capital has done this in the past, mudrick they do a refinancing and he dilutes them to mudrick and then mudrick capital turns around and sells all of the stock, at a premium, because the apes came in and kept bidding it up after they were diluted. it defies rational explanation. i mean, listen. my view is i would stay away from this stock only because there is a cult that's following this , and you know, the cult is very bizarre, and negatives are positives, positives are negatives, and i mean, you see some of the comments that are made here, and i would just refer, and by the way it doesn't mean the stock can't keep going up i don't know if it can. i just think you probably save some money and maybe sleep a little lighter if you just buy an s&p 500 fund and just play the mark etiquettes in a diversified way that are going up. liz: how about the airplane, charlie? charlie: well, my view, my view, that airplane was, i tweeted out that i was here and everything. that airplane was there to send a message to me, but i will make one more comment here, liz. liz: [laughter] okay. charlie:

part of them being able to avoid bankruptcy is because mudrick has stood by them.d earlier this year exchanged some debt for equity in the company. today, even though they are selling out of stocks, they are still supportive and still believe in some future for amc. it is just a matter of the fundamentals they are talking about and that is not something we dive into when we have read about recent rallies in equities and traders. who are not looking for, necessarily, diving into the numbers as closely. for a firm like mudrick that specializes in distressed debt, they are going into the nitty-gritty. it is not as if they are saying this and giving their opinion to necessarily change of the game in any way other than just telling their investors where they stand and why they are making this decision today. but, you are right. it is a big contrast between the news we reported this morning and just a few hours later what the firm has decided. matt: frankly, it makes your scoop all the juicy. congratulations on this story. what a saga. catherine dority reporting on amc.

is an equity deal it's selling 8 million shares worth about $230 million there was a stock sale to mudrick capital management they'll use the funds for upgrading its theaters and paying down debt as well as potential m & a. mudrick already sold all of its stake in amc at a profit they did not immediately respond to cnbc's request for comment. shares roughly doubled last week on way higher than normal volume that was helped by some of that speculative trading activity driven by reddit and a lot of these online chat rooms ramping back up. we had ceo adam aaron 'em embracing this reddit frenzy this morning aron tweeting about it trying to rally investors he painted amc as an underdog. he says in our view this is not mindless dilution, a very smart way of raising cash and says, watch out naysayers, amc is going to play on offense again back to you guys >> kate rooney kate, thank you very much. david, you've been looking -- what a deal. >> yeah, interesting mike joined us on "squawk on the street" this morning and we were talking about this and speculated mudrick didn't get back to me. it's a s

but amc shares -- they are up on this mudrick capital deal buying 8 1/2 million shares at a price of $27.12 a share bringing another 230 million bucks into amc. but don't be mistaken. this is a deal and i called jason mud rick, the man who runs it. he has not called me back. they have been a lend tore this company in the past. they have converted. they have gotten certain fees in stock. they have sold that stock in amc by the way levels down to two or three bucks a share. but in this case mike it would appear likely that they own most likely a lot of bonds and when you are talking about a company like this which still has negative cash flow and very well may have negative cash flow as well there is a question in terms of credit worthiness so when you own a lot of bonds and increase the equity cushion significantly and wherewithal to survive whatever may be coming the bond price goes up and you benefit on that side. thatappears to be what's going on here. i can't imagine these guys are buying straight stock at this level. >> i agree so bonds last week of amc are trading below 80 cents

the shares rally, in mid of all of that volume, that big rally, mudrick can sell.at they are going to stick around and maybe act as an investor and try to change amc, they are clearly just doing this as a short-term trade. matt: i think it is incredible. the salt and the wound is the part that gets me. after you make the trade, then you turn around and say the stock is valued, they hold too much debt. they have owned a lot of the debt getting into pennies on the dollar and then getting out with saudi sense, would this have been possible if not for wall street? dani: it is hard to see a world where this is possible. i have not heard this happen, let alone buying an equity stake in a premium. usually, if a stock is volatile, you want a discount, you do not want to pay more because there is uncertainty. maybe this is more of a sure bet [inaudible] you and i were talking earlier that there has been a ton of volume around this company. there was already excitement with the shares and that probably allowed them to do this to amc, where if it was any other they did not ha

