AMC Entertainment Holdings Inc (AMC)

[uptick1000]

The price of AMC closed at 9.18 $ today

On January 27 it was 19.90$ on the high

On January 29 it was 13.30$

The note holders converted and paid 13.30$ per share they received 44.5 million shares

AMC ENTERTAINMENT HOLDINGS, INC. (Form: 8-K, Received: 01/28/2021 06:05:53) (otcmarkets.com)
On January 27, 2021, affiliates of Silver Lake Group, L.L.C. (“Silver Lake”) and certain co-investors (collectively, the “Noteholders”) elected to convert (the “Conversion”) all $600.0 million of the Company’s 2.95% Convertible Senior Secured Notes due 2026 into shares of the Company’s Class A common stock at a conversion price of $13.51 per share. The Conversion is expected to settle on January 29, 2021 and will result in the issuance of 44,422,860 shares of the Company’s Class A common stock to the Noteholders. The Conversion will also reduce the Company’s first-lien indebtedness by $600.0 million.

On February 2 it was up a few dollars and closed at 13.00$
On February 3 down to 9$

Now did these note holders convert and sell the next day for a few dollar gains or are they holding and the push down in price was to try and shake us retail traders.

Blackrock picked up 8% of the OS

https://www.otcmarkets.com/filing/html?id=14662596&guid=cNQaUWbB1mSlcyh
https://www.otcmarkets.com/filing/html?id=14691098&guid=cNQaUWbB1mSlcyh

Vangaurd already had 7.5 million shares 5% percent of the OS and picked up more recently.

https://www.otcmarkets.com/filing/html?id=14687933&guid=cNQaUWbB1mSlcyh

As of December 30 2020 almost 40% of the OS was owned by Institutions.
Now in January we see the conversions going through at nearly 14$ pr share.

https://finance.yahoo.com/quote/AMC/holders?p=AMC


Many retail are holding their shares also and not selling this is placing a limitation upon how many shares are actually available to buy.

As the options are reaching strike price this is creating a very big demand for the maker to provide the shares as contracted. Since many are holding their shares of AMC and very few are available the only thing maker can do is buy what is available on the market which will keep pushing up the price.

GME taught the hedge funds how to play. They realized that shorting a stock for 25$ gain per share has so much associated risk contained with it that instead of fighting the flow on AMC they have come onboard the flow.
Look at the option contracts going to March 19 2021. There are 50 000 contracts at 130$ strike price. Who or what will drive the pps up to that level… They have come onboard and are riding the wave with us. They realized that if the play the option on call they get shares to cover the short and then ride long also. That is why we are seeing those heavy contracts for calls at 15$, 20$, 25$ all the way up to 130$ which is all we can see for now, wonder what’s after that.

The ones on the hook here will be the option makers they will have to find shares to cover the contracts that keep coming into strike price. The institutions will sell some of the calls to close the short position and ride the rest long. This will not provide enough shares for the option maker as AMC keeps hitting these strike prices. They will have to keep buying at higher and higher levels in order to fulfill the contracts that retail are striking on but also that the hedge funds are striking on.

Its very funny watching this play out the squeeze that has started here will be epic.