The idea under discussion is to allocate as much as 30% of a future SpaceX IPO to retail investors, roughly three times the usual share set aside for individuals. In most IPOs, institutions dominate the allocation and retail investors get a small slice. A SpaceX deal structured this way would flip that model and give everyday investors unusually large access from day one.

That matters because SpaceX is not a normal IPO candidate. At a possible valuation of up to $1.75 trillion, the company would enter public markets on a scale that few businesses in history have even approached.

The size comparison is what makes this potentially historic.

The largest IPO ever completed was Saudi Aramco, which raised about $29.4 billion in 2019. Alibaba raised $25 billion in 2014. Other giants include ICBC at roughly $21.9 billion, Visa at $17.4 billion, Meta at $16 billion, and General Motors at $15.8 billion.

If SpaceX were to raise more than $75 billion, it would not just break the IPO record. It would destroy it. A $75 billion offering would be about 2.5 times the size of Aramco’s record deal, 3 times the size of Alibaba’s, and more than 4 times Visa’s.

Even by U.S. standards, the gap would be enormous. Among the biggest American IPOs by valuation were AT&T Wireless at about $68 billion, Rivian at roughly $66.5 billion, Didi at nearly $61 billion, and UPS at around $60 billion. A SpaceX debut at a valuation of up to $1.75 trillion would be operating in an entirely different universe.

What makes the structure even more unusual is not just the size, but who gets access. IPOs have traditionally been built around large institutions because banks want stable demand and issuers want deep-pocketed shareholders. Musk seems to be betting on something else: that his loyal fan base and long-term backers could help support the stock after it starts trading.

That would be a real break from the traditional Wall Street model. In most blockbuster IPOs, retail demand may drive excitement, but institutions still control the book. A SpaceX IPO with a 30% retail allocation would signal that brand loyalty and investor enthusiasm can be just as powerful as institutional demand.

Nothing is final yet, and the terms could still change. But even as a possibility, the message is already clear: a SpaceX IPO would not be just another giant listing. It could become one of the biggest and most unconventional public offerings ever, resetting expectations for both size and access.

“I own GME. I have been buying recently. I expect I am buying at what may soon be 1x tangible book value / 1x net asset value,” Burry wrote in a Substack post published Monday. He pointed to Chief Executive Officer Ryan Cohen’s role in investing and deploying the company’s capital and cash flow, adding that it could be “for the next 50 years.”

GameStop shares jumped more than 6% on Monday after the post circulated.

Burry who has recently shut his hedge fund, Scion Asset Management framed the position as a long-term value investment rather than a bet on a return of meme-stock mania. GameStop was a central name in the meme-stock surge about five years ago, when retail traders organized on online forums pushed the stock sharply higher and triggered short covering among hedge funds.

“I am not counting on a short squeeze to realize long-term value,” Burry wrote. “I believe in Ryan, I like the setup, the governance, the strategy as I see it. I am willing to hold long-term.”

After giving back much of its meme-era gains as speculation faded, the stock last traded around $25. The company has also used bursts of investor interest to raise billions of dollars through equity sales, building a sizable cash position.

“Ryan is making lemonade out of lemons,” Burry wrote, describing GameStop as a challenged core business that has nonetheless been used to raise cash and wait for an acquisition opportunity.

GameStop began buying bitcoin last year in a move that echoed the strategy popularized by MicroStrategy, now known as Strategy. Cohen said the decision was driven by macro concerns, arguing that bitcoin’s fixed supply and decentralized structure could help hedge certain risks.

“I do not know about this Bitcoin thing, but I cannot argue with what has been done so far,” Burry wrote.

Burry isn’t alone in leaning bullish. Cohen bought 1 million shares of GameStop last week, according to disclosures filed with the Securities and Exchange Commission. In a Jan. 21 SEC filing, he said it’s “essential” for a public-company CEO to buy shares with personal funds to strengthen alignment with shareholders.

