Tag: Shares

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Business

AMC recordsdata to promote 11 million shares, then provides up huge inventory acquire

Meme stock AMC extends rally, jumps 17% as theater chain sells new shares

AMC Entertainment said Thursday it plans to sell more than 11 million shares amid the trading frenzy in its stock.

“In accordance with the terms of the Distribution Agreement, we may, through our sales agents, offer and sell from time to time up to an aggregate of 11,550,000 shares of our Class A common stock,” AMC said in an SEC filing.

Shares of AMC dropped 11% on Thursday and was briefly halted for volatility. AMC shares were up more than 20% in premarket trading before news of the stock sale.

AMC later said it completed its new stock offering announced just this morning, raising $587.4 million in additional capital.

AMC Entertainment is garnering attention from WallStreetBets traders in recent weeks, pushing the stock up nearly 140% this week to an all-time high of $62.55 on Wednesday. AMC is up 512% this quarter and a whopping 2,850% this year. The market value has ballooned to above $31 billion.

“We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last,” the company said in the filing. “Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment.”

In a parallel to the epic short squeeze of GameStop in January, short-sellers have increased their bets against AMC shares over the last month, possibly fueling the move higher. About 18% of the AMC shares available for trading were still sold short through Wednesday, according to S3 Partners.

AMC has embraced its new status as a meme stock. On Wednesday, the company launched AMC Investor Connect for its retail investors, providing them with exclusive promotions like a free tub of popcorn and direct communications with CEO Adam Aron, who has been dubbed “Silverback.”

The encouragement of retail traders comes as the company moves to sell millions of shares into the market to raise capital. In typical times, a share sale from a company hurts the stock price in the short term as it dilutes the number of share outstanding.

AMC said it plans to use the money from the stock sale for “general corporate purposes,” which may include paying down existing debt and acquisition of theater assets.

 B. Riley Securities and Citigroup Global Markets are AMC’s sale agents for the stock sale.

Separately, AMC on Tuesday announced a sale of 8.5 million shares to Mudrick Capital at approximately $27.12 per share — worth about $230.5 million. Despite that share sale, the stock continued to go higher as retail investors cheered the capital raise.

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Meme inventory AMC extends rally, jumps 17% as theater chain sells new shares

Meme stock AMC extends rally, jumps 17% as theater chain sells new shares

Shares of AMC Entertainment surged again Tuesday after the theater chain sold more than 8 million shares to an investment firm, the latest in a series of capital raises for the struggling company turned meme stock.

AMC said in a securities filing that it raised $230.5 million through a stock sale to Mudrick Capital Management. The theater company said it would use the funds for potential acquisitions, upgrading its theaters and deleveraging its balance sheet.

Shares were up 17% in premarket trading.

AMC’s business was effectively halted during the pandemic, with movie theaters shut in most of the country for months and major studios delaying releases during the pandemic. However, the stock became a favorite of traders on Reddit and has seen wild swings in recent months.

The shares doubled last week on incredibly high volume as the speculative activity by retail traders driven by the message board ramped back up once again.

The company has taken advantage of those price surges by selling additional shares to raise cash. The stock is up more than 1,000% year to date.

“Given that AMC is raising hundreds of millions of dollars, this is an extremely positive result for our shareholders,” said AMC CEO and President Adam Aron in a filing. “It was achieved through the issuance of only 8.5 million shares, representing less than 1.7% of our issued share capital and only a small portion of our typical daily trading volume.”

AMC has around $5 billion in debt and needed to defer $450 million in lease repayments as its revenue largely dried up during the ongoing coronavirus pandemic. Theaters were closed for several months to help stop the spread of the virus, and when the company reopened its doors, few consumers felt comfortable attending screenings, and movie studios held back new releases.

Now, as vaccination rates continue to rise and the number of coronavirus cases decline, consumer confidence in returning to movie theaters has spiked. Not to mention, studios are finally releasing new content.

Over the weekend, John Krasinski’s “A Quiet Place Part II,” the sequel to his 2018 blockbuster, garnered $48.4 million over Friday, Saturday and Sunday, the highest three-day haul of any film release during the pandemic.

For the full four-day Memorial Day weekend, the North American box office tallied nearly $100 million in ticket sales.

Still, while initial box-office receipts are promising, fundamental elements of the movie theater business have changed in the last year, including theater capacity, shared release dates with streaming services and the number of days that movies play in theaters.

