Advantages retail investors holding AMC stock have over hedge funds
Community, today I want to remind you why you’re winning. We’ve been holding AMC stock for many months now. Us seasoned apes have seen some gains at this point. New retail investors buying the stock, don’t get overwhelmed if you’re not there yet because your time is closer than you think.
If you’re feeling uncertain at some point just come back to this article. Here are 5 advantages us retail investors holding AMC stock have over hedge funds.
Welcome to Franknez.com – I just want to say, I’m about to reach 2 million of you and I want to thank you for being a loyal reader. I’d love to know how long you’ve been reading the blog for. Comment below at the end of the article.
Lets get started!
#1. Holding AMC Stock Costs Us Nothing
You hear it over and over and over again community. Hodling doesn’t cost us a thing. Hedge funds on the other hand are paying a fee to continuously short AMC stock.
Hedge funds have lost billions from apes simply not cashing in profits yet. They can’t keep playing this game forever, our community is a big threat to their customers and business as a whole.
Whether you have gains or not on paper, know that you holding a position in AMC is costing the bad guys money. Remember, patience is a virtue. We can hold at ease while they hold in stress.
#2. Apes Own More Than 80% of AMC’s Float
The combined percentage of whales and apes that own AMC’s float is 80% according to Adam Aron, CEO and President of AMC Entertainment.
Ladies and gentlemen, we literally own the company. Just to put things into perspective, Tesla has about 33% retail investors while Apple has approximately 40%.
Whales, or institutions, will be selling on the way up. We’ve seen this happen before. I bring this up because it means that at some point we will own more of the company. This is significant because it allows us to be in control of when we want to sell stock and what price we’d like to sell the stock at.
What you hold is more valuable than you know. By the time hedge funds and short sellers have to cover their position, it’s going to be very expensive for them. We hold the supply, their request for the stock back is the demand. When demand increases the price also increases.
#3. We’re Investing Our Money, Not Other People’s Money
This is big psychologically speaking. As retail investors we have more sentimental value attached to the dollar that’s being invested. We will hold because we simply have no other option.
Our families depend on it and there’s absolutely no way we will ever cut our losses or cash in anything other than life changing profits. We’ve locked ourselves in on this game and have put away the key until the time is right.
Hedge funds on the other hand are burning their clients money. It’s not theirs so they don’t care. They’ve borrowed money from every crevice that will lend it to them but continue to severely take losses. If hedge funds were playing with their money, they would have closed their positions months ago.
And although leveraging other peoples money has played in their favor short term, the gash it’s going to leave long term is monumental.
#4. The AMC community is getting loud
Our community is being heard now by the media. We now have Melissa Lee from CNBC and Charles Payne from FOX Business questioning the SEC regarding the illicit activity of naked shorting.
When a community is loud enough change begins to slowly happen. We are more powerful than you think. Unification of the people is one thing governments fear the most. At some point the people who denied the manipulation in the market, like Charles Payne did many years back, will be joining us.
This revolution will be one of those things where it simply can’t be swept under the rug anymore. These are different times.
There’s been headlines about the SEC allegedly fining hedge funds for naked shorting. Not much information has been released regarding this. However, if the SEC doesn’t do their job then the AMC community will also be exposing them.
Leadership In The Community
Apes in the community are also using platforms as a means to help fight FUD and the manipulation. We fight the lies with the truth and educate the AMC community every way we can. Unlike hedge funds, who have superiors, we have multiple apes in our community doing the right thing.
Everyone is a leader.
#5. We’ve Saved The Entire Movie Industry
Have you ever stepped back and thought about this? If you hold AMC stock you literally helped save the entire movie industry along with the oldest movie theater business in history.
Our community did that, you did that. That is how powerful we are united. The fact of the matter is that there’s a future, a blimp in time where shorts get squeezed out of their positions. If the community can save an entire movie industry from going bankrupt, then the community can certainly squeeze the culprits who’s goal was to drive AMC Entertainment into extinction, out of their positions.
These short sellers have a backwards way of thinking. We should be supporting our businesses worldwide, not betting on them to shut down. Their way is not the way and for that reason they will continue to suffer extreme losses.
They said this is what we’re doing and we said no, this is what’s going to happen. It’s time for change. The biggest transfer of wealth is about to take place and it’s going to be marked in history.
And lastly . . .
Remember your why. Write down your goals and affirmations. Practice visualization because your mind and thoughts are that powerful. You become what you think about the most.
Red days, green days it’s all part of the process. Red days are needed just as much as the green days are. Any red days we experience become buying opportunities and help us stair step the way up.
Short sellers will continue to borrow shares to drive the price down. This is only going to make this squeeze that much BIGGER. The only reason hedge funds continue to short the stock is because they’ve run out of options. They’re desperate and it’s all they can do. Their defeat is already written.
Every retail investor holding a position in AMC wants to know, when will shorts cover their positions? And I don’t blame you.
This one is a little tricky. See, it’s like saying, “when will retail investors sell their positions?”
Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
Let’s get started!
Retail investors have been waiting patiently for AMC Entertainment stock to rip. You’ve been holding through the ups and downs and even buying the dips.
So, why aren’t shorts covering their positions yet? What do retail investors need to do to squeeze hedge funds out of their money?
Are shorts obligated to close their positions?
Let’s start with the fundamental question. Are shorts obligated to close their positions? Now, there are currently no rules regarding how long a short can hold before closing out their position.
However, lenders do have the right to demand the seller closes their position with minimal notice. This is rare and only occurs if the the seller isn’t paying the interest fee, or the interest fee is ridiculously high.
“A short position may be maintained as long as the investor is able to honor the margin requirements and pay the required interest and the broker lending the shares allows them to be borrowed.” – Investopedia
When an interest fee is extremely high, it makes a stock difficult to borrow which obligates the short seller to close their positions.
AMC’s short borrow fee rate as of 9/17 is: 0.90% according to Stonk-O-Tracker.
Keep an eye on this interest as it will determine just how much shorts are bleeding. Hedge funds currently shorting the stock are losing money every day. And regrettably for them it’s getting worse the longer they hold. I can feel a short squeeze coming.
Why does the short borrow fee matter?
The short borrow fee is an interest that shorts must pay for borrowing AMC shares. And although the interest continues to rise for them, shorts aren’t going down without a fight.
They will hold in hopes to drive AMC’s share price right back down to the floor. However, AMC is trending upwards now and has absolutely no intention of going back down.
Analysts data and AI predictions all point towards a high possibility of a short squeeze. Even Fintel’s short squeeze score has been as high as 80-90% in recent weeks.
