It was December of 2021. I had COVID and was on the verge of being officially diagnosed with prostate cancer. Things were pretty bad and suddenly got worse: I noticed Fire Gasparino trending on Twitter not because I had made up a story, or defamed someone.
My sin was reporting, continuously and accurately, that an investment cult had formed around the stock of the troubled movie theater chain known as AMC, pushing its shares well above where they should be. And like most cults, this one wouldnt end well.
The abuse lasted through Christmas. I guess I could have wilted and joined some of my colleagues in heralding the small investor-led movement around the stock as something biblical. David slays Goliath.
I didnt and kept reporting the story behind one of the most absurd and now costly stock pumps in recent history.
These days, Im glad I did.
Yes, I survived COVID, my cancer diagnosis and getting vilified by a Twitter mob just fine. In fact better than fine because of what happened next: The stock imploded as I reported it would. AMC was burning loads of cash, heading for bankruptcy or massive dilution to raise much-needed capital, neither good for shareholders.
Shares are down 95% since December 2021. About 10 days ago, the stocks crash and burn was complete as the company took concrete steps toward the issuance of a ton of new shares (aka diluting existing shareholders) and stay out of bankruptcy. Were it not for a bit of financial alchemy in a 10-for-1 reverse stock split, AMCs stock price would be reading just above $1.
Im not taking joy in people losing money but in people saving some. Anyone who followed my reporting on AMC saved themselves some real money. Those who followed cultists, the self-described AMC Apes or the cheerleading pseudo-journalists are paying the price.
Phil Graham, the brilliant but troubled former publisher of The Washington Post, came up with the truism about the profession of journalism as being the first rough draft of history. That was back in the early 1960s before he killed himself in a fit of depression.
I wonder what Phil Graham would call what goes down on the rebranded Twitter site X or any of the other instantaneous social-media feedback loops that are now competing with real reporting. A really, really, really rough draft of history?
Social media is great in so many ways. Yes, its a draft of history, even if its really rough, and that often serves a purpose through the exchange of ideas to make an informed judgment. Its also an outlet for people desperately searching for purpose, and while theyre at it, indulging in their worst instincts and behaviors. Its a breeding ground for the cult.
How cults are created is an age-old question. The result is deadly and near deadly stuff like Jonestown and Pizzagate and the financially deadly stuff that surrounded the stock of AMC. The weird notion that a cabal of greedy hedge funds, hell-bent on destroying the nations largest movie theater chain, were shorting the stock (betting its price would collapse) in dark corners of Wall Street does seem appealing.
That average people could buy this stock, and destroy a bunch of nasty hedge funds while becoming rich, even more so.
Just one problem: Nothing close to what the cult was blathering about was true. The evidence of this scheme thrown around Twitter or the Reddit message boards was of the wackadoo variety. And If you dared question the illogic, as I did, be prepared for harassment like youve never seen before.
The power of social media is intense and crazy, of course, and it made this cult particularly nasty and resilient over the past two-plus years. That is until the hammer finally fell just days ago and the AMC cult ended like they all do in disaster.
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Its a shame more reporters didnt call this out. It was so obvious based on what you can find on a balance sheet. Short sellers made hundreds of millions of dollars in August because AMCs finances included massive cash burn, lots of debt and movie attendance that due to streaming hasnt returned to pre-pandemic levels.
CEO Adam Aron, not exactly a short seller, recently explained AMCssituation in a call withanalysts. Business is getting better Barbenheimer was a box office hit; a Taylor Swift film coming to AMC theaters in October is crushing it in pre-sales. But he said that if he cant raise money by selling more stock, Chapter 11 is almost inevitable. He recently beat back an Ape-inspired lawsuit challenging his dilution plan, because they believe AMC is really doing just fine and doesnt need the money.
It does, of course, and the coming dilution is why AMC, for now, and maybe for the foreseeable future, is still in business, even as its stock is battered and bruised.
Some of the Apes are still HODL (holding on for dear life, in the lingua franca of the cult), and still attacking those they see as backing the evil hedge funds. Thats scary.
Even more scary: Far too many reporters over the past three years sought the cults approval because it feels good to be applauded on social media. It also helps you build your followers, which is also idiotically important to reporters these days.
They are truly sellouts to the profession, because they should know, based on the history, cults never end well.