and you look at mudrick, some say the profit that mudrick made yesterday was $40 million.ks are now detached from fundamentals and driven by retail investors and social media and that ceo and executive compensation is tied to stock, adam aaron has figured out his future, his incentive is now incentivizing the retail investors to stick around and follow his plan and to keep buying the stock i don't know how many other companies this will apply to or how long it will go on, but this is a brand new incentive structure, a whole new way to manage shareholders and a whole new way for executives like him to create wealth we'll see, again, how long it lasts. >> yeah. robert, you can imagine the sort of the psychological swing that insiders had i mean, last year was existential crisis movie theaters were closed we didn't know if the company could stay out of bankruptcy and maybe the 8 million at the time worked up shares given to the ceo was like you carried us through it, raise capital and now we're surviving. it's not as if the company said you deserve 160 million. we're marking

but mudrick as i pointed out was really involved in the debt side, and i can't tell you at this point, they're up, i'm hearing they're entirely up, mudrick, they don't own any stock, which they didn't own very long, but importantly where they were playing and creating a lot of value for the fund holders were the debt securities and the first one, the first debt where they took 100 million at a 15% coupon and now out entirely, at mudrick, so they're no longer part of this story but the story goes on. >> yes, it does. and i mean just to go back to the conversation we were just having with our market guests, i mean we're talking about companies that are loftily valued right now, we can talk about the fervent nature of the trading and the speculation and the role, it was just mentioned, about the shorts in here, and how much that is actually impacting the dynamic, and et cetera, but these are also companies which amc or gamestop that we're talking about that still exist in the russell 2000 value index. they started to get bought into because they were looked at as value plays on the retai

amc sissued 2.5 million shares o mudrick. look at them go. and not to be outdone, nucor, the hottest stock in america that is maybe not a day trader's favorite sharing nearly doubled this year xm etrading metals trading at higher than 9% in the year in the past few months, nucor shares up 80%. that's almost double the next performing s&p 500 company in the past 90 days you go hot, rolled steel >>> all right. on deck, we're talking disruption, artificial intelligence and changing the game on insurance. as one of europe's biggest unicorns, we are back right after this >>> today's big number -- 80%. that's how much more energy is used mining bitcoin today compared to the beginning of 2020, according to research from cambridge. bitcoin is responsible for 6, it of 1% of total energy consumption. (♪ ♪) whether it's a technology first, (♪ ♪) a fashion first, (♪ ♪) a science first, (♪ ♪) or a first for us all (♪ ♪) whatever you hope to achieve for your business, cloud first helps you get to value...first (♪ ♪) let there be change accenture no one lik

according to blockberg mudrick already sold the stakes at a profit and didn't respond for request forributed to the social hype -- ceo adam aron has been embracing the trading frenzy amc also raised cash in a similar deal, this morning tweeting this -- pitting amc as an under dog, he said this is any mindless delusion he calls it a very smart way of raising cash, says, watch out nay sayers, amc is going to play on offense, back to you. >> what a story, kate rooney, thank you. adam aron brought the company to where it needs to bring down debt, raising capital until we're fully back to normal some could cause him a genius in the way that he navigated this whole reddit frenzy. >> well he's taken the tailwind and he's used it and playing offense. we've said it on the show, karen said it, we brought it up few times, get out there and raise capital. when they raise capital at $9 a share we applauded that. raising capital at $30 a share wherever it was at the time they did this transaction even smarter. so, and at different times, whether it's a company -- not comparing -- but at tesla when

yesterday they issued shares to mudrick, amc made money, mudrick made money, options market is making touches this thing somehow makes money. it almost seems like alchemy, i say itrhetorically because thi is a fascinating case. >> you go back to the invisible hand, adam smithall that stuff. -- just to throw in one more -- all of the stock did is basically go from the upper left to the lower right. so the demise of this industry was long before anybody heard the word covid what's changed in terms of the business model so i mean, the stock is what it is, that's fantastic, and you know what, i hope people do make a lot of money on the back of this my certain is, and tim spoke about this before, at some point more people wind up losing than miking i don't know where we are in that cycle but that will inevitably happen >> on the day of this monster rally with amc and options market, goldman sachs down grades imax to sells mike khouw for option actions tune in to the full show on friday 5:30 eastern time coming up, analysts pump the target on this name. we dig into the call on a few. and ji

