Category: AMC Stock (Page 1 of 2)

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

#1. Short interest

The short interest of a stock shows us the percent of a company’s float that is being shorted.

The reason AMC and GameStop were able to see price surges last year is because a small percent of short sellers closed out their positions in these stocks.

AMC’s short interest dropped from 20% to 14% when it had skyrocketed to $72 per share last year.

Today, AMC’s short interest is: 22.05%

GameStop’s current short interest is: 24.99%

You will know a short squeeze is over when there is no more short interest in an underlying stock.

You cannot have a short squeeze play if there is no short interest.

For example, HYMC stock’s short interest had surged prior to AMC’s acquisition.

The stock’s price surged and days later we saw the short interest plummet, and it continues to plummet.

HYMC’s short interest today is: 2.85%

A short squeeze for HYMC seems unlikely at this low of a percentage – there are simply not enough short sellers to squeeze and create a big price runup.

SI goes up and goes down

If HYMC’s SI was to surge, then it increases the possibility to squeeze shorts at a high enough short interest percentage.

However, it’s important to look at how short interest moves.

I update AMC’s, GameStop’s, HYMC’s and many other stocks’ short interest daily here.

If HYMC’s short interest keeps going down, don’t expect a short squeeze from Hycroft any time soon.

Hypothetically speaking, if AMC or GameStop’s short interest drops by 5%, then you know there’s still ‘squeeze’ juice, leaving AMC and GME at 17% and 19%, respectively.

Keep an eye on the short interest, it’s important to identify how many shorts are still in the game as AMC and GME begin to move up again.

#2. Utilization falls

AMC’s and GameStop’s current utilization are both at 100.

The utilization is the number of all outstanding loans available for lending.

You will know a short squeeze is over when AMC’s or GameStop’s utilization falls extremely low, when there are almost no shares available to loan.

For example, Ford (F) has a utilization of 1.14.

Apple (AAPL) has a utilization of 0.06 and Tesla (TSLA) has a utilization of 3.76.

The utilization tells us how much lending is happening in a security to short it.

And as long as AMC and GameStop are being heavily shorted, both are a short squeeze play.

Keep an eye out on the utilization, updated every trading-day here.

I hope this article was easy to digest and the information was straight to the point.

Have any questions, thoughts, or opinions?

Confirmed: AMC Received Free Shares of National CineMedia

May 20, 2022 / Frank Nez / 1 Comment

Market news and updates: CEO confirms AMC received 6 million shares from National CineMedia for free.

Adam Aron announced on Twitter AMC had received free shares of National CineMedia.

Barrons, a news site owned by News Corp. falsely claimed AMC purchased the stock of a failing company.

Shares rose for both AMC and NCMI stock on Wednesday.

Some of you have noticed that AMC now owns about 6 million shares in National CineMedia, the theatrical advertising company. What you may have missed is that we got those shares for free. They came to AMC because we grew our circuit by adding theatres in 2021. Playing on offense!
— Adam Aron (@CEOAdam) May 18, 2022

The CEO stated the shares came to AMC because they’ve grown their circuit by continuously adding theatres last year.

AMC owns approximately 6 million shares of National CineMedia now.

National CineMedia is an American cinema advertising company.

NCM displays ads to U.S. consumers in movie theaters, online and through mobile technology.

The advertising industry is a huge industry.

Perhaps AMC begins to create a new revenue stream through the use of ads in their cinemas.

Other recent AMC news and updates

The movie theatre chain had incredible Q1 earnings results this year and also beat every quarter in 2021.

The company also acquired a 22% stake in Hycroft Mining (HYMC) in March as well as several movie theatres not only last year but this year too.

AMC Perfectly Popcorn brand is on schedule to sell across grocery stores, malls, and other retail stores by the end of 2022.

Adam Aron teased shareholders could see a stock dividend by the end of 2023.

AMC stock is currently on a downtrend as the SPY pulls the entire market with it despite positive news and fundamental improvements.

