Market News: AMC CEO announces 1 for 10 reverse stock split.
AMC Entertainment CEO Adam Aron announced the possibility of a 1-for-10 reverse stock split.
Shareholders are wondering what this would mean for their investment.
The idea is to give shareholders the illusion of a higher share price by reducing the number of shares they hold.
The value of an individual’s portfolio would remain the same amount.
However, if an investor holds 10 shares of AMC, they will convert to 1 share.
If an investor holds 100 shares of AMC, after a 1-for-10 reverse split they will hold 10 shares.
All for the sake of making the value of AMC shares appear much higher.
With AMC currently trading around $4.90, a 1-for-10 reverse stock split would mean the stock will then trade at $49 per share.
This in turn makes AMC Entertainment less affordable for new retail investors to pick up, yet more attractive now while share prices are this low.
Buying 10 shares of AMC today for $49 will still be worth $49 during the completion of the reverse stock split, except you’ll only own 1 share instead of 10 shares.
CEO Says Shareholders May Convert APE into AMC
What is happening with AMC and APE?
Adam Aron said on Twitter that there will be a shareholder vote to convert APE preferred shares into AMC common shares.
“Also, APEs worked exactly as intended to let us raise needed cash, buy back debt, explore M&A. But a huge discount in APE market price vs common stock must be addressed. We’ll hold a shareholder vote. It’s time to convert APE preferred into AMC common to eliminate that discount.”
This will essentially combine APE’s and AMC’s value together.
Is this a smart strategy?
Well, it definitely buys AMC Entertainment time.
Short sellers now have to short AMC from a higher price point and if investors chose to sell their stock, it wouldn’t take AMC to pennies like it could at current levels.
Opinion: Adam Aron is a master at pivoting.
There are no official dates yet to when shareholders will be able to vote on this proposal.
Leave your thoughts below
If you’re a shareholder, leave your thoughts below on these proposals.
Are you for them?
Do you think the CEO is making the best decisions for the company and its shareholders?
Leave a comment for the community to hear your thoughts.
Hedge funds may be incentivized to close their short positions in AMC stock as the cost to borrow increases. At some point, it’s not worth paying that high of a fee to continue shorting a company that has fundamentally improved.
AMC is no longer the same endangered company it once was during the pandemic.
The company has improved every quarter since 2021 and has managed to get rid of most of its debt.
The world’s largest movie theatre continues to innovate and adapt to the changing world.
While online streaming threatened the industry, revenue from box office hits has proved people are still going to the movie theatres, despite the convenience of watching movies at home.
Short sellers are betting against a recovering and innovating film industry generating billions in revenue now.
As AMC continues to prove itself fundamentally and the cost to borrow rises, expect short sellers to begin closing their short positions.
Here is where patient investors will see massive returns.
AMC Short Squeeze – AMC Entertainment 2023 – AMC Stock Price – AMC Stock Squeeze
Will AMC squeeze This Year?
The Fool thinks you should sell your stock, but retail investors aren’t budging.
Mainstream media who serve hedge funds in a conflict of interest have been egging retail investors to not buy the stock all of 2021.
If you listened to The Fool who told you not to buy AMC when its share price was low, then you would have missed out on a trade that went as high as 3000% in gains!
While the runup to $72 per share might have caused AMC’s short interest to drop to 14% from 20%, AMC’s short interest has now gone up to 22%.
Ladies and gentlemen, AMC stock has plenty of room for growth in 2023.
Welcome to Franknez.com – the blog that provides retail investors market news with integrity. Today we’re discussing AMC’s short interest data to determine whether it will squeeze in 2023.
Will AMC stock squeeze in 2023? Game over short sellers | AMC Stock 2023 – AMC Stock Price
AMC has a high enough short interest to squeeze shorts from their positions in 2023.
Sitting at 22% short interest, it’s more than enough to get the price up well into the high hundreds of dollars per share.
Whether regulators will investigate naked shares, FTDs, and other forms of counterfeit shares for hedge funds to cover is another topic.
AMC will need momentum if it’s to see another massive runup in share price.
Furthermore, hedge funds will lead their customers into losses for the second year in a row if retail investors continue to buy and hold the stock in 2023.
AMC Entertainment stock has plenty of room for growth and mainstream media doesn’t want you to know it.
If you’re lucky enough to get involved in the ape community you’ll find yourself fighting for a fair and transparent market, where your voice means everything.
Reasons why AMC wont squeeze in 2023..
I’ve always been transparent with the community.
There are many of you who got in when I first began publishing the data early last year and are sitting on unrealized gains today.