This short borrow fee is going to continue to go up as AMC stock becomes harder to borrow.
For short sellers, a low short borrow fee is in their favor. They would much rather pay the fee and stubbornly continue to hold their positions against retail investors.
But, if the short borrow fee is high enough to hurt the borrower, they will be more inclined to close their positions before losing an excruciating amount of money.
The short sellers conviction is strong, even though they’ve already lost. It’s only a matter of time before they have no other option than to forfeit.
How can retail investors help drive the short borrow fee up?
Retail investors can help drive the short borrow fee up simply by holding their positions.
When AMC squeezes, retail investors will have to continue to hold their position on the way up. Not every short will close their positions immediately.
If we begin to see AMC’s price action rise monumentally, it is important to understand that there’s more potential because not every short seller has closed their position.
We might see AMC drop a little after it peaks. However, if retail investors continue to hold, it’s only going to continue squeezing more and more shorts resulting an further perpetual gains.
Melvin Capital suffered 49% loss 1st quarter
Community, this is massive. Melvin Capital is a hedge fund that has been shorting both AMC and GME stock. These are the people trying to drive the stock to the ground.
Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider. Unfortunately for them, this is only going to get worse.
Retail investors are hodling to the moon. They are not waiting for $100 price action anymore, and some are certainly not waiting for $500+ share price anymore. The Reddit community is set new standards for the AMC’s stock price.
Here’s why this matters:
Not only are shorts losing money every day but huge hedge funds are bleeding billions of dollars due to retail investors holding
This is a huge win for retail investors – our favorite companies have been saved
Unless shorts close their positions, hedge funds will continue to suffer
Interest rates will continue to skyrocket for short sellers, enabling them to close their positions sooner than later
An AMC short squeeze might be closer than we think
Here’s what retail investors can do:
Continue to hold your positions, it’s free
Buy the dips to counter any short attacks
Share articles on social platforms that can provide value to the community and keep everyone informed
Keep a close eye on the stocks performance so you do not miss the squeeze
Hedge funds are not going to be able to recover from this. Yes they can possible receive help from huge banks but this too will be at a cost.
Furthermore, borrowing money from banks won’t change the fact that shorts still have to cover their positions. Retail investors are buying AMC stock every day. Shorts are fighting a war they cannot win.
Important advisory: I am not a licensed financial advisory. I simply have a passion for finance and writing.
What happens when a short covers their position?
A short position will be profitable if it is covered at a lower price than the initial transaction; it is at a loss if it is covered at a higher price.
In AMC’s case, shorts who drove the price down to $5 but are still holding to-date are at a loss. AMC is currently trading at $44.20 as of September 17th.
When there’s a ton of short covering happening in a particular stock, it will result in a short squeeze.
What is a short squeeze?
A short squeeze occurs when a stock spikes in price action due to an increase of short-sellers closing out their positions.
We’ve seen a short squeeze happen with both GameStop and Volkswagen. GME topped almost $500 while Volkswagen spiked shy below $1,000 back in 2008.
Short squeezes are massively profitable for retail investors. These one-time phenomena are how people are able to accumulate wealth in such little time.
Instead of exiting, short sellers are holding. Some shorts might be waiting for a more favorable price to close their positions.
Another way shorts will be forced to close their positions in AMC is through a margin call. This is when their accounts don’t have the sufficient funds to meet the accounts minimum amount of dollar required. At this point they are forced to liquidate.
Now, because there’s no rule to how long they can hold their positions, they’re in the long game like most retail investors waiting on a short squeeze to happen are.
The good news is that AMC bankruptcy is no longer on the table and Wall Street analysts are even saying the industry is on a solid path to resurgence, via Hollywood Reporter.
As we continue to see a high utilization and the short borrow fee increase, we can only expect shorts will cover sooner than later.
What percent does the short borrow fee have to be?
AMC’s short borrow fee is currently at 0.90%, via. Stonk-O-Tracker on 9/13. AMC stock is getting harder and harder to borrow. There seems to be some sort of manipulation here. The interest should be much higher.
Short sellers have been borrowing millions of shares to short. It seems they thought AMC’s 500 million share dilution was going to go through. Funny enough Adam Aron, the CEO and President of AMC Entertainment actually scrapped that idea leaving short sellers in a deeper hole.
I personally think retail investors are going to experience the short squeeze of a lifetime. Strap in.
AMC’s price action will continue to go up
Journalists and analysts alike are now claiming AMC to be a big buy. Shorts can continue to hold their loses on paper for months to come, or close their positions while it’s at the current price action.
Closing now is recommended due to an overwhelming amount of attention AMC Entertainment has received.
With new titles coming to AMC movie theaters soon, we’re only going to continue to see a surge in price action due to an increase in the company’s sales revenue.
Even if shorts continue to hold, lenders will eventually run up the interest rate again and force them to cover. If you’re a retail investor reading this article, I’m already celebrating your success. Leave a comment below and let the community know what a short squeeze would mean for you.
AMC is on the ‘Potential Short Squeeze’ list via. Fox Business
In case you missed it, a squeeze is very possible, via FOX Business. All the data at hand point towards the inevitable for both shorts and retail investors.
Retail investors holding AMC stock are going to experience a once in a lifetime opportunity.
A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.
AMC Entertainment stock has caused havoc for short sellers shorting the stock. Hedge funds have proven to lose billions of dollars from the ongoing ‘meme’ stock frenzy.
Momentum stocks, as I like to call them, are more than just plays for money. Retail investors have conjured up a real movement for change.
And although mainstream financial news platforms say it’s over, it’s far from it. Hedge funds betting against AMC just borrowed more than 4 million shares to short the stock.
They just dug themselves a deeper hole.
Welcome to Franknez.com – the best blog for new and seasoned retail investors. Today we’re discussing AMC Entertainment stock.
Lets get started!
Is AMC Stock Shorted?
Short sellers just borrowed more than 4 million shares to short the stock. Although AMC has had major buying pressure all year, shorts continue to attack retail and the company.
The community wants to see chairman of the SEC, Gary Gensler, take action towards banning activities such as naked shorting, dark pool trading, and PFOF.
The SEC was created in 1929 after the infamous Stock Market Crash of 1929 to protect retail investors against the manipulation from hedge funds and short sellers. However, it was established in 1934 with the passage of the Securities Exchange Act, a law formerly governing the trade of securities.
Overleveraged positions in the markets have been the cause for economic meltdowns resulting in significant losses for the American people. Our government has always had the power to fix the biggest problems retail investors currently face.
Why no real regulation has truly protected retail investors is the big question. Talks of ongoing investigations have risen but actions will have to speak louder than words.