Shareholders continue to buy and hold the stock as they look to squeeze shorts from their positions this year.

The battle in the market continues.

Join the newsletter for more updates on AMC or read the latest market news and updates below.

Related: Ken Griffin Attacks: "Pension Plans Destroyed by Retail Investors"

You can follow me on: Twitter | Facebook | LinkedIn | Instagram

AMC’s Shares on Loan Are at An All-Time High

May 18, 2022 / Frank Nez / 5 Comments

AMC’s shares on loan have massively increased since its grand runup to $72 per share last year in June.

The movie theatre chain continues to be quite the attraction for retail investors as it is still heavily shorted.

The pandemic no longer threatens AMC Entertainment, and the company has improved drastically when it comes to fundamentals.

However, short sellers did not expect this to happen.

And now they’re stuck with millions of shares on loan that eventually have to be returned.

The results?

A short squeeze.

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

AMC’ shares on loan reach 157.87 million

AMC shares on loan - AMC short interest — AMC shares on loan – AMC short interest

The shares on loan of a stock are the number of shares that have been borrowed and have yet to be returned.

We see this data when looking the short interest data of a ticker symbol to determine how much of the float is being shorted.

So, what does this mean?

AMC’s shares on loan essentially looks like debt to short sellers because they eventually have to return these shares back to the lender.

These shares amount to approximately 21.88% short interest (updated daily on the blog).

This is a very high short interest percentage – something mainstream media will not talk to investors about.

AMC’s short high short interest is what allowed it to reach $20 per share in January and $72 per share in June of last year.

Hedge funds lost billions, which is why mainstream media has focused on scaring retail investors out of their money by pumping out ‘DO NOT BUY AMC’ content.

Nothing has changed this year except AMC’s shares on loan and short interest keeps climbing.

AMC’s short interest was only at 20% when it surged to $72 – it’s now close to 22%.

Related: Free Live Daily Updates: AMC Short Interest Today

Is an AMC short squeeze on the horizon?

In recent articles I’ve said there is no better time to close short positions than today due to the bear rallies we’ve been having in the market.

The market has reached all-time lows providing short sellers with an incentive to close now before the market begins trending upwards again.

Unfortunately, new short sellers have jumped in on the hate bandwagon and are exposing themselves to very high risk.

Hedge funds have closed in the past year due to overleveraging their short positions in the market.

These are institutions who have lost billions of dollars and created major distress for real clients.

Individual short sellers should understand what they’re going up against when facing retail demand.

The fact is AMC Entertainment has the perfect short squeeze setup.

One can view short sellers as a nasty blackhead that needs to come out.

It’s there, it just has to get squeezed out.

Gross.

But you get the point.

AMC’s squeeze potential is big, it’s just a matter of when will it happen.

It’s very possible

If you’re an avid reader of my content, then you know all about executive order 14032.

Now, I don’t want to sound like a broken record player, but this could be a very big deal for AMC stock.

We saw this executive order play a very important role for AMC last year when it resulted in its January and May/June price runups.

The order is to go in effect on June 2nd, 2022.

And while the community doesn’t like to call out dates, expect something in June anyway.

Only you can control your emotions.

Optimistically, community members understand that whether executive order 14032 creates a massive impact or not, AMC is still a short squeeze play.

I’m interested to know what you think.

Leave your thoughts in the comment section of the blog below.

Frank Nez is on YouTube – Subscribe for more content

You can follow me on: Twitter | Facebook | LinkedIn

Related: What's The Probability of AMC Squeezing in June?

What’s The Probability of AMC Squeezing in June?

May 17, 2022 / Frank Nez / 14 Comments

The probability of AMC squeezing has always been there, and it’s always been relatively high for the most part.

But what’s the probability of AMC squeezing in June?

After all, with the market at an all-time low, it makes you think why wouldn’t shorts close positions now, right?

