Connect with us

Published

on

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.

Essential weekly read to fuel business lunches.

Please provide a valid email address.

By clicking above you agree to the Terms of Use and Privacy Policy.

Thanks for signing up!
Never miss a story.

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.

Continue Reading

Sports

SEC calls out refs for missing OU’s ‘hideout tactic’

Published

on

By

SEC calls out refs for missing OU's 'hideout tactic'

An SEC officiating crew failed to identify a “hideout tactic” on Oklahoma‘s second-quarter touchdown in the 11th-ranked Sooners’ Week 4 win over No. 22 Auburn, the conference announced in a statement late Saturday night.

Oklahoma led 10-3 after quarterback John Mateer connected with Isaiah Sategna for a 24-yard touchdown with 10:45 remaining in the first half on Saturday. Before the snap, Sategna had walked toward the Sooners’ sideline appearing to feign a substitution, but he remained on the field before streaking down the sideline through the Tigers’ secondary undetected for the scoring reception.

Oklahoma went on to beat Auburn 24-17 after Mateer’s go-ahead rushing touchdown with 4:54 left in the game.

Hours later, the SEC announced that its officiating crew “did not properly interpret the action as a hideout tactic” and said the Sooners should have been assessed an unsportsmanlike conduct penalty that would have wiped out Sategna’s touchdown.

“If properly officiated, the second down play should have resulted in an unsportsmanlike conduct penalty of 15 yards assessed from the previous spot,” the statement read. “Appropriate accountability will be applied without additional comment.”

The statement referred to NCAA football rule G-2, Article 2, related to “unfair tactics.”

“No simulated replacements or substitutions may be used to confuse opponents,” the rule states. “No tactic associated with substitutions or the substitutions process may be used to confuse the opponent. This includes any hideout tactic with or without a substitution.”

Following the game, Oklahoma offensive coordinator Ben Arbuckle referred to the call as a “tempo play.” Sooners coach Brent Venables similarly knocked down the suggestion that it had been a case of deception, claiming that Oklahoma confirmed with an official that Sategna was lined up and that “everything’s good and legal.”

However, Auburn coach Hugh Freeze made his feelings clear afterward. The Tigers’ sideline appeared to notice Sategna’s pre-snap movement, and Freeze said he attempted to call a timeout before the ball was snapped while noting that warnings against using such tactics had been clearly emphasized before the season.

“They said they didn’t hear us trying to call timeout,” Freeze said. “We were instructed all offseason about deception plays and things. So, we’ll see what’s said. I really don’t know what will be said about that.”

Shortly after, the SEC released a rare statement criticizing its own officials and promising further accountability. The move marked at least the second high-profile officiating issue over the opening month of the 2025 regular season after the Big 12 reprimanded one of its officiating crews for failing to identify a rules violation in Missouri‘s 42-31 win over Kansas on Sept. 9.

Continue Reading

Sports

Manning gets ‘swagger back’ as Longhorns roll

Published

on

By

Manning gets 'swagger back' as Longhorns roll

AUSTIN, Texas — Arch Manning passed for 309 yards and three touchdowns in his sharpest game of the season so far as No. 8 Texas cruised to a 55-0 win over Sam Houston on Saturday night.

Manning was 18-of-21 passing and also ran for two first-half touchdowns. He connected with Ryan Wingo for touchdowns of 53 and 13 yards in the third quarter before leaving the game with Texas (3-1) leading 45-0.

“It felt good,” Manning said. “I wish I could have done that the last [three] weeks. But I’m glad we did it tonight … Got the ball in my guys’ hands and let them go to work.”

Manning needed a confidence-builder after a poor start to the season and got one against the overmatched Bearkats (0-4). His passes looked crisp and decisive, and after his first touchdown run of the game, he stood and flexed over a defender before a game official broke them up.

His Texas teammates were glad to see it.

“He got his swagger back,” Texas senior safety Michael Taaffe said. “Everybody knew that it was in there. What he showed tonight is what we expect.”