no, mudrick is not buying in at all.t's actually very smart for them their view is, look, if the thing goes bankrupt, we're going to own it. >> and flip it and make money. >> and we're going to flip it and make money and i still don't understand these retail investors who don't seem to fully grasp what's happening here >> i think what the company did was incredibly smart with the underwriting, instead of taking the time to go through a traditional wall street underwriting it would have taken time and risk whether the premium could come out of the stock. you can flip it instantaneously and make good on that. i agree if you're a retail investors i'm not sure why you bid it up. it's 42 bucks today. >> do the investors truly understand what this company can do as i said, i think they're doing a brilliant job with a bad hand i think is probably the best way to say it. the question is how do you transform this company can you transform this company >> i'd like the theme to go back >> okay, can i consolidate i've merged with ot

one yesterday and 8.5 million shares to mudrick capital which the firm flipped mudrick no longer owns any debt or equity in amc the meme stock has presented a challenge. webbush upping its price target on amc to $7.50 saying they don't recommend buying shares right now based on volatility. bank of america removed its rating on another meme stock, bed, bath & beyond they also terminated coverage of gamestop as for amc, trey collins from trey's trades told cnbc earlier the stock's fundamental value is somewhere in the $20 to $25 range but there's money to be made on momentum i thought it was a really interesting interview earlier on "squawk box," mike the key takeaway for me, even though he didn't bite on the question as to whether this is gambling versus investing, he did say he was willing to lose all of his initial investment when he does something like amc and that's his mindset which shows that it's not traditional long only investment where retirees, for example, will hope not only to keep all of their initial investment but slowly but surely grind it higher. >> it's not about mar

then that fund mudrick capital quickly sold its stake at a profit.n one of the favorite mean stocks. the stock is up better than 1400% this year. it continues this morning with a 31% rally. we'll keep watching the markets. we've got a big show right after this. stay with us. limu emu... and doug. so then i said to him, you oughta customize your car insurance with liberty mutual, so you only pay for what you need. oh um, doug can we talk about something other than work, it's the weekend. yeah, yeah. [ squawk ] hot dog or... chicken? [ squawk ] only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things both open and secure. that's why businesses from retail to banking are going hybrid with the technology and expertise of ibm. (vo) this is more than just a building. it's an ai-powered

the reason why mudrick capital so they sold was because amc is grossly over-valued in their view. now we just bought in yesterday morning a $27 a share so they probably sold above $30 yesterday and you also have to remember that amc rallied 23%, 24% at the open, because of that mudrick capital raise where they raised about $230 million so you have a lot of people pointing at the transaction saying where is the sec in this it's kind of like a classic pump and dump where you pump up the shares you're buying and you dump the shares surge on the back of the news and it's also unusual by the way to raise cash from one buyer in the share sale and then the fact that they flipped it right away is also very rare as well, but as i mentioned to you, no one seems to care, we're up another 20% this morning, and just by the way, amc is playing a very good pr game when it comes to talking to their retail investors because it mostly is retail-driven so the reddit wall street bets crowd and they are offering to reward investors with free popcorn, and exclusive screenings, and that's, you know , th

shares they had an optimization to go to 524 million shares, with the 8 million that they sold to mudrick, and then the 11.5 million here they can't have many left. and you need shareholder approval to authorize more shares, not clear they're going to be able to get it especially when your shareholder based changes pretty much every day given the volume in the stock. >> it changes every day but we also know that amc said that 80% of those shares are being held by individual investors right now. which again speak to this meme madness, if you want to call it, this reddit fueled day trading, retail investor boom, that we're talking about, and just to go back to marketcapitalization, david, that makes amc now greater value, more greatly valued than half of the s&p 500 companies, and it's ripple effects, too not just amc or gamestop or bed bath and beyond and some of the specific individual names that we've seen major moves in, it is also stuff like the russell 2000 value index which both amc and gamestop are actually a part of, "the wall street journal" did a good takedown on this last night,

, and they flipped that. >> good for both parties >> mudrick is a distressed fund had, a very stronghat they are, they don't play in the equity, they bought in the equity, they sold the equity, it improved their debt position and they are out entirely now by the way on both the debt and the equity and had very strong returns. by the way, when you own the debt to some extent to hedge, you're going to short the stock so their gains may not have been quite as large as everybody would imagine, but that's what you do, but they're out entirely, they're not a part of this. >> 10 billion in debt. >> 4 billion net. >> and a leasing issue. >> you're absolutely right 4 billion straight which he can pay off a lot if he wanted to. but what i think adam aron has done is start talking about being aggressive and look, what movie theater chain might not be for sale? i mean you can have everything he could be king he could call disney and say you know, what you want to be in the theater, here's the deal >> really? >> really? >> yeah. >> and disney goes, oh, i'm shaking. >> i don't think so. we have th