And although AMC could have squeezed during various occasions last year, there are still things that can hinder AMC from squeezing this year.
Here’s a list of things that will refrain AMC from squeezing shorts from their positions:
Retail investors start selling AMC stock
Retail investors stop buying AMC stock
New buyers aren’t introduced to the stock or short interest data
The AMC community has not had a problem holding or buying the stock.
One of the biggest problems the community faces today is regulators not protecting retail investors against the predatorial strategies from hedge funds.
The community has always been a beacon for change.
Apes will need to voice market concerns to elevate awareness.
AMC stock had multiple chances to squeeze in 2021, however, hedge funds always found a loophole that would prevent them from reporting information, or trading stock in the lit exchange.
Market manipulation continues to be a threat to every retail investor in the market.
AMC Entertainment was on the brink of extinction, it was about to go bankrupt.
Hedge funds took this opportunity to overleverage their short positions in the stock, betting it would close forever.
Once retail investors got in and saved the company, the community uncovered a number of market manipulation tactics that allowed hedge funds to prevent the stock’s share price from soaring.
The fight for a fair market continues in 2023.
For the ape community, this is more than just a short squeeze play.
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.
So where is TD Ameritrade pulling up this information from?
They actually have a response to that.
Welcome to Franknez.com – the ape community has mentioned from time to time that a lot of the data provided by financial institutions is skewed. Here’s an example that happening right now.
“Our news and research is provided by Third Party Vendors”
So, why is this short interest data important?
Retail investors rely on the short interest data to determine how much of a company’s float is being shorted.
The short interest that Ortex is reporting is significantly less than that of TD Ameritrade’s.
TD Ameritrade’s short interest data is more than double that of Ortex.
Short interest data also enables us to see how much ‘squeeze potential‘ there is in a heavily shorted stock.
At least to a certain degree.
So if we have sources reporting masked or hidden short interest data, it’s deceit in many accounts.
Or is this simply a glitch from TD Ameritrade?
TD Ameritrade AMC Short Interest Tweet
The ape community is questioning why ticker symbol AMC is the only stock that has had a significant number of glitches throughout the year.
Or are the real numbers being masked to divert the public from jumping in on this short squeeze play.
The data comes from MorningStar but both TD Ameritrade and ETrade experienced this anomaly in their system.
TD Ameritrade AMC Short Interest 40.25
According to TD Ameritrade, this was a glitch in their system.
However, the data would have not been changed unless the retail community pointed it out.
Was this a mistake on their end that retail was not supposed to see?
Or was this legit one of several glitches that has been occurring specifically for AMC Entertainment stock?
I’d love to know your thoughts in the comment section below.
Thank you for asking. We've checked and found the data to not be correct. Our technology team is working to correct the information. We have no ETA but hope to have correct data restored soon. Thank you for your patience. ^ZJ
The broker is stating their technology team is working to correct the information but have no ETA as to when the correct data will be restored.
Why so many glitches with AMC stock?
AMC Entertainment has been experiencing several glitches throughout 2021.
They have varied from skewed data such as the short interest, to chart patterns, and even share price.
The ape community has concluded over the months that AMC’s short interest data is significantly higher than what is being displayed.
Lou from the YouTube channel has even concluded that AMC’s share price is being masked and could be in the hundreds to even thousands of dollars per share.
Now, while these are rather extreme claims, it’s not difficult to understand why such claims have been made.
AMC is one of the most overleveraged stocks from hedge funds shorting it.
Millions upon millions of shares have been borrowed to short it all year.
As more hedge funds close, and others continue to bleed their customers, retail investors suspect they will do everything in their power to deceive retail from squeezing them from their short positions.
An interesting narrative, but a very likely one just as much.
What other glitches have you seen in AMC stock?
Out of the several glitches that have occurred, what other glitches do you recall seeing in AMC Entertainment stock?
This is the fee short sellers are paying annually to borrow short shares in efforts to suppress the stock’s share price from creating a short squeeze.
Short sellers could face serious losses as the movie theatre chain stock begins to move up in price again from retail buying pressure.
As hedge funds begin to play the long game and begin to buy the stock again, the reality for the short seller could be disastrous.
In 2021, AMC shareholders were able to move AMC’s share price from $2 per share to $20, and then from $9 per share to its all-time high of $72 per share based on momentum alone.
AMC retested the heavy demand zone at $6 per share and even retested above the $8 level.
However, share prices have broken below these levels going into the new year.
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AMC’s Rising Share Price Spells Trouble for Short Sellers
Is AMC about to squeeze shorts again?
