There comes a point when you realize that in order to build wealth it will require you to build multiple streams of income.
The average millionaire has seven.
The stock market is one way you can invest your earned income in order to start earning passive income and multiply your money.
Here’s how to invest in the stock market step by step for beginners.
Welcome to Franknez.com – the blog where you can digest content on personal finance, entrepreneurship, market news, and trending investing topics.
Lets get started!
I’ve been investing in the stock market since 2019.
When I learned how to open a brokerage account and buy company stock, I knew I had to show people how to do it too.
Everything I found online was outdated so I wanted to make it easy for people to start.
Benefits of investing in the stock market
One of the greatest benefits of investing in the stock market is that you get to hedge against inflation.
Inflation is at an all-time high right now and simply letting your money lose its value isn’t going to create wealth.
The stock market also provides an average return of 7%-8% annually which means those CDs and high yielding savings accounts are a thing of the past.
Even so, you can always create a portfolio bringing in 20%+ annual returns!
In June of 2021, AMC shareholders saw a whopping 3000% return on their investment at its high.
GameStop shareholders saw about half!
Although these trades are much different anomalies then traditional long-term investing, it paints a picture of the power of the market.
Let’s get you started!
#1. Set a Budget When Planning to Invest
Before you begin to invest you will need to set a budget on your first investment(s).
The great thing about the stock market is that you can invest with as little as $50 or so depending on the cost of a share.
A share is a fraction of a company you can own and earn money from as the company grows and profits over a period of time.
Example
If you set a budget of $200 and the share of a company you want to invest in costs $50 then you can purchase (4) four shares of said company.
If a month later the shares you purchased are worth $60 each then your shares would now be worth $240, resulting in a $40 gain.
This is how investing in the stock market works.
Note: I highly recommend having your emergency fund built prior to proceeding with investing in the stock market.
It is important to highlight that the money you invest in the stock market will need to be money you can tolerate losing.
The stock market is volatile meaning the value of your assets is constantly going up and down.
Something to keep in mind is that the value of your investments can go down just as fast if not faster than they went up.
Now, this is not addressed to scare you. The stock on average has an annual return of 6-8% per year.
Why should you invest in stocks?
Investing in stocks is a great way to diversify your portfolio.
You don’t want to keep all your eggs in one basket.
For this reason, the wealthy invest in companies they believe have long-term potential to thrive and to multiply their investment.
#2. Know What to Invest In
Now that you’ve set a budget you’ll need to know what you want to invest in.
Once you do, find the stock market symbol of the company on Google search engine.
If you wanted to invest in Coca-Cola for example, you’d search ‘stock market symbol for Coca-Cola’ on Google.
You’ll see that the NYSE (New York Stock Exchange) symbol for Coca-Cola is KO.
This is how you will identify and search for companies to invest in when you’re in the market to buy stocks.
It is very important to do your research on stocks before investing.
For example, Investors Hangout is a great place dedicated to researching stocks.
Here are some different type of investments you can invest in within the NYSE.
Stocks
A stock is a share of a company just like Coca-Cola.
Buying a share from one specific company is a stock.
Stocks are good to purchase if you strongly believe in the continued success of your choice of company.
Invest in companies that have room to grow and are constantly innovating.
Stocks I personally favor are Tesla, Apple, and Amazon.
These tech companies are always innovating therefore I have strong conviction towards their continued growth and success.
Index Funds
An index fund is a fund that tracks and follows the index (growth) of a group of companies.
When you own a share of an index fund, you own a percentage of a pool of companies oppose to just one company.
What makes an index fund great is that if a company within an index fund isn’t performing very well there are other companies that may balance the overall performance of the fund resulting in a fair return.
A popular choice is the S&P500.
This index fund tracks the performance of the top 500 companies in the United States.
This type of investment tends to be a less risky and yield great profits over the long run.
It’s an investors favorite and I personally hold shares in the S&P500.
A REIT (Real Estate Investment Trust Fund) is very similar to an index fund.
The only exception is that it invests exclusively in real estate companies oppose to other businesses.
If you want to invest in real estate without the hassle of learning the game, using cash up front, or getting into debt, REITs are a great way to diversify your portfolio into the real estate sector.
A great REIT I’m invested in is VNQ with Vanguard.
Which investment is right for you?
Each of these investments has their own benefits.
My suggestion is to research them individually as all of our needs are very unique.
As your skills develop as a retail investor, you’ll find yourself having a diversified portfolio consisting of all three.
Invest in the stock market and learn to identify which investment is best for you.
Price is what you pay. Value is what you get.
Warren buffett
#3. Choose a Brokerage Firm to Begin Investing in The Stock Market
This is the fun part.
Choose a reputable online brokerage firm.
A brokerage firm is a platform where you will be doing all of your investing through the NYSE.
Here you’ll be able to purchase stocks and sell them.
Each brokerage firm has their own customer advantages but are very similar to use.
Here is a list of brokerage firms you can open an account with and sign up for free.
Check out each brokerage firm’s website and see which feels more comfortable for you to navigate.
