$AMC Entertainment (AMC.US)$ for those who keep thinking how...
$AMC Entertainment(AMC.US$ for those who keep thinking how come their short bullet cant finish one . lemme explain
they are using bonds sold to them by amc aka convertible notes(it is a kind of bond which can be converted to shares) to short amc (amc did it because they needed cash to bring am out of bankruptcy few months back)
because amc sold those bonds to hedgefunds to get cash (like a loan) , amc will have to pay hedgefund interest . the interest paid to hedgefunds will be used to further buy bonds from amc , creating an infinite cycle of shorting (that is why their bullets just simply cant run out)
good news is , amc filed S3 withdrawal , meaning amc wants all the bonds they sold back to them since amc have the cash to get back the bonds sold (thanks to apes).
it means , hedgefunds will have to give back all the bonds( which they used to short) back to amc once S3 withdrawal is approved by SEC ( which most probably will unless they chut stun)
it means, after this, hedgefunds will have no way left to short amc . and nothing stop amc from going to moon (unless people paper hand)
it means , is checkmate for hedgefunds
all the stuff i written here might be wrong , i am not a financial advisor . do comment and point out any mistakes ive made in the comments section and i will gladly respond
they are using bonds sold to them by amc aka convertible notes(it is a kind of bond which can be converted to shares) to short amc (amc did it because they needed cash to bring am out of bankruptcy few months back)
because amc sold those bonds to hedgefunds to get cash (like a loan) , amc will have to pay hedgefund interest . the interest paid to hedgefunds will be used to further buy bonds from amc , creating an infinite cycle of shorting (that is why their bullets just simply cant run out)
good news is , amc filed S3 withdrawal , meaning amc wants all the bonds they sold back to them since amc have the cash to get back the bonds sold (thanks to apes).
it means , hedgefunds will have to give back all the bonds( which they used to short) back to amc once S3 withdrawal is approved by SEC ( which most probably will unless they chut stun)
it means, after this, hedgefunds will have no way left to short amc . and nothing stop amc from going to moon (unless people paper hand)
it means , is checkmate for hedgefunds
all the stuff i written here might be wrong , i am not a financial advisor . do comment and point out any mistakes ive made in the comments section and i will gladly respond
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101563258 : Super like ur explanation esp for ppl like me who knows nothing except HOLD , THANK U
Sinnedmal : Thank you for clear and simple explanation
AMC_APE_OOGAHOOGA : From whatever I read, I believe You are right and this is a really good and simple explaination
Newcleuz : Awesome.
StonkStock : Don't forget naked short
MaximalOP StonkStock: This is interesting .
Because of the bonds they held (which can be converted to shares), hedgefunds IF get called out for naked shorting, can justify by saying they have these bonds that can be converted to shares. So it is not naked shorting since they have these convertible notes bonds to be converted to shares to support the shorting they did .
HOWEVER S3 withdrawal is filed , the bonds HAVE to be returned . It means they cannot justify their shorts are not naked shorts , it means is double checkmate on them .
I might be wrong . I am not a financial advisor.
101516486 : Convertible notes charge at higher interest do not forget!!! BURNN
Pochong : Dont get your hopes too high. I believe next week we will once again be trading sideways in the 50-60 band.
MaximalOP Pochong: It will take weeks or months for the entire thing to get effective . So HODL . The s3 is just filed
102826725 : that is nice of you, giving most of us what is the S3 about. Thank you!