If you've been paying attention to AMC Adam Aaron and just really what is going on in this particular insane situation, it's no surprise that AMC and the artist formerly known as Ape, which is no longer merged back into AMC at the time that I'm recording this over the past year. Really, ever since that rip higher all the way up to 72 in June of 2021 has done nothing but go down and down and down. there have been brief moments of bullish optimism, but unfortunately they are short-lived A lot of the time there was in between there where things were a bit boring and I didn't really cover it. But now that we have this merge event of Ape going back into AMC obviously it makes sense that maybe we should be talking a little bit about it and it's been a bloody nightmare.

Oh, AMC Short sellers net 522 million in August as meme stock tumbles AMC Short sellers have made more than half a billion dollars betting against the meme stock. in August alone, Short sellers have booked 522 million in profits so far this month on the back of a 75 stock decline according to the financial analytics provider or text the shares of AMC have pledged. Since the firm got approval for its revised stockholder settlement, the ruling on August 11th by a Delaware judge has allowed AMC to convert preferred shared units into common stock. Why are things going down on this conversion well associated with the conversion is the fact that basically the Adam and the CEO of AMC and the board now have unlimited power to to Loop.

Obviously, with more Supply as in dilution with the same amount of demand, price goes down. Now the question is, well, how do we know they're going to dilute? Well, it's pretty evident. just listen to Adam Aaron himself or just understand in their financial situation their five billion dollars in depth and right now that debt burdens not looking so pretty, especially because there's a writing and acting strike. So that's going to create some form of a lag of new blockbuster movies being made if they're not being made, or if there's a major lag to it.

That means we could go more financial quarters with the box office not performing at the level we would all want it to and if it's not performing at that level, inherently, it just means that the revenue for AMC will be going lower on August 14th AMC Stock tanked 35 on fears that the approval would allow the firm to issue more shares to raise Capital. It's not just a fear that's going to be reality. AMC Shares dropped uh further on August 24th after the company completed a reverse one for 10 stock split another 11 drop on August 28th has erased all the gains from 2021 at Meme stock Mania. This is a good reason of for everyone to understand there's a difference between an active trade and an investment.

At this point, AMC has not proven itself to be a quality investment. It's proven itself to be a quality active trade. arguably both to the upside into the down downside, because there's been massive volatility in both directions. on August 28th AMC Short sellers made over 25 million within 24 hours Short Interest in the firm's free float share stands around 12.5 percent.

This recently took a big tumble because of the nature of the merge of Ape going back into AMC People were playing the Arbitrage they were short AMC They were Long Ape and the reason they were doing that is because both AMC and Ape had the same legal and financial claim to the company, so it wasn't really logical that they were trading at a different price. The fact that they were trading at a different price creates what's referred to as a Delta and people were taking advantage of that Delta the Arbitrage Opportunity by being long Ape and short AMC until the merge, and obviously people who chose to engage in that particular trade actually ended up faring pretty nicely. AMC Reported its Financial results for the second quarter on August 8th. The company's 15.6 Revenue growth and net income of 8.6 million compared with a net loss of 122 million in Q2 of 2022 failed to lift invest their confidence.

On that note, In terms of fundamentals, that was actually a big win for AMC The fact that they had a positive net income? That's good. That means they were trending in the right direction. Now it's nothing to blow your skirt up over, but it was a positive sign on rather than being the positive than the negative as I alluded to before though, The fact that there is the strike, the dual strike going on, the writing, and the acting strike I Don't think it's the most insane call out to be like whoa, the longer that goes. That means there's going to be less movies.

And if there's less movies, then this is something completely outside of AMC's control. There's just going to be less. Revenue So my fear is that their net income goes back into the net loss territory the longer that this strike continues. well.

AMC Proved to be a successful bet for short sellers. in August they have lost roughly 24 million by betting against Memes stock. GameStop Over the same period overall, in 2023, AMC short sellers made a profit of 407 million while GameStop top short sellers ticker symbol Gme have lost a little over 80 million. So the short on AMC this year has been successful.

The short on Gme this year has not been successful. I Know this is a very high emotion situation. in my opinion. It's as simple as this: I No longer trust Adam Aaron I Don't see what he's done That should make me trust him.

If anything, whenever things seems a little bit good, he's tweeting over the weekend and drives things back down. I Just I Cannot name a thing that shows he supports retail traders. that shows he supports Apes You might be of a different opinion I'm just sharing my own and covering just factual information of how things have been going. But once again, obviously when it comes to your own money, your own.

Investments you have to take a bit of responsibility and do your own due diligence. I'm a fan of taking in as much information from as many sources as you possibly can, but if you find yourself just hoping you're like only look looking for things that support your buys, the market is probably going to eat you alive. obviously. I Hope that this all very much turns around, but the fact that there's been such a horrible plummet capitulation in AMC stock price and the CEO Adam Aaron himself is nowhere to be found.

This guy thinks the best thing he could do right now is be completely silent. That's insane to me. That's absolutely insane to me. Uh, it's a bold, bold strategy cotton.

We'll have to see if it pays off. but the fact that this guy is Radio silent when the stock is getting absolutely murked. I Mean it tells you exactly what you need to know about that guy's leadership or what I should say is lack of now. Obviously, we covered a lot there.

so let me know your thoughts on a comment. but this is. it's a sad situation. If we're going to sum it all up, things have gone very, very bad and poorly for the supporters of AMC.

So I hope things turn around, but I'm not particularly going to be holding my breath on it.