The securities filing from AMC, which closed Friday with a $11.8 billion market cap, also has a risk warning for investors: “Our market capitalization, as implied by various trading prices, currently reflects valuations that diverge significantly from those seen prior to recent volatility and that are significantly higher than our market capitalization immediately prior to the COVID-19 pandemic, and to the extent these valuations reflect trading dynamics unrelated to our financial performance or prospects, purchasers of our Class A common stock could incur substantial losses if there are declines in market prices driven by a return to earlier valuations.”

—With reporting by Sarah Whitten.

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World News

Australia shares fall greater than 1% as Asia-Pacific shares slip

Australia shares fall more than 1% as Asia-Pacific stocks slip

SINGAPORE – Asia Pacific stocks fell Wednesday morning, with some markets in the region closed for public holidays.

The Australian S & P / ASX 200 took losses in key markets in the region as it fell 1.64%.

Mainland China stocks were also lower, with the Shanghai compound falling 0.49% while the Shenzhen component falling 0.387%.

The Nikkei 225 in Japan fell 0.97% while the Topix index fell 0.49%.

MSCI’s broadest index for stocks in the Asia-Pacific region outside Japan was down 0.38%.

In terms of corporate performance, Singapore Airlines shares fell about 2% on Wednesday morning. The company will announce its full year results later in the day.

The markets in Hong Kong and South Korea are closed on Wednesday for public holidays.

Overnight, the Dow Jones Industrial Average fell 267.13 points to 34,060.66 while the S&P 500 was down 0.85% to close at 4,127.83. The Nasdaq Composite lost 0.56% to 13,303.64.

Oil prices drop 1%

Oil prices eased on the morning of Asian trading hours and the international reference Brent crude oil futures fell 1.03% to $ 68 a barrel. US crude oil futures were down 1.07% to $ 64.79 a barrel.

The US dollar index, which tracks the greenback versus a basket of its peers, hit 89.827 after falling over 90 recently.

The Japanese yen was trading at 109.01 per dollar after rising above 109 against the greenback yesterday. The Australian dollar was trading at $ 0.7788, up from $ 0.774 earlier this week.

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Business

Hertz shares surge by greater than 50% after deciding on $6 billion turnaround bid

Hertz shares surge by more than 50% after selecting $6 billion turnaround bid

A Hertz car rental office can be seen the day after Hertz’s bankruptcy filing was announced, as the company’s revenues suddenly plummeted, reflecting a dramatic drop in travel during the Covid-19 pandemic in Kissimmee, Fla., On Saturday, May 23. May, was due. 2020.

SOPA pictures | Getty Images

Shares in car rental company Hertz Global rose more than 50% on Wednesday after selecting a $ 6 billion turnaround offer that offers shareholders a rare payout for a company in Chapter 11 bankruptcy.

The investment firms Knighthead Capital Management and Certares Management have, among other things, been awarded the contract to take over Hertz as part of the bankruptcy reorganization, which the company is expected to end at the end of June.

The Wall Street Journal, which first covered the auction results, said the winning offer will pay current shareholders nearly $ 8 per share, an unusual payout for any type of corporate bankruptcy. Part of that would be paid for in cash with warrants and reorganized equity, which is also part of the value.

Apollo Global Management and a group of existing shareholders will join Knighthead and Cetares to take control of Hertz, which filed for bankruptcy last May.

Pursuant to the proposal, which must be approved by the U.S. bankruptcy court, Hertz’s Chapter 11 plan will be boosted by direct equity investments from investors and other companies totaling $ 2.78 billion, the issuance of new preferred shares totaling $ 1.78 US $ 5 billion in Apollo and fully retained rights funded offer to existing shareholders of the company to purchase approximately US $ 1.64 billion in additional common shares.

Hertz’s shares rose as much as 68% before pulling back during the day. The stock was trading at $ 5.78 per share at 2:30 p.m. on Wednesday, up roughly 58%. The market capitalization is nearly $ 900 million.

The rental car company was among the largest to apply for Chapter 11 during the coronavirus pandemic after demand subsided during lockdowns due to Covid-19 last spring. More than a year later, demand for rental cars outpaces supply as the country reopens and some Americans continue to rent vehicles over the air.

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Business

Covid vaccine makers’ shares seesaw after U.S. says it would again patent waivers

Covid vaccine makers' shares seesaw after U.S. says it will back patent waivers

A healthcare worker fills a syringe with the Moderna COVID-19 vaccine. At the Giorgio Companies site in Blandon, PA where the CATE Mobile Vaccination Unit was on site to deliver Moderna COVID-19 vaccines to workers on Wednesday morning April 14, 2021.

Ben Hasty | MediaNews Group | Getty Images

Stocks of two Covid vaccine makers fluctuated Thursday after the Biden government announced it would support a motion before the World Trade Organization to forego patent protection for the mRNA technology used to manufacture the vaccines.

