AMC Entertainment stock was the most searched for stock in 2021 due to it reaching an ATH (all-time high) of $72 per share.
Prior to the climb, retail investors were discovering the data that pointed to that surge on this very blog.
And if you got in late and are holding unrealized losses, you might have heard that AMC stock is not done running.
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$14 to $72 per share
If you read my article “Are You Holding Significant Losses in AMC Stock?” yesterday, you know I briefly touched topic on this.
AMC was only around $14 per share when it began to run up to its current all-time high of $72 per share.
AMC Entertainment stock is currently trading around $15, a support level we’ve seen for quite some time now.
It’s possible AMC has found a new bottom in the $14-$15 range, up $10 from its floor of $5 in 2021 after the stock ran up to $20 per share in January then $72 in May.
AMC raised new levels of support last year and it’s very possible we get to see this same trend as the markets shift away from the current bearish sentiment.
If the movie theatre chain company has set a higher floor, does this mean AMC will reach a new ATH during its next bull run?
And if so, how high can the stock go?
Let me give you a scenario.
AMC stock prediction 2022/2023
Although the biggest CEOs in America don’t think this bear market will linger, we don’t know exactly how long this bear market will last.
For this reason, I’m including the year 2023 into the equation, though like you, would like to see this happen this year.
We know AMC is not done running primarily due to its high short interest percentage of 19%.
AMC had a SI of 20% when it reached an ATH of $72 per share at the starting run of $5.
How can this history help us identify AMC’s next possible ATH?
We can look at the gap between the previous bottom, and today’s possible bottom of $14-$15.
The difference from $5 to let’s say $15 is 3x the previous price.
Could we then say the price potential of another AMC ATH will be 3x that from the previous all-time high?
That would mean another major price runup could take AMC to an ATH of approximately $216 per share.
Now, keep in mind this only calculating a small percentage of short covering.
When AMC ran from $5 to $14 and then eventually peaked at $72, AMC’s short interest dropped only 6%, from 20% to 14%.
Is it possible AMC’s share price goes even higher?
This will highly depend on how many shorts begin to close out their short positions.
The reason early shareholders didn’t take profits at $72 per share is because of how much more potential AMC had to run – based on how much short interest was still available at the time.
Since then, the short interest has risen from 14% to the current 19% and has even topped 20%.
What does this tell us?
Despite the prices we see in the market today, AMC has yet another all-time high price to unlock.
How will we know when AMC has completely squeezed shorts from their positions?
Let me tell you this – the $200+ price range will only be from a few shorts closing their positions, again based on previous patterns (not financial advice).
We will have to keep an eye out on the short interest percentage as AMC’s share price begins to climb again.
For example: if AMC reaches $500 per share but its short interest is anywhere between 10%-11%, then you know there’s still room for growth.
Holding the stock at this level will depend on an investors level of risk of course.
Take this information with a grain of salt
The examples and hypothesis explained in this article regarding where AMC’s stock price can go are my opinions and thoughts only.
I look at the evidence, history, patterns, and factual data first before creating possible scenarios of where AMC can go during another epic uptrend.
If I hold the stock, it’s because I look at the data.
I don’t take synthetics into account because regulators aren’t holding anyone accountable for them yet.
I feel it’s best to strategize without them – remember, if synthetics are closed that’s just a massive bonus.
Will AMC Entertainment stock reach a new ATH this year?
I think AMC will reach a new ATH when the markets are no longer bearish.
No matter where you think AMC will top off, one thing is certain – it’s going to runup eventually.
Strategize and have a plan to make a lot of money.
Read: An Excellent AMC Exit Strategy Guide: Short Squeeze
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Thank’s Frank for your answer.
Keep it up!
I thought a bearmarket is good for AMC, because you allways said, that a bearmarket lead to margin calls. Common sense was allways, that the fiancial collaterals would loose its worth and then hedgies are smashed. But suddenly you say, we need to come back in a bullmarket …..
No, the premise behind a declining market correlated with AMC and GameStop’s unusual negative beta. But we can see their negative beta hasn’t helped much during this market. Stocks with a negative beta are more susceptible to doing better in these types of markets. However, we’re still seeing millions of share being borrowed daily to drive the stock down. A bull market yields more volume as we’ve seen in the past.
I am guessing when the cost to borrow hurts them. I do not clearly understand this . Can some one explain what it means when it says cost to borrow is 1.76 . Is that 1.76% of what ?
A share ? a Dollar amount they hold ?
like I said in yesterdays comments. I think i’s good for me and the community to read positive articles on AMC. There is so much negativity from most of the media , you would think they are on citadels payroll.
OH THEY JUST MIGHT BE !
I believe the negative marketing is a tactic employed to keep the stock volatile, yet not too expensive. This would mean daily trades have the chance to realize loads of profit from 1$-5$ price swings, while leaving out alot of risk. Someone in the middle is making millions.
Let’s start a discussion! When do you anticipate we will enter a bull market again? How high do you think AMC stock can go?
In the short-term if the 15 level can hold and the stock can continue basing out, I would say Yes we will see higher prices for a trade. We are in a bear market so this HODL and never sell won’t and hasn’t worked out.