But most importantly, executive order 14032 is going into effect this June.

And this catalyst could very well just be AMC’s highest probability of squeezing.

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

The markets are at an all-time low

More market value has been lost today than in the Dot-Com crash.

The Dot-Com crash saw a loss of $4.6 trillion.

Today, the NASDAQ’s decline has been a whopping $7.6 trillion.

To put things into perspective, the Global Financial Crisis lost $2.3 trillion, and the Covid-19 selloff lost $4.4 trillion in value.

Hedge funds have overleveraged their positions in heavily shorted stock such as AMC and GameStop.

Retail investors caused Citadel and other short sellers to lose billions last year due to the runups.

Both AMC and GameStop have high short interest above 21% each and an all-time high number of shares on loan that need to be returned.

So, short sellers are in a tough position, especially those with overleveraged positions.

This bear market could provide short sellers with an incentive to close large short positions before the market begins to reverse.

The SPY (S&P 500) has touched $400 per share several times in the last 5-day trading period.

While it has traded below $400, it’s important to note the markets have to bottom out at some point.

The question is, is this the bottom?

And if it is, will short sellers take this opportunity to close out positions in AMC and GameStop?

Executive order 14032 is right around the corner

If you haven’t heard of executive order 14032 yet, you’re missing some incredible information here.

This order was previously responsible for prohibiting institutions from using Chinese securities as collateral on January 27th, and May 27th of 2021.

These are the dates before AMC began to run up to $20 per share in late January, and when it began to run up to $72 per share at the end of May, early June.

Institutions were given their collateral back for 365 days on June 2nd, 2021.

Since then, AMC and the entire markets have gone down.

This grace period will be over on June 2nd of 2022, where institutions will no longer be able to use these Chinese securities as collateral, resulting in margin calls.

The difference this time, however, is that the number of Chinese securities affected has increased from 30 companies to 70+ companies.

Margin calls could be significantly larger than the previous two times based on portfolio holdings.

Incredibly, both AMC and GameStop short sellers are more in debt now than they were in January and June of last year.

The amount of FTDs and shares on loan have snowballed to new heights for over a year now.

Does this increase the probability of AMC squeezing in June?

is AMC squeezing in June? — Is AMC Squeezing in June? Is AMC squeezing next month?

Given the current market circumstances and executive order 14032 going into effect soon, June could prove to be a highly important time for AMC shareholders.

Is an AMC short squeeze guaranteed in June?

No, nothing is every truly guaranteed in the markets.

But is the probability high?

Absolutely.

I’ve mentioned this in previous articles and videos before, AMC is a short squeeze play whether this catalyst triggers a short squeeze or not.

AMC’s short interest data pointed towards a runup in January and May/June of last year – and the data says it’s not done running.

Coincidentally, Chinese collateral was removed during these two runups, and now it’s happening again.

And while today’s share price might discourage investors, I find it’s more intriguing to look at the data rather than at the share price.

It’ll change your perspective.

What do you think?

Is AMC going to squeeze soon?

Leave your thoughts in the comment section of the blog below.

Frank Nez is on YouTube – Subscribe for more content

You can follow me on: Twitter | Facebook | LinkedIn

Related: Executive Order 14032 Could Be a Big Deal for AMC Stock

Ray Dalio’s Bridgewater Just Bought AMC Stock and Sold Tesla

May 16, 2022 / Frank Nez / 4 Comments

Another institution has bought AMC stock and sold another high-profile stock.

Ray Dalio’s Bridgewater fund just bought AMC and GameStop and sold Tesla shares.

I was watching the multi-billionaire talk about the economy just yesterday with Tom Bilyeu.

Bridgewater wasn’t the only institution that increased their stake in AMC stock this first quarter.

The largest pension fund in America (CALPERS) purchased an additional 155,992 shares by the end of Q1 this year, totaling the number of AMC shares owned to 775,392 shares.

It seems institutions are bulking up on AMC shares right before executive order 14032 goes into effect.

