I have some bad news to report to all of you if you haven't seen it already, but I'm assuming you have. that's probably why you're watching this right now. AMC is getting slaughtered at the point that I'm recording this on the day alone. AMC is down 20 and if you look at any of the larger time periods, it's down 70, 80, 90.

So what's going on right now in a word is dilution. But as you're about to see I think it gets a little bit more interesting than that. So just for posterity, just form a little bit of a basis on the video. AMC Obviously after the reverse split, they haven't really quite figured out this math on trading view The major thing you need to know as it's just been putting in lower highs, lower lows, it's getting screwed and I find this odd depending on when you're watching this.

The recent news was actually kind of good with AMC a partnership with Taylor Swift and her concert and there's a lot of popularity. Tickets sold out so things at least we're slightly improving on a fundamental standpoint. But I've been noticing this interesting Trend with the CEO of AMC Mr Adam Aaron that whenever anything good happens right away, he has to just like kick the investors right in the face. AMC is down 20 trading just below 11.

and remember we just went through a ten for One reverse stock split. which means a week or two ago, this is basically trading at a dollar Ten a dollar. oh nine. Uh, just to give you a bit of a relative basis depending on when you were weren't paying attention to it.

So the reason for this getting slaughtered is an announcement we got today up to 40 million shares Class A Common Stock AKA Dilution So this was the announcement from the AMC leadership team. We have entered into an equity distribution agreement with City Barclays B Riley and Goldman as our sale agents relating to the shares of Class A commissoc and offered by this prospective supplement and the accompanying prospectus. In accordance with the terms of the distribution agreement we made through our sales agents offer and sell from time to time up to 40 million shares of Class A Common stock. The sales agents may act as agents on our behalf or purchase shares of our class A common stock as principals.

So they're diluting, they're selling an additional 40 million shares to the market. Obviously, when they're complete with this process, there's going to be another announcement I Don't know how long it's going to take. It might take a while. It might happen very rapidly.

It depends on how aggressively these different sales agents want to sell it all to the market, but if you do the quick math, it's kind of insane that they're doing a dilution at this low of a value. Because hey, if demand stays the same and then the supply increases as in the number of shares, price obviously has to go down. This is the class classic Supply demand curve that we all learned about when we were in middle school and high school. and right now there's a lot of sycophant supporters of Adam Aaron and Adam Aaron himself telling you that delusion is good.

If dilution is good, why has the stock always gone down on the announcement of dilution I feel like we're looking reality in the face and we're just truly being gaslit by Adam Aaron and all the supporters who are arguably very new to the world of trading and investing and they're just not knowledgeable about the current situation. So the direct answer of why is AMC getting slaughtered even further is because of a dilution of 40 million. Now there's a couple of things I want to point out here. First of all, we know that AMC has about five billion dollars worth of debt.

So if you do the quick math on it to get that 5 billion burden off of their back of the company, that would mean you want the dilution done at an average price of a hundred and twenty five. 40 million roughly multiply by type 125 is going to get that roughly 5 billion dollar debt burden off your back. Well, we're trading at 11. as in way way far away and it's continuing to make it even worse and getting farther away from the situation, you would need to take care of the depth.

On top of this, it's a large dilution and I mean considerable 40 million. Well, going into this afterwards, there's gonna be I'll find it right here. up to 198 million. As in before this happened, we started at 158..

this is the dilution to the tune of 25. This isn't Oh, just like a little bit a 25 based on the outstanding Share account. Before this happened, they're increasing the total amount of shares by 25 at a value that's a twelfth of where we would need it to be to take care of the debt just to get some of these numbers out there. And obviously I know if you're watching this, you're probably still kind of interested of what's going on in terms of the short numbers.

Right now, the per short interest uh, estimated by Ortex is actually below 10. Uh, the cost of borrow is now at 8.3 and the utilization has dropped to 52. So relative to what we were seeing a month ago two months ago, all these numbers are down. There's less short interest, the cost of borrow has come down, and the utilization has come down.

So I See this rhetoric on Twitter later and on Reddit that it's all about. this concept of the shorts are stuck folks. Let's be honest, they're not stuck. When they're up money, this is benefiting them.

