After hitting over 400,000 in mid-December, fails to deliver in shares of AMC Entertainment Holdings, Inc. dropped 98% to close out 2021.
The latest data, released today by the SEC, follows a long-term pattern in the stock. Fails to deliver bounce around at high levels for much of the month, only to disappear at month’s end.
Let me be clear just how out of line fails to deliver in the tens and hundreds of thousands are for AMC. Here are the fails to deliver for some of the largest companies in the world, based on the latest data set:
Microsoft Corporation: 527
Apple Inc: 61,677
Amazon.com Inc: 57
Tesla Inc: 0
Meta Platforms Inc: 0
Keep in mind, many of these companies are hundreds of times the size of AMC by market cap. So even when AMC fails to deliver are at just a few thousand, they’re way out of line for a stock its size.
So why would such a relatively tiny company have so many failed trades?
Such a persistent pattern of large fails to deliver is often evidence of illegal naked short selling.
A persistent pattern of large fails to deliver is often evidence of illegal naked short selling. #AMC $AMC
Tweet
https://tremendous.blog
This involves selling short shares one does not own. Naked short selling is a powerful tactic to push down a share’s price.
If you’re not limited by having to borrow shares, you can sell forever!
So why do these fails to deliver tend to get cleaned up at the end of the month? Perhaps someone at the exchange or the SEC doesn’t like how it looks to end a month with a large number of failed trades, and insists they settle.
But they pop right back up soon after…perhaps once a superior’s back is turned.
I expect to continue to see massive numbers of failed trades in AMC shares on a regular basis until the SEC steps up and solves this problem once and for all.
More on markets:
AMC Fails to Deliver Soar Past 400,000
Solana Is the Most Popular Crypto of 2022
AMC Fails to Deliver Are a Massive Outlier
If you found this post interesting, please share it on Twitter/Facebook/etc. using the buttons at the bottom of the page. This helps more people find the blog!
Save Money on Stuff I Use:
Amazon Business American Express Card
You already shop on Amazon. Why not save $100?
If you’re approved for this card, you get a $100 Amazon gift card. You also get up to 5% back on Amazon and Whole Foods purchases, 2% on restaurants/gas stations/cell phone bills, and 1% everywhere else.
Best of all: No fee!
This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been great so far.
More on Fundrise in this post.
If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days.
My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me.
Every fruit and vegetable is super fresh and packed with flavor.
I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy!
I wrote a detailed review of Misfits here.
Use this link to sign up and you’ll save $10 on your first order.
Tremendous 
2 thoughts on “AMC Fails to Deliver Drop 98%”