• Quantum BioPharma (NASDAQ: QNTM) has announced a $7 million reward for anyone who can provide definitive and verifiable proof of market manipulation involving its stock, the company said on Wednesday.
• The biopharmaceutical firm stated that the cash reward will be issued only if the information provided is tangible, supported by strong evidence, and leads to a final, non-appealable judgment in Quantum BioPharma’s favor.
• According to the company, employees, affiliates, or regulatory personnel who submit unlawful, false, or misleading information will be disqualified and deemed ineligible for the reward.
• Quantum BioPharma described the initiative as part of its broader commitment to market integrity, shareholder transparency, and accountability across financial markets.
• The company added that the reward aims to encourage credible whistleblowers and expose potential manipulation affecting the fair valuation of its publicly traded shares.

From relentless media bashing to questionable social media accounts dedicated solely to undermining these stocks, it’s clear that something more than simple financial analysis is at play. At the heart of this coordinated effort are powerful financial interests, short-sellers, and a media machine aimed at driving down the stock prices of AMC and GameStop, stocks that at any moment could soar, leaving Wall Street’s short positions in financial ruin.

The Media’s Role: Relentless Bashing of AMC and GameStop

In 2021, Motley Fool, a financial blog often seen as a resource for retail investors, published an astounding 1,300 negative articles about AMC alone. This pattern of negative coverage extended to other outlets such as Seeking Alpha and InvestorPlace, which seem to have an unusual fixation on disparaging both AMC and GameStop. The sheer volume of articles, many of which contained similar talking points about why these stocks are doomed, raises the question: why are these media outlets so focused on two stocks, if they truly believe they are bad investments?

Motley Fool’s Sean Williams, who also runs the Twitter account “amcscam,” is a key figure in this narrative. His account exists almost solely to criticize AMC and GameStop, labeling them as bad investments while pushing the narrative that retail investors are misguided in supporting these companies.

This is not just a single individual’s opinion, but part of a broader, coordinated effort by financial media to manipulate public sentiment.

Furthermore, InvestorPlace, another financial blog known for its extensive negative coverage of these stocks, hosts contributors with tarnished reputations. One such contributor is Louis Navellier, an investment adviser who was charged by the SEC for fraud and ordered to pay $30 million in fines.

Navellier’s firm, Navellier & Associates, was found guilty of defrauding clients by providing false and misleading information in its marketing materials. Given the legal troubles surrounding some of its contributors, InvestorPlace’s role in bashing AMC and GameStop becomes even more suspect.

On the social media front, Charles Gasparino, a journalist known for his work on Fox Business, has used his Twitter account to consistently attack retail investors and their investments in AMC and GameStop. His account often features posts bashing the potential of these stocks, portraying retail investors as naive and misguided. Gasparino’s relentless focus on these stocks stands out, considering he has a platform that could be used to cover a broad spectrum of financial topics. Instead, his Twitter feed reads like an extended critique of AMC and GameStop, leading to suspicions about his motivations.

Gasparino’s behavior on X (formerly Twitter), coupled with his media appearances, creates a reinforcing cycle where his tweets and reports influence market sentiment. This strategy appears aimed at discouraging retail investors from holding these stocks, further pushing the narrative that AMC and GameStop are not worth the investment. The constant negativity not only undermines retail investors but also reinforces the short-seller’s position by helping to depress stock prices.

Wall Street’s Deep Involvement: Virtu Financial’s Douglas Cifu

While media figures and financial blogs may be the public face of the attack on AMC and GameStop, the real power behind this campaign comes from Wall Street itself. Douglas Cifu, CEO of Virtu Financial, a high-frequency trading firm, has been particularly vocal about AMC and GameStop, often belittling retail investors and their investments in these companies.

The CEO of Virtu Financial, a publicly traded company, posts a disrespectful comment regarding individuals with special needs.$VIRT pic.twitter.com/P0g35n1DeX

— InvestorTurf (@InvestorTurf) March 22, 2024

His Twitter posts are littered with derogatory comments aimed at the retail community, dismissing their efforts as misguided. But Cifu’s involvement goes beyond rhetoric; Virtu Financial has a direct financial interest in the suppression of these stocks.

Virtu, like many other trading firms, stands to benefit from high levels of volatility and the success of short-sellers. By helping to drive down stock prices, firms like Virtu can generate profits from short positions, further incentivizing them to engage in activities that suppress stock prices. Cifu’s attacks on retail investors are not merely opinions—they are part of a broader strategy to ensure that the interests of hedge funds and short-sellers are protected.