shouldn't be the exact same thing in a stock like this when you talk about who is making money, kudos to mudrick whoever they're called and there are institutions, and this is the same thing we learned in january and february when the gamestop thing came undone. >> should we look at the retail trader as a new class of investor who might have the diamond hands, the stomach to hold on to this. are we under estimating them in terms of the willingness to be in a stock no matter what, they're florida a stock despite th they're already if a stock they're already in a stock despite the fundamentals and debt on the balance sheet. maybe they're stronger hands than institutions. >> maybe i think a couple things going on i think for -- going back to gamestop, when that happened, i think there were kamakaze shareholders that recognized gamestop was trading at crazy valuations but they had the joy of really putting it to big hedge funds and seeing them in pain and it was worth it if they were going to lose money so there's that element. there's that guess, maybe an altruistic amc element here. i just can't b

mudrick capital that made headlines for investing and selling stock this week is pulling out entirelyays the firm has exited its debt and equity positions. sell side at a loss stock above 50 today wedbush price target 750 from 650, says maybe $10. bofa throwing in the towel, terminates coverage of gme, quote, investors should no longer rely upon our previous investment opinion or price objective. with fewer sell side ratings we're left with what the head of the ape army thinks the valuation should be. >> i'm reminded, guys, of a few years ago, do you remember when elon musk took a question from a youtube analyst on the earnings call and wall street analysts threw up their arms and revolt and said how could elon musk spend 20 minutes with a non-wall street analyst and the writing was on the wall back then. take a look. i mean adam aaron is speaking directly to a youtube personality and, you know, the youtube personality trey collins getting interesting information out of him as well what we're seeing here is the changing landscape we've been seeing over the last few years, intensified

amc is raising $230 million in a new stock sale to investment firm mudrick capital here's what the ceos a very smart raising of cash so that we can grow this country, to many of you on twitter, to grow your company. watch out naysayers, amc is going to play on offense again here we come amc grabbed headlines while the share price more than doubled. our next guest says there are other important market stlaemts have taken place joining us is allianz adviser mohamed el erian the president of queens college camb cambridge. great to see you great to have you on the nasdaq with us. the broader market things you're talking about, this is what the fed is doing in relation to other central banks at this point, right >> good morning, becky thank you for having me. look, the market for now is in a wonderful sweet spot the economy continues to open up and what we heard from the hilton ceo in the 6:00 hour, the best saturday ever, that's consequential. secondly, pricing power is returning to corporate in a big way the other side of inflation. thirdly, policies remain extremely loose. the head of th

. >> what did you think what mudrick did with amc last week >> i think he was hedging it i don't knowly been brilliant. he's been doing a great job of lending money to these companies and also ending up getting some equity he's been playing that exceptionally well >> start looking around the globe, united states is probably a much tougher place to find opportunities. >> it is. >> i've always thought of you as looking to europe and doing a lot of research there. i think lately you've turned more towards china what are you seeing? >> that's exactly it we're seeing a huge amount of opportunities in asia, in china, in europe. it's really the same thing it's the lending the reason for that is really our competition is really private equity firms or direct lending firms so -- and there just isn't as much capital out there as there is here in the u.s. here in the u.s. it's gotten very, very hard. i will tell you in china and asia it's a lot easier to make those investments. >> bitcoin went to 40,000, now it's back below 40,000 what are your latest thoughts? >> when i get that, once a market

there are also reports of course that investment firm mudrick capital no longer holds any debt or equityquity shares in amc but apparently already cashed in those shares and taken all of the profits and by the way, despite all of this , amc has gained a mere 87% this week, or just over 2,200% for the year. insane. stuart: yeah, you got that right bitcoin is down this morning, despite the start of this crypto conference in miami, elon is back at it again, and you're going to tell us all about it. ashley: yeah, well, musk posted a tweet suggesting he's fallen out of love with the world's top cryptocurrency. it's all very strange. the billionaire tesla ceo tweet ed a meme about a couple breaking up over a male partner quoting lincoln partner exciting the hashtag bitcoin and a broken heart emoji and the tweet reads, i know i said it be over between us if you quoted another linkedin lincoln park song but i found someone else, she says, him, so in the end it didn't even matter? it's all very cryptic, isn't it? by the way, thousands of bitcoin investors are in miami as you said, right now, for