Nigel Farage has successfully exploited the Commons recess to “grab the mic” and “dominate” the agenda, Harriet Harman has said.
Speaking on Sky News’ Electoral Dysfunction podcast, the Labour peer said that the Reform UK leader has been able to “get his voice heard” while government was not in “full swing”.
Mr Farage used a speech this week to set himself, rather than Kemi Badenoch’s Tories, up as the main opposition to Sir Keir Starmer at the next election.
Baroness Harman said: “It’s slightly different between opposition and government because in government, the ministers have to be there the whole time.
“They’ve got to be putting legislation through and they kind of hold the mic.
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“They can dominate the news media with the announcements they’re making and with the bills they’re introducing, and it’s quite hard for the opposition to get a hearing whilst the government is in full swing.
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‘Big cuts’ to fund other Reform UK policies
“What we used to do when we were in opposition before 1997 is that as soon as there was a bank holiday and the House was not sitting, as soon as the half-term or the summer recess, we would be on an absolute war footing and dominate the airwaves because that was our opportunity.
“And I think that’s a bit of what Farage has done this week,” Harman added.
“Basically, Farage can dominate the media agenda.”
She went on: “He’s kind of stepped forward, and he’s using this moment of the House not sitting in order to actually get his voice heard.
“It’s sensible for the opposition to take the opportunity of when the House is not sitting to kind of grab the mic and that is what Nigel Farage has done.”
But Baroness Harman said it “doesn’t seem to be what Kemi Badenoch’s doing”.
She explained that the embattled leader “doesn’t seem to be grabbing the mic like Nigel Farage has” during recess, and added that “there’s greater opportunity for the opposition”.
The UK will buy up to 7,000 long-range missiles, rockets and drones and build at least six weapons factories in a £6bn push to rearm at a time of growing threats.
The plan, announced by the government over the weekend, will form part of Sir Keir Starmer’s long-awaited Strategic Defence Review, which will be published on Monday.
However, it lacks key details, including when the first arms plant will be built, when the first missile will be made, or even what kind of missiles, drones and rockets will be purchased.
The government is yet to appoint a new senior leader to take on the job of “national armaments director”, who will oversee the whole effort.
Andy Start, the incumbent head of Defence Equipment and Support – the branch of defence charged with buying kit – is still doing the beefed-up role of national armaments director as a sluggish process to recruit someone externally rumbles on.
Image: Sir Keir Starmer and Volodymyr Zelenskyy at a presentation of Ukrainian military drones. Pic: Reuters
Revealing some of its content ahead of time, the Ministry of Defence said the defence review will recommend an “always on” production capacity for munitions, drawing on lessons learned from Ukraine, which has demonstrated the vital importance of large production lines.
It will also call for an increase in stockpiles of munitions – something that is vitally needed for the army, Royal Navy and Royal Air Force to be able to keep fighting beyond a few days.
Some £1.5bn will be invested in the new factories, the government said. It said this additional funding will lift total expenditure on munitions to £6bn this parliament.
“The hard-fought lessons from [Vladimir] Putin’s illegal invasion of Ukraine show a military is only as strong as the industry that stands behind them,” John Healey, the defence secretary, said in a statement released on Saturday night.
“We are strengthening the UK’s industrial base to better deter our adversaries and make the UK secure at home and strong abroad.”
Image: Army Commandos load a 105mm Howitzer in Norway. Pic: Ministry of Defence/PA
The UK used to have a far more resilient defence industry during the Cold War, with the capacity to manufacture missiles and other weapons and ammunition at speed and at scale.
However, much of that depth, which costs money to sustain, was lost following the collapse of the Soviet Union in 1991, when successive governments switched funding priorities away from defence and into areas such as health, welfare and economic growth.
Even after Russia’s full-scale invasion of Ukraine in 2022 and a huge increase in demand from Kyiv for munitions from its allies, production lines at UK factories were slow to expand.
Image: A reaper drone in the Middle East. Pic: Ministry of Defence
Sky News visited a plant run by the defence company Thales in Belfast last year that makes N-LAW anti-tank missiles used in Ukraine. Its staff at the time only worked weekday shifts between 7am and 4pm.
Under this new initiative, the government said the UK will build at least six new “munitions and energetics” factories.
Energetic materials include explosives, propellants and pyrotechnics, which are required in the manufacturing of weapons.