Naked Short-Selling: The Root of the Manipulation

Naked short-selling has emerged as one of Wall Street’s most insidious tools for manipulating stock prices, especially in the case of companies like AMC and GameStop. Unlike traditional short-selling, where an investor borrows shares and sells them with the hope of repurchasing them at a lower price, naked short-selling occurs when shares are sold without actually being borrowed. This illegal practice creates counterfeit shares, artificially increasing the supply in the market and driving down the stock price.

At the core of naked short-selling is the sale of shares that do not exist. When an investor sells a stock short, they usually borrow the shares from another account to cover the transaction. However, in naked short-selling, these shares are never borrowed, leaving the transaction “naked.” The broker involved in the trade records the sale, but no actual share is delivered within the regulatory three-day settlement period. This results in what is known as a fail-to-deliver (FTD), where the sold shares never materialize.

The practice effectively creates counterfeit shares, flooding the market with supply and driving down the stock price. As the stock price falls, the short-sellers, including hedge funds and financial institutions, can buy back shares at the lower price to close their positions, reaping enormous profits. This manipulation of supply and demand distorts market prices and can ruin companies targeted by these attacks.

The major participants in naked short-selling include prime brokers, market makers, and hedge funds, all of whom play a key role in facilitating this form of stock manipulation. These entities work in concert to manipulate the market:

• Prime Brokers: Large financial institutions such as Goldman Sachs, Morgan Stanley, and Citigroup act as prime brokers, clearing and settling trades for their clients, which include hedge funds. They are instrumental in facilitating naked short-selling by allowing short-sellers to bypass the requirement of borrowing shares. In many cases, they are also directly involved in these trades, profiting from lending fees, commissions, and their own proprietary trading.
• Hedge Funds: Hedge funds are among the most aggressive users of naked short-selling. These unregulated pools of capital frequently take large, concentrated short positions in stocks they believe will decline in price. By working with prime brokers, hedge funds can sell shares they do not own, driving down the price of the targeted stock. David Rocker and Marc Cohodes are notorious examples of hedge fund managers who have used naked shorting to attack companies.
• Depository Trust Clearing Corporation (DTCC): The DTCC plays a critical role in stock clearing and settlement and is owned by the very brokers it is supposed to regulate. The DTCC has been accused of enabling naked short-selling by clearing trades that result in FTDs without enforcing buy-ins or penalties for these discrepancies. The DTCC’s Continuous Net Settlement (CNS) system ensures that these counterfeit shares remain in circulation, allowing market makers and hedge funds to create an unlimited supply of naked short positions.

Naked short-selling has a devastating effect on stock prices. By artificially increasing the supply of shares through the creation of counterfeit shares, short-sellers can overwhelm demand and cause prices to plummet. This manipulation often targets small-cap and mid-cap stocks, which are more vulnerable to price movements due to their lower trading volumes. The influx of counterfeit shares causes the stock to fall, creating a downward spiral as more and more short-sellers pile on.

For companies like AMC and GameStop, this manipulation has resulted in extreme volatility and severe price suppression. Despite strong retail investor interest and occasional spikes in demand, the relentless pressure from naked short-sellers prevents these stocks from realizing their full potential.

Naked short-selling persists due to regulatory loopholes and a lack of stringent enforcement by authorities like the Securities and Exchange Commission (SEC). For example, Regulation SHO, introduced in 2005 to curb abusive short-selling, contains numerous exemptions that allow market makers to sell shares without borrowing them. Additionally, the regulation’s lack of teeth—such as the failure to enforce buy-ins for FTDs—means that naked short-sellers can operate with impunity.

The SEC’s enforcement efforts have been weak, and the agency has been criticized for being too closely aligned with Wall Street interests. High-profile investigations into naked short-selling have often been stymied by industry lobbying and legal obfuscation, leaving retail investors and emerging companies vulnerable to these predatory practices.

Naked short-selling is not just a technical market tactic—it is a form of stock counterfeiting that allows powerful financial institutions to manipulate stock prices, often to the detriment of small investors and emerging companies. The system, as it currently exists, is designed to benefit the brokers, hedge funds, and clearinghouses that profit from these manipulative practices.

