Tag: AMC Entertainment News (Page 2 of 11)

AMC Stock: Strategist Says Mother of All Short Squeezes is Here

Strategist Says Mother of All Short Squeezes is Here
Market News: Strategist says Mother of All Short Squeezes is Here.

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?

Here are 5 big signs that point to a mother of all short squeezes.

#1. AMC’s Short Interest is Really High

AMC Stock: Mother of all short squeezes
AMC Stock: Mother of all short squeezes

A short squeeze requires a company to be heavily shorted, which AMC is.

AMC has a high short interest of 25%.

Did you know that before AMC’s share price surged from $14 per share to its all-time high of $72 per share it only had a short interest of 22%?

AMC’s short interest dropped from 22% to 14% as short sellers began to close their positions.

Well, I’m sorry to break it to skeptics, but AMC’s high short interest means there are shorts to squeeze.

I’d love to hear the rebuttal on this one; I don’t get the counterargument.

#2. There Are Millions of Shares on Loan

This ties back to AMC’s short interest data.

There are currently 197.10 million shares on loan, per Ortex.

These are shares that have been borrowed and not yet returned to the lender.

Hedge funds borrow these shares to short AMC stock.

At some point, these shares eventually have to be returned whether short sellers simply return them without necessarily selling them in the market, or through a ‘buy-back’ when closing their short positions.

Small spikes in AMC’s share price in correspondence with a drop in short interest suggests some short closing.

We’ve seen this on very high-volume trading days.

Now imagine all of these shares getting returned to the lender from shorts closing positions.

That’s a lot of buying power getting injected into the stock, forcing shares to spike.

Also known as a short squeeze.

#3. The Cost to Borrow AMC is Higher Than Ever

The cost to borrow is the annual fee hedge funds are paying to borrow shares to short the company stock.

AMC’s current CTB is a whopping 260%.

Hedge funds are currently paying more than $30 million monthly in fees alone.

This lucrative fee alone could incentivize short sellers to ditch this play and close their positions.

#4. AMC Entertainment Has the Community to Trigger Big Buying Pressure

AMC stock: mother of all short squeezes
AMC Stock: Mother of all short squeezes.

This is one of the biggest catalysts for an AMC short squeeze.

Why?

Because volume is what drove share prices up during the Wall Street Bets movement in GameStop, AMC, and other heavily shorted stocks at the time.

DFV knew that buying pressure is what would trigger spikes in GameStop, causing short sellers to run for the hills.

AMC shareholders replicated it in 2021, sending shares from $6 per share to $72 per share by literally buying every dip.

Yeah, it was wild -but it worked.

And shareholders haven’t left, they are still holding in 2023.

#5. The Company Isn’t Going Bankrupt

Market News: Strategist says Mother of All Short Squeezes is Here (MOASS).
Market News: Strategist says Mother of All Short Squeezes is Here (MOASS).

The short thesis made sense during the height of the pandemic when movie theatres were forced to close their doors to the public.

CEO Adam Aron said AMC Entertainment went from one day making millions per day to income suddenly halting due to the lockdowns.

But AMC Entertainment is no longer going bankrupt.

The company has improved and restructured its debt every quarter since 2021 and has beat earnings expectations ever since.

While the company does carry debt, Adam Aron has proved to be a master at raising cash from thin air.

Some of his efforts have included branded merchandise, the introduction of its equity APE, and through partnerships in the entertainment industry which Disney and Netflix.

The company is expected to launch a new credit card this year and put AMC branded popcorn in retail stores.

You can read more about AMC’s development’s here.

An AMC short squeeze isn’t as far-fetched as some might think

As you can see, there are no conspiracy theories or “what if’s”.

I’ve been documenting AMC’s short squeeze since 2021, shortly after shares rose to $22 per share and came back down in late January.

I witnessed months of momentum build until shares jumped to $72 per share.

And yes, it can be replicated.

Related: Will AMC Stock Squeeze in 2023?

Latest Naked Shorting News

Credit Suisse (NYSE:CS) clients have withdrawn billions of dollars.

In November, the bank warned investors in a 6-K filing of potential losses due to naked short covering.

Disarming these types of overleveraged positions won’t be easy.

Credit Suisse took a massive hit of $4.09 billion in Q3 and hinted at occurring losses in an upturn in markets.

Now Credit Suisse as postponed publication of its annual report, per Reuters — more on that below.

The bank hired 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.

