AMC stock roils again on potential 11.6M share sale

AMC may sell up to 11.6 million of its shares with a trading phenomenon pushing stock in the movie theater chain up almost 3,000% this year, and 140% just this week

AMC may sell up to 11.6 million of its shares with a trading phenomenon pushing stock in the movie theater chain up almost 3,000% this year, and 140% just this week. AMC is emerging from pandemic lockdowns that threatened the very existence of the company and industry analysts have yet to fully explain the extreme enthusiasm for its stock that being driven by large numbers of online traders that seem to have disregarded the rough path the company faces in its recovery. AMC acknowledged that phenomenon Thursday in a filing with the U.S. Securities and Exchange Commission when it announced the potential sale of shares “from time to time.” “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," AMC 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.”