The lack of regulatory oversight and enforcement allows this fraud to continue unabated, distorting markets and robbing retail investors of fair opportunities. As AMC, GameStop, and other companies continue to face this attack, it remains to be seen whether regulatory bodies will step up to address these abuses or continue to turn a blind eye to one of the largest financial manipulations of our time.

The Financial Risk to Wall Street

Despite the relentless media and financial campaign to suppress these stocks, there remains a looming threat to Wall Street: at any moment, the prices of AMC and GameStop could skyrocket. Should this happen, hedge funds and financial institutions that have bet heavily against these stocks could find themselves in serious financial trouble.

The most notable example of this occurred with Melvin Capital, which suffered enormous losses during the initial GameStop short squeeze in January 2021. If a similar event were to occur again, particularly with the vast number of naked short positions still outstanding, it could send shockwaves through the financial system and bankrupt many firms with short exposure.

The possibility of a sudden price surge is exactly why Wall Street and its allies in the media are so determined to maintain a negative narrative around these stocks. Forcing retail investors to sell and driving the price down ensures that hedge funds can close out their short positions before they are caught in another short squeeze. This is not just about protecting profits—it’s about survival.

Conclusion: A Coordinated Effort to Control the Narrative

The coordinated campaign against AMC and GameStop is not the result of objective financial analysis. Instead, it appears to be part of a broader strategy to manipulate public sentiment, suppress stock prices, and protect the interests of Wall Street’s short-sellers. From media outlets like Motley Fool and Seeking Alpha to high-profile figures like Charles Gasparino and Douglas Cifu, a wide range of players are involved in this effort to undermine these stocks.

At the heart of the issue is the practice of naked short-selling, which has allowed hedge funds to flood the market with counterfeit shares and suppress prices. Despite these efforts, the risk to Wall Street remains high. Should these stocks experience another meteoric rise, it could result in significant financial losses for hedge funds and financial institutions, potentially triggering another financial crisis.

For retail investors, the battle over AMC and GameStop has become more than just a financial play—it’s about exposing the manipulation and corruption that pervades Wall Street. As this fight continues, it remains to be seen whether regulatory bodies like the SEC will step in to protect the integrity of the markets, or whether Wall Street will continue to exploit loopholes to maintain its stranglehold on these stocks.

Fighting for Truth: Support Independent Journalism

When Twitter accounts like "fuggabaggie" spend their days attacking AMC and GameStop shareholders, calling independent outlets like ours “goofy blogs with no revenue,” they’re half right—we don’t generate anywhere near the revenue of media giants like Motley Fool or InvestorPlace. But there’s one thing they’ll never admit: we’re honest.

Your goofy blog has no revenue to share, loser.

— fuggabaggie (@fuggabaggie) October 21, 2024

Unlike the major outlets pushing the narratives of Wall Street, we aren’t backed by hedge funds or advertisers looking to line their pockets. Our reporting is driven by truth and independence, not by profit or manipulation. We stand by the retail investors and refuse to be another voice for the short-selling elite.

This is why we need your support. Every dollar you contribute helps us stay independent, allowing us to continue our investigative journalism and fight back against the smear campaigns run by big-money interests. Whether it’s $1 or more, your donation sends a message to the fuggabaggies of the world: we won’t back down, and we won’t sell out. Support independent journalism and help us keep pushing for transparency—because the truth is worth fighting for.

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Intrinsic value represents the true worth of a company’s stock, determined by its financial health and overall performance. Unlike the stock’s market price, which fluctuates due to market sentiment and investor emotions, intrinsic value provides a more accurate measure of whether a stock is genuinely a good investment.

This article breaks down why AMC’s improved earnings, in conjunction with a strong valuation argument, make the company a buy for investors willing to bet on the rebound of the theatrical industry.

AMC’s Valuation: A Substantial Discount

Based on our analysis, the intrinsic value of AMC’s stock is calculated at $16 per share, compared to its current trading price of $4.23. This means AMC is undervalued by approximately 70%. Moreover, on a relative valuation basis, AMC’s stock is estimated to be worth $25 per share, translating to an even more substantial discount of ~80%.

