Replies to post #56225 on AMC Entertainment Holdings Inc (AMC)

[Shomidamoni]

My opinion. He owed the Hedge Funds a favor since they helped the company as it was going bankrupt. He knows he also has fiduciary duty to investors so it is a tough situation for him to balance it all out.

[fourdint]

More a question of "why" vice "why not" let it run. Thinking like a HF, you let it run and the margin requirements goes up ... face a chance of margin calls and margin calls force squeeze.

If I were a HF, I would short this to death causing fear and people to sell. Sell puts additional down pressure at which time I would start covering ... make a lot of money selling at $60 on down to say $20 and covering at $20. This usually works for them, BUT, if Apes still hodl, they are even more screwed. Just saying.