AMC’s stock price continues to be suppressed through overleveraged means only hedge funds and short sellers have access to. The ape community has sparked a movement towards fighting for a fair market and aren’t going anywhere until real change has occurred.
How Can We Appoint New Leaders In The SEC?
Members of the SEC are appointed by the President of The United States himself.
The SEC is headed by a five-member board of commissioners. Members are appointed by the president with the advice and consent of the United States Senate.
The president does not have the authority to remove members once they are confirmed. No more than three commissioners may belong to the same political party. The president appoints one board member to serve as chair.
Change will only happen if we the people voice our concerns publicly. We have the right and the power to overthrow any form of incompetent government.
We must let these powers know that we see them and understand that they have the power to make things right. There are more than 4 million of us in this community. Our voice is our strength.
Will AMC Continue To Run Up?
I’ve been in this community since early February and the sentiment has not changed. 80% of AMC’s float is now owned by retail investors and the movement keeps growing. The stock market is based on supply and demand, and so retail investors are in command.
Although AMC’s share price is being suppressed by heavy shorting in the market, AMC Entertainment stock will continue to run up as long as retail investors continue to buy the stock.
Which isn’t going to be a problem by the way. AMC is more than just a stock, it’s a movement.
Hedge Funds Will Continue To Face Mounting Losses
There are no signs of retail letting off the gas pedal. Investors in the ape community continue to buy the dips and hold their stock no matter the pressure.
AMC Entertainment has changed the lives of movie goers through the theatrical experience we’ve all missed since the lockdowns. The company has unintentionally sparked a movement greater than ourselves, resulting in the resurrection of the movie theater industry during the process.
And it’s changed the lives of millions of retail investors, netting significant profits to majority of its shareholders.
Whether you’re holding for a short squeeze or to be part of a community with a movement, you cannot deny AMC has attracted change. So, lets continue to be that change the world and our community needs.
What a storm. What a battle right? AMC keeps on keeping on, and although AMC has been on discount recently, the stock has finally broken its $30 level of resistance.
Retail investors are very excited about the data that’s been collected for months now. Will we see an AMC short squeeze while we continue to ride this bull? And if so, how soon?
Welcome to Franknez.com – the blog where you can digest posts on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
Lets get started!
How soon will we see an AMC short squeeze? Retail investors all want to know. Is it this week? Will it be next week? Or, are we looking at a longer game here? Here’s what we know.
Key Highlights
AMC closed at $44.20 on September 17th. The stock has surged since early this year due to volume despite short sellers attacking it. AMC Entertainment is set up for a short squeeze.
The perfect time to buy AMC stock is when the market is red, or what we refer to as on ‘discount’. AMC is looking bullish though, red days might just be over.
AMC entertainment continues to be the most heavily shorted stock in the market.
AMC’s short borrow fee continues to increase.
Some of you reading this article might have been holding since February now. Kuddos to you for holding the line. If you’re a new retail investor getting in on AMC be sure to thank the seasoned apes when you get a chance.
Below is a series of documented facts and positive news that all influence AMC’s potential towards a short squeeze. One thing is certain, it’s inevitable.
AMC stock news and highlights
FOX Business reported AMC to have a strong chance of a short squeeze. Coming from a big news platform it certainly brings the stock sentiment up for most retail investors.
This is the type of news retail investors need to keep an eye out for.
Strong chance of a short squeeze – Fox Business AMC
AMC is still currently the most shorted stock in the market.
Unfortunately, MarketWatch has completely obliterated AMC from their list. Being a hedge fund affiliate, retail investors suspect foul play.
President and CEO of AMC Entertainment Adam Aron, announced AMC will reopen all 13 AMC theaters in New York City as of March 5th. As of today, all AMC movie theaters are now open across the United States with many selling out.
“Since reopening our first theatres with AMC Safe & Clean in August, AMC has welcomed back nearly 10 million moviegoers nationwide without a single reported case of COVID-19 transmission among moviegoers at our theatres. We look forward to welcoming back our New York City guests to the big seats, big sounds and big screens that are only possible at a movie theatre.”
Adam aron, President and CEO of AMC Entertainment
For those who thought AMC was a dead company, think again. The company is now generating big revenue since it’s reopening.
Melvin Capital suffered 49% loss 1st quarter
Melvin Capital Hedge Fund – AMC
This is huge! Melvin Capital is a hedge fund that has been shorting both AMC and GME stock.
Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider.
Here’s why this matters:
Not only are shorts losing money every day but huge hedge funds are bleeding
This is a huge win for retail investors
Unless shorts close their positions, hedge funds will continue to suffer
Interest rates can skyrocket for short sellers enabling them to close their positions
An AMC short squeeze might be closer than we think
Here’s what retail investors can do:
Continue to hold your positions, it’s free
Buy the dips to counter any short attacks
Share articles on social platforms that can provide value to the community
Keep a close eye on the stock to not miss the squeeze
I’m going to discuss a little more on the short borrow fee that continues to increase for these hedge funds shorting the stock. This is going to be a massive component to a short squeeze.
Positive news for AMC Entertainment
Adam Aron gives positive news on AMC Entertainment
AMC Entertainment has raised more than 2.2 billion dollars in cash
90% of AMC theaters in the United States are now open with New York and Los Angeles finally reopening
Vaccinations and policies are making movie theaters safe
New movie titles are guaranteed to increase sales revenues
CEO and President Adam Aron expresses an optimistic future for AMC Entertainment
AMC Entertainment has implemented a Safe & Clean program under the advisement from Harvard University’s prestigious School of Public health as well as well as the No. 1 U.S. cleaning brand, The Clorox Company. This means movie goers can now return at ease knowing a proper sanitation program has been put in place.
Hedge fund affiliate partners such as MarketWatch, The Fool, and other finance website have been trying to redirect the public from investing in this stock. That’s primarily because hedge funds are losing millions by the day.
A short squeeze could even put them out of business. This is why it’s important for me to spread the positive news surrounding AMC. I don’t believe in the manipulation of the media and I will continue to update these articles as more great news unfolds.
There will not be a 500 million AMC share dilution!
In recent news, Adam Aron has announced that AMC Entertainment no longer plans on proceeding with the plans of adding 500 million more AMC shares to the arsenal in a tweet on Tuesday, April 27th.
Adam Aron – President & CEO of AMC Entertainment
You can read AMC Entertainment’s official announcement on their press release page here.
Is AMC Shorted?
AMC’s short interest is close to 20%. As of 9/17, we’re seeing 4,200,000 short shares have been made available to borrow, via Stonk-O-Tracker. AMC continues to be heavily shorted despite what mainstream media claims.