Intrinsic value is derived by averaging the results of two widely accepted valuation methods: the Discounted Cash Flow (DCF) analysis and relative valuation. Here’s a breakdown of how these methodologies help establish a fair value for AMC.

• Discounted Cash Flow (DCF) Analysis

  The DCF method estimates a company’s future cash flows and discounts them back to present value, giving a precise figure for the company’s intrinsic worth. AMC, despite its volatility, has been improving its cash flow through various cost-cutting measures, refinancing debt, and boosting theater attendance post-pandemic.

  With the gradual recovery of cinema demand, particularly from blockbuster releases and higher per-patron spending on concessions, AMC’s future free cash flow could see substantial growth. Conservatively, these future cash flows suggest that AMC’s intrinsic value stands at $16 per share.

• Relative Valuation

  Relative valuation involves comparing AMC to similar companies based on industry-specific metrics, including EV/Revenue, EV/EBITDA, and P/E ratios. Despite AMC’s unique position in the entertainment space, the company compares favorably to peers when accounting for the rebound in the cinema industry and its high revenue potential.

  For example:

  EV/Revenue: As AMC’s revenue has rebounded strongly post-pandemic, it compares favorably to other theater chains and media companies.

  EV/EBITDA: AMC’s EBITDA has also shown improvement as costs are contained and audience numbers return.

  The relative valuation places AMC’s stock at $25 per share, underscoring the potential for price appreciation in a market recovery scenario.

Intrinsic Value as an Average of DCF and Relative Value

By taking the average of the intrinsic value from the DCF analysis and the relative valuation, we arrive at an overall intrinsic value of $20.50 per share. This implies that AMC stock is trading at a significant discount to its fair value and offers investors a ~70-80% potential upside based on current market conditions.

Earnings Improvement: A Path to Recovery

AMC’s financials have seen remarkable improvement over the past few years, which supports the investment thesis. After navigating through a challenging pandemic-induced downturn, AMC is beginning to show positive momentum, particularly in 2023 and 2024.

• Revenue Growth: AMC’s revenue declined significantly during the pandemic, dropping to as low as $1.2 billion in 2020. However, since theaters reopened, the company has seen a strong recovery. For the fiscal year 2024, revenue is projected to reach $4.5 billion, up from $3.9 billion in 2023, showing a steady upward trajectory. The resurgence of movie-goers, boosted by popular films, has driven higher attendance and increased per-patron spending on concessions.
• Improved EBITDA and Margins: EBITDA margins have improved as AMC has focused on cost efficiency and better financial management. In 2020, AMC posted a negative EBITDA of over $500 million, but by 2023, EBITDA turned positive, and for 2024, it is forecasted to grow to $600 million. This is a significant turnaround, driven by both revenue growth and operational improvements.
• Debt Restructuring: One of the key issues that investors have been wary of is AMC’s debt load. However, the company has made significant strides in addressing this concern by restructuring and refinancing its debt. As of 2024, AMC has reduced its net debt position from over $5.4 billion to $4.6 billion, while also securing more favorable interest rates, which will save the company millions in interest expenses moving forward.
• Diversified Revenue Streams: AMC has also embraced new business opportunities, including partnerships with streaming services and expanding its food and beverage offerings. These initiatives, while still in early stages, could further support long-term growth and help the company adapt to the evolving entertainment landscape.

Catalysts for Future Growth

Several factors could drive AMC’s stock price higher:

• Blockbuster Releases: Major movie releases in 2024 and beyond are expected to bring even more foot traffic to AMC theaters. These blockbuster movies have the potential to boost both ticket sales and concessions.
• Premium Cinema Experience: AMC has invested heavily in its premium theaters, including IMAX and Dolby Cinema. As consumers return to theaters for the superior movie-going experience that can’t be replicated at home, AMC’s revenues from premium formats could see a strong boost.
• Subscription Services: AMC Stubs A-List, AMC’s movie subscription service, has seen a surge in membership. This recurring revenue stream provides a stable base for future earnings growth.