Do some research on each of them to see which has the strongest potential for your needs. I personally use Vanguard.
How to invest in the stock market for beginners
Note: When you purchase investments, there are small commission fees your investments will pay out to the firm.
They are very small in most cases and don’t hinder your earnings like you’d think. Vanguard has the lowest fees.
Each brokerage firm will have different commission fees and the percentage will vary in each firm.
For example: Coke (KO) will have a slightly different commission fee in every firm despite having the same share cost.
#4. Open your account
For this step-by-step on how to invest in the stock market I’m going to use Vanguard.
Vanguard is one of the most reliable brokerage accounts you can use.
How to invest in stocks for beginners
Head over to Vanguard and select ‘Open an account’.
How to invest in stocks with Vanguard
Select ‘Start your new account’ to get started.
Choose the method you will be funding your new account. You can choose between:
Electronic bank transfer or another Vanguard account
Rollover from an employer plan (e.g., 401(k) plan)
Transfer investments from another financial firm
Most new retail investors will be choosing the first option, using an electronic bank transfer to fund your account.
Before you open your account to begin investing in the stock market you’ll need your bank account and routing number as well as other personal information.
Once you’re in it’s time to transfer funds into your account.
#5. Transfer Funds into Your Brokerage Account
Congratulations! Now that you’ve chosen a brokerage account to invest with, you’ll have the tools at your disposal to begin investing.
Navigate throughout your brokerage website. Get comfortable with where things are.
Things might seem very new at first, intimidating even.
Don’t worry, now that you’ve begun something new, you’ll begin to take the first steps toward self-education.
First, you’ll want to learn how to transfer funds into your brokerage account.
I will be demonstrating step by step how to do this using Vanguard.
Toggle the settings to connect your bank account with your brokerage account so you can start to invest in the stock market.
This direct line will allow you to transfer funds into your account so you may begin to purchase shares.
Once you have this set up you may transfer the money from your budget to invest in.
#6. Make Your Very First Investment in The Stock Market
Now that you’ve transferred your funds over to your brokerage account, navigate through the site to make your very first purchase.
Search the symbol of the stock, index, or REIT you will be investing in.
Note: Before purchasing, make sure you thoroughly navigate the website to get comfortable using it.
This will make the purchase experience a lot easier.
Once you pull up the investment, go through the details provided on the page.
You should be able to see its history, it’s projected return, its risk level, and so much more information about the investment.
Purchase the investment!
Purchase the investment with the option set to ‘Market’.
This option will allow you to purchase the investment instantly at the price it’s worth.
We suggest doing a test purchase since this is your first time investing in the stock market.
This will help you get a feel for it. Purchase one share so you understand the process.
It will serve as good practice and experience.
Congrats on buying your first share!
Follow up on your investment the following day and see whether your investment had gains or losses.
You’ll see for the very first time how your investment grew in value or decreased in value.
You now have a taste of what it’s like to invest in the stock market.
I have personally invested in stocks since 2019 and have learned a lot about the stock market.
In fact, I’m still learning today.
I published an article on the best tips and advice for beginners investing in stocks to further help you on your journey.
Stock investing is all about strategy.
When you make money in the stock market you may let it sit and accumulate over time, or you may cash in your profits and allocate those gains towards other opportunities.
This is why I believe investing in stocks is extremely important to someone who wants to build wealth.
The stock market allows you to multiply your hard-earned money so you may further invest it in other assets.
If you received value from this post please be sure to share it with someone who’s working towards becoming financially independent and who is also building their financial future.
My mission is to help people all around the world attain financial stability in order to live their best lives possible.
What is net worth? Your net worth is the financial value you have after deducting all your liabilities from your assets. Think of your net worth as the vitality to your personal finances.
An over-simplified example would be:
You have $10,000 in savings but owe $2,000 on your car loan and $5,000 in student loans. Your net worth is then $3,000.
Or, you have $10,000 in savings but just financed a brand new vehicle for $35,000 so your net worth is -$25,000. In this scenario you owe instead of own.
Building your net worth can be a challenging yet fun experience during your financial growth.
Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
Lets get started!
So, what are some strategies I can use to grow my net worth?
I’m going to walk you through 5 ways I’m personally growing my own net worth.
Anyone can use these very simple strategies to have money multiplying for them.
What better way to grow your net worth passively than by having a bank consistently pay you a percentage per month for holding your money.
This is exactly what high-yield savings and money market accounts do. I’ve personally seen accounts generating $20 per month in passive income to a little over $200 per month.
This type of account is a better alternative to your traditional savings account from Wells Fargo or Bank of America.
How does this work?
One thing you have to understand is that banks are always moving money. They are always investing money which is why they’re so powerful.
The instance you deposit any money into your bank account, they’re already investing it. Huge commercial banks like Wells Fargo and Bank of America will typically only pay you a penny per year for banking with them.
Ever notice that $0.01 or $0.02 randomly deposited into your savings account? Yup, that’s what you earned for banking with them.