AMC’s short shares available will be updated here so be sure to bookmark this page.
Was Adam Aron’s approval request of a 500 and 25 million share dilution to his shareholders a strategy to trick shorts into borrowing more shares? I personally think so and it’s absolutely genius. Shorts continue to borrow shares.
While shorts might have the capability to short AMC stock, this is only temporary. They will run out of borrowed shares and eventually have to cover. There are finally investigations going around regarding naked shorting.
Yeah.. I sense a grand mother of all short squeezes. #GMOASS
What does this mean for the AMC shareholder?
Expect to see gains after shorts have run out of borrowed shares to use. Hedge funds and short sellers alike have dug a deeper hole for themselves. What this means for the AMC shareholder is a squeeze bigger than anything the market has ever seen before. I am personally doubling down.
Not only is bankruptcy off the table (via. Los Angeles Times), but AMC movie theaters are now about to begin reopening in larger parts of the United States. Which of course now introduces revenue.
AMC Q1 earnings for 2021
AMC announced their Q1 earnings for 2021 on Thursday, May 6th. Things are looking particularly bullish and optimistic to say the very least.
For the retail investor this means the upper hand is yours. AMC Entertainment has raised over $2 billion dollars to hold them off until the year 2022. And we still have to go through Q2, Q3, and Q4!
Unfortunately for hedge funds shorting the stock, it’s over. If you missed the conference call you can view it here for your viewing pleasure.
AMC Q1 2021 highlights
The AMC community is recognized
Q1 earnings are higher than last years 4th quarter
Expectations for Q2 – Q4 are much higher
Food and beverage sales are up by 45%
Sales revenue will continue to rise as new titles are being released
AMC Q2 earnings for 2021
Quarter 2 earnings for AMC were absolutely amazing! I published an entire article on this information you can read all about here.
AMC Q2 2021 highlights
Record breaking $2 billion in liquidity
Increased revenue / tickets & concession
AMC to accept Bitcoin by the end of the year
GameStop partnership
Enhancing the cinema experience with sports and music performance
When will an AMC short squeeze happen?
It’s really hard to tell. Even experts can’t identify an exact date and time. However, the possibility of an AMC short squeeze is certainly possible given that it is still the most shorted stock in the market and the stocks volume continues to rise. We also now have more data then ever before that indicate a massive short squeeze is almost certain to happen. Especially now that the SEC has announced some crackdown on shorting.
With Melvin Capital and other hedge funds losing money, it’s only a matter of time before the short borrow fee continues to skyrocket and shorts have to close their positions.
It’s tendie time!
Analyst AMC predictions
With that being said, Trey’s Trades predicts a short squeeze is now certainly guaranteed. Trey has been a leader in the AMC community and deserves a spot on this page.
More data points towards the stock reaching $1000+ per share.
See what stock analyst Trey has to say.
AMC short squeeze
The real questions is how can retail investors make this AMC short squeeze happen?
We know that short-sellers eventually have to cover their spots. This means that they will eventually have to buy AMC stock at the current share price.
If retail investors continue to drive the share price up by buying the dip and holding their positions, short-sellers will have no other option than to buy from the retail investor at a higher share price.
NOTE: Retail investors do have to sell a bit as the price goes up in order to keep that momentum. Look at it as giving rats crumbs. Not only will they want more but they’ll need more.
2. Retail investors will also need to buy the climbs in order to show a demand for the stock. This doesn’t have to be huge buys, rather incremental to validate the current share price.
This play essentially creates a supply and demand scenario between retail investors and short-sellers. The results? A short squeeze.
Hedge funds are doing everything they can to prevent a short squeeze
How are they doing this?
By promoting false information online (we’re certain you’ve seen it)
Through strategies such as short-ladder attacks in the market
And, by restricting certain brokerage accounts from allowing its retail investors to purchase or buy shorted stocks (Robing hood)
This is what retail investors can do to fight corruption
Share content that presents facts (blog posts, analysis videos, etc.)
Continue to educate yourself and make investment decisions based on your personal analysis
We’ll begin to see a trend similar to that of GME (Gamestop). AMC will enter a bullish territory before hitting an ‘abnormal’ peak in which AMC would have ‘squoze’.
According to Trey’s Trades we’ve already hit the bottom. AMC continues to be heavily shorted through dark pools. This price level can be seen as a buying opportunity for retail investors looking to squeeze shorts out of their positions. We’ve seen resistant levels around $14-$16 recently which is a great push from $5. We’re now sitting at 44.20 per share.
Recent performance and news is leaving retail investors with positive speculations. An AMC short squeeze will certainly make headlines. Expect to see various gains prior to any sort of major peak as well as volatility.
Retail investors will have to hold their positions through upcoming gains if they want to see AMC short squeeze.
But most importantly, they’ll have to refrain from selling at the first sight of gains if they are to see bigger and more massive gains.
Gamma squeeze vs Short squeeze
Don’t confuse gains and momentum with a short squeeze.
Here’s the difference between a gamma squeeze and a short squeeze:
A gamma squeeze are momentum gains. These usually occur from call options closing in the pocket resulting in heavy buys or purchases in the market.
A short squeeze is vigorous and can spike with no warning. This is where you see 100% gains in a matter of seconds and minutes. A short squeeze can even reach 1000% and 10,000% gains.
AMC Short Squeeze Stock Prediction
New retail investors are wondering whether $1k, $10k, or even $100k per share is even possible.
Gabe from ReviewDork does some math that’s going to leave you with an open mind.
AMC stock price predictions range from $1,000 to $100k+.
Will AMC reach peaks like GME?
AMC has been fortunate enough to receive more publicity and hype than GME did, at least recently. The volume will speak for itself and retail investors will just have to wait to find out.
We’ve seen that abnormal gains are naturally part of a short squeeze. Volkswagen rose up to nearly $1,000 when it squeezed back in 2008 due to a similar strategy produced by car manufacturer Porsche.
Analysts are predicting AMC can even go above the $1K mark if retail investors and institutions alike continue to buy and hold their positions. Wouldn’t this be something. If you’re holding 1,000 shares and AMC spikes to $1K per share, you my friend have made 1 million dollars!
Is it too late to get in on AMC stock?
Absolutely not, at least not yet. AMC Entertainment is still heavily shorted. You will have to decide whether its current share price is worth it if trades at $100, $500, or even $1,000+. AMC Entertainment stock has not even started squeezing yet.
Redditors have touched base on this topic and advise anything below $100 is a buy. I’ve been personally buying the stock when it dips. This allows me to pick up more shares at a discount.