Risks to Consider

While AMC is undervalued from both an intrinsic and relative perspective, potential investors should be mindful of the risks involved:

• High Debt Levels: AMC still carries a significant debt load, which could become a burden if interest rates rise further or if revenue recovery slows down.
• Competition from Streaming: Streaming services continue to pose a threat to traditional theater chains, though AMC has proven its ability to coexist alongside streaming by partnering with major streaming platforms for exclusive releases.

Conclusion: A Buy for Value-Oriented Investors

At its current market price of $4.23, AMC stock is significantly undervalued when compared to its intrinsic value of $16 per share and its relative value of $25 per share. With a 70-80% discount to its fair value, and supported by improving earnings, cost control, and a recovering cinema industry, AMC presents a deep value opportunity for investors willing to weather near-term volatility.

For those with a longer-term outlook, AMC offers substantial upside potential as it continues to recover from the pandemic and capitalize on the return of movie-going audiences.

Disclaimer: The information provided in this analysis is for informational purposes only and should not be considered financial, investment, or trading advice. Always do your own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages that may result from following the information provided. Investing in stocks involves risks, including the loss of principal.

Partnership Overview

Under this collaboration, GameStop will serve as an authorized PSA dealer, allowing customers to access PSA’s authentication and grading services in select retail locations. For the uninitiated, PSA provides expert authentication and grading services to ensure the legitimacy and condition of trading cards and memorabilia, which is critical for enthusiasts and collectors alike, as these factors directly impact an item’s value.

GameStop will facilitate the submission process for its customers, offering them a streamlined way to submit their trading cards for authentication. Once authenticated, these cards will be graded on PSA’s proprietary scale, which ranges from 1 to 10, reflecting the condition and overall quality of the card. Collectors can then use these grades to assess market value, with highly graded cards often fetching premium prices at auctions or private sales.

Implications for GameStop: Market Reaction and Future Prospects

This collaboration comes at a pivotal time for GameStop as it continues to diversify its revenue streams beyond video games. By becoming a PSA dealer, GameStop is positioning itself to capture a share of the booming collectibles market, which has seen a resurgence over the past few years. Offering in-store authentication and grading services will likely drive foot traffic and attract a new demographic of collectors and enthusiasts.

In terms of market reaction, while the financial impact of the partnership has yet to fully materialize, analysts are optimistic. GameStop’s stock (NYSE: GME) has experienced volatility in recent years, but this collaboration signals the company’s commitment to evolving its business model. The collectibles market, estimated to reach $370 billion globally by 2024, offers significant upside potential. By tapping into this growth area, GameStop aims to complement its traditional gaming business with high-margin services in the trading card segment.

Looking ahead, the partnership could expand, potentially including more GameStop locations or other collectible services, such as auctions, appraisals, or card-trading platforms. The success of this initiative will depend on GameStop’s ability to resonate with its consumer base while effectively managing operational execution. Investors and industry stakeholders will be keen to see how this move contributes to GameStop’s broader transformation efforts in the evolving retail landscape.

The collaboration between GameStop and PSA marks a significant step in GameStop’s transformation as it seeks to become a broader retail destination for collectibles, beyond its gaming roots. By leveraging PSA’s world-class reputation and tapping into the surging interest in trading cards, GameStop is positioning itself to attract a new type of customer while providing added value to existing patrons. The potential for increased store traffic and higher-margin services makes this partnership one to watch as GameStop continues to reinvent its business in a rapidly changing retail landscape.

E-Trade Financial Corporation, now part of Morgan Stanley, is a financial services company offering an electronic trading platform for stocks, preferred stocks, futures contracts, exchange-traded funds, options, mutual funds, and fixed-income investments. Additionally, E*Trade provides services such as employee stock ownership plans, student loan benefit administration, advisor services, margin lending, and online banking. The firm generates revenue through interest income on margin balances, commissions from order executions, and payments for order flow.

ETrade and RoaringKitty

ETrade has recently considered removing RoaringKitty, also known as DeepFuckingValue, from its platform. This consideration stems from concerns about potential stock manipulation related to his recent purchases of GameStop ( $GME) shares. RoaringKitty, a well-known figure in the trading community, gained significant attention during the GameStop trading frenzy. His posts and analysis have influenced many retail investors. ETrade’s move reflects the broader scrutiny and regulatory concerns about the impact of social media and influential traders on market dynamics.