High yielding savings accounts simply pay you a higher percentage for banking with them.
How safe are these bank accounts?
Most of these banks are FDIC insured and can insure up to $250,000. Just like Chase, Bank of America, and Wells Fargo.
What banks offer high-yield savings accounts?
It is important to note that APY rates do change depending on the circumstances of our economy. They were higher previously to the pandemic and have gone down during the pandemic.
This is completely normal though and should not stop you from generating passive income to increase your net worth.
You can calculate an actual interest earned on an investment using this APY calculator.
Here’s are two banks that offer high-yielding savings and money market accounts:
While CitBank and AMEX offer competitive rates, exploring offerings from other banks like Western Alliance bank interest rates can provide surprisingly high returns on your savings.
Given the dynamic nature of APY rates in our economy, it’s wise to consider all available options for maximizing your net worth growth.
Now, although these aren’t very high at the moment, you certainly get a better APY than with a traditional account.
Before the pandemic, my high yield savings account had an APY of 2.05%. I didn’t include BMO Harris on the list because the account now earns less than the others on the list above.
There are more banks I didn’t include simply because they’re around 0.20% and I want to provide you with the highest return possible at the moment.
How can I get the best out of my high-yield savings account?
Use it for your emergency fund and watch it grow
Deposit money every month to accumulate compound interest
Don’t withdraw unless it’s for an absolute emergency
A high yield savings account is not going to make you rich. I personally think the best way to utilize this account is by putting money in it you don’t intend on using unless it’s for a priority emergency.
This strategy allows your emergency fund to grow a little passively without collecting dust in a traditional bank account.
Can I withdraw money from a high-yield savings account?
Yes. However, this is usually done through an ACH transfer which can take up to 3 days to see the balance reflect in your personal bank account.
For this reason I suggest funding both your high yield savings account as well as you personal savings account. Always have liquid funds available.
Your personal savings account should have enough money to take care of something quick and unexpected. Dave Ramsey recommends $1,000 if you’re still paying off debt in efforts to continue paying off debt. I prefer more, but everyone’s situation will vary.
Now that you have your money bringing back more dollars every month, I’m going to discuss a little more about purchasing assets to further grow your net worth.
2. Purchase stocks
Purchasing stocks has never been easier with all the online platforms now available to you. The stock marketing on average provides a 8% return during a period of 10 years.
To put things into perspective, I earned a whopping 40% return of investment my first year investing in the stock market.
What are stocks?
Stocks are assets in companies you can invest in through the purchase of shares. Shares are fractions of a business that you can own through the purchase of said stocks.
For example: If you wanted to invest in Apple, you would invest in the (AAPL) stock and purchase ten, fifty, or one hundred shares of the company.
What are the risks of stock investments?
Most people instantly think risk when they hear the words ‘stock market’. The truth is the only risk is not taking the risk. In my honest opinion, not investing and having your hard earned money collect dust is the real risk.
Your mindset needs to change so you think ‘abundance’ when you think of the stock market.
“The stock market is a device for transferring money from the impatient to the patient.”
Warren Buffett
(Scenario)
What scares most early investors is when they see their first investments take a dive. They spend $50 on a share and a week later it’s worth $44, then they sell the share and lose $6. This is the game plan you want to avoid. Stock investment for the most part should be a long term play.
In this scenario, the strategic thing to do would be to purchase a second share at $44 at a discount and hold it until their worth increases over time. By the time the share is worth $55 your first share would have gained a return of $5 and your second share would have gained a return of $11.
This ladies and gentlemen is how a total investment of $99 can earn you $16 without having to work and give your time to someone else for it. By purchasing assets, you’re able to further grow your net worth.
I recommend you only invest in companies you believe are great companies and have room for plenty of potential growth. These are the companies that are always striving to get better. And when they do, your investments will grow alongside with that company.
How can I invest in the stock market?
You can invest in the stock market through online platforms such as Vanguard, Fidelity, E*Trade, Ameritrade, and Merrill.
Once you create an account with one of these platforms you’ll be able to connect your bank and begin funding your brokerage account so you can purchase stocks.
Most wealth builders have increased their net worth by diversifying their income. Multiple streams of income is what has allowed the wealthy to stay highly successful.
Having more than one stream of income allows you to pivot should one stream lose momentum. During the pandemic millions of people lost their only source of income. Those with multiple streams of income were able to pivot and thrive.
However, when all your streams of income are doing extremely well then you will be doing extremely well.
What are some ways I can diversify my income?
This is the fun part because diversifying your income varies from person to person. Ask yourself, what are you good at? What do you enjoy doing?
You may be working a 9-5 but enjoy making music. Distribute your music online and get paid for every stream. Perhaps you really enjoy driving, take on a ride sharing or food delivery service.
You can find several ways to make money using my side hustles tab where I provide my readers with creative ideas to increase their income.
One thing I will always recommend is building a scalable online business. This can be a blog, YouTube channel, or other streaming service.
The more income you’re able to generate means the more resource you will have at your disposal to begin growing your net worth.