Things are getting very interesting.

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

Bridgewater buys AMC stock for the first time

Bridgewater disclosed an AMC stake for the first time in its latest portfolio update.

Dalio and his team bought about 27,100 shares of the cinema chain, which were worth $667,000 at the end of March.

The fund disclosed around 4,100 GameStop shares worth $689,000 as of March 31.

The last time it listed GME stock in its portfolio was more than three years ago, at the end of 2018, according to Market Insiders.

Bridgewater owned about 25,500 Tesla shares worth $27 million at the end of December, and held the stock in all four quarters of 2021 but cashed out its Tesla stock the first quarter this year.

Ray Dalio is an incredibly smart person.

Why an institution like Bridgewater is bulking up on AMC and GameStop shares has to mean something.

The ‘ape’ community predicted the big price runups that happened in AMC last January and May/June and are expecting a bigger runup this year.

Are financial institutions catching up?

Executive order 14302 goes into effect soon

Executive order 14302 is going to prohibit financial institutions from using Chinese securities as collateral on June 2nd, 2022.

The last time Chinese collateral was prohibited on January 27th, and May 27th of 2021, AMC stock surged.

Is this why institutions such as CALPERS and Bridgewater are buying AMC stock?

And while CALPERS did not buy GME stock this first quarter, it did buy 70,600 shares of GameStop during the last quarter of 2021.

I wonder what Wall Street analysts have to say about this.

After all, they made it their life’s mission to derail investors from buying these ‘meme stocks’.

Something tells me ‘dumb money’ might not have been so dumb after all.

But I’m curious to know what you think.

Are institutions on board with the data that says AMC and GameStop have massive potential for a short squeeze?

Leave your thoughts in the comment section of the blog below.

Frank Nez is on YouTube – Subscribe for more content.

You can follow me on: Twitter | Facebook | LinkedIn

Related: CALPERS Increases AMC Stake, Sells Netflix Shares

CALPERS Increases AMC Stake, Sells Netflix Shares

May 15, 2022 / Frank Nez / 6 Comments

Market News: Largest pension in America (CALPERS) buys more AMC stock

CALPERS, the largest pension in America increased its AMC stake this first quarter again.

Last year the institution loaded up on AMC and GameStop.

During this time, the California Public Employees’ Retirement System (CALPERS) had sold an 11% stake in Palantir (PLTR).

CALPERS purchased an additional 155,992 shares by the end of Q1 this year, totaling the number of AMC shares owned to 775,392 shares.

It sold an extreme amount of Netflix (NFLX).

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

Largest pension in America sells 605,501 shares of Netflix (NFLX)

Largest pension fund in America buys AMC, sells Netflix

CALPERS sold a whopping 605,501 shares of Netflix stock (NFLX).

It ended the first quarter with a total of 1.2 million shares in the streaming platform giant.

Netflix stock is down almost 69% this year-to-date.

It dropped 38% the first quarter of 2022 alone.

Netflix received backlash in April after announcing the company plans to advertise on the platform with commercials.

Viewers argued that the company had already built too strong of a foundation to make such a change to its business model and that going that route would hurt its memberships.

Things did not get better after Netflix announced the crackdown of password sharing.

Netflix lost 200,000 customers in the first quarter of 2022.

Now America’s largest pension fund is dumping its Netflix stock and buying AMC Entertainment stock instead.

CALPERS keeps buying and holding AMC stock

Largest pension in America buys AMC, sells Netflix

CALPERS increased their stake in AMC and GameStop throughout the 2021.

AMC and GameStop were two of the highest profile stocks in the market for 2021.

AMC saw gains upwards of +3,000% while GameStop saw gains half of AMC’s.

This year, AMC and GameStop continue to be high profile stocks as their short interest continues to be extremely high, sitting above 21% each.

AMC had a powerful Q1 earnings report this year leaving Wall Street analysts and reporters humiliated.