Is Credit Suisse on the verge of collapsing?

You can read more here.

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Market News: Strategist says Mother of All Short Squeezes is Here (MOASS).
Market News: Strategist says Mother of All Short Squeezes is Here (MOASS).

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AMC Stock: SEC Violates 13-Day Threshold List Rule

Market News Daily: SEC violates 13-day threshold list rule - AMC Stock.
Market News Daily: SEC violates 13-day threshold list rule – AMC Stock.

AMC Entertainment (NYSE:AMC) stock has now spent more than 25 trading days on the Threshold Securities List.

This means the SEC (Securities and Exchange Commission) is in direct violation of the 13-day threshold rule.

What is the 13-day threshold rule?

A broker-dealer with fail-to-deliver positions for 13 consecutive settlement days must immediately close out the ‘FTD’ position by purchasing shares in the open market.

There has been no ‘buy’ back of these AMC FTDs nor have we seen the company get removed from the NYSE Threshold Securities List.

AMC FTDs spiked up to more than $36 million in FTDs last month, through the report is still in the process of updating via T+35.

Last week, AMC Entertainment CEO said he asked FINRA and the NYSE to look closely at their stock due to the amounting FTDs.

“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.

Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”

AMC Stock:  SEC violates 13-day threshold list rule.
AMC Stock: SEC violates 13-day threshold list rule.

A buyback of shares in the lit market would result in price action driving share prices up.

In the past month, AMC stock has fallen by nearly -15%.

What are FTDs?

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-delivers can occur in options trading or when selling short naked, per Investopedia.

According to Investopedia, AMC failure-to-delivers can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

Is the SEC Complicit in Market Injustices?

According to Patrick McConlogue, an ex-Citadel Data Scientist, rules tend to heavily favor hedge funds over the average investor.

Known for exposing Citadel during the ‘meme stock’ frenzy, Patrick says “the game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game.”

Many investors refuse to believe that FINRA or the NYSE will attend to AMC’s CEO Adam Aron in regard to the violation of the 13-day threshold rule.

These institutions have more power than the SEC themselves, how could these rules be enforced?

AMC shareholders are demanding a formal letter from the CEO showing proof of contact with our regulators.

No update since the initial announcement has been made public so far.

Related: Credit Suisse Warns Investors of Naked Short Covering

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AMC Stock:  SEC violates 13-day threshold list rule.
AMC Stock: SEC violates 13-day threshold list rule.

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AMC Failure-to-Delivers Are Skyrocketing Through the Roof

Market News: AMC Failure-to-delivers rise in February.
Market News: AMC Failure-to-delivers rise in February.

AMC failure-to-delivers (FTDs) have been begun to rise again.

FTDs topped 6.8 million in February (non-cumulative), amounting to more than $36 million in failed to close orders.

The data is still being reported which means there’s a possibility we may see higher FTDs once February’s entire month has been processed.

AMC failure to deliver
AMC FTDs – 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-delivers can occur in options trading or when selling short naked, per Investopedia.

According to Investopedia, AMC failure-to-delivers can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

Investors say there’s a major conflict of interest when Citadel Clearing LLC processes retail orders worldwide.

Are AMC’s FTDs a result of naked shorting?

Majority of the retail community seems to think so.

Companies are even beginning to take legal action against the predatorial short selling strategy.

GNS CEO Shares Petition to End Naked Shorting

Recently, Genius Group ($GNS) CEO Roger Hamilton shared a petition to end naked shorting in the market.

The Naked Shorts War activist urged the retail community to sign it in efforts to raise awareness of manipulative tactics that occur in the market every day.

“They’re predators. They’re doing something illegal, and we want it to stop”, says GNS CEO Roger Hamilton.

The Board of Directors of Genius Group Limited, a leading entrepreneur edtech and education group, approved at a meeting of the Board held on Wednesday 18th January 2023, an action plan to address illegal short selling of its stock.

AMC shareholders have criticized AMC CEO Adam Aron for not addressing the manipulation in AMC Entertainment stock.

This action plan includes creating a Board-led ‘Illegal Trading Task Force’ to actively pursue all possible actions together with the regulators in their discovery and prosecution of persons engaging in market manipulation involving the ordinary shares of Genius Group.

Waging war against naked shorts is something that won’t succeed so easily, but raising awareness is a sure way to start.

Related: $GNS, $MMTLP, Taking Regulators and Manipulation Head On

Are All AMC FTDs Caused by Naked Shorts?

