I was talking to a client the other day about movies and they were somewhat resentful that the AMC theaters were mostly China owned. I thought he was wrong put didn’t say anything. I thought I had read something different but didn’t remember the details.
China’s Dalian Wanda Group Co. bought into the AMC in 2012. They then put the company through an IPO but retained a majority of the shares. Making it their first large influx of cash on its ownership.
According to security filings, China’s Dalian Wanda Group Co. sold most of their AMC shares in May of 2021. This was during the Reddit frenzy where the stock skyrocketed160%.
So, while the pandemic ravaged the company’s earnings, China’s Dalian Wanda Group Co made an even larger cash influx selling during the frenzy.
They bought low, created a market, then sold higher, and sold out when the market was driven to an impossible high. Those who bought at the market high, will need to wait for the “Greater Fool: to get their profit. But most likely they were the ones to sell at a tremendous loss. The company is still struggling to get the theaters filled again.