Last year CALPERS quadrupled their stake in AMC during the 4th quarter where they accumulated a total of 619,400 shares of the largest movie theatre chain in the world.

The pension fund now owns a total of 775,392 shares according to Barrons.

Analysts and corporate media reporters have been saying for over a year now the movie theatre industry was dead due to the rise of online streaming.

While the narrative might support a short sellers view, it’s definitely far from the truth.

People aren’t willing to let go of the movie theatre experience for the convenience of online streaming; lockdowns are over.

There is a massive demand for AMC stock

AMC stock is not done running.

The ‘ape’ community that saved the movie theatre from bankruptcy saw something no one else saw.

AMC has always had a massive short squeeze potential that has yet to be fulfilled.

Mainstream media might have spun the narrative killing the hopes and dreams of newcomers of the possibility some time ago.

But AMC’s short interest data says a third runup will be larger than what the world witnessed in May/June of last year when the stock ran up to $72 per share.

Institutions know hedge funds are overleveraged and the closing of short positions is inevitable.

Buying the stock now as the markets are at an all-time low could bear fruit very soon.

I’m curious to learn what you think.

Leave a comment at the bottom of the blog below.

Frank Nez is on YouTube – Subscribe to the channel for more content.

You can follow me on: Twitter | Facebook | LinkedIn

Related: This Data Shows Another AMC Massive Price Runup is Inevitable

Is AMC Stock Due to Go Up Next Week?

May 14, 2022 / Frank Nez / 7 Comments

will AMC stock go up next week? — Will AMC stock go up next week?

AMC stock finished up +5.45% on Friday.

The largest movie theatre chain in the world is down 55% this year as the DOW and SPY also face major pushback.

Stocks have fallen year-round, and AMC is no exception.

However, it’s important to remember that unrealized losses aren’t really losses.

Majority of companies have also had rocky earnings for 2022’s first quarter.

But how is AMC looking for next week?

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and AMC updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

AMC Q1 earnings call 2022

AMC Entertainment is just announced their Q1 earnings call for 2022 earlier in May.

The company has beat every quarter earnings since 2021 as more guests attended AMC movie theatres.

AMC announced earlier this year that as of Q4 of 2021, the company now has a positive EBITDA.

EBITDA provides investors with a snapshot of a company’s overall financial performance.

Fundamentally speaking, it’s a massive win for AMC Entertainment as a business.

AMC Shareholders were able to arm the company with more than $1.8 billion in liquidity for Q4 of 2021 and ended Q1 of 2022 with $1.7 billion.

CEO and President Adam Aron said this $1.7 billion will provide AMC with more security and flexibility to go on the offense.

Given the number of titles that have been released so far (and upcoming), AMC should have no trouble dominating in 2022.

Related: AMC Dominates with Powerful Q1 Results: Highlights

AMC’s Q1 earnings will matter later

Despite AMC’s incredible improvement in the past year (and this year), earnings calls played a very little role in the company’s overall stock price.

AMC’s EBITDA improved this new year.

Analysts believed AMC and the entire movie theatre industry were going to collapse after the Covid lockdowns, but AMC proved them wrong.

AMC hosted approximately 60 million guests in the United States, Europe, and Middle East in Q4 alone.

And as Covid restrictions have been lifted in 2022, people are feeling safer attending the movies and other public events today.

This bear market is tanking stocks despite good or bad news as majority of the market mimics the SPY, down more than 15% this year.

What will truly move the markets is the transition from bear to bull market.

But if you haven’t heard of executive order 14032 yet, it’s incredible.

And I’ll touch more on it below.

Related: Are You Holding Significant Losses in AMC Stock?

Executive order 14032 goes into effect soon

If you haven’t read about executive order 14032 yet, you have to take time to read about it soon.

This order is going to affect the markets in an incredible way.

We recently saw small uptick in AMC after hours when it released positive earnings for Q1 of 2022, but it wasn’t able to maintain it due to the pull of the market.

