Hedge Fund Flips ‘Overvalued’ AMC, and Shares Keep Surging
- Mudrick Capital helps the cinema chain float more stock
- Quick sale motivated by concern rally had gone too far
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Even before Reddit day traders pushed AMC Entertainment Holdings Inc.’s stock up 1,400% this year, Jason Mudrick had been telling the company it should take advantage of the wild rally by selling stock to stay in business.
Now Mudrick has helped AMC do just that, effectively bankrolling one of the company’s biggest equity sales by purchasing $230 million of shares -- and then promptly dumping them in the open market for a tidy profit. Meanwhile, his firm was telling clients it was selling because AMC was massively overvalued.