AMC June 30 Timeline

The most important roundup of news for AMC June 30 2021

  1. Trey is scheduled for open-heart surgery.  Apes united for Trey!  Make the hedgies pay!
  • UPDATE:  The kid is OK!
  • UPDATE #2:  Chance the Rapper wishes Trey a speedy recovery!
  1. DTC-2021-005 goes into effect.  It prevents loaned/borrowed shares from being loaned/borrowed more than once.  It will also prevent market makers from continuing to illegally reset FTD transactions because they can no longer conceal short positions through deep-in-the-money options.
  2. AMC is nearing a bull flag pennant breakout with a negative beta of -3.20.
  3. E*Trade now requires 800% margin collateral to short AMC!  Ho-ly shit, apes, things are getting extra juicy!  A second ape confirmed this development.
  4. Robinhood fined $70 million by FINRA for screwing retail investors by misrepresenting options spread transactions and having “outages” between January, 2018 and December, 2020.  It is the largest penalty ever imposed by Wall Street’s self-regulator.  The fine includes $12.6 million in restitution that must be paid directly to Robinhood clients.  In my opinion, this punishment is nowhere near sufficient, but it finally does send a message that the enemy actually feels this time.  It’s a good start!
  5. AMC has been consolidating between $50 and $65 for a month.  The go-to FUD from pathetic, lying, hedge fund shills is that AMC is a “pump-and-dump.”  That is downright laughable.  A P&D stock doesn’t steadily rise from $5 over the course of four (4) months and then consolidate for a 5th month at a level that is 900-1,200% higher, despite relentless hedge fund fuckery at every turn.
  6. Nearly $1 trillion accepted by the Fed today in reverse repos!

Banks have too much cash on hand. They’re only allowed to have so much before regulations kick in and make them loan it or invest it. BUT those things lead to inflation, so instead they stash it away with the Fed each day in return for secure, short-term collateral.  It’s a bad sign for the economy, as it’s a way of “kicking the inflation can down the road.”

  1. Hedge funds have now started to exercise bond notes into shares—at .80¢ on the dollar—as a “back door” to short AMC!  

The simultaneous purchase of convertible bonds and the short sale of the same issuer’s common stock is a hedge fund strategy known as convertible arbitrage.  The motivation for such a strategy is that the equity option embedded in a convertible bond is a source of cheap volatility, which can be exploited by convertible arbitrageurs.

In limited circumstances, certain convertible bonds can be sold short, thus depressing the market value for a stock, and allowing the debt-holder to claim more stock with which to sell short.  This is known as death spiral financing.

This may be their ultimate act of desperation!  In what was likely a direct response, Adam Aron filed an S-3 with the SEC yesterday to withdraw bonds containing 200 million shares that hedgies were using to short AMC.

Hedgies are shorting worthless bonds to manipulate the price of the stock. Adam Aaron files to remove these bonds off the market. Hedge Funds and banks did this in 2008 where they sold these shit bonds and it all came crumbling down.

This is how it goes. Hedgies buy convertible bonds. These are rated ccc (junk). As they hold the bonds they accumulate interest. They then convert the bonds to a share, short it into the market, then from the interest they acquire from holding the bond they buy another bond. An infinite loophole of buying a bond, converting a bond to a share, shorting it, and buying another bond with accumulated interest for holding the original bond. Adam Aron shut that shit down. I’m sure it will take time, but all bonds will be recalled and Hedgies will lose one of their last aces up their sleeves.

Tick, tock, Kenny . . . . Tick, tock.

  1. Just for the record, this is how you do a meme.
  2. Current short interest is 19.18%.  For comparison, when AMC hit $72.62 on June 2, the SI was only 17.47%.
  3. AMC opened at $56.00, hit a high of $58.18, and closed at $56.68 (+.44%).  It finished the AH session at $57.07.
  4. FTD, baby!  AMC was placed on the list of “Threshold Securities” on Friday, June 25.  Today is the 4th consecutive trading/settlement day that AMC has been listed.
  • Friday (1)
  • Monday (2)
  • Tuesday (3)
  • Wednesday (4)

Now, I did a lot of research to uncover this critical language from the SEC:  no, the 5 consecutive settlement days that qualified AMC to appear on the threshold list do not count towards the magical 13-consecutive-settlement-days threshold that would trigger mandatory covering of all short positions.

[I]f a participant sells short a security that is *not a threshold security on the date of sale*, the close-out and pre-borrow requirements of Rule 203(b)(3) would *not apply* to a fail to deliver position on the participant’s net short settlement obligation unless the security *later* becomes a threshold security and it maintains that status for 13 consecutive settlement days and the participant has delivery failures for all of those days.

If AMC stays on the threshold list for a total of 13 consecutive settlement days (emphasis on “settlement,” as “trading days” and “settlement days” are different in that shares can sometimes “settle” on holidays) after the 5-day qualifying period, hedge funds will be forced to cover all of their millions of shorted shares.  In other words, hedge funds that logged these fail-to-deliver shares will have their positions automatically closed out at market price, resulting in massive buying.  MO-ASS!

Rule 203(b)(3) of Regulation SHO requires that participants of a registered clearing agency must immediately purchase shares to close out failures to deliver in securities with large and persistent failures to deliver, referred to as “threshold securities,” if the failures to deliver persist for 13 consecutive settlement days.

In summary, after completing the 5-consecutive-settlement-day period that qualified AMC to become a “threshold security,” AMC must still maintain “threshold security” status for another 13 consecutive settlement days.  As such, AMC needs a total of 18 consecutive settlement days from start to finish.  This fact has been confirmed bymany reputable apes.  Anyone who ignores this evidence and still insists that 13 is the deciding number is engaging in Jedi-level confirmation bias.

Per Rule 204:

. . . if, for whatever reason, a participant of a registered clearing agency has a fail to deliver position at a registered clearing agency in a threshold security for 13 consecutive settlement days, the requirement to close-out such position under Rule 203(b)(3) remains in effect.

UPDATE, July 5:  After digging even deeper, I’ve discovered that in order to be removed from the threshold list, AMC must not exceed the specified number of fails for 5 (five) consecutive trading days.  So, the escape plan for hedge funds just got more difficult.

In order to be deemed a threshold security, and thus subject to the restrictions of Rule 203(b)(3), a security must exceed the specified fail level for a period of five consecutive settlement days.  Similarly, in order to be removed from the list of threshold securities, a security must not exceed the specified level of fails for a period of five consecutive settlement days.

Information and Timeline provided by u/AgedMurcury78 in his amazing Ultimate AMC Timeline document.