4. Become debt free
What better way than to liberate all your income sources by becoming debt free.
When you’re debt free you can really tackle savings and investments to grow your net worth. Yes you can have debt and still have a positive net worth; however, by becoming debt free you can maximize your investment capabilities.
Freeing up your income capabilities will provide you with the best investing results. This is primarily because when an opportunity comes, you’ll be ready. You will not lack the means to invest like you mean it.
If you have debt, focus on building a small emergency fund then paying off your debt so you may continue to grow your net worth.
Hacks to avoid getting in debt:
In need of a vehicle? Purchase it cash.
Learn to generate money without a college degree.
Avoid payment options provided by store retailers.
Keep your credit card spending limit below 30%.
Debt has a lot to do with our spending habits. If most people cannot manage $1,000 then they won’t be able to mange $10,000 and so forth. Invest in your future self and eliminate debt. You will thank yourself later.
5. Live below your means
This last strategy on the list is very powerful. Very few people have the discipline to stay put as their income level increases.
Living below your means, just like becoming debt free can unlock your savings and investing capabilities.
To live below your means simply means your expenses do not exceed your level of income. In other words, you spend less than you earn.
Keeping your expenses low as you continue to increase your income is a guaranteed way you can grow your net worth even if you don’t invest. This is why this strategy is so powerful.
Example
If you were making $80K a year and got hired somewhere else for $100k a year, keep living the same lifestyle at $80K while you use the additional $20K to build your net worth.
More than often, people will fall into income creep lifestyle where they get a raise and they upgrade just about everything. This is how even high earners have trouble getting off the never-ending cycle of debt and living paycheck to paycheck.
Don’t be average, continue to increase your net worth so that you can look out for your future self and and for your family.
A few last words from Frank Nez
Growing your net worth takes time, serious dedication, and work. There will be times where you’re doing great, being consistent and something happens where you have to take money out.
It’s normal, it’s life. Do not get discouraged when you face roadblocks that halt your growth. Instead, continue to set goals to grow your net worth and make it happen.
Follow these strategies and you’ll be on the path to long-term financial success.
FAQs on Net Worth
Can net worth go down?
Your net worth can be zero if your assets and liabilities break even. A net worth at zero is much better than having a negative net worth.
Can net worth be zero?
Your net worth can be zero if your assets, and liabilities break even. A net worth at zero is much better than having a negative net worth.
Can net worth be negative?
If your liabilities are greater than your assets then your net worth will be negative. This is most common amongst younger people enrolled in college.
Why is net worth important?
Net worth is important because it reflects the health of your financial situation. Whether you’re negative, break even, or have a positive net worth, it says a lot about how you manage your finances.
In this article, we’re going to go over some of the latest developments in AMC, it’s history since redditors took over, and an AMC short squeeze update for the year of 2023.
AMC keeps on keeping on, and although AMC has been on discount recently, retail investors continue to buy and hold it.
Retail investors remain excited about the data that has been collected for years now.
Will we see an AMC short squeeze while we continue to ride today’s bear market?
And if so, how soon?
Welcome to Franknez.com – the blog providing you with content on stocks, crypto, and market news. Today we’re discussing AMC Entertainment stock and its short squeeze update and history.
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 $3.68 on August 15th. The stock continues to be heavily shorted. AMC Entertainment is set up for a short squeeze despite its split.
Shareholders continue to buy and hold the stock.
AMC’s short interest data shows us the stock has the perfect setup for a short squeeze.
Below is a series of documented facts and positive news that all influence AMC’s potential towards a short squeeze.
“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 and has beat every quarter since 2021.
Today, AMC shareholders have saved the movie theatre company again after two major proposals were finally passed following an exhausting lawsuit.
A reverse stock split and conversion of APE shares to common stock will now go into effect later this August.
AMC’s 1-for-10 reverse stock split will go into effect on Thursday, August 24.
The conversion of APE shares into AMC common stock will occur the following day, Friday August 25.
The litigation settlement will then take place on Monday, August 28.
CEO Adam Aron says these dilutive proposals will help AMC Entertainment raise plenty of cash to survive another catastrophic event.
Similarly, Anchorage Capital also closed its doors after betting against AMC stock.
Here’s why this matters:
Hedge funds who try to go against the retail wave will get burned
This is a huge win for retail investors over ‘smart money’ Wall Street
Unless shorts close their positions, hedge funds may suffer big consequences again
Today’s borrow fee rates are higher than they were in 2021 when AMC surged to $72 per share
An AMC short squeeze might be closer than we think
There are a few things retail investors did in 2021 to trigger massive price action:
They held their positions during the ups and downs
Shareholders purchased the dips
Investors shared information relating to a short squeeze (such as this article, 2021) to raise awareness
Kept tabs on charts to know when to buy (during drawdowns)
The incredible thing is 93% of market participants said they will still hold AMC stock in 2023 for a short squeeze.
Will Shorts Cover in 2023?
AMC Entertainment answered questions on short sellers covering prior to its newly approved conversion proposal.