AMC finished green on Friday, up 5.45%.

What is next week looking like?

SPY stock has hit $400 per share quite a few times, which leads me to believe it’s possible this area could be a strong level of support.

For an entire week straight, this level played a very important role, so we’ll have to keep an eye out on where things go from here.

A lot of the market follows the trajectory of the SPY (S&P 500), so we could very well see AMC consolidate for a while, mirroring the rest of the market.

If the SPY begins to make a break and move upwards, we could very well see AMC start a similar pattern, and vice versa.

But regardless of what happens, early June seems like it will be a very important time for AMC due to executive order 14032.

I’m curious to learn what you think.

Leave your thoughts in the comment section of the blog below.

Frank Nez is on YouTube – Subscribe for more content like this.

You can follow me on: Twitter | Facebook | LinkedIn

Executive Order 14032 Could Be a Big Deal for AMC Stock

May 13, 2022 / Frank Nez / 12 Comments

Biden’s executive order 14032 replaced Trump’s executive order 13959 last year.

Executive order 13959 prohibited financial institutions to use Chinese securities as collateral, momentarily.

This propped up margin calls because of the large exposure our financial institutions have to Chinese securities.

When these securities were no longer accepted as collateral on January 27th, 2021, AMC stock surged.

The order was shortly amended (moved) to May 27th, 2021, where AMC stock had its second surge, reaching an all-time high of $72 per share only a few days after.

Biden then shortly passed executive order 14032 which gave institutions their collateral back for 365 days on June 2nd, 2021.

Well, those 365 days are coming to an end, and it seems June of 2022 could be a big month for AMC stock.

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

No dates, only info

I’d like to make clear that the information provided in this article is merely only information backed by real government documents and data.

This excerpt is not to confirm a specific date where we can anticipate AMC stock to move up in price action, but rather acknowledge what’s happened in the past that could very well occur today.

Redditors were wondering whether there was a document that confirmed the replacement of executive order 13959.

And here it is – the order was replaced by executive order 14032.

One of the biggest differences between these two orders is that the previous executive order affected a total of 30 securities.

Executive order 14032 will affect more than 70 securities.

You can view the list of companies here.

Executive order 14032 is to go into effect on Friday June 3rd, 2022.

Will executive order 14032 trigger a short squeeze?

Given the nature of the rule, executive order 14032 will prohibit institutions to use Chinese securities as collateral, which will result in large margin calls.

When executive order 13959 disarmed institutions with this collateral in January of 2021, AMC surged to $20+ per share.

The order was amended as stocks surged resulting in sharp declines, giving institutions this collateral back.

The amended date moved to late May, where we saw AMC reach an all-time high of $72 per share.

Institutions were then given their collateral back on June 2nd for a period of 365 calendar days.

This collateral will no longer serve institutions on June 3rd until the order is amended again.

The expiration date in early June leads us to conclude we will see major short covering in heavily shorted securities such as AMC stock.

And because the list of Chinese securities being affected has increased, this means the amount of collateral that will be removed has also drastically increased.

If history repeats itself, this next surge will be massive.

That’s not even taking into consideration the next amended date.

Will this executive order lead to MOASS?

I’ve mentioned in previous articles I don’t think institutions will be held accountable for synthetics, but I hope I’m wrong.

One thing I do know is retail investors will need to keep an eye out on AMC’s short interest data to identify whether short sellers are calling it quits or sticking around longer.

No matter how high AMC’s price surges, the short interest data essentially provides investors with insight on how much fuel is left in a short squeeze play.

When AMC rose to $72 per share, the short interest had dropped to 16% from 20%.

AMC’s current short interest is 21.57%.

We’ve also seen that AMC short sellers have hit a record high number of shares on loan.

This means they owe more shares today, than they did AMC surged to $20 and $72 per share.

A third runup will be huge for AMC stock.

Only time will tell whether executive order 14032 is the catalyst or not.

