I’ve been covering AMC Entertainment Holdings Inc (NYSE: AMC) stock, as I often do with stocks that the “experts” say are going to tank, with a contrarian opinion. I’ve received tons of emails. However, things have been very different this time around.
Usually, when I cover a stock that “the masses” believe will fall, and say something like, “it’s a great time to buy,” the emails I receive can be tough to read. I’m told how horrible I am to get people excited about the stock, my intelligence is questioned, and the insults, and often threats pile up.
However, AMC has been very different.
Over the past few weeks, I’ve received hundreds, if not thousands of… thank you emails!!!
What, why, how?
How is it that when I say AMC, a stock that’s been battered by hedge funds and touted as the worst investment on Wall Street, is going to head up, I get thank you emails? Well, you might be surprised to find out.
Ultimately, AMC stock sets the stage for an understanding of just what’s wrong with the stock market today.
Corruption Among Big Money Players Has No Bounds
You may not want to hear this, but it’s not hard to turn the “experts” into parrots. All it takes is money, and many of these highly regarded Wall Street experts will say whatever you want them to. It’s why there’s six figure pump and dump campaigns that lead to losses for the masses all the time.
And I believe that the vast majority of experts have become paid parrots when it comes to AMC, repeating what their masters tell them they need to say.
So, who are those masters?
The fact of the matter is that while we generally see the stock market as a fair and equitable place, it is one of the most corrupt places on earth, with hedge funds often leading in that corruption. These funds have massive amounts of money, and throw that money around to generate even more money, often at the cost of extreme losses to the retail community.
Take a look at the message below from a owner of Official AMC Only discord with over 29,000 members:
As you can see, Isaias is sharing a message from what is perceived to be a hedge fund, asking to pay a specific dollar amount per subscriber on his platform to become the fund’s mouthpiece to his following.
But there are a few very interesting things to consider here:
- Bitcoin As Payment? The hedge funds are clearly being very sneaky here. In the message, Isaias is offered Bitcoin as payment. This is an interesting play since Bitcoin can’t be tracked like a wire transfer or other traditional forms of payment. This shows that whatever hedge fund contacted him is taking extraordinary steps to make sure that whoever they’re paying doesn’t share the fact that they’ve been paid. This may surprise you to find out, but that’s totally illegal! If you get paid to write about a stock, you have to disclose that payment to readers, well, if you’re a normal person. If you’re working for a hedge fund with a Bitcoin wallet, the rules seem to be bending.
- How Many People Accepted the Offer. Interestingly, even experts that appeared to be bullish on AMC last year have made a complete 180 degree turn, now spreading bearish opinions. One has to wonder how many of these are paid for opinions, paid for with Bitcoin in an effort to hide the fact that these are paid opinions and make investors believe that the expert writing the content is sharing his own, true opinion. It’s getting a bit shady out there!
- Several Offers. Reading the message in the screenshot above clearly shows that this isn’t the first message, or offer, Isaias has received from this sender. He’s pretty much beating a dead horse, begging to take control over the moderator’s opinion to sway the very retail investors these hedge funds have led to detrimental losses for.
How Hedge Funds Manipulate The Stock Market
Hedge funds have been manipulating the market for years, and for the most part, it has been a completely legal process. That is, until they started trying to hide the fact that they’re hiring experts, using Bitcoin as an anonymous payment to sway the masses.
But how have they done it?
It’s important to keep in mind that news doesn’t move the market, nor does the validity of an investment, the experts touting how strong or weak that investment may be, or even the management team behind the company.
Prices move in the market as a result of supply and demand balancing itself out.
As investors buy a stock, supplies shrink and demand climbs, sending the price upward. On the other hand, when market participants sell a stock, a flood of supply hits the market in times when demand is low, leading to declines in the price of the stock.
Hedge funds take advantage of this system by taking out massive short positions on stocks like AMC, GameStop, and countless others. When taking those short positions, these funds are essentially borrowing shares from investors that are long the stock, and immediately selling them into the open market.
These sales of massive blocks of shares tip the scales of supply and demand, often leading the price of the stock downward. As that downward activity takes place, fearful retail investors begin selling their positions, often at a loss, to avoid further bleeding. Once the hedge fund believes the stock has fallen as low as it can, they repurchase the shares they sold to start the whole thing, returning them to their rightful owners and making boatloads of cash in the process.
This is an activity that has been going on for years, leading to the loss of countless amounts of money for countless small, retail investors, that became the unknowing victims of big money players on Wall Street.
Again, I want to be very clear about one thing here. This isn’t illegal, and unless hedge funds are sneakily paying for expert opinions without disclosures, they’ve done nothing wrong, unless you look at things from a moral perspective.
Back To AMC
As the title of this article suggests, there’s no better place to see the corruption in the stock market at the moment than AMC, a movie theater chain that dealt with significant pain throughout the pandemic.
Recently, there has been a significant increase in the short interest seen on AMC stock. At the same time, there’s been a significant change to how experts see the stock. All over the internet, you’ll find bears pleading with retail investors to get away from the stock, sell it immediately, and never look back.
They say that over the next two years, the company will lose somewhere between $1.8 billion and $2.4 billion, forcing it into a financial restructuring via bankruptcy. They say consumers don’t like going to movie theaters anymore, and that AMC has absolutely no chance of recovery.
One has to wonder how much Bitcoin they received to say these things, but that’s what’s being said nonetheless.
There’s no question that AMC has struggled. What else would you expect from a company that had to shut its doors for months as the result of a pandemic? Would you expect their profits to rise? Would you expect gains? Of course not.
But the naysayers say the company has no real path to recovery, and that’s a bunch of bull*&^%, fill in the blanks there my friends.
The fact of the matter is that the movie exhibition chain has reopened the vast majority of its theaters, is going through a debt restructuring to cure its financial blues, and with blockbuster movies like Godzilla vs. Kong hitting the screens, with many other big hits expected to come out this year and next, the idea that a recovery simply can’t happen is an unfounded one.
You’ve been cooped up in your house for a while. Have you thought about a night out for dinner and a movie? I know I have, and with AMC being the largest chain in the United States, when you go for that dinner and a movie, you’re likely to walk through the doors of one of their theaters.
The Bottom Line
The bottom line here is simple. What we’re seeing with AMC and what we have seen since the beginning of the year outlines what’s wrong with the stock market as it stands today. Investors feel comfortable investing as FINRA and the SEC are charged with creating a fair and equitable environment for all. However, money rules the world, and these regulatory agencies don’t seem to be doing anything to stop the corruption of big money hedge funds.
The good news is that where regulatory agencies seem to falter, retail investors are picking up the slack. If these agencies aren’t going to fine or imprison fund managers that make their livings by taking money out of the pockets of small retail investors, retail investors are going to fight back by banding together, knowing that the whole is greater than the sum of all parts.
The simple fact here is that investors are growing weary. They want to trust the system in which they work, and if that’s not going to happen by way of regulatory oversight, it’s going to happen by way of the rule of the masses as the masses band together to give hedge funds a taste of their own medicine.