Shares of the company fell more than -30% after hours on Friday as APE shares rose +30%.
On Monday, AMC stock is down more than -33% while APE is up nearly +18%.
Will short sellers be required to cover their positions before the Reverse Stock Split and Conversion?
According to AMC’s new 8-K filing, AMC expects that the deliveries under stock borrowing arrangements will be adjusted in the regular way to account for the Reverse Stock Split or, in the case of contracts on APEs, the Conversion.
However, AMC states that it “does not determine and is unable to provide interpretive advice on the impact of these events on the contractual terms governing stock borrowing arrangements.”
How will short sellers be affected by the Litigation Settlement Payment?
“AMC does not determine and is unable to provide interpretive advice on the impact of the Litigation Settlement Payment on the contractual terms governing stock borrowing arrangements.”
AMC’s reverse stock split will go into effect on Thursday, August 24.
The conversion of APE shares into AMC common stock will occur the following day, Friday August 25.
The litigation settlement will then take place on Monday, August 28.
Will there be large failure-to-deliver (“FTDs”) like when the APE was distributed?
AMC Entertainment states that while they cannot predict the trading impact of these corporate events, given the significant transactions that will occur over successive trading days, it is possible there will be large FTDs like when the APE was distributed.
Looking Back at the Events Prior to AMC’s Short Squeeze in 2021
Adam Aron gives positive news on AMC Entertainment – Archive 2021
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 tried to redirect the public from investing in AMC stock while the company was finally reporting positive news.
That’s primarily because hedge funds were losing so much money daily as share prices continued to rise.
A short squeeze became the ultimate threat to hedge funds with massive bets towards the downside.
Today, AMC Entertainment is in a whole other world compared to where it started in 2021.
Is AMC Shorted?
AMC’s current short interest is around 27.76%, which is much higher than it was when AMC shares skyrocketed to $72.
As of 8/15, we’re seeing 200,000 shares have been made available to borrow, via Stonk-O-Tracker.
While shorts might have the capability to short AMC stock, this is only temporary.
The retail community has made big enough ruckus to where regulators are finally investigating naked shorting, or at least acknowledging the problem.
What does this mean for the AMC shareholder?
Short sellers have used this rinse and repeat process for years now.
The important thing in 2023 is that AMC is able to continue raising cash to eliminate the short thesis.
Not only has bankruptcy been off the table since 2021 (via. Los Angeles Times), but AMC movie theater attendees have increased drastically in 2023.
This in turn has increased revenue and helped AMC Entertainment pay off more debt in the past two years.
AMC Entertainment Quarter Earnings History (2021)
Below are AMC’s quarter earnings for 2021, the year the ape movement began.
AMC announced their Q1 earnings for 2021 on Thursday, May 6th.
Things have been looking particularly bullish and optimistic since that point.
The only thing getting in the way has been market makers who have big advantages over the average retail investor.
If you missed the conference call years back, you can view it here for your viewing pleasure.
It’s really hard to tell when an AMC short squeeze may occur.
Experts, analysts, and shareholders can’t identify an exact date and time because of how random the probability may be, as seen in 2021.
However, the possibility of an AMC short squeeze is certainly possible given that it is still a very heavily shorted stock.
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 out of the picture, it’s only a matter of time before others close their positions.
That is if retail investors can build enough buying pressure in 2023 like they did in 2021 to drive share prices up.
In the end, it truly is all up to retail investors!
Will investors be able to create another AMC short squeeze in 2023?
That might be a little harder now with all of the company’s dilutive proposals going into effect soon, but it doesn’t mean it’s still not possible.
Trey’s Trades AMC prediction
With that being said, Trey’s Trades predicted a short squeeze in 2021. Trey was a leader in the AMC community back in the day, though he’s recently taken time off from stock content on YouTube.
Data points towards AMC stock reaching $1000+ per share according to his research.
See what Trey had to say.
AMC short squeeze – AMC Stock Forecast – AMC Stocktwits | Trey’s Trades on AMC Short Squeeze.
The real question is, how can retail investors make this AMC short squeeze happen?
We know that short-sellers eventually have to close their positions. 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.
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.
However, demand must exceed supply by a monstrosity amount, as we saw in June of 2021.
The results? A short squeeze.
Just make sure to take your profits this time.
The last thing you want is to see your gains turn into losses.
Hedge funds are doing everything they can to prevent a short squeeze
How are they doing this?
By promoting false information through MSM (we’re certain you’ve seen it)
Through strategies such as short-ladder attacks in the market
Dark pool/off exchange trading
HFT and Spoofing
And, by restricting certain brokerage accounts from allowing its retail investors to purchase or buy shorted stocks as seen with Robinhood (Robing hood)
This is what retail investors can do to fight corruption:
Share content that presents facts, like this article and others to raise awareness (blog posts, analysis videos, etc.)
Continue to educate yourself and make investment decisions based on your personal analysis
What is interesting however is that Goldman Sachs has now given AMC Entertainment a price target of $175 per share in 2023.