SEC Chairman Gary Gensler has said in the past that FTDs aren’t always the result of naked shares — but that’s as much as he’s mentioned the term.

FTDs can also result in buyers not having the funds to cover costs during execution of a security, though for retail investors this is a very unlikely scenario.

The stock market has seen its fair share of manipulation throughout the decades.

Institutions can spoof the market with ‘naked shares’ to move the price without ever having to take accountability for any real asset.

They can also lend shares they don’t own as IOUs and never have to take accountability when it comes to delivering them but rather simply reporting them as failure-to-delivers.

So, there are certainly loopholes our regulators must take into account.

And as far as the retail community is concerned, our regulators know all too well what’s occurring in the market.

Putting pressure on these regulators could be the first steps towards creating real change in the near future.

Retail investors might just be the ones to make history this decade.

Related: The SEC Green-Lighted Naked Shorting of IPOs in 2015

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Will AMC Stock Go Up or Down This Week?

Market News Daily: Will AMC stock go up or down this week?

Will AMC Entertainment (NYSE:AMC) stock go up or down this week?

The stock has been setting higher highs and higher lows this first quarter of 2023, but AMC recently broke below its rising trendline.

AMC Entertainment stock is up more than +48% year-to-date but saw gains upwards of +110% last week.

The movie theatre company is currently in a grey area where investors are being given the option to vote on a reverse stock split and conversion of APE equity back into AMC common shares.

Regardless, AMC stock technicals are showing us big probabilities pointing price towards a particular direction.

So, will AMC stock go up or down this week?

Let’s dive into the charts.

Related: AMC CEO Adam Aron Hints at Destroying Short Thesis

AMC Technical Analysis

AMC Entertainment broke its upward trend when price fell below $6.60.

The stock is currently testing another upwards channel at a support level around $5.70-$5.85 (yellow support level on chart below).

will amc stock price go up or down
AMC stock price probabilities.

There are three major probabilities here.

  1. AMC stock bounces from the current support (yellow line) and tests $6.80 (blue line above) before either breaking above it to retest $8.50 or rejects it and hits support (yellow line) again. The strength of buyers or sellers will determine whether the wedge breaks above or below the trend.
  2. Another possibility is we see AMC Entertainment stock break below its current support level (yellow line) and retest as low as $3.90-$4.00 per share. Volume on Wednesday was twice is average so unless buyers step in, this could be the higher probability in the coming days.
  3. The third scenario is we see AMC stock have a clean bounce from its current support level (yellow line) and break above $6.80 and $8.50. A break above $8.50 will send the stock to test $9.10, then $10.30. A break above $10.30, which will require a lot of buying pressure send AMC Entertainment stock to $11, $14, and $18+ without warning.
will amc stock go up
AMC stock price probabilities.

Which probability is stronger?

A head and shoulders pattern has formed which is a bearish technical analysis pattern.

Often times, we see share prices tumble when this pattern presents itself.

However, it’s still important to keep in mind that the other two probabilities are still very valid.

will amc stock go down

The overall macro picture shows us AMC is still in an upwards channel as it sets higher lows and higher highs.

But I’m curious to hear your thoughts on where AMC is going.

Leave a comment down below.

Related: What is The Likelihood of AMC Squeezing Any Time?

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Market News Today - Will AMC stock go up or down this week?
Market News Today – Will AMC stock go up or down this week?

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AMC Demands FINRA to Look at Skyrocketing FTDs

Market News Daily: AMC Demands FINRA and NYSE Look into Stock.
Market News Daily: AMC Demands FINRA and NYSE Look into Stock.

AMC Entertainment (NYSE:AMC) CEO announced that the company has contacted both FINRA and the NYSE to look closely at the trading of their stock.

“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.

Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”

AMC failure-to-delivers (FTDs) have been begun to rise again.

FTDs topped 6.8 million in February (non-cumulative), amounting to more than $36 million in failed to close orders.

The data is still being reported which means there’s a possibility we may see higher FTDs once February’s entire month has been processed.

AMC Entertainment demands FINRA and NYSE to look into FTDs.
AMC Entertainment demands FINRA and NYSE to look into FTDs.

Now AMC’s CEO Adam Aron is demanding FINRA and the NYSE to look into the company’s alarming FTDs.

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-delivers can occur in options trading or when selling short naked, per Investopedia.