If you’re a beginner, I recommend buying 5-10 shares of AMC stock. This amount will give you a feel of the market. Not only is it affordable, but if the market is red you won’t see much loss on paper.
Where was AMC trading at before the pandemic?
AMC was actually trading between $30-$35 back in the booming party economy of 16′! AMC stock started to decline as their debt increased and hedge funds began to heavily short it.
Short sellers could have covered back in August when AMC’s stock price was trading at $30 levels. However, it doesn’t AMC is going back down to these levels. We broke past $50 and are trending upwards again, though we are seeing heavy shorting in the market.
If an AMC short squeeze doesn’t occur, AMC stock price will still go up allowing shareholders to make at least some sort of profit.
With AMC theaters now open, it’s inevitable that the company will begin to see bigger sales revenue every time a new title is released. I update this post when new titles make the headlines regarding earnings.
Keep in mind that AMC’s share price during the booming party economy of 16′ was roughly around $30 per share. If a short squeeze doesn’t happen, fundamentals will continue to bring the stock up as more investors are buying the stock.
However, a short squeeze not happening is very unlikely as AMC is currently the most shorted stock in the market and most held stock, beating both Apple (AAPL) and Tesla (TSLA), via. NASDAQ. Majority of the float is also held by retail investors and short sellers are going to be forced to close their positions very soon, more on that coming up.
As Mark Cuban bluntly put it, keep holding.
Why hasn’t AMC squeezed yet?
AMC hasn’t squeezed yet primarily to two main reasons.
We need more volume to drive the stock price action up
Shorts need to close their positions
Volume really just comes to more and more retail investors as well as institutions getting in on AMC stock.
Regarding shorts covering, retail investors need to squeeze them out of their positions by holding their positions and helping increase AMC’s short borrow fee. You can keep tabs on AMC’s short borrow fee as it changes every day via. Ortex, or Fintel.
Aside from this, Wanda Group had caused a little bit of disruption for retail investors by profiting on the first sight of gains.
This turmoil was only short-term but is a reason why we’ve seen some selloff in the market a few weeks ago.
However, Adam Aron has recently brought awareness in an interview with Trey’s Trades that this selloff from Wanda is simply policy from China. Retail investors should not be concerned.
Is AMC Ever Going To Squeeze?
All the numbers point towards the right direction for a massive short squeeze. Shorts and hedge funds continue to lose money every day. The interest is growing at an alarming rate and AMC’s current utilization is around 90%.
The lives of these retail investors are about to completely change. Say goodbye to your old world.
A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.
If you haven’t subscribed to our newsletter be sure to do so to stay informed when a new blog post is published. Blog posts will range from personal finance to business and even investing posts like this one.
You can support the blog on Patreon where you will also be able to access exclusive Frank Nez content (250 Members Challenge!) 🎉.
What will an AMC short squeeze mean for you?
Let us know in the comments section below what an AMC short squeeze would mean for you! If you’re an AMC shareholder let us know in the comment section below.
Holding AMC losses? Here’s why you shouldn’t worry
Dear fellow ape, did you buy AMC stock at a high price? By high price I mean to the point where you’re currently negative on paper.
If so, I want to help you navigate this temporary season. See, majority of us have been there before. If you’ve read some of my other blog posts you’ll know at some point I was negative $9K+!
I remember seeing my position in AMC plummet and thinking, wow.. How soon will things get better? Here’s what you need to know.
Welcome to Franknez.com – today’s message is to our new apes that have joined the movement. I’m excited you’re here today.
Lets get started!
Things did not get better so soon, and I know you can certainly relate. So why did I keep holding? Why didn’t I just say, “screw this, I’m cutting my losses”?
The answer is simple. The short interest data really built a strong conviction towards the stock within me. I remember I didn’t even tell my fiancé how much money I was under at first because I knew it was temporary, and it was only on paper.
I understood that if I held, my losses would shrink and I would eventually come up breaking even. Once I broke even I knew that I would then profit soon after.
Here’s Why It’s Important To Hold
Had I sold and cut my losses, I would have never experienced my current gains in AMC stock. And if you’re curious to know, yes I’m still holding but more on that in a bit.
As I was holding the stock, my losses eventually got smaller and smaller as AMC’s price action moved upwards. This is when the stock had jumped up to $20 per share back in January.
I bought in at $14 and the stock dropped to $5 per share. I didn’t begin profiting until at least 3 months later. The stock consolidated a lot around the $9 range. And once it broke $14, AMC stock really began to climb.
It took three months for my investment to bear fruit before ultimately finding a higher low of what we now know is the $33 range. So I’m still up significantly, 5-figures. But I still hold.
What I did during the time my investment was negative is I took advantage of the share price instead. I loaded up on shares like crazy. So, if you’re looking to increase your number of shares now is the time to do it.
The Data Hasn’t Changed
AMC losses are only on paper
Why do I continue to hold? I could take my profits, forget this battle and invest in other long term plays. The reason is because the data has not changed.
This is how I know you will come profitable soon, except you probably won’t have to go through two dips like us seasoned apes did. This could perhaps be the last big dip before MOASS.
I mean who knows, maybe we do find a higher low down the road. But even then, you’ll find yourself in a similar position to us who have been holding since early this year. You’ll be profitable, but you’ll understand there’s a lot of potential.
AMC Short Interest %
Now, back to the data. Short interest by definition is considered to be extremely high at 20%. AMC’s short interest is currently at 18%. A high short interest is considered to be around 10%. This data tells you that AMC is a rare case. Apple’s short interest is 1%, just for comparison.
Utilization is in the high 90% and the shares on loan are above 100 million according to Ortex data.
But wait, there’s more. More than 60% of trading has occurred inside dark pools. This means that a lot of the buying pressure is not even reflected in AMC’s current share price! Dark pool usage has been increasing which means short sellers are running out of options. And it’s only a matter of time before they’re suspended from using these ATS’s (alternative trading systems).
How? Whether you believe the SEC will do something or not, change takes time. We didn’t have the attention of mainstream media nor of the SEC earlier this year, but we do now.
The point here is they now know, that we know. The spotlight is on them. Will they expose themselves as slaves of corruption? Or will they demonstrate to the world that they serve the people?
Will AMC Stock Go Back Up?
Absolutely. AMC has found a new bottom in the $33 range. The last bottom was between $5-$9 and it consolidated at that price range for a few months before making a massive break.
AMC recently tested $37 again and touched $38. Once we break these levels and move to $40, the stock will see $45+ again. We know this through the Fibonacci retracement that presents technical analysts with the levels of resistance the stock went through.