Pfizer was down as much as 5% on Thursday from Wednesday’s close of trading, while Moderna fell nearly 12% before both stocks made up for most of those losses. The companies use the same mRNA technology to make their recordings.

Pfizer, which makes its Covid-19 vaccine with German pharmaceutical company BioNTech, closed about 1% that day, while Moderna lost about 1.4% that day.

South Africa and India are urging US officials and the WTO to temporarily forego patent protection so developing countries can manufacture life-saving vaccines until world leaders can bring the pandemic under control. Human rights organizations such as Doctors Without Borders, Oxfam and Amnesty International have all signed letters in support of the proposal.

US sales representative Katherine Tai released a statement Wednesday evening in support of the waiver.

“This is a global health crisis and the extraordinary circumstances of the COVID-19 pandemic call for extraordinary measures,” she said. “The government firmly believes that protecting intellectual property, but in the service of ending this pandemic, supports the removal of this protection for COVID-19 vaccines.”

Moderna CEO Stephane Bancel told investors on a earnings call Thursday that he had “not lost a minute of sleep” on the news and said traders’ concerns were false.

Johnson & Johnson and AstraZeneca both use an adenovirus, a common type of virus that typically causes mild cold symptoms, to make their Covid vaccines. The stocks of these two companies barely changed on Thursday.

President Joe Biden made an election promise last year to “absolutely positively” renounce vaccination patents. The waiver of patent protection can take months or even years.

Critics of the move say that developing countries do not have the infrastructure to produce the vaccines, others disagree.

Analysts largely shook off the news.

“We believe a new manufacturing operation can take 6 to 9 months to scale up, effectively limiting the impact of other manufacturers. While we expect the headlines to put pressure on MRNA, we don’t see any significant practical impact from this news,” said the Morgan Stanley analysts said in a research report Thursday.

Bank of America analysts cited “obstacles to vaccine development, including sourcing raw materials, developing manufacturing and engineering know-how.” They also note that “US support does not mean approval when WTO decisions require consensus and other members such as the EU, UK, Japan and Switzerland are currently opposed to surrendering intellectual property.”

The German Chancellor Angela Merkel spoke out against the exemptions together with these countries on Thursday. “The limiting factor in the manufacture of vaccines is the production capacity and high quality standards, not the patents,” a Merkel spokeswoman said in a statement.

The President of the European Commission, Ursula von der Leyen, did not accept the waiver plan and stated in a speech that she was “ready to discuss proposals that would address the crisis in an effective and pragmatic way”.

Both Pfizer and Moderna already have plans to produce billions of cans in the meantime, leaving essentially all competitors far behind in the manufacturing process.

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World News

Inventory futures are flat after S&P 500 and Nasdaq shut at information, Tesla shares decline

Stock futures are flat after S&P 500 and Nasdaq close at records, Tesla shares decline

Stock futures were unchanged on Tuesday as investors braced themselves for a large amount of technical gains.

Futures on the Dow Jones Industrial Average lost 30 points. The S&P 500 futures were flat. The Nasdaq 100 futures were also flat.

Tesla’s shares fell 3% in premarket trading even after the electric automaker posted a record $ 438 million profit. Tesla also significantly exceeded Wall Street’s earnings and earnings expectations, fueled by bitcoin sales and regulatory credit. Stocks have struggled this year, more than 18% from their record. Though the stock is still up 360% over the past 12 months.

The winning season for the first quarter starts in full swing on Tuesday. Major tech companies like Alphabet, Microsoft, and AMD are reporting after the bell.

So far, 84% of companies have had a positive earnings surprise, according to FactSet, as around a third of the S&P 500 have reported numbers. However, share movements were relatively subdued after the strong results as the market was at record levels with high valuations.

GameStop’s stock rose more than 8% in premarket trading after the video game retailer said it sold 3.5 million additional shares and raised $ 551 million to accelerate the company’s e-commerce transformation .

The S&P 500 rose to another record high on Monday, while the tech-heavy Nasdaq Composite rose 0.9% to hit its first new record high since February 12.

“Strong action suggests stocks may have even more upside,” said Jeff Buchbinder, equity strategist at LPL Financial. “Although valuations are elevated, they still seem reasonable given interest rates and inflation.”

The Federal Reserve starts its two-day session on Tuesday. The central bank is not expected to take action, but economists expect it to defend its policies to keep inflation running hot.

Apple and Facebook wins will follow after the bell on Wednesday.