According to Investopedia, AMC failure-to-delivers can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

Investors say there’s a major conflict of interest when Citadel Clearing LLC processes retail orders worldwide.

Adam Aron Demands FINRA and NYSE Look into AMC Stock

AMC Demands FINRA to Look at Skyrocketing FTDs
Market News Daily: AMC Demands FINRA to Look at Skyrocketing FTDs.

Ever since the Genius Group (GNS) CEO Roger Hamilton publicly began calling out short sellers and #NakedShorts, AMC shareholders have been hoping for Adam Aron to also join the fight.

While Adam Aron may be binded to what he can and cannot say, this is the closes we’ve see the CEO to join shareholders in an activist role.

The CEO has been criticized for not speaking out on market injustices, even after skyrocketing reports of FTDs in the company stock.

And although the CEO has said in the past he has never seen any signs of ‘synthetic shares’ floating around, today’s news requesting FINRA and the NYSE to look into the company stock is a massive win for activist investors.

There is no longer denial, now there is acceptance of an important part of market structure that must be thoroughly investigated by our regulators.

But I’m curious to know how you feel about this investigation.

Do you think this will lead Adam Aron to dive into the rabbit hole?

Do you applaud the CEO for taking this unexpected approach?

Leave your thoughts in the comment section down below.

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Market News Today - AMC Demands FINRA to Look at Skyrocketing FTDs
Market News Today – AMC Demands FINRA to Look at Skyrocketing FTDs.

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AMC Becomes The #1 Stock with Highest Borrow Fees

AMC Stock News 2023 - borrow fee s3
Market News Daily: AMC stock news today.

AMC Entertainment (NYSE:AMC) has become the #1 stock with the highest borrow fees according to S3 Partners.

S3 data reports AMC’s borrow fee at 142.57% but Ortex is reporting 213.95%.

Stonk-O-Tracker is currently reporting the borrow fee at 102% but recently showed hedge funds were paying as much as 731% to short AMC stock.

AMC’s short borrow fee rate has skyrocketed in the past months but is now reaching record highs.

AMC stock highest borrow fee S3 Partners
AMC stock highest borrow fee S3 Partners – Franknez.com.

Other company’s on the highest stock borrow fees list include Bed Bath & Beyond (NASDAQ:BBBY) with GameStop (NYSE:GME) last on the list.

AMC’s high short interest of 25.33% has short sellers in a sticky situation as rising borrow fee rates limit the amount of shorting in the stock.

Short sellers will have to make a decision to either stick to their convictions and remain short despite rising share prices.

AMC shares have risen nearly 60% this year-to-date.

Short sellers have now lost grip as the cost to short the stock has dramatically increased.

AMC’s short borrow fee is a serious pressure cooker as it incentivizes shorts to close their positions – more so as movie theatre shares continue to rise.

While the interest rate is not cumulative, today’s high interest cripples shorts and gives buyers runway for big volume to make a greater impact than it did last year when the fees were extremely low and could suppress shares from rising.

Is a Short Squeeze Looming for Borrowers?

Latest AMC stock news 2023.

All signs point to an AMC short squeeze this year.

AMC Entertainment has enough short sellers to create big buying pressure in a ‘buy back’ when closing short positions.

Combined with retail buying pressure, an AMC short squeeze today is highly probable.

How high the stock will jump to is unknown.

In 2021, AMC shares rose more than 3,000% when it peaked at its all-time high of $72 per share.

What we do know is that CEO Adam Aron plans to tackle the short thesis fundamentally.

On Twitter, Adam Aron responded directly to a user regarding AMC’s short thesis.

The user said, “Shorts attack companies they feel they can destroy. If you become a successful company you destroy a short’s thesis hence no logical reason to continue shorting. This is @CEOAdam strategy and the only strategy that has ever worked in the history of the market! #AMC#AMCSqueeze.”

To which the CEO answered:

“Joe, you nailed it. I could not have put it better myself”.

Looking at AMC’s Short Interest Today

S3 Partners is reporting AMC as the #1 stock with highest borrow fees but like Ortex, it also reports the company’s short interest.

AMC’s short interest per S3 Partners and Ortex data is nearly identical.

So, why does it matter?

See, AMC stock’s short interest data is a recipe for a short squeeze, something similar to what occurred in January and June of 2021.

Redditors saw AMC’s high short interest data could drive short sellers to close their positions by buying the stock as a collective.

Shares rose from $2 to more than $20 per share in January and from $9 to more than $72 per share later in June.

