The market in AMC Entertainment Holdings Preferred Equity (APE) shares is a mess. Fails to deliver (FTDs) peaked at over 43 million shares last month, according to a report just out from the SEC.
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These new shares were issued last month by AMC and began trading on August 22. FTDs peaked at 43,438,257 shares two days later.
This represents over 8% of all shares outstanding. And it all happened in 3 days!
FTDs like this is beyond a mix-up. It’s a total market meltdown.
FTDs remained elevated through the end of the August reporting period. They settled at 5,635,854 on August 31, the last data available.
Let’s compare the FTDs on August 24th in APE shares with those of some of the biggest stocks in the market:
Amazon: 0
Apple: 395,929
Google: 113
Microsoft: 0
Tesla: 530
APE: 43,438,257
APE shares have dramatically more FTD’s than other, much larger stocks.
FTDs can sometimes happen for benign reasons, like clerical errors. But when there’s a sustained pattern of massive trade failures, it often indicates naked short selling.
This generally illegal practice involves selling short shares without borrowing them first. It’s a powerful way to push down a stock’s price.
If you don’t have to find shares to borrow or pay interest, you can sell short as many shares as you like! All that selling makes a stock’s price crater.
If naked short sellers are targeting APE, so far they seem to be winning. The stock is down 43% since its debut.
The NYSE and SEC must look into this market breakdown immediately. One in three trades failing is not a functional market.
What do you think of the huge FTD numbers in APE shares? Leave a comment at the bottom and let me know!
Have a great weekend everyone!
More on markets:
AMC Fails to Deliver Pass 700,000 in New Report
Hedge Fund Manager’s Arrest Shows How Market Manipulation Works
Morgan Stanley Investigation Spreads to Multiple Countries
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Tremendous 
Ask Ken Griffin, but make sure he tells the truth.
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Amc investors have been saying this for 2 years now.. until I see market change and executives in jail ill continue to buy and hold my positions in AMC as well as APE! Down with the financial terrorists!
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Market is totally Corrupt and the sec has to complicit and the government allowing MMS like citadel to steal billions from US citizens
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Crime
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The idea that AMC and APE price discovery involves 80% buying pressure going to Dark Pools and 43M shares not being delivered due to naked shorting, should tell the story. The SEC allows this when they can pause Dark Pools and they don’t, should tell everyone how corrupt our government is. There’s no fixing this without people going to jail. Ken Griffin and Gary Gensler being the top 2
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