Retail investors continue to take on Wall Street in 2023 as long-term shareholders continue to buy and hold the world’s largest movie theatre chain stock.
#AMCSTOCK and #AMCSQUEEZE have been trending on Twitter for two years in a row now, signifying shareholders aren’t leaving.
After price rejection at $6 levels, AMC finds itself trading above $7 per share having retested $8.32 in the past two week.
AMC’s short interest is already over 22% according to Fintel, the same short interest it was before it began surging to its all-time high.
Retail investors have been waiting for AMC to trade above $100 per share since last year when it almost went up to those levels.
But with the extremely high short borrow fee rate, shareholders are preparing to see the stock’s price skyrocket again.
Short sellers betting against the movie theatre chain are no longer paying the 1% short borrow fee rate like earlier this year.
According to Stonk-O-Tracker, hedge funds are currently facing a 103.30% short borrow fee rate to short AMC.
Market News: Robinhood and Citadel colluded before ‘meme stock’ restrictions
The U.S. House Committee on Financial Services just published a press release stating Robinhood and Citadel Securities engaged in ‘blunt’ negotiations before the trading of ‘meme stocks’ occurred.
The press release states that talks regarding lowering PFOF (payment for order flow) rates happened just a night before trading restrictions.
GameStopped Report Notes
The “GameStopped” report issued by the U.S. House Committee on Financial Services greatly details how the NSCC saved Robinhood from defaulting due to failing to meet collateral obligations.
This article is going to highlight key points relating to the ‘meme stock’ halts that occurred in late January of 2021.
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GameStopped Report – U.S. House Committee on Financial Services
The GameStopped report highlights Robinhood’s lack of liquidity, conversations between Citadel and Robinhood, and the process leading to the halting of ‘meme stocks’ such as AMC and GameStop.
On January 28th, 2021, Robinhood routed orders to six market makers for equities: Citadel Securities, G1 Execution Services, Morgan Stanley, Two Sigma Securities, Virtu, and Wolverine.
Citadel, Morgan Stanley, and Wolverine are short on AMC to this day.
The conversations between Robinhood and Citadel were tense as the two negotiated the price of PFOF rebate rates and price caps for AMC and GameStop.
Furthermore, Robinhood received a massive waiver of its deposit requirement from the DTCC.
And according to the report, without this waiver, Robinhood would have defaulted on its regulatory collateral obligations.
NSCC officials say the waiver was necessary to avoid systemic risk to the market.
They explained that the extraordinary spike in ‘meme stocks’ contributed to increased clearing fund requirements for several firms.
Trading Restrictions Chart – GameStopped
Brokers halted the buying of AMC, GameStop, and other tickers when short sellers began to close their short positions, causing share prices to skyrocket.
The halting occurred due to a lack of liquidity where certain brokers were unable to cover the minimum collateral requirements.
David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, and has a board seat at the DTCC.
The conflict of interest has raised big concerns amongst the retail investor community online as Citadel has been a leading and one of the biggest short sellers in the stock market.
On January 28th, 2021, The DTCC waived $9.7 billion of collateral deposit, limiting institutional losses and limiting retail profits during the ‘meme stock’ frenzy.
The organization allowed several naked shares to flood the market prior to the massive jump in share prices only to help financial institutions in the end.
Citadel and Melvin Capital who shut down last year, lost billions during the event.
Melvin was crippled throughout 2022 from its severe losses in GameStop the year prior.
Had the DTCC not stepped in, the hedge fund would have closed that same year.
Retail Feels Cheated
Robinhood and Citadel colluded prior to restrictions
Retail investors feel they were robbed when brokers took away the ‘buy’ button by restricting trading in AMC, GameStop, and other ‘meme stocks’.
The DTCC jumped in and saved Robinhood from defaulting, cut Citadel’s losses short, and prevented retail investors bets from reaching maximum potential.
No one has been held accountable for these actions primarily because the system is justifying the actions as saving the market from total collapse.
But the system stole from retail investors to save institutional investors.
Regulators intervened to save institutions while they capped retail investor gains.
Still, hedge funds lost billions of dollars during the process.
GameStop broke Melvin Capital.
The hedge fund was not able to recover from its massive losses and has now shut down.
But Citadel nor Robinhood have faced any severe consequences that money can’t buy them out from.
Retail investors are now looking at our government and regulators as complicit to fraud and market manipulation.
When AMC and GameStop surged in share price back in January of 2021, retail investors on Reddit weren’t worried about dark pools or market manipulation.
They knew that in numbers they could increase the market capitalization, and in turn, increase the share price and collect big profits.
