AMC’s downtrend was not violent. Ladies and gentlemen the community has not sold. AMC’s turnover ratio is extremely low but more on that later.
AMC stock is about to bounce back up and I’m going to explain why. The data presented below does not lie, get excited.
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Community – I want to start off by saying thank you for sharing this information with the public. The community is growing every day and more retail investors are opting in for the opportunity of their lifetime.
I also want to give a special thanks to my Discord group who are always sharing FrankNez articles on social media. You guys rock.
AMC stock hits a new bottom?
AMC stock has been trading around the mid $30 range for a few days now. The stock dropped to the low $30s before beginning to consolidate upwards to mid levels now.
For about a month straight we’ve experienced AMC consolidate in a downwards trend so this little bounce back up could indicate the stock has hit a new bottom.
The last time AMC hit a new bottom was back when it dropped from $20 per share to the $5 per share. People bought AMC stock on the way down and were left bag holding for quite some time. Those who held have a huge payout on paper.
So if you bought at $70 per share while it was going down just be patient. Great things come to those who wait. The community has done an amazing job at keeping everyone informed when FUD arises. We’ve been able to eliminate it as soon as we see it.
The AMC community has never been stronger and more unified. Despite the desperate media attempts to divert the public from selling their stock, retail investors continue holding.
AMC has a low turnover ratio, what does this mean?
A low turnover ratio reflects a buy-and-hold investment strategy. AMC has a 3% turnover ratio which means almost every single ape holding AMC stock is not selling.
This data confirms the dip of the price is not due to retail investors selling. Short sellers have been borrowing millions of shares to short the stock. With majority of retail investors holding, there was very little volume to counter these synthetic sell walls.
Retail investors continue to hold the one asset short sellers need to buy back. The available shares to borrow has also gone down quite significant. This number has gone down to the hundreds of thousands.
Short sellers could continue to overleverage their positions but are currently under high scrutiny from broker firms. What will push AMC’s stock price right now will be buying power. This bullish momentum could ignite short sellers to close out their positions as the price and margin requirements continue to rise.
I believe this will be the last time we see AMC in its $30s. Those who took the advantage to bulk up this discount will experience mainly gains moving forward.
100/100 AMC short squeeze score
S3 Partners are a short interest and securities finance data provider. They deliver real-time and the most accurate short interest analytics.
The tools that S3 partners provides TA’s (technical analysists) allow us to get a technical analysis perspective on the short interest data. Trey and other traders saw AMC had a massive short interest which meant that by using the buy-and-hold strategy, retail investors have the opportunity to squeeze them out of their positions.
Well now we’ve been receiving a lot of data from these niche data collectors saying AMC is primed with a perfect score to squeeze. S3 partners is relaying a score of 100 out of 100.
We’ve seen Fintel’s short squeeze score reach 10/10 on their page as well. This is no coincidence as the data that has been made public by community leaders is now being reflected heavier on these platforms.
We’d be caught in a pickle if the data said otherwise but the numbers don’t lie. Whether AMC is trading at $30, $40, or $50, the stock is primed for a short squeeze.
Retail investors will have to continue to buy and hold the stock to see this come to fruition. If you’ve been doubting where AMC has been going, this should clarify so much. Trust the data.
Special thanks to r/amcstock
I want to give a special thanks to the creator of r/amcstock. I will not mention his name but we connected last month when he joined my Discord group.
This subreddit has been a tremendous help to the movement as it has allowed the community to stay informed. I also want to thank those of you who have been sharing my DD and articles on r/amcstock.
This is actually how the subreddit creator and I connected. He noticed you, the community sharing the information I’ve provided so thank you.
And of course this information would not be here if it weren’t for OisinB. Here’s the direct link to this subreddit post.
Hedge funds face serious scrutiny
If you’re following me on Twitter or are subscribed to my newsletter, you’ve more than likely already seen the massive scrutiny short sellers are currently facing.
Not only has Charles Schwab raised margin requirements for short sellers shorting both AMC and GME, but JP Morgan has jumped on the train as well.
JP Morgan warns hedge funds of intraday margin calls. If you missed that excerpt make sure to read it as it’s huge news! Brokers have just about had enough and taking the necessary precautions to prevent severe losses.
So what’s the deal with hedge funds right now? We know they’re losing millions each day. They’ve been able to drive the price down behind closed doors using dark pools. Naked shorting has now gone mainstream thanks to Melissa Lee from CNBC and Charles Payne from FOX Business.
Zoom out to look at the entire picture and you’ll find good karma is leaning towards the retail investors.
For info on AMC’s and GME’s negative beta, read the article here.
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Frank – your articles are what has kept me going in this AMC battle. I recently lost my job of 15 years but managed to secure 500 shares of AMC before I was let go. I’ve since been able to add 32 more. I truly believe we are about to be part of a once in a lifetime event – and I am glad to be a part of it. Take care.
Oliver thanks for commenting brother. Sorry to hear you lost your job. Stay positive and remember you have the power to change your reality.
Hi Frank,
Thanks for the AMC information. I bought in recently at a high price and am buying a little at a time when it dips. Presently, my breakeven point for 275 shares is $42.93. I’m going to but more if it dips to have a lower breakeven point. I have a question regarding 2 other stocks that I have that are also in the red presently – OSAT AND XELA. Do you have any investment in these and do you have any thoughts about them, good or bad?
Thanks.
Mike
Hey Mike – thanks for commenting brother. I’m actually not invested in those stocks nor do I have any information on them. What led you to buy those particular stocks? If you’ve done thorough research and have a strong conviction towards them I’d hold. I don’t know much about them though.
Thanks again for the excellent content again. Just had a look back at the $20 to $5 dollar dip (I bought in at 25). There was a 4 month gap before it hit 20+ and then up to 70. Could we be looking at September before it squeezes again?