Fails to deliver in shares of AMC Entertainment Holdings reached extraordinary levels in November. 4.3 million shares have failed to clear by November 14th, the latest data available.
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This new report, out today from the SEC, shows the highest levels of fails to deliver in months. This is particularly striking given the much lower fails to deliver in the largest stocks.
Let’s see how many fails to deliver some of the largest stocks in the market had on November 14th:
These companies are hundreds of times larger than AMC. But somehow, a little theater chain dwarfs them all in failed stock trades.
Fails to deliver can happen for benign reasons. But a long and persistent pattern of fails to deliver, as in AMC stock, can point to something more nefarious.
Huge numbers of failed trades can indicate naked short selling. This is the illegal practice of selling short shares you never borrowed.
It’s a potent way to crush a stock’s price. After all, if you don’t have to borrow a stock, you can sell short all you want!
Increasing failed trades may be related to higher borrowing costs for AMC shares. With fees going from 20% to up to 100% a year, borrowing shares is more expensive than ever.
It’s a lot cheaper to naked short sell. Unfortunately, it’s also against the law.
I urge the SEC to investigate the long term pattern of chaos in AMC shares. Only a full investigation can restore confidence in markets.
What do you think of this huge fails to deliver number? Leave a comment at the bottom and let me know!
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5 thoughts on “New Report: AMC Fails to Deliver Hit 4.3 Million”
Everybody knows there is an incredible amount of illegal activity happening in our markets. It’s so obvious, it’s honestly embarrassing as an American to have the whole world watching and seeing more of the same from our country- corporate greed, corruption, and the wealthiest fighting to prevent transparency in our markets so they can just keep going, business as usual. The saddest part? These people truly believe they DESERVE and HAVE A RIGHT to do whatever it takes to make money, and anybody that gets hurt along the way is just some sucker they couldn’t give a crap about. Where is AMERICA’S JUSTICE AND FREEDOM? Where is our fair market? It doesn’t exist.
This theft in broad daylight of retail by Wall Street and their greed is truly disgusting. Worse still are American institutions which are either unwilling or unable to do anything about it for years. It’s not just about numbers on a screen for retail investors…imagine the number of suicides, divorces and other social problems caused by this blatantly rigged game.
the simple solution to FTDs is “delivery vs payment ” settlement of trades, especially for restricted stocks like AMC that require 100% margin. . The buyer pays nothing until the seller delivers the shares. And it’s easy to identify FTDs if the settlement is a T+10 trade!!! DVP is a common crossborder and globally accepted settlement protocol in FX and commodities.
I think it is very important to always clarify (for the uninitiated) that AMC (the company) is in no way responsible for this attack upon their legitimate business which has employed thousands over a century; but rather, it is the slippery orgy of hedge funds, brokers, and market makers flouting the spirit of financial regulations – and the deafening silence from the SEC in calling the offending actors to meaningful account. Predatory hedge funds kill viable businesses full stop. The Hedge funds have sucked trillions out of the sum average person’s portfolio/pensions over the years and most people have no clue. Maybe they soon will?