Manning said he worried he’d get a taunting penalty, and that he quickly apologized to the game official.

“Probably a little much there. My mom was pretty mad about it,” Manning said. “I think it was some built-up frustration for the past few weeks.”

Manning had come into the game completing just 55% of his passes. The preseason betting favorite for the Heisman Trophy had promised several times during the week that he would start playing better. At one point Saturday night, Manning completed 14 passes in a row.

“When he plays a little looser and he’s free, that’s the best version of Arch,” Texas coach Steve Sarkisian said. “He got going and started throwing the ball. Started using his legs. You could feel the bounce in his step on the field.”

Manning said he won’t concern himself with the national chatter about him this week, or the critics who dismissed him after the first few games.

“I’m not really worried about what anyone thinks of the narratives. I’m just trying to play ball, get wins. That’s most important, especially going into SEC play. Right?” he said.

Continue Reading

Sports

Lagway vows Gators will improve after third loss

Published

on

By

Lagway vows Gators will improve after third loss

MIAMI GARDENS, Fla. — Florida quarterback DJ Lagway guaranteed the Gators would play better on offense following a 26-7 loss to Miami on Saturday following the worst offensive showing under embattled coach Billy Napier.

The Gators had 141 total yards, their fewest in a game since 1999 against Alabama and went 0-for-13 on third down, its worst showing since 1998 vs Florida State. Lagway, a week after throwing five interceptions in a loss to LSU, went 12-of-23 for 61 yards passing. According to ESPN Research, he totaled minus-3 air yards on his 12 completions, as seven of them were caught behind the line of scrimmage.

Asked about his struggles after leading Florida to a 6-1 record last year as the starter, Lagway said, “It’s been hard, but let me tell y’all something. We’re going to get things changed for sure. I can guarantee that. This is not acceptable at all. I’m not going to sit here and lie to y’all and make this seem like this is OK. This isn’t OK. We’ve got to play better football, and it starts with me.”

Lagway missed all of spring football and was limited for most of fall camp with various injuries, and both he and coach Billy Napier have pointed to that as one big reason why he has struggled. Taking out the opener against FCS Long Island University, Lagway is 68-of-105 for 507 yards with two touchdown passes and six interceptions.

Against Miami, Florida struggled against a fierce pass rush, as Lagway was sacked four times and often overshot open receivers. In the first half alone, Florida only had 32 total yards — including four three-and-outs and six punts.

“I didn’t play my best ball tonight,” Lagway said. “I took what the defense gave me. I didn’t make a lot of plays that I needed to make to stand out in the game. I kind of just managed it. I didn’t make a lot of big plays, so I’m trying to find the balance between both. And still just development. Just trying to get better.”

But an 80-yard drive on its first drive of the third quarter gave Florida some hope, as the Gators trimmed the lead to 13-7. Then, the Gators got the ball back immediately after Carson Beck threw an interception. Florida moved into Miami territory, but Lagway threw short on fourth-and-3. Miami then put the game out of reach with a definitive 13-play, 80-yard touchdown drive that took 7:12 off the clock.

Florida has now scored 10 or fewer points in consecutive games for the first time since 1989, putting more pressure on Lagway and Napier, who calls the plays.

“Every position is contributing to our issues,” Napier said. “Obviously, we talked about DJ and what he’s been through this offseason. I do think that there’s some rhythm missing there, and we’re going to go back to the drawing board, and I think the open date’s coming at a good time there. We’ve got to evaluate everything we’re doing on that side of the ball.”

There may not be a better time for an open date for the Gators. When Florida plays next, it hosts No. 8 Texas on Oct. 4, before going on the road to play No. 10 Texas A&M on Oct. 11.

Lagway said he guarantees things will change because, “I’m going to start with it.”

“I’m going to demand greatness from everybody,” Lagway said. “We’re done with the playing around stuff. It’s time to get serious. It starts with me. I’ve got to set the tempo. I’ve got to set the tone in practice in meetings around the building. I know for a fact it’s going to change because it’s going to start with me.”

Continue Reading

Trending