AMC’s short interest came down to 14% after the surge but began to rise again all throughout 2022.

Now the stock’s short interest is around the same as it was when shares spiked to its all-time high.

Will AMC have a short squeeze in 2023?

I’d love to know your thoughts — leave a comment down below.

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Market News Today - AMC Stock News Today.
Market News Today – AMC Stock News 2023.

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AMC CEO Adam Aron Hints at Destroying Short Thesis

Market News Daily: AMC Entertainment CEO hints at destroying Wall Street short thesis.
Market News Daily: AMC Entertainment CEO Adam Aron hints at destroying Wall Street short thesis.

AMC Entertainment (NYSE:AMC) CEO Adam Aron just hinted at destroying the short thesis.

The movie theatre chain has been under attack by short sellers since before the pandemic.

However, short sellers saw an opportunity when the world’s largest movie theatre chain closed its doors in 2020 due to the pandemic lockdowns.

Adam Aron says the company went from earning millions per month to $0 overnight during the wake of the Coronavirus pandemic.

When retail investors found how high the short interest data in AMC was, they piled up to squeeze short sellers from their positions by purchasing shares of the movie theater chain en masse.

At first, investors were able to drive AMC’s stock price to $20 in January.

Then, shareholders saw AMC stock hit an all-time high of $72 per share in June.

Since then, low borrow fees have made it easier for short sellers to bring the stock back down.

But now that short borrow fees have skyrocketed, retail investors have clearer runway to squeeze short sellers again.

Adam Aron on an AMC Short Squeeze

Adam Aron AMC Short Squeeze
AMC Entertainment CEO Adam Aron hints at destroying Wall Street short thesis.

AMC CEO Adam Aron has said in the past that to his personal knowledge, there are no synthetic AMC shares (naked shares used to illegally drive the price of a share down).

Genius Group (GNS) CEO Roger Hamilton, who is leading a group of CEOs to take legal action against short sellers and toxic lenders has reached out to Adam Aron in efforts to fight market injustices.

“It may boil down to this. Many of you are frustrated, strongly urging us to address market forces that you are convinced are unfair. We continuously think about what actions would be wise and CREDIBLE. Certainly good ideas: Build up our cash reserves and smartly lead AMC forward,” said Adam Aron on Twitter.

Some investors believe AMC’s debt covenants are restricting the CEO from speaking publicly about the short seller stock manipulation happening with AMC since the lenders themselves are short on AMC Entertainment stock.

Debt covenants are restrictions that lenders (creditors, debt holders, investors) put on lending agreements to limit the actions of the borrower (debtor), AMC Entertainment.

In other words, debt covenants are agreements between a company (AMC) and its lenders (Citi, Goldman, Credit Suisse) that the company will operate within certain rules set by the lenders.

Should a borrower violate a covenant, such as not maintaining a certain interest coverage ratio or engaging in unpermitted business activities, it may constitute a loan default, per The Balance.

Destroying the Short Thesis

On Twitter, Adam Aron responded directly to a user regarding AMC’s short thesis.

The user said, “Shorts attack companies they feel they can destroy. If you become a successful company you destroy a short’s thesis hence no logical reason to continue shorting. This is @CEOAdam strategy and the only strategy that has ever worked in the history of the market! #AMC#AMCSqueeze.”

To which the CEO answered:

“Joe, you nailed it. I could not have put it better myself”.

Adam Aron has made it clear that his way to tackle the short thesis is strictly through a fundamental process and strategy.

Some investors argue that he could tackle the short thesis both through fundamentals and legal action.

But as Roger Hamilton has stated, it might be best for a company to get their finances in order before proceeding with such a task.

Do you believe AMC Entertainment will end the short thesis once and for all?

Leave your thoughts in the comment section below.

Related: AMC Failure-to-Delivers Are Skyrocketing Through the Roof

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Market News Today - AMC Stock News Today
Market News Today – AMC Stock News Today.

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AMC Spends 20 Days on Threshold Securities List

Market News Daily: AMC threshold securities list update.
Market News Daily: AMC threshold securities list update.

AMC has spent 20 day on the threshold list between February 2nd and March 2nd this year.

What is the NYSE Threshold Securities List?

A threshold security protects stocks that have had 5 consecutive settlement days in a clearing house as “Fail-to-Delivers“.

