Business & Investment

This big Wall Street player was made like an AMC stock thief

Private-equity fund Silver Lake has created a bandit this week by users of Reddit message boards taking advantage of the stock market frenzy that has been enthusiastic over the last few weeks.

Silver Lake was able to clear a profit of about $ 112 million by selling it on Wednesday 44.4 million new shares Movie chain operator AMC Entertainment Holdings Co., Ltd. struggling
AMC,
+ 53.65%

According to the company’s stock in the bright red market Submitted to Securities and Exchange Commission on Friday.. A private-equity fund company based in Menlo Park, California, plummeted after individual traders united in an online trading forum and, along with GameStop Corp, dramatically increased the price of AMC shares.
GME,
+ 67.87%

And Other clutches A company that has become a popular target for professional short sellers.

read: AMC stock trading frenzy may stop bankruptcy, but cinema operators are still facing years of recovery

Silver Lake’s $ 600 million worth of AMC debt issued in July when movie chains competed for borrowing to boost funding as shares traded nearly $ 4 with the theater almost closed on Wednesday Secured new shares by converting the FactSet data per share.By selling on Wednesday, Silver Lake avoided on the same day that the debt was converted Significant fall in stock prices on Thursday The mobile trading app Robin Hood has locked users out of trading stocks in AMC and other companies.

Companies issue convertible bonds as a quick and easy way to raise cash, even when “strikes” or converting prices to stocks seem out of reach. According to FactSet, AMC had issued $ 3 billion worth of convertible bonds as of Friday, with a significant portion at an exercise price of $ 18.95.

read: Wall Street is looking for ways to avoid Reddit day trader stampede as a “power to consider”

Recent Short squeeze figWall Street was built to counter Main Street at a time when pandemics widened the gap between the rich and the poor in the United States and trillions of fiscal and financial stimulus slumped through financial markets. However, Silver Lake’s score emphasizes that professional players are making big profits on the same Wall Street bets as day traders.

read: GameStop and AMC dramas go beyond the stock market

“What do you expect from them?” Marty Fridson, Chief Investment Officer of Lehmann Livian Fridson Advisors, talked about a major institutional investor holding a recent speculative stock price. “Major financial professionals do not feel solidarity.”

“For me, all of the’populists’ are really side shows,” said Fridson, a veteran of the “junk bonds” or high yield market.

to see: GameStop enthusiasm spotlights clearinghouse as investors assess systemic risk concerns

According to FactSet data, AMC was up 53.7% at $ 13.26 per share on Friday, up 525.5% year-on-year so far.With an average of 30 Dow Jones Industrial Averages, the broader stock market leveled off on Friday DJIA, S & P500 Index SPX And Nasdaq Composite Index COMP Each reservation is 3% or more Decrease weekly in the turmoil of a handful of featured stocks.

Silver Lake did not respond to a request for comment on Friday.

This big Wall Street player was made like an AMC stock thief

http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D24740F24A2F%7D&siteid=rss&rss=1 This big Wall Street player was made like an AMC stock thief

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