AMC CEO: 80% of AMC Shares are Now Owned by Retail Investors
AMC has attained what is like a dream to almost every company, a supportive army of retail investors. Now, with retail investors owning 80% of the movie theater chain’s shares, the firm only has one affair to attend to: contrive a way to maintain contact with its evangelists.
AMC Unveils “AMC Investor Connect”
The AMC saga is a similar movement seen with — and likely inspired by — the activity behind GameStop stock. It’s a story that makes institutional investors’ hair stand on end. Thanks to a vigorous group of retail investors and Redditors who ran to rescue the troubled movie theater chain from potential bankruptcy, AMC is now looking better than ever.
Retail investors presently own 80% of AMC’s share, a reason to rejoice since their sincere support is what boosted AMC’s share price, and cost hedge funds to lose billions. Now, to keep connections with its saving angels, AMC is launching AMC Investor Connect, an innovative, enterprising communication initiative that will enable AMC to directly communicate with its passionate shareholders.
AMC Entertainment has attracted more than 3 million retail shareholders over the last several months. With this decent-sized number of retail shareholders, AMC needs a new approach to investor relations. This is where AMC Investor Connect comes into play.
To keep retail shareholders up-to-date regarding company information, AMC aims to launch AMC Investor Connect in concurrence with the preparatory proxy statement for AMC’s July 29 annual meeting of shareholders.
AMC CEO Comments Regarding this Innovative Step
Adam Aron, chairman and CEO of AMC Entertainment Holdings, remarked on this seemingly innovative and vital step of contriving a communication platform to directly get in touch with more than 3 million AMC shareholders.
“AMC Investor Connect will put our Company in direct communication with a retail investor shareholder base that owned more than 80% of AMC at last count. Many of our investors have demonstrated support and confidence in AMC. We intend to communicate often with these investors, and from time to time provide them with special benefits at our theatres. We start with a free large popcorn on us, when they attend their first movie at an AMC theatre this summer.”
Aron further continued to say that despite the substantial size of shareholders, their effort to build relationships will continue:
“During my five-plus year tenure as CEO at AMC, I’ve taken great pride in the relationships I have forged with AMC’s owners. With AMC Investor Connect, that effort in relationship building will continue apace even if our shareholders now number in the millions. After all, these people are the owners of AMC, and I work for them”.
AMC Heeds for Investors
AMC is among a rare handful of companies that actually alerts investors against buying its own shares. In its filing on Thursday, AMC honestly cautioned potential investors that the current prices may not match the fundamentals of the movie theater business.
“We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last.”
In an unconventional suggestion, the company advised investors regarding the possible outcomes of an unpremeditated investment in their stocks. “Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment,” AMC’s representatives said.
Of course, this statement by AMC is likely a precautionary measure — which is unlikely to deter the AMC’s ‘ape army’ from continuing to stockpile $AMC.
Do you think the “AMC Investor Connect” solution can be beneficial in maintaining the investors’ interest in the firm? Let us know in the comments below.