AMC Entertainment held its shareholder meeting on July 29 at a time when the company’s future hangs in the balance. Investors had all but written off the stock during the pandemic-fueled lockdowns, but the company experienced a 180-degree turn in 2021. With the tailwind of retail investors at its back and a digital strategy beginning to unfold, AMC is making moves to make its shareholders feel even more invested in the future direction of the company.
AMC CEO Adam Aron, who is active on social media, took to Twitter to thank shareholders who voted on issues at the latest meeting in Kansas City. Aron reminded his followers that the company reversed its recent decision to issue more shares after receiving backlash from investors, saying,
“You were not ready for this. And we listened to you.”
Thanks to all who voted at our shareholder meeting yesterday. Your voice is important and your enthusiasm appreciated. All resolutions were approved. As indicated previously, we rescinded the request to authorize more shares. You were not ready for this, and we listened to you.
— Adam Aron (@CEOAdam) July 30, 2021
Aron also addressed what he described as “so much FUD going on around on the internet.” He was seemingly referring to accusations that the company was not being transparent about the meeting, but the chief executive put the kibosh on those rumors.
Aron took things a step further when he revealed that individual shareholders would be invited to ask questions on future earnings webcasts, a benefit typically reserved for Wall Street analysts. He also tipped his hand to a possible future direction of the company, saying that AMC will engage with U.S. professional sports leagues about potentially securing theatrical rights for the following:
- College football
- Premiere League
- FIFA World Cup
Aron admitted, however, that this is a “difficult and possibly prohibitively expensive” process.
On the Twitter thread, followers debated the transparency of AMC’s share count, which Aron addressed head-on. He revealed that the “all-inclusive share count total” was 513,330,240 of “legally issued shares” as of June. The company has not issued any new shares since that time. On naked short-selling as well as options trading, Aron basically pleads the Fifth.
Buying the Dip
AMC’s stock price has been on a wild ride for the month of July, starting above the USD 50 level and ending below USD 40. Many retail investors are holding out for the next big short squeeze in hopes of cashing in on their bets.
Investors are encouraging one another on social media to dig in their heels and buy the dip.