Related: Are Institutions Preparing to Close Short Positions in AMC?

AMC is going to reach a new ATH

I believe AMC is going to reach a new all-time high from its previous record high of $72 per share.

Simply because the data is there.

The data that told us AMC was going to $20, then $72, and now even higher, is still there.

It’s just taking longer than traders would like.

But despite how long it takes, you can’t change the data.

You can’t change the fact that short sellers now owe lenders more than ever before.

And at some point, these lenders will need their money back.

Executive order 14032 seems like a highly likely trigger for AMC stock.

I’d love to hear your thoughts on the matter.

Leave a comment below for the community to see.

You can follow me on: Twitter | Facebook | LinkedIn

Related: Will AMC Entertainment Stock Reach a New ATH This Year

AMC, GME Soar: Volume Proves There is a Massive Demand

May 12, 2022 / Frank Nez / 7 Comments

AMC and GME soared Thursday morning as buy orders filled the market.

Both stocks were momentarily halted, though it seems GameStop had stricter halts.

AMC surged from $9.82 per share to $13.46 per share during the rally.

GameStop skyrocketed from $78.09 per share to $108.05 per share before getting halted.

Mainstream media boasted that retail investors were done with so called ‘meme stocks’.

But unless you’re in the community, you know this is a blatant corporate lie.

AMC and GME’s trading volume proves there is a massive demand for the stocks.

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

AMC is a top holding for Millennials and Gen Z investors

Market Rebellion says Tesla, Apple, and AMC are the top holdings of the average Millennial and Gen Z investor.

And while they are not wrong, they missed another generation, Gen X – also known as boomers.

The ape community is made up of many boomers.

In fact, I’ve talked to more boomers in the community than Gen Z investors.

Perhaps that’s just my circle, but I’ve been part of the community since its inception.

And every time the media published FUD headlines stating both AMC and GME plays were over, millions of people laughed.

AMC became the most popular stock of 2021 and continues to be the most popular stock in 2022.

And believe me when I say, retail investors aren’t leaving.

Related: Are You Holding Significant Losses in AMC Stock?

AMC and GME volume skyrockets as demand surges

We saw a very similar occurrence in late March where both AMC and GME began to surge due to big buying volume.

But both stocks were halted, leaving retail investors extremely disappointed with the blatant market manipulation.

AMC climbed up to $34 per share while GameStop claimed $200 per share.

Retail investors didn’t leave then, and they’re not leaving now.

AMC’s current trading volume is more than double its average of 48.1 million.

GameStop’s is also more than double its average of 4.1 million.

We saw high buying pressure early in the market as the two ‘meme stocks’ took the lead and left corporate media pinched.

No matter how much mainstream media lies and says these two plays are dead, the truth is still the truth.

Both AMC and GME have incredible short squeeze potential, and the only thing keeping them from skyrocketing is open short positions.

Volume, however, could create big panic and set off a chain reaction enabling shorts to close their positions.

Short interest data

Just how AMC and GME’s high volume proves there is still a massive demand for the two stocks, the short interest proves these are short squeeze plays.

Both AMC and GME have very high short interest.

AMC short interest: 21.44% | GME short interest: 21.52%

Both these stocks have a record high number of shares on loan that have to get bought back and returned at some point.

Short sellers have their foot on a bouncy betty.

These stocks will squeeze whether shorts get out at their current share prices, lower, or even higher.

Because AMC and GME’s shares on loan are at an all-time high, this also means that when they do skyrocket, share prices will surpass their last record highs.

This is why people around the globe are buying these stocks.

The upside potential is too large to pass on.

When will these two stocks squeeze?

No one can say for sure.

But this bear market could prove to be a great time for shorts to close their positions, at least while stocks are at temporary low.

Related: Are Institutions Preparing to Close Short Positions in AMC?

Are you holding AMC and GME stock?

What are your thoughts on the current market conditions?

