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Mudrick Sells Entire AMC Stake, Calling Shares Overvalued

  • Investment firm takes advantage of rally fueled by day traders
  • Sale follows Mudrick Capital’s $230 million purchase of shares
Bloomberg business news
WATCH: AMC announced yesterday that it had sold $230 million worth of new shares to Mudrick Capital Management. (Source: Bloomberg)
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Mudrick Capital sold all its stock in AMC Entertainment Holdings Inc. as of Tuesday, the same day the movie theater chain disclosed that the investment firm had bought $230.5 million of fresh shares to bolster its finances, according to a person with knowledge of the matter.

Mudrick no longer holds any AMC shares and sold at a profit, the person said, asking not to be identified discussing a private matter. The firm disposed of its stake after concluding that AMC’s stock is overvalued, propped up by a recent wave of day-trader enthusiasm, the person said.