My favorite part of Reddit was seeing all the incredible gain porn.
If you’ve been part of the ape community since the beginning, you know exactly what I’m talking about.
Seeing investor’s gains on Reddit was both desirable and exciting, I mean who wouldn’t want a piece of the action?
So, did market makers and hedge funds all of a sudden decide to start manipulating the stocks after January?
Not quite.
So, what caused AMC to skyrocket in 2021, and why hasn’t it skyrocketed again since?
Here’s what’s stopping AMC from squeezing today.
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Dark pools and off exchange trading?
AMC Dark Pools | AMC off exchange trading
Are dark pools and off exchange trading the reason why AMC has not squeeze yet?
Not quite.
See, dark pools and off exchange trading have unfortunately been unfair suppression retail investors have no control over.
These loopholes did not magically appear after January’s runups; they’ve always been there.
While majority of retail investor’s orders are not processed through the lit exchange, high volume has always had a positive effect for investors going long.
As a collective, the small percentage that is processed through the lit exchange accumulates to create the momentum necessary to drive prices upward.
And Redditors on r/wallstreetbets knew this.
All they needed to know was that these stocks were heavily shorted in order to create a short squeeze from fueled buying momentum.
AMC gained attention in January when it surged from $2 per share to $22 per share.
But we noticed many short sellers were still hanging around, so we advised to the public of the possibility at hand.
Months later AMC surged to $72 per share and it was all due to the massive crowd of retail investors who purchased the stock.
AMC was having 500,000,000 to 900,000,000 volume days.
The movie theatre industry is no longer struggling to attract movie lovers back to the big screen.
While pandemic lockdowns threatened the existence of thriving cinemas, rapidly growing numbers of attendees have continued to grow over the past two years.
The only thing movie theatres are missing is more movie titles, says CEO of AMC Entertainment Adam Aron.
As “Avatar: The Way of Water” gets closer to the $2 billion mark at the worldwide box office, James Cameron says it’s a reminder that moviegoers still value the theatrical experience in an era of streaming dominance.
“I’m thinking of it in the terms of we’re going back to theaters around the world. They’re even going back to theaters in China where they’re having this big COVID surge. We’re saying as a society, ‘We need this! We need to go to theaters.’ Enough with the streaming already! I’m tired of sitting on my ass. Source:Variety.
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Market News: The SEC attacks retail investors with propaganda
The SEC meme stock video is circulating all over social media due to its surprisingly and unprofessional attack on retail investors.
The agency was created in the 30s after the Great Crash to prevent fraud and protect retail investors from predatorial practices conducted by Wall Street.
But something happened along the way – the branch has proved to take a stance with congress in tailoring policies for financial institutions.
Who is going to protect retail investors from the corrupt?
Former SEC Branch Chief expresses her thoughts on the propaganda published by the SEC.
Let’s discuss it.
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SEC publishes Meme Stock Video
If you haven’t watched the SEC meme stock video, it’s embedded below.
SEC Meme Stock Video
The SEC published the video on their official YouTube channel where they restricted public commenting.
Former SEC Branch Chief Lisa Braganca said she was “very disappointed to see the SEC disparage investors in meme stocks as if they must have done it thoughtlessly – especially when the SEC permits most trading to take place in dark pools.”
She then tweeted, “how about a video on dark pools Gary Gensler?”
Lisa Braganca is an activist who fights for market transparency.
She’s talked on Matt Kohrs’ channel before and has done an AMA on Reddit’s r/Superstonk answering questions about self-regulatory regulations, SEC regulation, and SEC enforcement.
Gary Gensler admitted in a Bloomberg exclusive 90%-95% of retail orders don’t go through the lit exchange but failed to mention a solution to the problem.
In an interview with Jon Stewart, the SEC Chairman fails to deliver a quality and productive discussion on solving the problems in the market.
Jon Stewart described Gary Gensler as a sheriff in town that allows blatant corruption to occur.
For Gary, it’s clear it’s more about keeping the job rather than creating a legacy.
Activism Matters
The SEC’s meme stock video might try to portray retail investors as young and clueless novice investors.
But that’s far from who the retail community is.
Retail investors outsmarted hedge funds, exposed the corruption in the SEC, mainstream media, and are now attacking with this propaganda.
It’s a sign of weakness.
The retail community is made up of a very diversified group of people all fighting for the same cause.
And this is a threat to corporate media and powerful institutions.
Republicans and democrats getting together to fight for market transparency, what!?
But this isn’t just about the left and right getting together to combat corruption, it’s a global movement – and opps (opposers) don’t like this.
