AMC is now people’s property

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Photo: Victor J. Blue / Stringer (Getty Images) – It seems like meme stocks have not yet ended up running almost halfway through the year. As of Wednesday, shareholding in the AMC Entertainment film theater chain was up to 3,200, following a recent initiative aimed at giving shareholders free popcorn.

AMC’s share price almost doubled on Wednesday alone after the company’s so-called Investor Connect initiative, which promises shareholders exclusive advantages such as free movie snacks and invites them to special projections. It seems that this jigsaw has paid a large price: AMC CEO Adam Aron announced in a press release that retail investors now have a supermajority of the shareholding of the company, “more than 80%… at last count.”

Even as the stock price of AMC increased, hedge fund investors and short-term sellers cautioned that the shares of the company were heavily overvalued. On Tuesday, Mudrick Capital, a financial adviser, told Bloomberg that, months after making tens of millions of dollars of profit from purchasing AMC bonds and options, he sold his entire share in the company for an undisclosed profit.

The failure to provide institutional support, on the other hand, seems unimpaired by the fact that AMC’s over-lasting strategy seems to depend on the support of a single Average Joe investor who sent $4.95 to $20.36 per night share prices to January 2021.

“We are going to talk to these investors often and offer them special benefits in our theaters from time to time,” Aron told the release. “We begin with a large free popcorn, when they’re in an AMC theater this summer for their first movie.”

Aron also does not exactly have a new pivot to support retail traders. During AMC’s second quarter income call back at the beginning of May, the Chief Executive Officer raised eyes following a quotation from the 1988 Oscar named Gorillas drama—which seemed to be a hat to Reddit’s “WallStreetBets” Forum and other online investment communities, often called “apes.”

Aron also said, in a less cryptic statement, that the health of AMC depends on the support of its retail investors.

“They probably own a majority of our shares of these individual investors, they own AMC,” Aron said on the call for earnings. “We work for them. We work for them. I work for them. I’m working for them. By definition they are important to AMC for their interests and passions, their ambitions, and passions.