r/wallstreetbets
$AMC #AMC summary for FRI 26JUN26
Long AMC backed by bullish engulfing candle, 200 SMA support, and low off-exchange volume after a recent $200M equity offering.
- Bullish engulfing candle and closing above the 200-day SMA indicate strong technical support and a potential trend reversal.
- Extremely low off-exchange volume suggests a lack of typical short covering, driving a strong rally.
- The $200M stock issuance successfully strengthened the balance sheet by paying off debt, and the market absorbed the dilution without breaking key support.
- Significant share dilution occurred as 95.25M new shares were issued, and the authorized share count was previously doubled to 1.1B.
- Pre-market strength was followed by a sharp decline, suggesting potential information leaks or insider trading ahead of the offering announcement.
$AMC #AMC summary for FRI 26JUN26
My holdings: Long $AMC at 2.63, 2.94, 3.30. Short $AMC JUL26 puts at 2.00 and 2.50. Short $AMC JUL26 calls at 3.50.
Volume: high
Candle: bullish engulfing
9 d ema: went up and tested it, but closed back down below
Action details:
Reached up to 3.04 in the pre-market on MON and then was a downtown train once the regular session opened. The decline smacked of an information leak/insider trading on the stock offering announced on TUES. Not a bad idea to announce the offering during the strength of the holiday weekend exuberance. Otherwise, the news would have come during a time when holders were more demoralized and thus more likely to sell. Also, the downfall would have been from a lower point and create greater fear by digging down into even lower price levels.
The stock issuance was $200M (95.25M shares @ $2.10) in exchange for debt notes that were called in. Purpose was to strengthen the balance sheet and upgrade theaters. In DEC25, amendment of the Cert. of Incorporation to double the number of shares of class A common stock from 550M to 1.1B was approved. So far, a significant % of the additional shares have been issued.
More downside on THURS when the shares were issued, but tested and cleanly failed to take out the low of 01JUN26 as well as tested and failed to close below the 200 d sma. Also had a false break below TUES. All positive signs for FRI.
On FRI, bullishly engulfed the last three days. False break over TUES. Closed well above the 200 d sma. Closed up inside the MON-TUES down gap. The downslide seems to have been stopped by the band of support from the 1st ten days of JUN26. Less than 38% off-exchange volume on FRI - that is very low for AMC. No wonder it rallied so well; the usual amount of off-exchange short covering wasn't present.
Finishing the week above the 2.0 line is a reassuring confidence builder.
Up on a mixed day for stocks and a mixed day for it's competitors (CNK & IMAX.)
Per 15JUN26 FINRA data, the shorts on AMC are about the same as the last FINRA report.
If the company only managed to sell their shares at $2.10, then the shares are worth at most $2.10.
They traded higher than that since the share issuance. $2.10 is all they could get that Note holder to pay.
amc? what year is this?
The year that $AMC bottomed out and turned back up.
https://preview.redd.it/6yvoih9qiy9h1.jpeg?width=1170&format=pjpg&auto=webp&s=354e606885a16c34d6f507d8e07a95ddf500e9b6
Cute! Hilarious actually. If I make $ on all of my positions, will you drink the R serum?
That engulfing candle on FRI with the low off-exchange volume is a pretty solid reversal signal. Curious if the 200 sma holds as support this week because that gap fill from MON-TUES is sitting right overhead as resistance.That engulfing candle on FRI with the low off-exchange volume is a pretty solid reversal signal. Curious if the 200 sma holds as support this week because that gap fill from MON-TUES is sitting right overhead as resistance.
Agreed. Nice to see someone that knows how to read charts. Keep up the good work!
"Not really, but that's alright. Next caller!" - Jimmy Shill
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