One of the last times we saw AMC make the threshold securities list was in June of 2021 — yes, the same month the stock surged to its all-time high of $72 per share.

AMC Threshold Securities List 2023

Protection from the SEC also requires that the stocks FTDs total more than 10,000 shares.

AMC failure-to-delivers are skyrocketing through the roof this year.

FTDs topped 6.8 million in February (non-cumulative), amounting to more than $36 million in failed to close orders.

The data is still being reported which means there’s a possibility we may see higher FTDs once February’s entire month has been processed.

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-delivers can occur in options trading or when selling short naked, per Investopedia.

Why is AMC Being on the Threshold Securities List Important?

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.

  1. 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.
  2. 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.

Short sellers only seem to keep getting themselves in a bind.

Eventually, the only way out plays in retail’s favor.

Sources:

  • NYSE Threshold Securities AMC List – visit here
  • SEC Key Points About Regulation SHO – visit here
  • Threshold Securities – Investor.gov – visit here
  • Threshold List Definition – Investopedia – visit here

Curious to hear your thoughts and opinions on this.

Leave a comment down below.

Related: What is the Likelihood of AMC Squeezing Any Moment?

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AMC Stock Is Now Making Higher Lows This Year

AMC Stock higher lows higher highs
Market News: AMC stock is now making higher lows and higher highs in 2023.

AMC Entertainment (NYSE:AMC) stock is now making higher lows this year after shares fell in throughout 2022.

The movie theatre stock’s trendline has shifted during the first quarter of the new year as we begin to see share prices make higher lows and higher highs in 2023.

AMC is currently up more than +50% this year-to-date but was recently up as high as 110% towards the end of February.

On January, shares rose to $6.07 from $3.93 at the start of the year.

In early February share prices went up to $6.80, then to $8 towards the end of the month.

Shares have retested January’s levels around $6.07 at the start of March.

The macro trendline is now showing AMC Entertainment making higher lows and higher highs in 2023.

In technical analysis, this is seen as extremely bullish.

This is a trend we have not seen in AMC’s share price since 2021 when stocks surged to all-time highs.

One of the biggest roars in the retail community was during this specific timeline — when shares were establishing higher ground.

Will history repeat itself?

And will AMC Entertainment stock beat its all-time high record of $72 per share this year?

Let’s discuss it.

AMC Entertainment Trendline 2023

When looking at AMC’s year-to-date chart, we find that the stock has begun to make higher highs and higher lows in 2023.

We had a low of $3.85 in January, a low of $4.50 in February, and what seems to be a low of $6 in March so far.

AMC Trend Chart
AMC Trend Chart – Franknez.com.

These types of trends in the market may suggest big moves to come.

Not only has technical analysis shown us this in the past but we’ve witnessed it before in 2021 during the height of AMC’s popularity.

AMC’s trend today is a picture perfect snapshot of the months prior to the company’s massive price surge in June of 2021.

If retail investors are able to create enough buying momentum to raise share prices, short sellers may incur a margin call and be forced to close their short positions unless they can meet margin requirements.

And as we know, it’s become much harder to borrow the stock due to the wild fees — recently reaching more than 731%.

Short sellers have been able to keep the lid on AMC from surging again, but for how much longer?

Recent AMC Developments

AMC Latest News – Latest AMC Stock News.

AMC Entertainment said during its earnings report that it is not out of the woods yet, but the company has made progress towards paying its debt and has stayed afloat despite burning through its capital.

AMC Perfectly Popcorn will be sold in more than 2,000 Walmart stores across the country by April — a means to increase revenue.

The company also plans to issue a credit card for customers and capitalize on that business venture as well.

Adam Aron and board members were recently sued for the issuance of its equity APE, which listed in the market back in August of 2022.

The lawsuit is expected to extend or limit the voting rights of AMC’s new proposals to convert APE shares back into common shares of AMC stock, and for a 1-for-10 reverse stock split.

It is still uncertain how the market will react to these proposals.

A reverse stock split will mean the stock will cost more to buy, potentially limiting buy volume from current and new investors.

If AMC’s CTB continues to increase, it may also incentivize short sellers to get out of the play, unless they’re willing to wait for fees to decrease before beginning to short the stock back down.

Rest assured, you can all your updates on Franknez.com.

Will AMC Stock Continue to Make Higher Lows and Higher Highs?

AMC’s current trend remains bullish.

In the past, we’ve seen this trendline lead shares higher and higher despite attempts to bring it back down.

