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AMC stock has had a crazy play in the market thus far. Redditors and even Fox Business are determined it’s going to squeeze. More AMC stock news has arise with 100/100 short squeeze data. So, is now a good time to buy AMC stock?
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AMC has been the talk in the finance and investing world. Institutions such as Citadel were betting on AMC going bankrupt. That means no more movie theaters for all of human civilization. As if, right?
AMC is no longer on the brink of bankruptcy and has raided more than $2 billion dollars to keep them afloat until the end of 2022. This is not including the revenue they will be bringing in from ticket sales and food and beverage.
AMC Entertainment has also just recently acquired both The Grove and The Americana Cinemas. This is massive news for the AMC community as the company takes on bigger roles through business fundamentals.
AMC’s community has grown immensely
If you’re looking to get into a community that’s against a corrupted financial system then the AMC community is the perfect place for you to gain an insane amount of knowledge.
This community has uncovered stock market manipulation, received the attention of the media, and have some of the biggest influencers of our time backing it up.
Apes continue to buy AMC stock till this day. This momentum trading is neither bullish nor bearish. It’s apeish.
AMC’s short squeeze data
You can find loads of information about AMC’s short squeeze data here on the blog, on AMC stock Reddit, or on YouTube.
After several analysts took notice that the stock was being heavily shorted they began posting this information on AMC stock Reddit where it grabbed the attention of everyone else who missed GameStop’s gamma squeeze.
AMC stock is currently in the $33 range, give or take. It is costing short seller 1.10% interest to hold their positions, via Fintel. And although the short borrow fee has recently gone down, it costs retail investors nothing to hold the stock.
Shorts betting against the stock are also facing major scrutiny from brokers such as JP Morgan and Charles Schwab. These two broker firms have begun to raise margin requirements on both AMC and GME stock.
If hedge funds continue to overleverage their positions then they will be forced to close out their positions, initiating the mother of all short squeezes.
Read: When do shorts have to cover their positions (AMC)?
The biggest transfer of wealth in history
Redditors on r/wallstreetbets found out AMC was the #1 shorted stock via MarketWatch. At least until the hedge fund affiliate removed it from their list.
New retail investors be warned, you’re in for a ride. Hedge funds are playing dirty.
Why did they do this? Perhaps to divert retail investors from buying the dips. See, when AMC squeezes it’s going to leave these hedge funds negative billions of dollars. All meanwhile retail investors make some rather life-changing wins.
It’s no doubt that when this happens we will be witnessing one of the largest transfers of wealth in history.
AMC was around $30 in 2016
People don’t tend to look far back enough to see that AMC was a healthy $30+ back in the booming party economy of 2016.
The stock price went as high as $35 in 2017. Here’s the link where you can check the price prior to the pandemic –> Link. We are not hitting all-time highs based solely on fundamentals.
The stock was falling little by little after 2017 due to the amount of debt AMC amassed, however; AMC has raised enough capital to start off clean in 2021.
The previous price point is worth mentioning because it gives us a glimpse into the threshold where shorts are losing a lot of money. Any price above $35 and hedge funds are really feeling it!
- More than 90% of AMC movie theaters are now open as of March, 31st
- AMC Entertainment has raised more than 2.2 billion dollars in cash
- Vaccines and movie theater policies are making movie theaters safe
- New movie titles are guaranteed to increase sales revenue
- CEO and President Adam Aron expresses an optimistic future for AMC Entertainment
AMC stock is currently treading the $40 mark but has traded as high as $70. We’ve saw AMC’s share price in the beginning go up from $2.50 all the way to $20. We’ve seen a little of a selloff but this is normal. Investors will sometimes take small profits but continue to hold majority of their stake in the company.
The AMC community aren’t the ones causing red days. Short sellers continue to borrow shares to bring the price action down. Once retail investors manage to bring the price above $80 it’s game over for hedge funds.
$80 will lead to $100, $200, and eventually trigger a short squeeze.
Read: AMC stock price to $100 per share soon?
Will AMC squeeze?
The probabilities of AMC squeezing are rather high. The stock is heavily shorted.
The #1 reason why AMC will see a short squeeze is because shorts have not closed their positions.
And unfortunately for them it’s a lose-lose situation. We suggest they close where AMC is consolidating before it begins to rise again and see new levels of resistance; where at this point there’s no going back.
Short-sellers, take your loses now before they’re greater down the road.
So, is now a good time to buy AMC stock?
Absolutely. AMC stock is a ticking rocket ship waiting to take-off.
With theaters reopening, more and more institutions loading up on shares, and vaccines out to the public, AMC is a great buy with our without a short squeeze.
Read: What the fool isn’t telling you about AMC stock could hurt you
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