This technical setup allows us to trace patterns whether AMC is trending downwards or upwards.
Well now we’ve tested $50+. Ladies and gentlemen, AMC wants to go up despite the shorting. AMC’s only intention is to go up.
AMC Movement Facts
Apes own more than 80% of the float
Retail investors continue to buy the dips
Large institutions keep bulking up on the stock
Shorts have not covered their positions
Hedge funds are under intense scrutiny
Short sellers continue to face difficult losses
We’ve grabbed the attention of mainstream media
Naked shorting and dark pools have been exposed
The community is growing every day
We’ve saved an entire movie industry
Give yourselves a round of applause. These facts are all going in the history books. No one can take away the ruckus the community has made.
Change is inevitable, the apes are inevitable, the biggest transfer of wealth in all human history is inevitable. This was meant to be and you were meant to be a part of it.
If you’re currently holding losses in AMC, welcome to possibly one of the biggest moments of your life. More than 4 million apes stand beside you.
The data says short sellers are overleveraged, whales continue to buy the stock, brokers are raising margin requirements, the SEC is getting involved. It is happening.
Apes, keep holding; we’re being processed.
What’s Up With Margin Calls?
Why do you think historical amounts of cash are currently being pumped into our financial system? My guess is feds are getting ready to bail short sellers. They’re preparing for something massive.
We know that short sellers have been trading billions of synthetics and we also know that they have to cover those positions too. Hedge funds have been liquidating several positions in the markets and I can only assume they will need help from the government too.
These margin calls will be the biggest margin calls in history.
Final verdict
If you’re holding losses at the moment, do not worry. If you’re like me and you trust the data, you know that these losses are only temporary.
Amazing things are on their way to you, I know you can feel it too.
Community, I’m going to be updating this list of momentum stocks and their short interest and utilization daily.
Be sure to bookmark this page for daily updates. This information is being taken straight from Ortex. I understand not everyone has insight to this information so I will be making it all public for you.
If there are other stocks you’d like me to include, please comment them in the comment section below.
#1. AMC
Short Interest: 18.58% | Utilization: 88.13 | Cost To Borrow: 1.54 | Shares On Loan: 103.69 Million
(Updated Daily)
#2. GME
Short Interest: 12.48% | Utilization: 33.88 | Cost To Borrow: 1.05 | Shares On Loan: 6.76 Million
(Updated Daily)
#3. BBIG
Short Interest: 21.62% | Utilization: 93.39 | Cost To Borrow: 64.19 | Shares On Loan: 25.81 Million
(Updated Daily)
#4. SNDL
Short Interest: 13.46% | Utilization: 95.38 | Cost To Borrow: 1.92 | Shares On Loan: 277.25 Million
(Updated Daily)
#5. SENS
Short Interest: 24.89% | Utilization: 87.76 | Cost To Borrow: 2.54 | Shares On Loan: 95.30 Million
(Updated Daily)
#6. CLOV
Short Interest: 13.16% | Utilization: 82.14 | Cost To Borrow: 1.72 | Shares On Loan: 46.32 Million
(Updated Daily)
#7. ATER
Short Interest: 64.06% | Utilization: 99.61 | Cost To Borrow: 109.42 | Shares On Loan: 15.53 Million
AMC Entertainment stock is up more than 2000% year-to-date, but it hasn’t squeezed despite what mainstream media is telling you. Momentum and an upwards recovery is why AMC stock is surging again.
So, what will a short squeeze look like?
Welcome to Franknez.com – today I want to discuss what an AMC short squeeze will look like for those of you who are still new in this trade.
Lets get started!
We finally broke AMC’s level of support in the $30 range and start a new chapter towards breaking $50. The stock just recently tested $48 before getting pushed back down by short sellers shorting the stock.
And although shorts are merely suppressing AMC stock from running its course, they are only slowing down the inevitable.
This minor move up to the $40 range combined with propaganda of a short squeeze is meant to divert new retail investors from getting in on this trade. Hedge funds are desperate as they consequently suffer billions of dollars in losses from the ape community alone.
But don’t let them scare you away from your money. AMC has not squeezed as short sellers have not covered their short positions.
There Are More Than 105 Million Shares On Loan
Ladies and gentlemen, if shorts covered their positions and AMC just went through a short squeeze, the number of shares on loan would have dropped significantly.
But they haven’t changed. Shares on loan are the number of shares that have yet to be returned to the lender by short sellers. If this number is not going down, it means short sellers have not covered their positions yet.
And as we know, you cannot have a short squeeze if short sellers do not cover their positions.
We would have also seen AMC’s short interest ultimately get obliterated to 1%-2%. It’s currently deemed ‘extremely high’ at 18%. Short interest is the percentage of short shares in a stock’s outstanding float.
AMC Entertainment keeps getting shorted no matter what the mainstream financial media platforms relay to the public. If you want real news and data subscribe to the blog. No propaganda here.
A Lid Full of Pressure Is About To Pop Open
Short sellers are about to go down in history for having the biggest losses to ever be recording in finance archives.
Hedge funds continue to gamble a trade they have been losing for 8 months now. That’s 8 months of suppressing a stock’s share price through the unethical practices of naked shorting and dark pool trading.
When the lid pops open here’s what you can expect.
Intraday Gains Will Be Astronomical
The short squeeze ‘claims’ from the mainstream media were that of only 20% gains. As this lid pops open, we can expect gains to run between 100%+ during intraday trading.
This is how you will know the short squeeze has commenced. We would need to keep an eye out on the short interest and shares on loan. This is basically our ‘fuel’.
We will be able to predict how much room for growth is available as these numbers go down. For example, if AMC reaches $1,000 per share but the short interest and shares on loan are still relatively high, then we know that AMC has not peaked yet.
The ape community would need to continue to hold to see numbers beyond that amount.
Differentiating Gamma Squeeze VS Short Squeeze
The 20% gains we experienced could be seen as a gamma squeeze. While this could have been a combination of momentum caused by FOMO, it could have also been micro short sellers closing their positions.
However, these micro positions didn’t even affect the short interest or shares on loan. This goes to show just how massive AMC’s share price will surge once big short sellers begin to close their positions.
It’s when these big players start covering that we’ll begin to experience the beginning of a short squeeze.
How Long Will A Short Squeeze Last?
As we begin to see massive intraday gains, the short interest data should let us know how much more ‘squeeze’ we have left. This means that we won’t know just how many days or weeks this squeeze may last for until we have an understanding of how many shorts have indeed closed their positions.
And although we won’t know exactly 100%, the short interest data can be a great guide to let us know how much juice is available on this trade.