At some point, when pressure is released, it becomes harder to keep the stock from rising.

Is AMC getting ready to for a new all-time high?

I’d love to hear your thoughts on this.

Leave a comment down below.

Related: What is The Likelihood of AMC Squeezing Any Moment?

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5 Big Signs Pointing to An AMC Short Squeeze

AMC Stock Short Squeeze
Market News: Can AMC stock still squeeze? Here’s what the data says.

There are people who don’t believe an AMC short squeeze will happen anymore.

Some will argue it already happened when AMC stock jumped to its all-time high of $72 per share.

And while yes, there were short sellers who were squeezed out in January when shares rose to $22 and again in June, AMC Entertainment continues to be heavily shorted.

In this article, I’m going to go over 5 undeniable signs that point towards the possibility of an AMC short squeeze.

So, whether people want to ridicule shareholders for firmly sticking to their convictions, you can’t argue with these facts.

TRusT mE bRo.

#1. AMC’s short interest is really high

amc short interest

A short squeeze requires a company to be heavily shorted, which AMC is.

AMC has a high short interest of 23%.

Did you know that before AMC’s share price surged from $14 per share to its all-time high of $72 per share it only had a short interest of 22%?

AMC’s short interest dropped from 22% to 14% as short sellers began to close their positions.

Well, I’m sorry to break it to skeptics, but AMC’s high short interest means there are shorts to squeeze.

I’d love to hear the rebuttal on this one; I don’t get the counterargument.

#2. There are millions of shares on loan

This ties back to AMC’s short interest data.

There are currently 185.14 million shares on loan, per Ortex.

These are shares that have been borrowed and not yet returned to the lender.

Hedge funds borrow these shares to short AMC stock.

At some point, these shares eventually have to be returned whether short sellers simply return them without necessarily selling them in the market, or through a ‘buy-back’ when closing their short positions.

Small spikes in AMC’s share price in correspondence with a drop in short interest suggests some short closing.

We’ve seen this on very high-volume trading days.

Now imagine all of these shares getting returned to the lender from shorts closing positions.

That’s a lot of buying power getting injected into the stock, forcing shares to spike.

Also known as a short squeeze.

#3. The cost to borrow AMC is higher than ever

The cost to borrow is the annual fee hedge funds are paying to borrow shares to short the company stock.

AMC’s current CTB is a whopping 217.56%.

Hedge funds are currently paying more than $30 million monthly in fees alone.

This lucrative fee alone could incentivize short sellers to ditch this play and close their positions.

#4. AMC Entertainment has the community to trigger big buying pressure

amc short squeeze

This is one of the biggest catalysts for an AMC short squeeze.

Why?

Because volume is what drove share prices up during the Wall Street Bets movement in GameStop, AMC, and other heavily shorted stocks at the time.

DFV knew that buying pressure is what would trigger spikes in GameStop, causing short sellers to run for the hills.

AMC shareholders replicated it in 2021, sending shares from $6 per share to $72 per share by literally buying every dip.

Yeah, it was wild -but it worked.

And shareholders haven’t left, they are still holding in 2023.

#5. The company isn’t going bankrupt

Is AMC a short squeeze play? Can AMC still squeeze?

The short thesis made sense during the height of the pandemic when movie theatres were forced to close their doors to the public.

CEO Adam Aron said AMC Entertainment went from one day making millions per day to income suddenly halting due to the lockdowns.

But AMC Entertainment is no longer going bankrupt.

The company has improved and restructured its debt every quarter since 2021 and has beat earnings expectations ever since.

While the company does carry debt, Adam Aron has proved to be a master at raising cash from thin air.

Some of his efforts have included branded merchandise, the introduction of its equity APE, and through partnerships in the entertainment industry which Disney and Netflix.

The company is expected to launch a new credit card this year and put AMC branded popcorn in retail stores.

You can read more about AMC’s development’s here.

An AMC short squeeze isn’t as far-fetched as some might think

As you can see, there are no conspiracy theories or “what if’s”.

I’ve been documenting AMC’s short squeeze since 2021, shortly after shares rose to $22 per share and came back down in late January.

I witnessed months of momentum build until shares jumped to $72 per share.

And yes, it can be replicated.

Related: Will AMC Stock Squeeze in 2023?


Market News Published Daily

Market News Today – FrankNez News, Business News + more.
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For more stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


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You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
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  • Get drawn at the end of the year for holiday giveaways.


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