MarketBeat reports that on July 24, 2023, Goldman Sachs gave AMC Entertainment a ‘Boost Target’ action and ‘Buy’ rating with a whopping price target of $175.
And CoinCodex is predicting AMC Entertainment stock to soar more than +9,000% by the year 2030.
“Based on the average yearly growth of the AMC Entertainment Holdings stock in the last 10 years, the AMC Entertainment Holdings stock forecast for the beginning of next year is $ 8.19.
Using the same basis, here is the AMC Entertainment Holdings stock prediction for each year up until 2030.”
The long-term AMC Entertainment Holdings stock price predictions are as follows:
By year 2024, AMC Entertainment is predicted to soar +90.66% from today’s current share price to $8.19.
In 2028, AMC stock is predicted to trade around $108.21 per share, a gain of +2,419% from today.
And by 2030, CoinCodex predicts AMC will trade near $400 per share, up more than +9,000% from today’s trading price.
In 2023, investors will need to identify the primary reasons to invest in AMC Entertainment stock today.
Redditors have touched base on this topic and are determined anything below $100 is a buy, for a short squeeze that is.
However, with so much dilution happening in 2023, you might want to consider writing and coming up with your own best-case and worst-case scenario plan.
The approved proposals is a massive win for the movie theatre company whether you strongly agree with them or strongly do not.
Identifying why you’re still invested in this company or why you would like to is something that will vary from individual to individual.
“The steps we will be taking now are shareholder approved and mean the following to AMC:
AMC will be more resilient: Were it not for our ability to have raised equity over the past three years, AMC simply would not have survived the pandemic-induced decline in our business. Looking forward, the flexibility to raise equity capital at the appropriate times is an absolutely vital tool for any large company, and AMC is no exception.
We eliminate capital raising inefficiencies of APE units trading at a significant discount to AMC shares: Converting APE units to AMC shares results in a single price for all AMC equity. This single price eliminates the unnecessarily high dilution caused by the lower market price of APE units. For the past full year, for example, to raise cash, AMC could only sell APE units, and they only could be sold at a great discount to AMC shares. With single equity capital structure, I believe AMC will be able to raise equity capital more efficiently and on better terms in the future.
“Some of you fear dilution is a mistake no matter what. You are wrong.
To the contrary, sometimes raising money is an absolute imperative.
Over the past twelve months, for example, AMC raised $418 million of cash through the sale of APE units.
As of the most recent June 30 quarter end, AMC had $435 million of cash on hand.
Can you imagine how dire our circumstances would have been if we hadn’t had the foresight to raise that cash?
Companies that run out of money face financial ruin.
Just ask Cineworld/Regal shareholders, or ask Bed, Bath and Beyond shareholders.
But at AMC at the moment, we have a positive market cap, and we are so much stronger because we raised money along the way,” said Adam Aron on Monday.
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.
However, AMC Entertainment Holdings, Inc. is in a completely different world today than it was during the pandemic with box office number reaching pre pandemic levels.
AMC Announced a new record high earnings report last Tuesday.
Analysts have been expecting big earnings results from the movie theatre chain due to the rise of this year’s second quarter box office numbers.
“While we still have much work ahead of us on this front, AMC’s glide path to eventual recovery continued with significant pace in the second quarter of 2023 as our results set new records and represent AMC’s strongest second quarter in four full years.
Following an impressive start to the year in the first quarter of 2023, the second quarter yet again showed great progress.
AMC saw more than a 12% growth in attendance, a 15% growth in total revenue and a 71% increase in Adjusted EBITDA compared to the second quarter of 2022.
Indeed, Adjusted EBITDA was $182.5 million, the highest such quarterly figure since the fourth quarter of 2019,” said AMC CEO Adam Aron.
Barbenheimer Produces Big Results in 2023
Towards the end of July, AMC Entertainment broke a 4-year weekend high record as “Barbenheimer” produced results bigger than expected.
The results demonstrate AMC’s path to recovery is also strong in Q3 of 2023.
“Barbie” ended up with $162 million in its first weekend of release, above Sunday’s already record-breaking estimate of $155 million. The Warner Bros. film, starring Margot Robbie declined just 9% from Saturday to bring in $43.7 million on Sunday.
Those ticket sales rank as the biggest opening weekend of the year, besting “The Super Mario Bros. Movie” ($146 million).
“Barbie” also marks the biggest debut ever for a film directed by a woman, overtaking Anna Boden and Ryan Fleck’s 2019 blockbuster “Captain Marvel” ($153 million), says Variety.
“Oppenheimer,” also beat expectations with $82.4 million, slightly higher than Sunday’s huge $80.5 million projection.
At the international box office, Oppenheimer added $98 million for a global tally of $180 million.
“The box office powered to its fourth-biggest weekend in history with over $300 million industrywide, said Variety.
What If a Short Squeeze Doesn’t Happen?
If an AMC short squeeze doesn’t occur, AMC stock price should still go up during the longer term process allowing shareholders to make at least some sort of profit.