Is now a good time for short sellers to cover or do you think the market is still trying to find a floor?

I’d love to learn what you think.

Leave your thoughts in the comment section below for the community to read.

You can follow me on: Twitter | Facebook | LinkedIn

Leave a $4 Tip

Is A Strong AMC Rebound on The Horizon Yet?

May 12, 2022 / Frank Nez / 3 Comments

When will AMC rebound?

Later this month will mark the first-year anniversary of AMC’s all-time high of $72 per share.

The stock has been on a steady decline since it reached this ATH despite more investors coming in to buy the stock.

Approximately 80% of AMC’s float was owned retail investors during the surge.

Now more than 90% of retail investors own the float.

But a bear market knows no upside, no good news, or heavy buying pressure.

So, how close is AMC to a rebound?

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

Is AMC doomed?

AMC just announced an incredible Q1 earnings call for 2022 where the company raised more than $1.4 billion in liquidity.

The movie theatre chain seated 39 million guests in Q1 and earned $785.7 million in revenue.

CEO and President Adam Aron reported AMC had its best Q1 in two years.

Not to mention, the company was able to repay $45 million of deferred rent reducing their balance to approximately $272 million.

They plan to reduce the deferred rent by another $125 million by the end of the year.

So, is AMC doomed?

Absolutely not.

See, a bear market doesn’t take any of this into consideration.

If the suits need the markets to be on a downtrend, they’ll be on a downtrend, momentarily that is.

So, if we’re going to play their game, we’ll just have to sit tight until we begin to see a reversal again.

Can Adam Aron do anything about what’s happening to AMC stock?

Unfortunately, Adam Aron and any other CEO doesn’t have any power over how the stock of a company moves.

I’ve always pictured nerds behind the scenes looking at the boss for confirmation on whether they should move a stock down or up based on business or economic news.

Jokes aside, all Adam Aron can do is focus on AMC’s fundamentals to hopefully convince these ‘bosses’ the stock is not worth shorting to the earth’s core anymore.

Notice how he always addresses the suits in every earnings call, it’s for a good reason.

And finally, we’ve seen a little bit of praise on AMC’s Q1 earnings this year, but it’s not enough.

There’s an older generation of folk running our system that cannot see what ‘apes’ or Adam Aron see yet.

All this means is it’s going to take time.

Related: AMC Dominates with Powerful Q1 Results: Highlights

Are you holding unrealized losses?

If you’re holding unrealized losses, you’re going to have to make a decision for yourself.

Will you sell scared during a bear market?

Shoutout to Dany on Instagram when he said, ‘scared money don’t make no money’.

Or will you weather this market and wait for AMC to rebound?

Because stocks don’t go down forever, they eventually bounce back.

AMC shareholders are here to make a big trade, right?

So, wait, and make a big trade.

Or cash out and get back in when AMC begins to surge again because it will.

It’s your choice.

Related: Are You Holding Significant Losses in AMC Stock?

How close is AMC to a rebound?

The entire market is having a challenging time finding a bottom.

This leads me to believe AMC is not done downtrending, but oh boy would I love to be wrong here.

SPY stock (S&P 500), which tracks the top 500 companies in the U.S. can’t seem to find the brakes either as it continues to pull the entire market downhill.

There are currently no signs of resistance levels in the market.

And for this reason, AMC might not be close to seeing a rebound so soon.

But it doesn’t mean AMC won’t rebound at all – the entire market will eventually go through a reversal where stocks will begin to trend upwards again.

How long will this take?

Only time will tell.

What you can do in the meantime is plan, strategize, and execute.

Focus on your financial goals, your income goals, your family goals.

Despite this dreadful bear market, learn to make every day a great day.

And if you aren’t earning money trading options yet, I actually teach you how to do it here so you can hedge against your unrealized losses in the interim.

You can follow me on: Twitter | Facebook | LinkedIn

Read: How To Trade Options in the Market With a 9-5