\"418\" tg-height=\"287\">(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\n<img src=\"https://static.tigerbbs.com/466ba9dd813555ed3675587a5cc6c834\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already&nbsp;exited its position&nbsp;in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\n<img src=\"https://static.tigerbbs.com/81c3d9572182dca54c798bab323e99b2\" tg-width=\"635\" tg-height=\"419\">Data by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: Hedge Fund 1-0 Reddit Army</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: Hedge Fund 1-0 Reddit Army\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-03 16:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army>seekingalpha</a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\nSummary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund ...\n\n<a href=\"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4432676-amc-hedge-fund-reddit-army","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1178258633","content_text":"Summary\n\nShares of AMC surged 23% on news of a private share placement.\nPrivate share placements dilute shareholders and AMC's price should have gone down, not surged.\nIt looks as if this hedge fund just monetized the Reddit army.\n\nPhoto by Tom Cooper/Getty Images Entertainment via Getty Images\nShares of AMC Entertainment (AMC) surged another 23% on Tuesday after the movie theater chain announced a private placement of shares to an investment fund. Normally, capital raises cause stock prices to fall, not increase. The hedge fund looks to have turned the tables on the Reddit army.\nReason for AMC's price reaction\nMovie theater company AMC just did what a lot of companies do that have a lot of debt to service and need to confront an uncertain future… they offer new shares to investors and use the funds as a life line to survive.\nAMC issued 8,500,000 shares for $230,500,000 to an investment firm named Mudrick Capital Management, LP. The investment firm has a focus on event-driven investing and distressed debt.\nAMC said that it will use the proceeds from the capital raise for the \"pursuit of value creating acquisitions of theater assets and leases, as well as investments to enhance the consumer appeal of its theaters\".\nFresh capital is much needed. AMC's revenues cratered during the pandemic and the theater chain is still suffering from COVID-19 shutdown restrictions and social distancing regulations.\nAlthough AMC's revenues are expected to bounce back this year as the pandemic seemingly comes to an end, COVID-19 may have changed movie viewing habits permanently.\nOne big challenge for AMC will be to get viewers back into its movie theaters. Streaming already was a competitive threat to the industry before COVID-19 and the pandemic may have accelerated this trend. A lot of people seem to have serious anxiety regarding a lockdown exit, so there is a valid question to be asked if movie theaters can really return to normal once the pandemic ends.\nBut back to AMC's announcement.\nShares of AMC surged 23% on Tuesday, which brings the total year-to-date return to more than 1,500%.\nLooking at the technical situation of AMC… shares are now very, very much overbought...\n(Source: TradingView)\nAMC's trading volume on Tuesday was almost 500% the average trading volume with almost half a billion shares being bought and sold…\n(Source: ShortSqueeze)\nHowever, the price reaction literally makes no sense given that the firm announced a capital raise, which increases the number of shares. As more shares are issued, the firms EPS is poised to decline as earnings are distributed over a larger amount of outstanding shares. The reaction to a capital raise is typically for the share price to fall, not to increase.\nAMC now has a market capitalization of $14.4b compared to less than $1b in January...\nData by YCharts\nA hedge fund is turning the tables on the Reddit army…\nMudrick Capital Management is said to have already exited its position in AMC after making a quick 20% on Tuesday. So Mudrick Capital Management is not a long term investor that is bringing its distressed debt and special situation expertise to AMC… the whole thing was really just a quick flip as the investment firm offloaded overpriced shares to retail investors that continue to buy into the frenzy because they hope for a short squeeze. The firm itself brazenly called AMC \"massively overvalued.\" If the firm made a 20% return on its invested capital, it secured $46m in profits yesterday… not bad for a day's work!\nWhile AMC was likely happy to get an equity raise done at this valuation, the hedge fund sold its stake faster than AMC could get the filing about its unregistered sale of equity securities out...\nExtreme volatility and risks...\nAMC's valuation has become even more ludicrous on Tuesday than it already was before. The movie theater chain, which was close to bankruptcy just a few months ago, now trades at a P-S ratio of 3.\nCinemark Holdings (CNK), a theater rival which may itself be overvalued, trades at a P-S ratio of 1.0.\nData by YCharts\nThe risk here is immeasurable because neither the price action nor the valuation makes any sense for AMC.\nAMC's price should have gone down yesterday, not up because a capital raise is dilutive... but nothing makes sense anymore when it comes to AMC.\nAMC is trading independently of its business numbers and growth prospects and the risk of losing everything in this \"investment\" is extremely high.\nClosing thoughts\nA hedge fund just had a big victory and nobody seems to notice or care.\nYou literally had a hedge fund flipping its stake in AMC to the Reddit army at a massively overpriced valuation and explicitly calling AMC \"overvalued.\" It can't get any more brazen than this. Please be careful.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":21,"commentSize":19,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}