Today I Want to talk about how AMC's dividend would destroy the shorts? Now it's not as simple as saying well, the shorts would have to pay over a billion dollars and that alone would cause the squeeze, right? Because it's actually much more complicated and it would effectively force a January 2021 default event. So stay tuned and let's make some money now. I'll drive straight in with the information. So this tweet says, instead of making an AMC brand of wine, Adam Aaron should announce a special cash dividend to all current shareholders at 25 cents per share.

He says importantly, it would force the brokerages, yet not the Shorts themselves or the market makers, but the brokerages into hundreds of millions of dollars in losses by paying out the dividend shareholders on shares they sold illegally. Now, this outcome will be the exact same as we saw in January 2021 where we had a number of different brokerages or prime Brokers like Apex clearing defaulting on their margin calls. So let's first explain why it's the brokerages responsible for paying their dividends and not the Shorts or the market makers directly. So first you'll remember a few weeks ago Mullen has accused TD Ameritrade and Charles Schwab of facilitating fictitious short sales.

They're not trying to sue Citadel and virtue in those market makers directly. they're going after the trading platforms. Yes, the market makers create the synthetic share on behalf of a short seller, but they effectively short sell that share through those brokerages to regular retail investors like you. And I it's the brokerages themselves that are facilitating these short sales by selling those fake shares to you and I And it's also those brokerages that are responsible for paying dividends.

Let's say, you hold shares of Microsoft long in your trading account where Microsoft pays a dividend. you don't get a bank transfer directly from Citadel. Your trading platform deposits that cash into your or trading account. It's the trading platform that's responsible for paying the dividend and they receive that dividend money from either the company itself or from the short sellers.

But the first line of defense or the first point of call is that brokerage paying the dividend. Now you'll remember back in January of 2021. It wasn't the market makers like Citadel and Virtue that failed these margin calls or these excess Capital premium charges. It was the trading platforms and the prime Brokers It was Robin Hood Securities.

It was Apex clearing and it was instant air. They received margin calls or excess Capital premium charges of 2.5 billion dollars or even as high as 67 billion for instance. Now, the reason why this default event happened wasn't because the market makers like Citadel and Virtue didn't have the cash to cover the trading or to cover the dividend. It was because that first point of call, those trading platforms and Prime Brokers didn't have that cash.

So effectively buy AMC paying a special cash dividend. It'd be these trading platforms responsible for paying that dividend on all of those synthetic shares. with billions of synthetic shares out there, a cash dividend of 25 cents or a dollar per share would obviously cost those trading platforms billions like it did in January 2021. And it seems the Shields and the Shorts are still trying to divert our attention away from AMC with everything they've got.

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Bad has also been verified by top data aggregators and is currently ranked on Coin Market cap. The latest exchange to list bad is Mexc, so if you're ready to be a part of the future, click the link in the description below to buy some bad tokens and join the community. recently. Charles Gasparino tweeted saying ignore the Ftds.

He said there's nothing to see here but AMC's dilution. it's cash burn and The Insider selling while you guys are worrying about the Ftds And he said, because you're worrying about Ftds that makes you supposedly among the dumbest investors in the world. Obviously, we know this is rubbish, but it's actually a really interesting change of tune from Charles Gasprino because back in 2017 Charles Gasprino tweeted or even spoke publicly on a mainstream media about the importance of Fdds and fails to deliver Charles Gasparino himself said the markets were rigged because there's 40 different trading venues. He said, guess what dark pools Allowed by Regulators the SEC particular and these smart guys figured out computer programs to game that system.

He said that's not even a rigged Market At that point, that's a market created by The Regulators for the smart guys or for the market makers. On top of that, Ken Griffin has even said himself saying the SEC has made it less attractive for companies to be public. These two things linked together perfectly. Over the years, the market has become more and more rigged thanks to the SEC.

The SEC gives out these Market making exemptions to mark makers allowing them to illegally naked short sale shares of stock, but with the term legally effectively allowing these market makers to commit crimes in the name of liquidity. Obviously, these market makers get this Market maker exemption to a legally short sell shares as long as they're doing it for liquidity purposes. In doing so, these companies know that it's less attractive to IPO because they know their company is just going to be synthetically short sold and therefore many of these companies aren't even bothering to go public anymore as the SEC effectively is siding with the market makers. I Think if you got rid of these stupid Market making exemptions allowing these market makers to illegally naked short sell stocks I Think tons more companies would go public because you'd have genuine price Discovery You'd have actual price volatility when a big decision, either good or bad was made at a company.

But whereas at the moment, that volatility is almost completely erased because these market makers use their Market making exemptions to buy and sell shares very close to the current trading price, that effectively halts price Discovery and allows these market makers to take advantage, effectively suppressing the price of companies they don't want to run. You could have companies out there changing the world, inventing new things and curing diseases, but if a market maker decided they didn't want that company to run, it wouldn't go anywhere. and if anything, the stock price would fall below a dollar. But on the flip side, you could have an absolutely crap company doing nothing, just losing money like tons companies making massive, massive losses every single year.

But yeah, if they're selected by a market maker, you'll see it hitting new all-time highs year after year after year. And it seems the reason why these market makers why the SEC and why Banks want it this way is because there's Kevin Malone tweeted he said banks are so naked it's not even funny. You can see here a list of major banks that have way more derivatives than they have total assets. Some banks are only moderately stupid, like Wells Fargo who has 1.6 trillion dollars in assets, but 15.8 trillion dollars in derivatives? That's a derivative leverage ratio of 9.48 to 1.

still absolutely ridiculous as it's not really sensible to exceed leverages of two to one, but less ridiculous than some other major banks. For example, you've got Citibank and Goldman Sachs Citibank with 54 trillion dollars in derivatives and only 1.7 trillion in assets, a leverage ratio of 32 times to one Goldman on the other hand, is just absolutely ridiculous. with 57 trillion dollars in derivatives and just 500 billion in assets, a leverage ratio of 110 times to one. So even in small movements in volatility, say one, two, three, or five percent could collapse a major Bank like Goldman Sachs or Citibank.

This is why these market makers are given the these Market maker exemptions to limit all volatility in the entire market. So one of these major Banks don't collapse to prove just how much AMC has been suppressed over the years. Here's some calculations from Fidelity themselves for AMC's Enterprise Value which should be the minimum amount AMC should sell for or AMC should be valued at based on their assets and they determine the Enterprise Value AK. The minimum value AMC should ever be should be 22 billion dollars at the moment AMC is trading for less than a tenth of that.

Investopedia determines Enterprise Value as a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. Enterprise Value includes in its calculation the market cap of a company, but also short-term and long-term debt and any cash on the company's balance sheet. And they've said Enterprise Value differs significantly from simple market capitalization in several ways, and many consider it to be a more accurate representation of a firm or company's value. EV tells investors or interested parties a company's value and how much another company would need if it wanted to purchase that company.

So Fidelity think AMC should be valued at 22.1 billion dollars as at the 6th of September 2023. Three, this isn't some kind of valuation from 10, 15, 20 25 years ago. this is a valuation from two or three weeks ago. AMC's market cap is currently 1.5 billion dollars and therefore Fidelity thinks AMC should at least 10 to 15x from its current position at minimum.

But guys, be sure to let me know what you think down in the comments below. And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when upload a new video. Cheers!.