The SEC spent nearly half a million dollars on the ‘meme stock’ ad campaign that ridiculed millions of retail investors.
A Twitter user had sent in a FOIA application inquiring about the costs to produce “Investomania”, the video published on the SEC’s official YouTube channel.
The agency that was established in the early 1930s to protect retail investors took a shot at millions of investors who participated in the ‘meme stock’ frenzy.
Former SEC Branch Chief Lisa Braganca stated she was “very disappointing to see SEC disparage investors in meme stocks as if they must have done it thoughtlessly”.
“Especially when the SEC permits most trading to take place in dark pools… how about a video about dark pools @GaryGensler?”
And retail investors continue to hold this one against the agency, even in 2023.
What are your thoughts?
The SEC has ignored retail’s cry for help, and now they’ve made fun of the community with the meme stock video.
Did this unprofessionalism in our government surprise you?
I’d love to learn what you think.
Leave your thoughts in the comment section of the blog below.
Market News: APE failure to deliver surge since inception.
AMC’s Preferred Equity, APE, topped $304.9 million in FTDs last year.
The FTDs are reported for the month of August, per Stocksera.
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
Failure-to-deliver can occur in options trading or when selling short naked, per Investopedia.
AMC Entertainment has been a big target for short sellers looking to profit from the demise of the century old movie theatre chain.
The alarming amount of APE FTDs further proves this.
Let’s discuss it below.
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According to Investopedia, APE FTDs can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).
There’s a major conflict of interest when Citadel Clearing LLC transacts orders worldwide.
Ken Griffin’s Citadel LLC is short on AMC Entertainment stock, so we can see how utilities play out in the hedge fund’s favor.
It’s unlikely FTDs have been a result of retail buyers since the majority are purchasing the equity on cash accounts where orders execute almost immediately.
Naked short selling seems to be the most probable cause here as $APE has tumbled despite heavy retail interest.
The large amount of FTDs is manipulative and quite common in stocks such as AMC and GameStop.
Retail investors have taken it to Twitter to express their concerns to SEC Chairman Gary Gensler.
And although activists continue to engage the Chairman, no action has taken place to justify the ongoing market manipulation in APE, AMC, and GameStop.
Others are suggesting protesting outside SEC locations across the country.
Leave your thoughts on APE
There’s a lot of speculation surrounding APE FTDs and APE stock in general.
Are you holding APE?
Leave your thoughts below.
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AMC Issues Strong Short Squeeze Statement
I’ve touched topic on the warning AMC released for shareholders below as the company prepares to sell up to 425 million APE shares.
“Under the circumstances, we caution you against investing in our AMC Preferred Equity Units, unless you are prepared to incur the risk of losing all or a substantial portion of your investment,” said an official statement from AMC Entertainment.
However, the company also warns short sellers of a potential APE short squeeze, resulting in severe losses for those betting against the security.
“purchasers of our Class A common stock and AMC Preferred Equity Units could incur substantial losses if there are declines in market prices driven by a return to earlier valuations; to the extent volatility in our Class A common stock and AMC Preferred Equity Units is caused, or may from time to time be caused, as has widely been reported, by a “short squeeze” in which coordinated trading activity causes a spike in the market price of our Class A common stock and AMC Preferred Equity Units as traders with a short position make market purchases to avoid or to mitigate potential losses, investors purchase at inflated prices unrelated to our financial performance or prospects, and may thereafter suffer substantial losses as prices decline.”
In this passage here, AMC is warning both retail investors and short sellers alike of what a short squeeze could muster.
The losses for short sellers could be grand as coordinated trading activity causes a major spike in price.
For retail investors, buying the spike could cause significant losses as the stock enters a cooldown period.
What AMC is accepting though is the possibility of a short squeeze whether it be AMC or APE shares.
What Will Trigger a Short Squeeze?
According to AMC’s statement, a short squeeze is triggered by coordinated trading activity, resulting in share price spikes.
Volume was key in January when AMC surged to $20 per share, it was key when the stock skyrocketed to $72 per share in June, and it will be the key today.
The bear market is pinning stocks, but as the market reverses, it’s very possible we see a surge in trading activity in AMC (and APE) again like we did in 2021.
AMC surged in March when it’s weekly volume had surpassed 100 million.
The stock was halted but shares rose despite the market’s downtrend.
AMC’s current average trading volume is 41.2 million though it has been trading at only half.
Will retail investors be able to trigger AMC or APE to squeeze?
I’d love to hear your thoughts on this.
Leave a comment down below.
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