This information will be relayed to the community as this trade continues to unfold. For now, we HODL until it’s payday.
We fortunately have a beautiful thing going. Short sellers on the other hand have had a bad day every day for the past 8 months. Now that SUCKS.
That Other World Is Waiting For You
That vision you keep seeing for you and your family is patiently waiting on you just as much as you’re waiting for it to come to fruition.
We are in a very unique position here. The data is out there and you have all the information you need to make this thing a reality for you.
Trey said in a recent video that only you are in charge of your financial situation. This play is meant for everyone to make money. And he’s absolutely right. We cannot tie the community down.
But one thing is certain on my part and that’s that I am not selling until shorts have covered their positions. That’s my promise to you.
Meme stocks have been causing a disruption all of 2021. You might have heard of the infamous GameStop and AMC rallies that originated from the Reddit group, r/wallstreetbets.
Here’s a list of meme stocks causing a disruption in the stock market.
Welcome to Franknez.com – the blog where you can digest content on personal finance, entrepreneurship, and trending investing topics.
Lets get started!
If you’re new to the blog, be sure to browse the incredible library of financial knowledge when you’re done reading this post!
And if you’re not investing in stocks yet, bookmark this article where I walk my readers step by step on how to start.
What’s A Meme Stock?
A meme stock is a heavily shorted stock discovered by retail investors, usually on forums such as Reddit or other sub communities.
Retail investors will then hype these so called ‘meme stocks’ and immensely increase the buying pressure of a particular stock to drive the share price up.
How Long Does It Take For A Meme Stock To Go Up?
We’ve seen that these stocks may take a month to several months to see some serious upswings in the market. Retail investors pump the price by buying the dips and holding the stock until their mission is a success.
While not all meme stocks are pump and dumps, the concept is to pump a stock and hold it to further elevate the floor.
The end goal is to squeeze shorts from their positions to drive the stock price ‘to the moon’. Here’s the most current list of meme stocks seen in the community.
#1. GameStop, GME Stock
Number one on my list is GameStop. GameStop notoriously put many short sellers and hedge funds under stress, starting this incredible retail movement.
GME stock began squeezing just below $500 per share before Robinhood halted buying pressure from retail investors, ultimately limiting its growth potential back in January.
This meme stock is currently up more than 1000% year-to-date. Retail investors continue to hold the stock in order to squeeze the remaining shorts from their positions.
And by far the most popular meme stock at the moment, AMC Entertainment stock. Retail investors who missed getting in early on GME stock saw AMC stock was heavily shorted and decided to bulk up on this meme stock.
The stock sharply rose up to $20 per share in late January before ultimately coming back down to $5 per share. After several months of ‘apes’ buying and holding the stock, AMC Entertainment stock rose to $72 per share and found a new bottom around $32 per share.
The meme stock has been trading in the low $50 range and is currently set up for a short squeeze.
Before its merger with the blockchain compamy Greenidge, SPRT stock had reached a high of $35 per share before ultimately plummeting back to $11. It has now merged with Greenidge and its ticker symbol is now GREE.
This meme stock perhaps lost its status as it still had potential to squeeze higher prior to the merge. However, this stock still caused quite a disruption for short sellers shorting the stock.
This stock has now become a long-term stock depending on your conviction towards blockchain technology.
BBIG stock is a meme stock that surged from $1.25 to close to $11 per share. The stock’s retail momentum has it up more than 500% this year-to-date.
In order for you to have made massive moves with these stocks you would have had to opened a position in them earlier this year.
While investors who bought these stocks early this Summer still profited, investors who bought after could be breaking even or under significant gains.
These Meme Stocks Still Have Room To Squeeze
What’s mind boggling is that these meme stocks are still heavily shorted by hedge funds and short sellers.
GME has been in the high $100s but has now reached $200 again. AMC finally broke its floor of $30 per share and is trading in the low $50s again. The other meme stocks show an increase of short interest data which means they still have room for growth.
Want To Stay Updated On These Momentum Plays?
If you’re thinking about investing in one of these momentum stocks, be sure to do your due diligence first before putting some serious cash first.
Once you have the data at hand, make an honest assessment for yourself and decide whether it is the right financial decision for you to make.
The AMC community has proven to be one of the most open, accepting, and positive communities so I definitely recommend checking it out even if it’s to see what the discussions are about.
Luckily, I update the community with trending stocks and keep an eye out on the data so you’re up-to-date on the next stocks to buy before they blow up. My readers who found out about AMC early this year are now up tens to hundreds of thousands of dollars!
And lastly…
Consider subscribing to the newsletter for more content like this, straight to your inbox! Do you have a position in any of these meme stocks? Or as I like to refer as momentum stocks. Let me know in the comment section below.
You can connect with me everywhere you go by following me on:
AMC Entertainment stock is up more than 2000% year-to-date and no short seller can take that away. Not Gasparino, not Richfield.
AMC stock is adjusting itself for higher highs and higher lows again. Should you be excited? I sure am.
Welcome to Franknez.com – the blog where you can digest content on personal finance, entrepreneurship, and trending financial topics.
Lets get started!
AMC has become our world. It has become such an important part of all our lives. We’ve stuck together through every high and low, no matter what challenges we have faced as a community.
There’s a thick skin in the game now, be proud of it. And if you are a new ape, you now know we really meant it when we said we are not leaving.
Despite the number of opposing forces, AMC is trending in the right direction.
Breaking $48 Level of Resistance
Why is this so important? What happens then?
There’s a lot of facts, data, and logic as to why I’m so optimistic about AMC. And I think a lot of you will agree on what I have to present today.
But before I do, I want to give a massive thanks to the 100+ FrankNez supporters on Patreon. Running a blog at this scale is quite costly and your support means more than you will ever know. I will leave that link at the bottom of the article.
Now, AMC tested $48 four times now and it moved past the $50 mark. We’re now seeing AMC retest this area a fifth time.
The last time we broke $50 per share the stock trailblazed up to $72 per share. We are currently in unknown territory which means retail investors set the play.
AMC Is A High Demand Stock
AMC is a high demand stock no matter which way you look at it. The stock is in high demand from both retail investors and short sellers. Retail buys the stock and shorts equally demand to borrow it.
This momentum play is what’s keeping AMC trending in the right direction. The stock is so popular now that almost anyone who finds out what we’re fighting for will simply join just to fight.
This is great news for you and I because it means the share price will continue to surge and set higher resistance levels as the community keeps expanding.
And as long as shorts don’t cover, apes will continue to raise the bar, setting higher highs and higher lows.
