Summary: Bonds used as shorts = Consequences!
$AMC Entertainment (AMC.US)$
To break it down, have you ever wondered how hedges seem to be able to short AMC endlessly with an unlimited supply of shares? Actually, when AMC issued bonds to raise more cash, those bonds were used by hedges to short the stock instead of shares even while AMC is on Threshold Securities List now, with no downside that came with shorting shares like the interest rate and such.
To break it down, have you ever wondered how hedges seem to be able to short AMC endlessly with an unlimited supply of shares? Actually, when AMC issued bonds to raise more cash, those bonds were used by hedges to short the stock instead of shares even while AMC is on Threshold Securities List now, with no downside that came with shorting shares like the interest rate and such.
But now Adam Aron has recently filed a S-3 form, requiring all bonds to be paid back and reported on how they were used, as well as restricting the issuance of new bonds, aka a repeat of 2008.
GameStop started its meteoric rise to the hundreds of dollars per share a few days after it first appeared on the Threshold Securities list, and now that AMC has appeared on it too for the first time, combined with this restriction on using bonds as stocks to short it, the next following weeks will be a beautiful view of the moon!
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ASTHROWNORTH :
Thank you so much for this revelation which you have loved to our attention.
umbrager : Eh. Amc was in the list last year in dec. This wasn't the first time
Roukou OP umbrager : I see, thanks for the correction. Still, being on the Threshold Securities list is a pretty big catalyst, so let's see what happens within the next week.
umbrager Roukou OP : Honestly, nothing matters. The squeeze is inevitable.
牛的天空 :