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S&P 500 futures fall barely in in a single day buying and selling, Netflix shares tank

S&P 500 futures fall slightly in overnight trading, Netflix shares tank

Trader on the New York Stock Exchange.

Source: NYSE

Stock futures fell slightly in night trading Tuesday as Netflix stocks fell sharply, suggesting a third consecutive negative day on Wall Street.

S&P 500 futures fell 0.1% and Nasdaq 100 futures fell 0.4%. Futures on the Dow Jones Industrial Average traded near the flat line.

Netflix shares fell about 9% in expanded trading after the streaming giant reported subscriber additions well below Wall Street estimates as the pandemic’s surge in demand wore off. However, Netflix did better than expected in the first quarter.

Wall Street has suffered consecutive losses as the reopening dragged the market down amid renewed concerns about the rising number of new Covid cases around the world. The Dow fell 250 points on Tuesday for its worst daily performance since March 23, while the S&P 500 and Nasdaq fell 0.7% and 0.9%, respectively.

United Airlines fell 8.5% on Tuesday after the airline reported its fifth straight quarterly loss, saying business and international travel are still far from recovering. The State Department said it would increase “do not travel” advice to 80% of the world’s countries, adding that the pandemic poses an “unprecedented risk to travelers”.

The Cboe Volatility Index, also known as the VIX or Market Fear Indicator, rose for two consecutive days to top 18 after hitting a 14-month low last week.

Companies have posted solid quarterly results, but the bar is high to lift the stock market to record highs this year after a strong rally. The Dow and S&P 500 are still up 10% over the year after breaking records on Friday.

“This has been a very good earnings season as 90% of the S&P 500 companies had robust results. The problem with stocks, however, is that most of the good news has already been priced in,” said Edward Moya, senior market analyst at Oanda in one Note.

Verizon and Chipotle Mexican Grill are expected to report numbers on Wednesday.

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Business

United Airways’ shares slip as enterprise and worldwide journey stay depressed

United Airlines' shares slip as business and international travel remain depressed

A United Airlines plane seen at the gate at Chicago OHare International Airport (ORD) on October 5, 2020 in Chicago, Illinois.

Daniel Slim | AFP | Getty Images

United Airlines shares fell more than 5% Tuesday morning after the airline reported its fifth straight quarterly loss, and its CEO was unsure about when two key parts of the business would recover from the pandemic.

CEO Scott Kirby said the demand for long-haul and business international travel had declined by about 80% compared to 2019, depriving the airline of high-paying customers it relied on before the pandemic.

“The big question is when those two things will come back and we’re not sure when that is,” Kirby said in an interview with CNBC’s Squawk Box. He said both segments are expected to recover in the summer and the second half of the year.

The airline reported a $ 1.4 billion loss for the first quarter on Monday and said it could achieve profitability even if demand for long-haul and business international travel returns to 35% of 2019 levels.

Demand for domestic vacation travel in popular vacation destinations like beaches has surpassed 2019 levels, Kirby said.

Vacationers flying within the US have spearheaded the recovery of travel as more people are vaccinated, governments relax travel restrictions, and tourist attractions reopen. But companies still haven’t got many of their employees back on the streets, and international travel bans or quarantine requirements continue to keep many travelers closer to where they live.

“I don’t know how people find hotels,” said Kirby.

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World News

India shares lead losses in Asia-Pacific; Alibaba shares in Hong Kong surge

India stocks lead losses in Asia-Pacific; Alibaba shares in Hong Kong surge

SINGAPORE – Stocks in India fell as stocks in Asia Pacific traded lower on Monday.

Both the Nifty 50 and BSE Sensex in India fell more than 2% each on Monday morning.

The losses came when the Covid-19 situation in the country remained severe. Reuters reported that the hardest-hit state of Maharashtra is considering a lockdown.

Meanwhile, stocks in mainland China also fell as the Shanghai compound fell 0.81% while the Shenzhen component fell 1.72%. Hong Kong’s Hang Seng Index fell 0.98%.

In Japan, the Nikkei 225 fell 0.52% while the Topix index was below the flatline. South Korea’s Kospi bucked the trend, rising 0.03%.

Australian stocks were down as the S & P / ASX 200 lost 0.45%.

The broadest MSCI index for stocks in the Asia-Pacific region outside Japan fell 1.19%.

Stocks in motion

Currencies and oil

The US dollar index, which tracks the greenback versus a basket of its peers, stood at 92.251 after falling above 92.8 earlier this month.

The Japanese yen was trading at 109.54 per dollar, stronger than above 110.5 against the greenback last week. The Australian dollar changed hands at $ 0.7608 after last week’s turbulent trading as it rose from over $ 0.765 to around $ 0.759.