This Trend Is About To Get Bigger
When AMC reached $72 per share all it did was make a statement. It introduced the ape community to the world and gave everyone who heard of us a fighting chance.
It was generous enough to let more people on board when it hit $30 per share. But I don’t think the next time it reaches a low it will be within this range. If it trades like Tesla did, AMC’s next floor could potentially be in the $70-$100 per share (next time around) as it continues to surge.
Will people keep buying? Without a doubt. Think about the institutions who are buying stock worth more than this amount right now. Whales will always buy if they see a rising trend here.
AMC has this rising trend right now. It was up more than 3000% back in June and fell back to 1500%. Well, it’s up more than 2000% now after reaching a higher floor.
Ladies and gentlemen, keep holding this stock. Even if you got in at $70 per share, there’s absolutely no way you cannot make money during this historic event! With that being said, there’s no doubt in my mind every ape in the community will be profitable this month of September.
But don’t be a Wanda and sell to break even. Selling at $70 will only bring the price back down. The stock needs to be comfortable testing higher levels of support.
And as Roensch Capital has said, the higher we can set AMC up fundamentally before the short squeeze, the better.
My advice to you as a friend (not financial advice), is that as you begin to be profitable (on paper), keep letting it ride up. You will thank me later.
AMC Stock Prediction (September)
After seeing AMC trade for 9 months now, I feel confident saying it’s going to be a really happy month for apes. I saw us start small with no voice to now owning more than 80% of the float, saving the movie theater industry, and sparking a movement against corruption.
We are now a community to be reckoned with.
Last month I mentioned August was going to be the last chance apes had to buy AMC stock at $30 per share because I noticed the stock had created a new floor. And I was right!
I was able to stock up at this level share price before it breaking resistance and moving past $40 levels.
If you plan on adding to your position, buy the stock now. AMC stock is about to move past $50 per share this month and if you missed adding at $30 per share, you’ll wish you had added at $40 too.
I’m By Your Side No Matter What
We’ve been in touch on Facebook, Discord, Twitter, Instagram, via email, you name it! You know who you are. Maybe I’ve said it to only a few and maybe not enough but I’m by your side no matter what.
I wish I could mention all you great apes sharing the content. You are the ones changing other people’s lives. If it weren’t for you, some apes wouldn’t even have this amazing once in a lifetime opportunity that we all have!
A while back I wrote an article debating which stock you should invest in, AMC or GME stock? The premise of that article was to identify which stock was more convenient for the new retail investor.
See, both are great momentum stocks to hodl, but GME stock is a lot more expensive for the newcomer to buy. And although AMC has now become the more popular stock, I have a good feeling those hodling GME stock can still see massive gains. Here’s why.
Welcome to Franknez.com – today I want to talk about GameStop stock, ticker symbol GME. Lets look at the data that states this stock is not done climbing up.
Lets get started!
If you’re like me, you probably didn’t get a chance to get in on GameStop before it began to create a ruckus in the financial world. Or perhaps you were lucky enough to get a few shares.
I’m a strong AMC shareholder and will not buy GME stock only because I rather increase my position in AMC. AMC’s short interest is higher, utilization is higher, and so are the shares on loan. It’s also more affordable.
But don’t get me wrong, the reason I’m publishing this post today is because GME stock has enough data that proves it has more juice to squeeze. So, if you’re holding GME stock, this article should help you armor up your conviction towards your stock.
Just to compare, AMC’s is at 18.38% which a short interest of 20% or higher is considered extremely high.
Why Does Short Interest Matter?
Short interest the number or percentage of short shares that have yet to be covered. For stocks with high short interest this means it is possible to squeeze shorts out of their positions.
GameStop stock is considered to have high short interest therefore it has slack to keep moving up. Not all shorts have covered their positions!
If you hold GameStop stock, keep holding it. The longer you hold it, the more money short sellers lose on paper. Once they can’t afford to hold GME stock they’ll be forced to cover.
A high demand for shorting GME stock means there’s a play to squeeze shorts out of their positions. GME shareholders still have a chance to make a ton of money.
Short sellers have not backed off from shorting GameStop and continue to play with fire.
Will Utilization Go Up Again?
If more short sellers open short positions then GameStop’s utilization will certainly go up. At the moment, it seems that there’s only 34% of the stock that’s being borrowed.
I personally don’t think shorts will try to go up against GameStop again. Those that are still shorting it have been holding on for quite some time. However, it’s only a matter of time before they too close their positions and GME stock surges again.
GME Stock: Shares On Loan
GME’s shares on loan refers to the number of shares that are being borrowed. GME stock has approximately 6.80 million shares on loan. We essentially convert the utilization percentage into the actual number of shares that are being borrowed.
That’s a lot of shares that still need to be covered by short sellers borrowing the stock.
GME stockholders could take advantage of the fact that the stock has been on discount recently. Especially if you’re still looking to increase your positions in GameStop stock.
Otherwise, GME stock is a hold play right now where patience will bear some sweet fruit very soon.
This puts short sellers under tough conditions since they’ll need to keep more cash at hand to continue borrowing AMC and GME stock.
And although we’ve seen a little bit of institutional selloff, Charles Schwab continues to hold GME stock. An institution that has not sold GameStop is Vanguard. Vanguard is one of AMC’s biggest institutional holder who continues to buy the stock to-date.
So if there’s something GameStop shareholders can take from this is that institutions are still holding GME stock, and there are still enough short sellers to squeeze out of their positions.
How High Will GME Stock Go?
So, can GME stock reach $1,000 per share. It’s certainly a possibility given that GameStop’s dark pool trading percentage is rather high, according to Stonk-O-Tracker data.
Dark pool trading in GameStop has ranged between 30%-50%. This means 30%-50% of short selling has occurred behind closed doors. Short sellers are able to keep their short borrow fee down with this loophole as well as conjure up naked shares to swap with one another.
However, they’ll eventually have to close every synthetic share they’ve ‘borrowed’ to short the stock. This is massive for GameStop just as it is for AMC.
Is It Too Late To Buy GME Stock?
I would say that you will no longer be able to buy GME stock below 3-figures. If this figure is too expensive for you to build your portfolio then it absolutely is too late.
However, if you’re looking to diversify your momentum stock portfolio, GME stock could be a good stock to hold. Otherwise, you’re better off buying the heavier shorted stock that is significantly more affordable at the moment, AMC.
Subscribe for more stock market news
If you enjoyed this article be sure to share it with someone who needs to see it and subscribe for more stock market and investing news.
New articles are posted daily and emailed out to each reader. Or you can follow me on social media to see when I share a new publication.
Are you holding GME stock? Let me know in the comment section below how high you think the stock can go.
