Short-seller says AMC's fundamentals are obvious and that the meteoric run in the theater operator's stock is nearing an end
Iceberg Researchrevealed a short position on AMCFriday.
- Iceberg told Insider that AMC's current stock price, hovering around $50, has been unsustainably inflated.
- Iceberg made headlines for knocking 99% off the share price of a commodity trader once worth nearly $12 billion.
Iceberg Research revealed a short position on AMC on Friday, staking out a claim against one of the buzziest retail stocks to date.
Arnaud Vagner, the main short-seller behind Iceberg, told Insider that AMC's current stock price, hovering around $50, has been unsustainably inflated by
"The volatility of the meme stocks is largely driven by call options, and their '
"However, this effect is temporary and the correction is inevitable. The volume of call options has substantially declined," he added.
In a series of tweets announcing the short, Iceberg described the AMC "pump" as "increasingly shaky," calling the weaker fundamentals of AMC "obvious."
"We don't accuse the company of fraud. There is a price for everything and we believe the pump has exceeded its average life," Iceberg tweeted.
In previous years, Vagner's Iceberg made headlines for knocking some 99% off the share price of Noble Group, a big commodity trader once worth nearly $12 billion, after Iceberg alleged massive accounting fraud.
More recently, the short-seller released a report in April on Diginex, a crypto exchange that went public via SPAC, alleging corporate governance "red flags" and noting the founder had sold 96% of his shares. Since the morning of the report, Diginex shares have fallen 38%.
AMC stock has undergone a disorienting run-up in recent months. After spending 2020 in the single digits, it has skyrocketed to as high as $72.62 in early June. AMC was trading at $49.40 as of 12:45 p.m. ET.
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