Could AMC NFT's create the conditions to screw the shorts into the ground?

in #amc6 months ago

Over the last few days, an interesting play has happened with one of the most shorted memestocks, as special AMC NFT's were released by the theatre company in advance of the upcoming Spiderman 'No Way Home' movie. The limited NFT's were released to anyone who was an AMC investor connect, Stubs premier or A List member and who booked to see the movie at a participating AMC theatre on December 16th.

And this is where it got interesting, as the Spiderman No Way Home movie smashed all previous presales records, including this years current title holder Black Widow, and Avengers Endgame, which has held the record since 2019, as well as other huge blockbusters including the last 3 Star Wars franchise movies. And it did it in just 2 hours.

But but... cinema is dead, bleat the 'smart money' guys

Mainstream pundits, including Jim (follow me to lose money) Cramer, have for some time been waxing lyrical that the movies are done as a viable business model, especially in the post-pandemic world, and especially AMC, of course. This somewhat blows the shorts thesis out of the water.

And it is arguably because it's not just about the movie. It's the NFT's too. Because people just love a digital, fraud-proof collectible. And for the naysayers out there who have been banging on that the NFT's aren't worth anything, well how about the ones being sold on ebay for unbelievable amounts, including one going for $25,000?

You see, the point is that if people want something, and especially something commemorative, and it's scarce, then it gets value.

AMC NFT's popularity could help clear the debt

Now imagine that AMC released NFT's for ALL their upcoming blockbuster partnerships, even free as this Spiderman one was, and the same happened, with people literally staying up late and rushing to get them? Well, as self-styled Ape investigator Donnahue George points out, this would clear AMC's debt in a few months.

And this is where it get's very interesting again. If the company is out of debt, then it could offer a dividend. If it can offer a dividend, even an AMC NFT dividend, which is being championed by Marc Cohodes, then this could easily create the conditions for a share count. And then, investors would get to see clearly if there is naked shorting going on.

AMC CEO Adam Aron has apparently nixed the idea for now, but this is probably because he is not allowed to offer a dividend while the company is in debt. It's also worth remembering that his job is to lead the company and bring it back to profitability, which it appears he is doing with a steady hand and some pretty radical ideas (like actually listening and playing to the audience of Ape investors), not to defeat the shorts.

Now that would piss Ken Griffin and the other Short Hedge Funds off right and proper.

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