(Part 1) Does this cat care about the story of Mudrick Capital Management, LP?
Nope.
(Part 2) Adam Aron is not intrinsically involved with the sales of 8.5M shares of the company. It was done through a purchase agreement by Blackwell Partners, an authorized issuer of shares.
(Part 3) It was effectively done from using an existing reserve pool of certified outstanding shares distributed by AMC. There was no dilution involved.
(Part 4) Adam Aron already has proof of disparity with speculated billions of synthetic shares circulating in the open market. Selling 8.5M in trading hours wouldn't make a dent into the current price movement.
(Part 5) Logically speaking, based on the numbers presented with short volume data and daily volume being exchanged, there is already a problem with the amount of shares. We apparently own the float several times over on what's officially reported.
(Part 6) As a matter of fact, retail investors ate those 8.5M shares like candy.
(Part 7) The CEO clearly knows what he's doing. Raising cash gives value to his company.
In return, it increases perceived value into the stock price giving incentive to retail investors into purchasing more positions - amplifying positively the squeeze.
Think about it.
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Lots of apes & cats (retail and institutional investors) have done their due diligence that something has never seen before with $AMC. There is speculation that we're sitting with billions of synthetic shares with fabulous analysis (which is very very likely).
(Part 2)
We have disparity of trading volume but we cannot prove there is existence of synthetic shares.
Fact is, @CEOAdam must speak within legal boundaries, being a public figure and representative of a company and cannot speak of a topic without irrefutable proof.
(Part 3)
If we believe we are sitting with billions of synthetic shares and short sellers STILL using naked shorting, the current dilution of share value is barely a tiny droplet of water in a bucket. What's 10M more? We're eating those up like candy with the price movement.
My apologies - bringing some corrections here - The prospectus offering was filed in April with the SEC with a complete sale of shares which was completed today and filed today.
(Part 2) It was a reserved pool of an offering based on the current amount of unsold outstanding shares. That offering lets the company to raise capital to increase value. They have the right to do so without our approval
It is not dilution which the media heavily emphasizes on.
(Part 3) A company cannot sell NEW shares out of the blue, effectively increasing the amount of outstanding shares which imply dilution without shareholder's approval. It is illegal and AMC would have been delisted - through my previous lessons.
(Part 1) When people are questioning about 11.5M sold shares being the alleged reason of $AMC plummeting today - which is FUD-based fueled by media, counting on financial illiteracy of inexperienced investors (which is insulting) - shouldn't be worried about it.
(Part 2) The prospectus was drafted in April with these shares sold at that time period and the 11.5M filing was time-stamped today to fully register that sale with the SEC.
(Part 3) The real reason why the stock plummeted today is because of entire market liquidation with the OCC's notice to secure capital for meeting deficits on defaulted accounts.
(Part 1) The Options Clearing Corporation (OCC) with their sub-market regulators of the Foundation of Secure Markets, has sent a memo to all of their registered members (clearing members).
(Part 2) Every month following an OCC clearing fund sizing report, when a registered member is showing a deficit on their options account, they would have to secure a collateral to satisfy this deficit within a time frame.
(Part 3) In my latest teachings, each clearing corporation (CC) has their own members and rules via SEC. Every registered member under a CC (investment bank, hedge funds) must maintain a liquidity requirement to maintain, especially short/margin-based positions.
(Part 1) The biggest lie of the 1%: they always say this speech of "following your passion".
Whoever tells you that is already rich. People are too broke to follow their own passion.
(Part 2) One day, you'll make so much passive income above your burn that you'll be able to pursue whatever you want in life.
(Part 3) First, you need to find something in life that you're good at - and then spending countless hours refining that craftmanship, through perseverance, hard work, sacrifice, grit, and the commitment to improve that skill.