E*Trade is considering removing RoaringKitty, also known as DeepFuckingValue, from the platform due to reported concerns about potential stock manipulation related to his recent GameStop ( $GME) purchases.

— InvestorTurf (@InvestorTurf) June 3, 2024

ETrade Violations

• In 2016, ETrade Securities LLC was censured and fined $900,000 by the Financial Industry Regulatory Authority (FINRA) for failing to review the quality of execution of its customers’ orders and for supervisory deficiencies regarding the protection of customer information.
• ETrade agreed to pay a $350,000 fine to FINRA after allegations that it allowed manipulative customer trading to occur.
• A consent letter signed by FINRA and E*Trade stated that the company failed to establish and maintain a supervisory system for detecting potentially manipulative trading by its customers from February 2016 through November 2021.
• ETrade paid $2.5 million to settle SEC charges for ignoring red flags and improperly selling billions of unregistered penny stock shares on behalf of customers. The SEC claimed that ETrade Securities and E*Trade Capital Markets (later G1 Execution Services LLC) failed in their role as a “gatekeeper” of securities and sold shares without verifying if they met the required exemptions.

Key Highlights from Q1 2024:

• Revenue: The company reported revenues of $951.4 million, slightly down from $954.4 million in Q1 2023.
• Net Loss: AMC reduced its net loss to $163.5 million from $235.5 million in the previous year.
• Earnings Per Share: Loss per share improved significantly to $0.62 from $1.71 last year.
• Adjusted EBITDA: This metric, which helps understand the company's operational performance, was negative at $31.6 million, a drop from a positive $7.1 million last year. This includes a special benefit the company had last year.
• Cash Flow: Cash used in operations was slightly less at $188.3 million compared to $189.9 million last year.
• Cash Reserves: As of March 31, 2024, AMC's cash on hand was $624.2 million.

Comments from CEO Adam Aron:

Adam Aron, Chairman and CEO of AMC, stated, "We're pleased to report that AMC outperformed in the first quarter. Despite challenges from the Hollywood strikes in 2023, we saw a strong turnout in March indicating a robust future for moviegoing."

Aron highlighted that AMC maintained its revenue levels and saw an increase in its domestic market share despite a 6% drop in the North American box office from last year. He credited this performance to strategic cost management and improved profitability per customer.

Financial Strategy and Future Outlook:

AMC has continued to reduce its debt, lowering the principal by $17.5 million early in the quarter by exchanging debt for equity. Since the beginning of 2022, AMC has reduced its debt and deferred rent by nearly $975 million.

Looking forward, Aron expressed optimism about the second half of 2024 and beyond, citing an exciting upcoming film lineup. He also noted AMC's ongoing discussions with major musical artists, announcing a special event with Billie Eilish scheduled for May 16 and 17 to coincide with her next album release.

Overall, AMC remains committed to reducing its debt further, extending debt maturities, and strengthening its financial position to ensure sustained growth and resilience in the evolving entertainment landscape.

Doing my part.
byu/standardkillchain inamcstock

According to standardkillchain, the logic behind this gamble hinges on the historical performance of meme stocks like AMC, which are known to experience sudden price surges due to speculative trading. "Always buy meme stocks 99% down off highs. They tend to pump for random reasons," the user advises, reflecting a sentiment popular among certain segments of retail traders who frequent forums like Reddit's AMC subreddit, which boasts 500,000 members.

The trader also pointed to the asymmetrical nature of market evaluations in such scenarios, suggesting that AMC's current market cap is "sub billion," which is "vastly undervalued for such a crowd." This reference to the 'attention economy' echoes a broader trend where market movements are increasingly influenced by social media and collective retail investor actions rather than traditional fundamentals.

Adding a technical analysis perspective, standardkillchain noted that AMC's Moving Average Convergence Divergence (MACD) indicator on the 1-month chart is nearing a bullish crossover, hinting at potential upward momentum. This observation is tied to broader market patterns, where recently, AMC followed GameStop Corporation in a significant price increase, reminiscent of past meme stock rallies.

