I’ve recently come across some speculation that AMC is some sort of pump and dump that’s being promoted for a select few to benefit from.
And although mainstream media has been saying this for quite some time, have you ever really given it any thought?
I have to cover this because I want to protect you. Somebody has to ask the hard questions right? Is AMC a pump and dump?
Welcome to Franknez.com – information landed on my lap last night that led me to some deep digging and serious thought. Let’s identify what a pump and dump actually means.
Let’s get started!
How Did The AMC Movement Start?
The GameStop fiasco was going on for quite some time before it became mainstream. GME stock didn’t begin to move up until some time in late October and began to squeeze in late January.
It wasn’t until Redditors noticed AMC was also being heavily shorted early this year. A few of these retail investors were able to buy AMC stock before it gamma squeezed to $20+ per share.
One of the retail investors who was able to get in just days before the runup was Trey Collins from Trey’s Trades. I got in as the stock was coming down, I had not seen Trey’s content at this point.
It was during this time that Robinhood halted buying GameStop, AMC, Blackberry, and other heavily shorted stocks, and the scandal began.
Trey saw that AMC stock still had high short interest and a high utilization rate. These two data figures is what allowed us to build a strong conviction towards a higher share price.
High short interest meant shorts could potentially get squeezed out of their positions with enough momentum and buying pressure.
The data spread like wildfire.
People were excited about the data. Retail investors heard of what happened with GameStop and experienced FOMO to some degree knowing AMC could potentially have a similar runup.
Retail investors at this point are getting in for a short squeeze play.
AMC Retail Investors Get Ridiculed
The media was quick to ridicule average people buying stock. See, opportunity in the stock market in general is not meant to get passed down to the general public.
It’s a game that’s been hidden from ‘average people’ so to speak, to keep classes in line.
When Franknez.com went live on January 1st of 2020, my goal was to spread financial literacy, teach people how to begin investing in stocks, and to help people create a plan to build wealth.
My platform has always been a place for self-education.
When The Fool, MarketWatch, Benzinga, InvestorPlace, and other financial platforms began attacking the community, I couldn’t bear to see people get pushed around.
If you’ve heard my story before, I didn’t want to write about AMC on my blog. But something told me that this platform was created for the purpose of harnessing information that could change the lives of people.
So, I took it upon myself to stand up for the community and publicly share the information that Trey and other TA analysts were discovering. Before I knew it, we were fighting corruption and our goal has been to make real change in the markets happen.
Only then will we see proper price action in AMC and GME stock.
What Is A Pump And Dump?
A pump and dump is where a group of investors promote a specific stock to pump its price up through buying pressure and then selling off during high runups. Pump and dumps are usually orchestrated from the get-go and die off rather quickly.
Here’s the definition from Investopedia:
“Pump-and-dump is a manipulative scheme that attempts to boost the price of a stock or security through fake recommendations. These recommendations are based on false, misleading, or greatly exaggerated statements. The perpetrators of a pump-and-dump scheme already have an established position in the company’s stock and will sell their positions after the hype has led to a higher share price.” – Investopedia
How Do We Compare This To AMC?
How can we use this information to separate what’s occurring with AMC and what an actual pump and dump means?
- Retail investors have been spreading knowledge, not recommendations. Real apes, people – not bots.
- The information provided has not been false or misleading. High short interest, high utilization rate, naked shorting, dark pool trading, it’s all real. These are all facts provided by software that tracks this data in the markets. No one is making this up and mainstream media has finally shed light on this real problem.
- The AMC community has not sold their stock, even during the highs. Selloffs from institutions combined with short laddering explains why AMC’s stock price has been going down after spikes. That is something our community ultimately has no control over.
See, the media portraying AMC to be a pump and dump fails to touch topic on the high short interest rate. They fail to present the manipulation suppressing the stock’s price.
It’s for this reason why I’m breaking this down today. When people looking for opportunity ‘Google’ whether AMC is a pump and dump, I don’t want The Fool to mislead people or scare them from their money.
How about let’s put everything on the table and let the public decide based on the information provided. Maybe they don’t want to put an effort or join a cause fighting for a fair market. Perhaps it’s too much for them.
But at least fair information and facts would have been provided. Community leaders are not trying to convince people to buy the stock. Anyone who bought AMC months back when we published the data is up more than 1000% in gains.
That is a choice retail investors made based on the information that was provided. That same information is why we continue to hold the stock. What’s limiting the data at hand is the increased manipulation in the market.
The AMC Community Demands A Fair Market
The reality is very few retail investors are facing losses in AMC and seasoned investors in the community continue to hold the stock.
Why are we holding the stock? Because it’s being suppressed by hedge funds and market makers who get to mold the rules to their benefit.
We’re seeking regulations from the SEC that will prevent short sellers from creating counterfeit shares and stop dark pool trading once and for all.
Once these unethical strategies are eliminated, retail investors will begin to experience the bigger fruit of their trade. AMC should runup as transactions are no longer masked through dark pools.
This is a serious matter that financial platforms nor hedge funds have addressed. However, the community has made enough noise to get CNBC’s Melissa Lee and FOX Business’s Charles Payne to publicly touch base on this very real matter.
Scandals of Ken Griffin lying under oath have awoken Citadel on Twitter after 9 months of complete silence. Boston and Dallas Fed Presidents, Kaplan and Rosengren have been fired after buying securities while creating monetary policies. AMC now stands for more than just money.
The AMC community has been a beacon for change in the markets. Financial institutions are going to realize very soon just how much they have underestimated each and every one of us.
So, Is AMC A Pump And Dump?
AMC is the reason why a new era will be replacing its current leaders. AMC is not a pump and dump, it’s a beacon for change and a fair market.
I’m going to be the first to say you don’t have to own any AMC stock to fight against corruption within our community.
Owning AMC stock is a bonus. We have the knowledge and data to stick to our convictions and make a life-changing play for ourselves and our families, if we want. We don’t need anyone’s validation anymore.
Buying AMC stock is a ticket to the moon, there’s no doubt about that. However, fighting for a fair market will be the community’s legacy.
A chance at a fair market will increase our probability of squeezing shorts from their positions. The weight of the wait would have been worth it.
Whether you decide to buy, hold, or sell your stock, don’t stop fighting for the community. But remember, diamonds are created under pressure. Your voice is a weapon, use it.
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Do you have any thoughts on why it has been going down recently? And when we should expect it to start going up again?
I’m building amc by selling off other stocks. Everything is so uncertain, but I’m certain AMC will play out. So I’m betting everything on AMC. And sleeping like a baby. Get on board for the ride the price is right now. I’m in at average of 40. Now is a much better time to buy and hold.
In my thoughts, there are several reasons why the share price has decreased. The world and entire market is volatile. Budget uncertainty as we transition from Q3 to Q4. US political/fiscal package not yet agreed upon. Dark pools, heavy shorting, ladder attacks and other tactics being employed by hedgies and MMS. It’s a war. But, I ain’t sellin and bought more yesterday. I believe something will have to give but I don’t think it will have to be us. Of course, this is not financial advise and I’m no financial advisor. Just Holding and buying the dips when I can. Wish you all well.