The shares of AMC rose by more than 90 percent
AMC's soaring is gaining momentum. The shares of the US cinema chain rose at times by more than 90 percent to a record high of 61.71 dollars before trading in the papers on the US stock exchange Nyse was temporarily stopped. This is the second largest price jump in the company's history. This adds up to almost 1,500 percent since the beginning of the year.
According to Börsianern, the rally was again driven by small
investors who encouraged each other to buy in relevant Internet forums. "This party can go on as long as investors act in concert," said analyst Ipek Ozkardeskaya from the brokerage firm Swissquote. "The problem is: the higher the price goes, the more tempting it is to take profits."
The AMC enthusiasts weren't even bothered by the sale of a larger block of shares. Mudrick hedge fund tossed 8.5 million stocks back on the market as part of the latest AMC capital increase. "The hedge fund has probably made a lot of money on this transaction," said analyst Giacomo Pierantoni of brokerage firm Vanda.
"Many of our investors have shown support and trust in
AMC ... After all, these people own AMC and I work for them," said Adam Aron, AMC's chief executive officer, in a statement. More than 3.2 million individuals owned AMC as of March 11, making up over 80 percent of the investor base, the statement said. Earlier last month, according to financial portal Bloomberg, Aron spoke directly to many of these new investors during AMC's quarterly conference call, hailing their passion, dedication and enthusiasm. He urged the skeptical equity analysts to pay attention to these investors - "read what these people write," he told them.