Latest Data: APE Fails to Deliver Hit 7.1 Million

Fails to deliver in shares of AMC Entertainment Holdings Preferred Equity (APE) reached staggering levels in December. Failed trades hit over 7.1 million shares in the latest SEC report before falling to end the period.

AMC issued these preferred shares in August as a way to raise capital. Since then, they’ve fallen steadily, losing over 75% of their value.


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Failed trades in APE shares peaked on December 2nd at 7,134,531. AMC shares also showed elevated fails to deliver, at nearly 300,000 shares.

Huge numbers of failed trades in APE preceded a substantial drop in the stock price. The shares lost 23% of their value in the next week alone.

A persistent pattern of huge fails to deliver can be a sign of naked short selling. This illegal practice involves selling short shares you never borrowed.

Naked shorting is a powerful way to crush a stock. If you don’t have to find any shares to borrow or pay interest, you can short as many as you like!

We’ve also seen persistent, massive fails to deliver in AMC’s common shares. Like APE, that has been coupled with a major fall in price.

So what’s going on?

My bet is that hedge funds are breaking the law and naked shorting AMC and APE shares. Why else would these huge numbers of failed trades persist for so long?

To get a sense of how out of line these fails to deliver are with other stocks, let’s do a comparison. Here are the fails to deliver on December 2nd for some of the largest stocks in the market:

Amazon: 40,406

Apple: 319

Berkshire Hathaway (Class B shares): 36

Google: 151,519

Microsoft: 9,233

These stocks are hundreds of times the size of AMC. And yet, AMC sees more failed trades than all of them.

Combined.

The SEC must investigate the chaos in AMC and APE shares. It’s the only way we can have a fair, efficient market for everyone.

What do you think of the failed trades in AMC and APE? Leave a comment at the bottom and let me know.

There will be no blog on Monday for New Year’s. Thanks for a great 2022 and see you on Tuesday!

More on markets:

Is SBF Laundering Money As We Speak?

New Report: AMC Fails to Deliver Hit 4.3 Million

Tiger Global Losing $185 Million a Day

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Photo: AMC CEO Adam Aron

10 thoughts on “Latest Data: APE Fails to Deliver Hit 7.1 Million”

  1. If every owner of AMC and APE called and write their congress person, senator and the SEC the deluge of letters, calls and e-mails would rattle the cages of power. You want action? – get active.

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    1. I am a share holder of AMC and APE, I am sure most of us has send a petition to the congress and the SEC and no one is doing anything about it. The rules only applies to rich people and politics but, investors like me., we are alone, it’s like we don’t have a voice. The SEC is blind(for retail investors ONLY). We need a fair market for ALL.
      Gary, I am sure you know because WE KNOW! Do your job.

      Like

  2. I cant agree with you more. Gary’s performance in his role has been disappointing to say the least. How do people like this ever end up in these positions? We need to hold these people accountable as well as the Wall Street criminals.

    Like

  3. Shorting an overvalued stock makes sense, its healthy for the market. At what point does it become predatory? Why do the companies that short businesses into bk get rewarded with no taxes on their shorted gains. Financial terrorism is what come to mind when it comes to our markets.

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  4. The people at the top like ( Sore Ass ) and the Klan , are doing this and their pals are framing guys like Tate, Trump, Rudy, The Pillow Guy and Musk is now in their CROSS-HAIRS ……

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  5. The fact the SEC does nothing about the obvious practice of illegal short selling is in its own right breaking the law. Gary Gensler should go to prison along with all the owners
    of the companies that are breaking the law. A fine in this market is not enough of a deterrent. If this is to be stopped then extreme action is necessary. People need to pay the price of losing their freedom, then maybe this will stop. Law enforcement / the FBI etc need to pull their socks up, it’s obvious a blind eye is being turned, most probably because huge back handed payments are being made. Personally I think it’s time the Police and FBI take action and take down these criminals and organisations, The law is being broken on a huge scale, it’s massive corruption in plain sight, it’s shameful the US government allows this to carry on

    Like

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