That is, as long as the company continues to improve going into 2024 and the rest of the decade.
With AMC theaters now open since 2021, it’s inevitable that the company will begin to see bigger sales revenue every time a new title is released.
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.
It’s also important to keep in mind that majority of the float is also held by retail investors, so the company has a huge support.
AMC hasn’t squeezed yet primarily to two main reasons.
The stock requires volume to drive the stock price action up
Shorts need to close their positions
Volume will surge as more and more retail investors (as well as institutions) get in on AMC stock.
Regarding shorts closing, 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.
As of 8/15 AMC’s short borrow fee rate is a whopping 921.1%.
Interactive Brokers Chief Strategist Steve Sosnick says there’s big demand to short AMC Entertainment (NYSE:AMC) stock.
He says the biggest reason aside from the company’s fundamentals is its new merge with its equity (NYSE:APE).
“It’s very hard to keep the momentum in these things because economic reality does take hold.
Bed Bath & Beyond, at one point was the best performing stock on the board until reality set in and they began defaulting, averted bankruptcy, but using a deal that is so dilutive that it’s unavoidable.”
Sosnick says AMC is in a very special situation because of the proposal to merge APE with AMC common shares.
“Right now we’re seeing such a demand to short AMC partly because of its difficulties but partly because of the special situation.
This really is what they were looking for in some ways as the mother of all short squeezes.
The borrow rate, it costs you 700% to borrow the shares overnight — if you can find them,” said the Interactive Brokers Chief Strategist on Yahoo Finance.
Is AMC Entertainment stock about to squeeze this year?
“Redditors, thank you so much for helping create the best pipeline we’ve ever had”, said Ken Griffin on Business Insider.
Ken Griffin, on how the GameStop frenzy helped raise Citadel’s profile with potential hires.
Business Insider says the SEC found no truth to any of the conspiracy theories but how can the SEC really go against one of the most powerful hedge funds in the world?
Transcripts showed Citadel and Robinhood did in fact have “blunt negotiations” the night prior to the halts.
A Miami district court judge admitted the Citadel and Robinhood transcripts were suspicious.
However, the federal court has dismissed the case due to a ‘lack of evidence’.
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.
Support Your Favorite Blog for Only $1/mo.
Your support helps maintain all the costs it takes to run a blog at this scale.
Together, we’ve been able to place AMC Entertainment articles on the #1 page results on Google and get featured on the ‘news’ section, combating mainstream media.
The mission of this platform is to spread the truth corporate media isn’t willing to, by giving the people in our community a voice.
Market News Daily: MMTLP scandal gets recognized as one of the biggest Wall Street fraud events.
The MMTLP scandal is being recognized as one of the biggest Wall Street frauds of the decade.
One of the most recent scandals has been that of the ‘meme stock’ frenzy when broker firms, hedge funds, and even regulators colluded to stop AMC, GameStop, and other stocks from rising.
Investors who held shares of MMTLP stock on the record date of December 12 would receive a preferred dividend of Next Bridge Hydrocarbon on Wednesday, December the 14th.
Investors anticipated a long-awaited MMTLP short squeeze during the last few trading days prior to the spinoff — primarily due to big buying volume flooding the market to receive Next Bridge Hydrocarbon shares.
However, MMTLP stock stopped trading on Thursday, December 8 after FINRA delisted the security without notice or warning.
“Effective Friday, December 09, 2022, the Financial Industry Regulatory Authority, Inc. (“FINRA”) halted trading and quoting in the Series A preferred shares of Meta Materials Inc. (OTC Symbol: MMTLP).
Pursuant to Rule 6440(a)(3), FINRA has determined that an extraordinary event has occurred or is ongoing that has caused or has the potential to cause significant uncertainty in the settlement and clearance process for shares in MMTLP and that, therefore, halting trading and quoting in MMTLP is necessary to protect investors and the public interest.
The trading and quoting halt will end concurrent with the deletion of the symbol effective Tuesday, December 13, 2022.”
“See also Form S1 Registration Statement for Next Bridge Hydrocarbons, Inc. stating that…immediately after the Spin-Off, all shares of Series A Non-Voting Preferred Stock of Meta shall be cancelled. Available here.”
Next Bridge Hydrocarbons Weighs In
In simple terms, FINRA’s only explanation was that the halt was due to ‘uncertainty’ in the settlement process which could harm investors and public interest.
And perhaps that’s true — though shareholders don’t think they were referring to retail investors at all, but rather FINRA’s private investors and institutional partners, the hedge funds.
Next Bridge Hydrocarbons released the following statement regarding the MMTLP halt.
“We recognize that some of our shareholders who owned Meta’s Series A Non-Voting Preferred Stock prior to the Spin-Off might have been affected by FINRA’s halting of the trading in that stock while the Company was still wholly owned and controlled by Meta.
The current board and officers of the Company have no information from FINRA regarding the Trading Halt other than the information in the public notice published by FINRA announcing the Trading Halt.