Oil prices barely changed on the morning of trading hours in Asia. The international reference Brent crude oil futures rose slightly to $ 62.99 per barrel. The US crude oil futures were slightly higher at $ 59.37 a barrel.

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World News

Deliveroo shares push greater as retail traders begin buying and selling

Deliveroo shares push higher as retail investors start trading

A Deliveroo courier travels along Regent Street delivering takeaway food in central London during the Covid-19 Tier 4 restrictions.

Pietro Recchia | SOPA pictures | LightRocket via Getty Images

LONDON – Shares in Amazon-backed grocery supplier Deliveroo rose around 3% on Wednesday morning as retail investors first began trading the company’s shares.

The company’s share price rose from £ 2.80 ($ 3.86) to £ 2.91 in early deals on the London Stock Exchange before falling again to £ 2.85.

Around 70,000 Deliveroo customers bought Deliveroo shares valued at £ 250 to £ 1,000 at an issue price of £ 3.90 before they were first listed last Wednesday. In total, Deliveroo sold £ 50m worth of shares to retail investors through a platform called PrimaryBid.

However, due to conditional trading restrictions, these loyal customers were locked in their positions until Wednesday of this week. As a result, they had to sit back and watch Deliveroo’s share price plummet around 30%. The largest drop came on the morning of the company’s market debut.

Some retail investors told CNBC last Thursday that they had lost hundreds of pounds on its IPO and regretted their investments.

“I wish they had allowed the conditional week to regulate the price and then placed our stocks when we could actually trade them,” one investor told CNBC.

Another said they wanted to hold onto their shares for now and hope they will go up in price in a few months. “There’s not much you can do with them at that price,” they said.

Susannah Streeter, senior investment and market analyst at stock trading platform Hargreaves Lansdown, said in a statement Wednesday that Deliveroo’s share price is being driven higher by new retail investors.

“This will be some consolation for Deliveroo customers who have been encouraged to buy a piece of the company but apparently thrown the die on a disastrous debut,” she said. “Like a fateful round of Monopoly, they were banned from selling their shares for a week while the company’s initial valuation fell sharply.”

“Now they finally have a card to get them out of jail, but it seems that many have kept it in their back pocket for the time being, waiting for prices to stabilize,” added Streeter. “The total market trading volume is almost unchanged from yesterday.”

Streeter noted that IPOs “should provide a level playing field for all classes of investor from day one”.

While the IPO helped Deliveroo raise $ 1.5 billion, it was one of the worst on the London Stock Exchange for a large company. At one point, Deliveroo was targeting a market cap of £ 8.8 billion, but the company is currently worth only £ 5.2 billion.

What went wrong with Deliveroo?

In the days leading up to the IPO, several large investment firms said they had no plans to invest in Deliveroo. Legal and General, Aberdeen Standard, Aviva and M&G, which together have around £ 2.5 trillion in assets under management, avoided Deliveroo’s debut.

They raised concerns: the evaluation; the employment status of Deliveroo’s over 100,000 drivers; and the two-class share structure, which CEO Will Shu grants more than 50% of the voting rights.

Hundreds of Deliveroo drivers went on strike in the UK on Wednesday over pay and workers’ basic rights. Deliveroo says it gives drivers the flexibility to work when they want, making an average of £ 13 an hour during the busiest times.

Early investors told CNBC that Deliveroo’s bankers misunderstood pricing when it went public, with much of the blame going with Goldman Sachs. For his part, Goldman did not accept that anything was done wrong.

“Pricing an IPO is a very difficult task,” Fred Destin, a venture capitalist who was an early contributor to Deliveroo, told CNBC. “Bankers are accused of leaving money on the table when the price is too low because there is usually a decent secondary stake.”

He added: “Bankers try to find the right note to keep new investors up and running and not leave too much on the table for salespeople. This is what the book building exercise is for. It is art more than science, as the zeitgeist is very important. as we have just seen with ROO. “

According to Streeter, more accurate pricing is critical to maintaining retail investor enthusiasm for future IPOs.

“Offering £ 3.90 per share, Deliveroo had a valuation of around £ 7.6 billion after a round of investment, well above its valuation of around £ 5 billion in January. However, the outlook had not improved significantly “She said.” Instead, the IPO came at a time of growing concerns about the gig economy model and expectations that easing Covid restrictions could lead to an initial decline in business. “

To aid Deliveroo’s IPO, Goldman bought £ 75 million worth of Deliveroo stock for itself, citing sources familiar with the matter, according to a Financial Times report.

Goldman declined to comment when contacted by CNBC.