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AMC’s new debt docs appear to allow up to $50M for buybacks or dividends.

Doesn’t mean it’s happening. But if EBITDA and free cash flow keep improving, a buyback would send a hell of a signal.

AMC has spent years selling shares to raise cash.

Going from dilution to buying shares back would completely flip the script.

The day AMC becomes a buyer of AMC instead of a seller… things get interesting real fucking fast.

With no major catalyst right now, AMC seems to be getting caught up in the same rising yield pressure hitting a lot of companies with debt.

AMC is not the only company being impacted by higher yields.

I also do not think the next earnings report will be as big of a catalyst as I would have hoped for. AMC already gave us two months of preliminary results, and those results were very positive, with strong growth in revenue and attendance.

For me, the bigger thing to watch is the year end movie slate.

At some point the focus gets back to fundamentals. Box office, revenue, cash flow and paying down debt.

Rates may be driving the short term.

The movies and the fundamentals can drive what comes next.

AMC closed at $2.76 today and honestly it just felt like another classic AMC faceplant.

The thing I’m watching tomorrow is $3 max pain.

Those $3 calls are pretty sleepy down here, but they’re not totally irrelevant. If AMC can get back up around $2.90, they start getting a lot more interesting again.

One thing I’ve been wondering is whether some of today’s drop was dealers unwinding call hedges as the stock moved away from $3. Not saying that caused the whole move, but it could’ve added some pressure.

For tomorrow, if AMC stays under $2.70, I’m not expecting max pain to matter much. If it hangs around $2.75 to $2.85, probably just more chop and decay. If it gets back over $2.90, that’s where I think the $3 strike starts coming back into play.

The $2.50 puts are still OTM, so I’m not treating $2.50 like some automatic magnet either.

Then right after expiration we’ve got the refi expected to close around Oct. 5, plus the Q3 earnings date still waiting to be announced.

So I guess the whole thing tomorrow is pretty simple:

Does AMC stay stuck in the $2.70s, or does it get close enough to $3 to make the options chain matter again?

NFA. Just what I’m watching.

What’s the concern you ask, @vladtenev? The list of concerns is almost existential.

U.S. securities laws are in place to protect investors. For good reason, we spend millions and millions of dollars every year to comply with U.S. securities laws. In good conscience, how can Robinhood as a U.S. company set up an operation in far offshore Jersey, an island 3000 miles away, and market a security sort of posing as AMC in some shape or fashion, and not comply with U.S. securities laws. That is shocking and shameful.

Our past issuance of equity to strengthen our balance sheet was vital to our success. Your setting up some kind of fictitious synthetic equity market decouples stock token ownership from a company’s ability to control its own capital raising efforts.

Share ownership gives shareholders various rights, including the right to vote their shares. Your stock token pretend to be some form of stock ownership, but disclosures to the contrary notwithstanding, they are not ownership and they deprive investors of their rights.

This quasi-fake market you are creating on the island of Jersey sows distrust amongst the public about financial markets in general. There already is distrust in financial institutions, you are potentially making it far worse.

These are but a few of my concerns about your actions.

I hereby call on you and Robinhood to voluntarily CEASE AND DESIST the trading of AMC stock tokens. If you don’t, our high priced securities counsel has been asked to see whether we can force you to stop.
I also wonder how can the SEC possibly support your sham ignoring of U.S. securities laws. You can be sure we will be asking them.