Further, the Reddit user speculated on potential outcomes related to AMC's financial health, suggesting a possible acquisition by a major Hollywood entity should the company face bankruptcy. "If AMC does go into bankruptcy then a major Hollywood player will buy. Hollywood still needs theaters to release movies," they argued, indicating a strategic but speculative long-term view on the stock's prospects.

This $170,000 investment epitomizes the high-risk, high-reward strategies embraced by a subset of retail investors, who often gather in online communities to exchange predictions and trading strategies. As AMC navigates its challenging financial landscape, the actions of investors like standardkillchain will likely continue to influence its stock performance in unpredictable ways.

Key Preliminary Financial Highlights:

In efforts to improve its balance sheet, AMC spoke with advisors and first-lien lenders this March. Additionally, on April 19, AMC disclosed in a regulatory filing that it had secured a new letter of credit, replacing a $225 million revolving credit facility due to expire on April 22, and had cleared the outstanding balance.

Aron points out AMC’s creative and effective response to these challenges, distinguishing it from other exhibitors. Despite a $4.5 billion debt, AMC has substantial cash reserves, amounting to $885 million as of the end of 2023, which Aron believes will support the company through 2024. He is optimistic about the box office potential in 2025 and 2026, expecting significant earnings improvements.

To navigate the pandemic’s impact, AMC took several unconventional steps, including distributing Taylor Swift’s concert film, which became the most successful concert film ever, earning more than $261 million globally. AMC also released Beyoncé’s “Renaissance: A Film by Beyoncé,” which, while less lucrative, served as an effective branding move. Aron highlights AMC’s capacity for innovation, not just in terms of content but also through initiatives like launching a retail popcorn business that has expanded its presence to approximately 6,000 stores, without disclosing specific sales figures. Additionally, the company’s venture into selling custom popcorn holders has generated substantial revenue.

Aron’s leadership reflects a strategic approach to overcoming the challenges faced by the cinema industry, focusing on innovation, diversification, and optimism for the future. He assures that AMC is not only surviving but also preparing for a strong comeback in the coming years.

This economist had been sending emails to these companies, explaining parts of the consumer price index (CPI), which helps us understand inflation by looking at prices of things like housing and used cars. This CPI is very important because it can affect decisions made by businesses and the government.

The story first came out when the New York Times reported that the economist was calling this group of companies and investors “my super users.” The BLS said they don’t have an official list of “super users,” but it was found that the economist had indeed invited someone to join this email list.

The situation got more attention when an email mistakenly sent in February hinted at a change in how they calculate the cost of renting in the CPI. This mistake caused a lot of confusion, and the BLS had to tell people to ignore the email and later tried to explain the mistake on their website.

Because of this incident, there will likely be more checks on how the BLS shares its economic data. This data is very powerful and can influence the stock market and decisions made by the Federal Reserve, which helps manage the U.S. economy.

The BLS is now trying to fix the trust that was damaged by this incident. They want to make sure everyone believes they are sharing information fairly. Emily Liddel, an official at the BLS, said they are embarrassed and are working on being more trustworthy. The economist has been stopped from answering people’s questions for now as they review what happened, especially looking at whether he shared information that wasn’t supposed to be public yet.

The analysts pointed out that this positive variance was not attributed to any singular blockbuster release but was rather the result of a series of films collectively performing beyond expectations. This trend underscores a robust and enduring consumer interest, expected to extend into the following year.

A significant emphasis was placed on Cinemark’s operational efficiency as a pivotal reason for the stock’s perceived undervaluation, despite its appreciation since the start of the year. Moreover, Wells Fargo has adjusted its projections for Cinemark’s adjusted EBITDA for the years 2024 and 2025, positioning these figures ahead of the general consensus among Wall Street analysts.

Wells Fargo arrived at the new $23.00 price target by applying a 7x multiplier to the combined adjusted EBITDA estimates for 2024 and 2025. This analysis suggests a potential 50% growth in Cinemark’s market value, based on its projected earnings capacity for 2025. Additionally, the report discusses an in-depth analysis of the film slate dynamics that informed Wells Fargo’s revised stance on Cinemark.