AMC Stock: Manipulation Like You’ve Never Seen Before

It’s been about a week since my last article on AMC Entertainment Holdings Inc (NYSE: AMC), and I have to say, I’ve learned a lot in that week, far more than I thought I would. Now, my investigation into the stock and the hedge funds that have been manipulating it continues, and will likely continue for some time. However, I’ve decided to post a weekly update to share what I learn as I continue this long-term investigation. 

Here’s this week’s update:

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Manipulation Through Dark Pools

I had a reader bring dark pools to my attention last week. I’ve been working in the market for around a decade, and hadn’t heard anything about them, but upon further review, it seems as though they do exist and that hedge funds have been using them to manipulate AMC stock, and the rest of the stock market for quite some time. 

Keep in mind, I’m still doing my research on this, but I wanted to share my understanding of them with you as I know it today. 

Dark pools are a tool often used by institutional investors to essentially throw a sheet over your head and say “there’s no data here.” OK, that’s a bit dramatic, but it’s about as clear of an analogy as I can provide. 

Dark pools were originally designed to make it so that institutional investors could trade large blocks of stock without affecting price. For example, say Vanguard wanted to sell 500,000 shares of a stock trading at $10 per share. As the block sold, the price of the stock would fall, and Vanguard wouldn’t get what they wanted out of the trade. 

To remedy that, they would send the trade through a dark pool, essentially an OTC market, this way, the trade wouldn’t affect the price of AMC until it was complete. A bit shady? Yes it is, but it gets worse. 

The video embedded below explains how short selling hedge funds and their cohorts have been using these dark pools to manipulate AMC stock in a way they simply weren’t intended. Essentially, it seems as though many buy orders being placed on AMC are flowing through the dark pool. As is the case when sell orders flow through the dark pool, resulting gin the stock not falling, when these buy orders go through the dark pool, AMC stock doesn’t go up as these are not accounted for in the supply and demand associated with the stock. 

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When I first found this information, I thought, “no way,” I mean, corruption happens, but really? Why are there tools like dark pools that aid in that corruption? This can’t be possible! 

Well, it is. 

Upon further thought, a video from Trey Trades popped into my head that outlines the fact that the math simply doesn’t add up. I’ve followed the math in the video, and Trey Trades is right, it doesn’t see the video below:

Upon further research, I’ve found plenty of literature on dark pools, how they were designed and what they were designed for. Based on further research, it’s clear that hedge funds and their cohorts are using these dark pools to manipulate AMC stock. 

So, why aren’t the experts on top of this? Why are they posting such negative articles about AMC? Well, because they’re likely getting paid boatloads of bitcoin to do so, as I pointed out in this article

So, What’s the Truth About AMC?

It’s clear that demand is there for AMC stock, and that demand isn’t being factored in on a live basis. It’s sad, but very clear. The good news is that as with any big scam or form of corruption, the truth comes to light at some point, and I believe that’s going to be sooner rather than later here. 

The truth about AMC is that it’s a great company that’s gone through some significantly rough times. 

COVID-19 has been tough on everyone, especially movie theaters known for packing consumers into a room to watch a feature film. That doesn’t bode well for preventing the spread of sickness. So, it’s understandable that the last year has been rough for the company. 

However, AMC has been doing quite a bit of work to remedy those issues. Throughout the past year, the company has been raising funds, reworking its books, and putting itself in a solid financial position. As a result, it now has about a billion dollars of liquidity sitting on its balance sheet, which should be plenty to get it through the storm, especially considering the cost cutting the company has been doing. 

Moreover, as I’ve mentioned time and time again in the past, vaccines are making their ways into arms in the United States and around the world, and as they do, movie theaters that are now open are seeing a sharp increase in visits, the same type of increase that I’ve suggested would happen for some time now. 

The reality is that the company is still operating at a loss, and will likely continue to do so for the next couple of quarters, but with plenty of money in the bank, the company will survive through this thing, and likely be on strong financial footing at the end, ready to climb. 

Back to the Manipulation

While hedge funds and the well-respected experts they pay suggest that you should stay away from AMC, it’s important to keep in mind that the experts are often wrong, especially when they’re paid to form an opinion. 

The fact of the matter is that the level of manipulation seen on this stock has been shocking, even to me, the guy that has been paid by more than 10 websites to write about scams and fraud in the stock market, the guy that has made exposing scams a personal priority, the guy that thought he saw it all… Yes, I’m shocked. 

Nonetheless, the extent that these manipulators have gone to is a good thing!

I know, you don’t need coffee, I just woke you up. 

It’s a good thing because retail investors are catching on. Hedge funds have been so blatant with AMC that even the retailers aren’t falling for it. As a result, it’s impossible for regulatory authorities to say they didn’t catch it, and changes will have to be made. 

At the end of all of this, the big squeeze is likely to take place, and those that believe in AMC will likely benefit greatly. It’s a long road, one with plenty of hurdles, but considering the sheer scale of the manipulation here, it’s something that simply can’t go on forever. 

So, while hedge funds make the biggest attempt in their history to manipulate the stock, what they’re doing is driving nails into their own coffins as regulatory changes are likely ahead. 

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The Bottom Line

The bottom line here is simple. AMC is a great company that’s fallen on hard times, but like the phoenix, the company will rise from the ashes as the storm passes. In the meantime, hedge funds are backing themselves into a position that has long been deserved. Eventually, their plans to manipulate the stock, taking money out of the little guy’s hands to pad their own pockets will backfire, and the little guy will be the one that makes out like a bandit. 

More to come next week folks, stay tuned!