An Interesting Take on AA's Tweet Regarding AMC

General Discussion
#1

Note: These are directly copied from Adam Aron’s Twitter page and can be found here.

July 30, 2021 at 11:34 AM:

(1): “Many of you continue to be concerned about the AMC share count. In early June, we announced an all-inclusive share count total of 513,330,240 legally issued shares. Precisely zero new shares have been issued by AMC since then.”

(2): “As to the existence of so-called fake or synthetic shares, or the naked short selling of AMC shares, we are unaware of any information validating these theories. Also, we are unable to make any comment on the considerable trading of puts/calls derivatives.”

My Thoughts:

Although this is not legal nor financial advice, I figure I would post this to share my opinion regarding the AA’s selection of words. I am no lawyer, although given the legal implications of what AA can (and cannot) say, it seems to be like he’s telling us to read between the lines (like everyone has said).

I am no lawyer, however, as a law student, I find a few portions of the first tweet to jump out at me, as if I was told by an attorney/boss what I can and can’t say.

For example,
“[We] announced . . . total count . . . [legally] issued shares.” is something that smells like lawyers. We being AMC as an entity, announcing the total count of legally issued shares still could likely leave the door open for some other kind of shares. (Hint).

Further, “zero new shares have been issued by AMC since then”, includes the additional shares AMC offered via the ATM, however, AA doesn’t definitely state that there are not shares being “issued” by entities outside of AMC.

Although this is speculative, I’d be curious to see what anyone else thinks regarding AA’s careful selection of words, and if anyone else thinks there’s something more to be read out of these Tweets if you understand what AA can/cannot say to the public.

One last thing, make sure you submit your questions to be answered during the earnings call next week!

link

If you want to see the question’s I’ve submitted and/or upvote them feel free. Will upload links once my questions have been approved.

Question 1: Would AMC consider looking into strategic alternatives such as offering an NFT Platform for movie memorabilia/tickets/etc.?

Question 2: Would AMC consider looking into acquiring certain streaming platforms as either a partnership or vertical buy-out/acquisition?

Question 3: Is AMC having any issues related to voter count and/or tracking voting results related to any ongoing investigations, potential future litigation, or issues currently being looking at by AMC’s legal counsel?

#2

I think people give AA too much credit. This is the same guy that sold shares that were immediately dumped ATM mid-squeeze and used against us… then proceeded to ask us for 500M more shares. Twice.

5 Likes
#3

100%. People just want to believe a suit is on their side. I’ve stayed away from Reddit, YouTube, and a lot of Twitter because it’s all just a cesspool of confirmation bias and people reading between the lines to see what they want to see. AA dumps shares and the Reddit people will still worship him.
I just stick to BAM. Has a pretty neutral approach to the stock and calls the data as he sees it

3 Likes
#4

At least we get free popcorn at the movies now…

1 Like
#5

:rofl: “Guys guys look free popcorn!” dumps shares “Guys check out this popcorn!!” :ok_hand:

This gave me a laugh.

#7

I actually think his comments are fairly straightforward. I think he is just calling out the share count, knowing that there are questions about how many shares are (legally) in existence. I don’t know what other entity outside of AMC could even issue shares of AMC, that doesn’t make sense to me.

One’s mind then goes to synthetic shares, which he addresses next, and he says he is unaware of naked shorts. I would say it’s very likely that he truly has no information to prove there are naked shorts, or else his legal team would not have allowed him to say those words. I suppose you could still come to the conclusion that just because he doesn’t have information validating the naked short selling theory, it doesn’t mean it’s not happening. Then again, he was pretty tight with his wording. Instead, he could have said “we don’t have any information,” but he went so far as to say he was “unaware of any information,” which is much more broad. Who knows. Just my two cents.

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