This is a new Fresh low all the way to the back to the start of 2021. As in anyone who got short in this and is still holding is up money. So this concept that they're short and the shorts are gonna choke on that and this. that and the other thing I Think at a certain point you have to be realistic and admit that the people who are choking on that are the retail supporters of AMC AMC Because of the Rona period, something completely outside of their control was going to go bankrupt.

There was just no one going there, they had expenses, they had interest payments, and there was just literally no Revenue because people were going to the movie theater. So the Retail Community stepped in and saved them. And how does the retail Community get paid back for saving the company, ensuring that the board and the leadership team doesn't end their career in the disgrace. Well, they basically say, screw you, they increase their own pay right now.

Adam Aaron is getting paid in the low 20 million dollars, which is the highest pay he's ever received as it's going down and down and down and down and down. There's no record of any of the people on the board, the officers, the leadership team buying any stock in the past two to three years, no record of them going out of their way to buy, and in fact, all the records are suggesting that they're selling the leadership team. a notional value has sold upwards of 800 to 900 million dollars worth of AMC Adam Aaron himself has profited more than 40 million dollars in his selling of AMC before. It got even worse in my opinion.

and obviously this is just conjecture here. They knew exactly what they were doing. they all the rats were running off the ship before they decided to sync it basically. and once again, this is all conjecture.

But I'm looking at who really benefited on this deal. Obviously the leadership team did the board. did they all made money? But look at who else really made out here. Private Equity look at mudric, look at inter, look at Adam Aaron's personal buddies in the private Equity world because those are all the winners and I don't think I'm going completely crazy here with like all the conspiracy of tying lines I feel like the sunny from Philadelphia with like the yarn.

but I'm just looking at who made money in this situation and it screams to me that suits are always suits. So right now if you want to know why it's going down once again, AMC is being diluted. Once again, a negative piece of news is announced immediately from the company. right after there's a sliver of good news, and right now it's just things aren't looking good, they're not adding up and I truly cannot understand the mind of someone who is still sycophantically supporting this guy because he has no qualities of an actual leader.

He's done nothing zilch. NADA Goose egg to show his support for the retail trading Community I Was thinking about this a lot and where everything I least in my opinion, win a rye is when this trade, this play this community. When the thesis went from, it's an active trade to screw over the shorts when it went from that and somehow transitioned into a fundamental investment. That's where when things went wrong.

If you talk to anyone who's been trading in the market for any amount of time, you know that as soon as you're trading, you're changing your thesis mid-trade The things are good, That's not good. That's not what's supposed to happen to me and many people. This started off as an active trade and then when people thought like, no, no, it has to go higher we were promised higher levels. The thing that I was always 100 again because how could you ever predict anything? There's no accurate model that can predict what's happening in a squeeze scenario and then all of a sudden they're like no, we want it higher So now it didn't happen and it came down.

So now we're all of a sudden fundamental investors That doesn't make sense to me whatsoever. I Do hope it works for you I'm not rooting against any of you, but I am sick and tired of acting as if Adam Aaron is somehow on our side. Yes, you could be against the manipulation of the market. You can be against pattern day trading.

You could be four more fairness and transparency in the market. You could be against the opaqueness in FTD reporting. You can have questions about the threshold list. You could be wondering what's going on with the short reports.

why are we getting Longs calls and puts and not shorts? You can question all of those and I agree with you. I'm simply adding on one thing I'm just saying hey, maybe Also, Adam Aaron's a little bit sus I'm not disagreeing with you on anything else, but I just don't understand. We have to go around coddling Adam Aaron as if he's like our financial Savior and he's the actual Silverback because he's done nothing to prove. So that's what's going on with AMC Unfortunately, it's a very sad situation and on that particular note, I Would love to get your thoughts on it.

Obviously there's a lot of blood in the water. Retail investors Traders based on current price action are getting absolutely slaughtered. So let me know where your mindsets are on. Are you completely done with this play? Do you still have a lot of Hope in this play? Or are you somewhere in the middle and you're like, okay, like maybe you have a little bit more of complicated thoughts on it obviously I would love to know.