There were no details, however, on whether these will be national factories or built in partnership with defence companies, or a timeline for this to happen.
There was also no information on where they would be located or what kind of weapons they would make.
Image: King Charles visits HMS Prince of Wales. Pic: PO Phot Rory Arnold/Ministry of Defence/PA
In addition, it was announced that the UK will buy “up to 7,000 UK-built long-range weapons for the UK Armed Forces”, though again without specifying what.
It is understood these weapons will include a mix of missiles, rockets and drones.
Sources within the defence industry criticised the lack of detail, which is so often the case with announcements by the Ministry of Defence.
The sources said small and medium-sized companies in particular are struggling to survive as they await clarity from the Ministry of Defence over a range of different contracts.
One source described a sense of “paralysis”.
The prime minister launched the defence review last July, almost a year ago. But there had been a sense of drift within the Ministry of Defence beforehand, in the run-up to last year’s general election.
The source said: “While the government’s intentions are laudable, the lack of detail in this announcement is indicative of how we treat defence in this country.
“Headline figures, unmatched by clear intent and delivery timelines which ultimately leave industry no closer to knowing what, or when, the MOD want their bombs and bullets.
“After nearly 18 months of decision and spending paralysis, what we need now is a clear demand signal from the Ministry of Defence that allows industry to start scaling production, not grand gestures with nothing to back it up.”
As well as rearming the nation, the government said the investment in new factories and weapons would create around 1,800 jobs across the UK.
Prison officers should be armed with lethal weapons to crack down on Islamist terrorists in jail, the shadow justice secretary has said.
Highly trained teams should also be equipped with tasers, stun grenades and baton rounds to tackle dangerous criminals in high-security jails, Robert Jenrick said.
The plan is taken from a series of recommendations by counter-extremism expert and former prison governor Ian Acheson.
It also follows several attacks on prison officers in jails.
In April this year, the Manchester Arena bomb plotter, Hashem Abedi, allegedly assaulted prison staff by throwing hot oil on them and then launching a stabbing attack, injuring three officers.
At Belmarsh prison, Southport killer Axel Rudakubana has been accused of throwing boiling water over an officer through the hatch in his cell door earlier this month.
Image: File pic: PA
Mr Jenrick said: “Islamist gangs and violent prisoners in our jails are out of control.
It’s a national security emergency, but the government is dithering. If they don’t act soon, there is a very real risk that a prison officer is kidnapped or murdered in the line of duty, or that a terrorist attack is directed from inside prison.”
He said he commissioned Mr Acheson to conduct a rapid review into measures the government could adopt.
The measures include removing all radical Islamist imams working in prisons, immediately rolling out high-collar stab vests to frontline officers, and mandating the quarterly release of data on religious conversions in prison and faith-based incidents.
It also recommended legislating to overturn the De Silva ruling to strip back judicial interference in operational decisions by governors to isolate extremists.
Mr Jenrick added: “We have to stop pussy-footing around Islamist extremists and violent offenders in jails.
“That means arming specialist prison officer teams with tasers and stun grenades, as well as giving them access to lethal weapons in exceptional circumstances.
“If prison governors can’t easily keep terrorist influencers and radicalising inmates apart from the mainstream prisoners they target, then we don’t control our prisons – they do. We must take back control and restore order by giving officers the powers and protection they need.”
Mr Acheson said: “Too often what goes wrong behind the walls of our high security jails passes unnoticed, as does the bravery of the men and women in uniform who deal every day with terrorists and other highly dangerous offenders.
“Robert Jenrick is right – the threat to officer safety is now intolerable and must be met decisively by the government.
“The balance inside too many of our prisons has shifted away from control by the state to mere containment and the price is soaring levels of staff assaults and wrecked rehabilitation. Broken officers can’t help fix broken people – or protect the public from violent extremism.”
A Ministry of Justice source said: “The government considers the introduction of lethal weapons into prisons would put prison officers at greater risk.”
They added: “The last government added just 500 cells to our prison estate, and left our jails in total crisis. In 14 years, they closed 1,600 cells in the high-security estate, staff assaults soared, and experienced officers left in droves. Now the arsonists are pretending to be firefighters.
“This government is cleaning up the mess the last government left behind. We are building new prisons, with 2,400 new cells opened since we took office. And we take a zero-tolerance approach to violence and extremism inside.”