Further, FINRA did not provide any advance notice to the Company or Meta prior to its initiating the Trading Halt.
While we were not involved in the Trading Halt, we certainly empathize with anyone adversely affected by the Trading Halt and are assessing the matter.
The Company believes that our primary means of delivering shareholder value is to develop our interests in the Orogrande Basin, and we remain focused on this objective.”
But investors remain confused as to what happened to their money which was frozen from trading prior to the delisting.
What’s happened with MMTLP has become one of the biggest Wall Street frauds in financial history.
Real People Have Been Affected
“It was the anniversary of my husband’s passing; it was a really hard time. My kids all understood what was happening with MMTLP, and it was hard for them to understand, it was hard for me to admit to my kids the depth of the dishonesty, and lying, and cheating, and stealing that goes on in our country”, says MMTLP investor Deborah W.
“I went through the 18 months of just stringing me and my family and everyone everybody with holding off on things that we might have wanted to do; vacations we wanted to take, because I didn’t want to pull any of the money out of what I had in. And MMTLP, I had liquidated other positions, I took every spare dime we had, and I put it towards MMTLP”, says Huck, another MMTLP investor.
FINRA placed a U3 halt on MMTLP on the final days before it was delisted.
It was one of three U3 halts in the OTC market in U.S. history.
The U3 halt froze MMTLP shares so shareholders couldn’t buy nor take their money out from the security.
MMTLP was delisted, robbing MMTLP investors of their money right in front of their eyes.
The delisting protected hedge funds from having to close their short positions right before shares of MMTLP stock began to rise, or squeeze.
Retail investors are naming the MMTLP scandal one of the biggest Wall Street frauds in financial history.
Investors lost their entire retirement funds and life savings in MMTLP.
Aside from the public announcements in the beginning of this article, FINRA nor the SEC have been able to explain truly what happened to investors shares of Next Bridge Hydrocarbons, or their money invested in MMTLP stock.
In the video below, MMTLP Studios goes over possible solutions the SEC and FINRA can take to make things better, along with other investor comments.
Were You Affected by the MMTLP Wall Street Fraud?
First, I’d like to say that my heart goes out to those affected by this unfair and unprecedented event in MMTLP.
Many investors in several communities are experiencing blatant manipulation in their favorite company stock in similar or their own unique way.
Raising awareness is the first step to getting the message seen.
I’ve seen and heard some of your stories through the community.
If you were affected by the MMTLP Wall Street fraud and would like to share your story, please feel free to comment it down below for other retail investors to see.
Share this article to get your voice and story heard.
Market News Published Daily
Market News Today – MMTLP Scandal Recognized as Biggest Wall Street Fraud.
For stock market, business news and updates,join the newsletterto receive weekly market news and notifications straight to your inbox.
Franknez.com is the media site that keeps retail investors informed.
A threshold security protects stocks that have had 5 consecutive settlement days in a clearing house as “Fail-To-Delivers“.
Protection from the SEC also requires that the stocks FTDs total more than 10,000 shares.
A fail-to-deliver for our new retail investors basically means that an investors trading contract, such as a call option, was not executed when it should have been.
This occurs when a clearing house does not deliver on their obligation to close the contract.
This creates fail-to-delivers which in turn limits the momentum and growth of a stocks price action.
In other words, it tampers with the natural flow of a stock’s growth.
FTDs and naked shorting
Another known cause for FTDs is the practice of naked short selling.
This is when hedge funds trade imaginary shares that they don’t own or exist.
These transactions fail to clear since the shares were never in a traders account to begin with.
This illicit activity is basically like adding zeros to a check you received without the full amount being in that account.
When you get caught you’ll eventually have to pay it back.
It’s that or you go to jail but we all know these sleezy people always get bail.
Well now the SEC has gotten involved and is saying no more.
A threshold security comes with regulations that heavily play in retail’s favor.
One of the regulations is known as rule 204.
Rule 204 requires brokers and dealers that are participants of a clearing house to close out failure-to-deliver positions.
Yes you read that correctly.
Here is the source straight from the SEC’s “key points” under III. Regulation SHO.
“Closing out requires the broker or dealer to purchase or borrow securities of like kind and quantity.”
SEC
AMC Entertainment was added to the NYSE Threshold Securities list on Friday, June 25th 2021 during the ‘meme stock frenzy’.
This year it made the list this month.
Section 203(b)(3) states that clearing houses must close FTDs if they persist on to 13 consecutive trading days.
Why it Matters
It’s a win-win situation for retail investors. If hedge funds continue to manipulate the market and generate FTDs then they’ll be obligated by law to cover the millions of dollars and shares they’ve been failing to process.
On the other hand, if shorts begin to properly exercise contracts then we will begin to see momentum pick up rather quickly from executed trades. This too can create several gamma squeezes due to the amount of volume being pumped into the market.
By adding AMC Entertainment to the Threshold Securities list, the SEC is basically stepping in and calling hedge funds out on the court.
It’s a way of saying things need to be done the right way or else.
I’m extremely curious to see how this will play out.
