Tag: AMC MOASS

Will AMC Stock Squeeze in 2022? [Short Interest Data]

Will AMC Squeeze in 2022?
AMC Short Squeeze – AMC Entertainment 2022 – AMC Stock Price – AH9 Stock – AMC Stock Squeeze

Will AMC squeeze in 2022?

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 21%.

Ladies and gentlemen, AMC stock has plenty of room for growth in 2022.

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Welcome to Franknez.com – the blog that provides retail investors with market news with integrity. Today we’re discussing AMC’s short interest data to determine whether it will squeeze in 2022.

Let’s dive right into it!

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Mainstream media wants retail to lose

It’s no secret the financial platforms who have been attacking AMC stock are tied together.

Wall Street Journal’s parent company is News Corp., who also owns Barrons, MarketWatch, and DOW Jones Newswire.

Well, there’s a relationship between Citadel Securities’ CEO Ken Griffin and News Corp (he owns stock).

This creates conflict of interest because of the influence these people in power have who are shorting AMC stock.

Citadel Securities is one of the top 10 financial institutions shorting AMC stock.

So, let’s look at the data that shows whether or not AMC will squeeze in 2022.

AMC Short Interest Data (2022)

AMC Short Interest Data 2022

AMC’s short interest is currently at 18.19%.

The short interest tells us the percentage of a stocks float that is being shorted (shares have been borrowed and not yet closed).

Because AMC is heavily shorted at nearly 19%, this is a short squeeze play in 2022.

An 18% short interest is equivalent to approximately 144.97 million shares on loan (shares that have been borrowed and have not yet been closed).

When AMC’s short interest dropped from 20% to 14% (6 points), the share price rose to $72 per share.

New short positions have brought AMC’s short interest up to 18% again meaning there are many shorts that have yet to be squeezed from their positions.

AMC’s short interest for 2022 is updated here daily for free, via Ortex.

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Whether AMC’s stock price is up or down, the short interest tells us a large portion of AMC’s float continues to be shorted.

The short interest is the main recipe for a short squeeze.

Related: Are Institutions Preparing to Close Short Positions in AMC?

Will AMC Squeeze in 2022?

will AMC squeeze in 2022
Will AMC stock squeeze in 2022? Game over short sellers | AMC Stock 2022 – AMC Stock Price

AMC has a high enough short interest to squeeze shorts from their positions in 2022.

Sitting at 18% 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 2022.

AMC Entertainment stock has plenty of room for growth and mainstream media doesn’t want you to know it.

Related: TD Ameritrade mistakenly reports 40.25% short interest

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Who is AMC stock for?

Popcorn

AMC stock is for the retail investors who are willing to take a little risk to multiply their investment through a short squeeze play.

A short squeeze play is a long commitment with incredible upside.

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 2022..

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:

  1. Retail investors start selling AMC stock
  2. Retail investors stop buying AMC stock
  3. New buyers aren’t introduced to the stock or short interest data
  4. Number of day-traders increase
  5. Regulators don’t enforce margin calls / protect retail from market manipulation

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.

Related: These Two Signs Will Tell You a Short Squeeze is Over

Market regulation in 2022

Market regulation 2022 SEC

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 2022.

For the ape community, this is more than just a short squeeze play.

It’s about freedom.

Read: 10 myths about the AMC apes the media has wrong

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BREAKING: Executive Order 14032 Could Be a Big Deal for AMC Stock

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Is AMC Stock A Buy Or Is It Too Late?

is AMC a good stock to buy? Is it too late to buy AMC Entertainment stock?
Is AMC a good stock to buy? Is it too late to buy AMC Entertainment stock?

If you’ve been following the stock market news you’ve probably heard of all the hype surrounding AMC stock and GME (GameStop).

It wasn’t long before traders flocked over to AMC after the massive gains GameStop yielded due to the high percentage of shorting within the stocks.

Shorting a stock is the process by which sellers essentially bet on the stock price to drop.

They borrow stocks at higher cost, sell it, and buy back the stock low, profiting the difference.

Well, investors over at r/wallstreetbets found that by purchasing stocks at low price in heavy volumes it would drive a short squeeze.

A short squeeze occurs when a stock jumps sharply higher, forcing short sellers to buy higher, causing them to lose money.

Lots of it.

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Will we see a squeeze with AMC?

AMC Entertainment short Squeeze

There are numerous news that lead traders and investors alike to predict an upcoming short squeeze like we saw with GME (Gamestop).

  • CEO of AMC announces AMC is no longer going bankrupt (via. Los Angeles Times)
  • Vanguard, Wells Fargo, BMO Harris, BlackRock, Fidelity and many more institutions are buying AMC stock while it’s low (via. CNN Business)
  • AMC is currently the most shorted stock (via. MarketWatch) Unfortunately MarketWatch has hidden AMC from their list. Retail investors suspect foul play.
  • AMC is also currently one of the most held stocks surpassing Apple (AAPL) and Tesla (TSLA) (via. Nasdaq)
  • More publicity and awareness has average people investing in AMC which is driving volume for a potential squeeze
Related: AMC Dominates with Powerful Q1 Results: Highlights

Big institutions keep buying AMC stock

We’re seeing huge institutions are investing in AMC stock while it’s affordable.

And because it’s affordable, we’re also seeing average people invest in this stock.

As long as the stock is being held, though lows and through highs, a squeeze like we saw with GME (GameStop) is certainly possible.

AMC stock closed at $11.71 on May 16th. The stock has been on discount.

However, the community sentiment remains bullish meaning retail investors keep buying and holding the stock to squeeze shorts from their positions.

Shorts continue to short ladder the stock causing the downtrend we’ve been seeing.

But AMC wants to keep climbing.

As long as AMC shareholders continue to hold and buy the dip, short investors are at a disadvantage.

Great news for AMC Entertainment (Archive Data)

Other news that can further drive the share price of AMC stock is the announcement that most AMC theaters have now begun to open up.

AMC’s short borrow fee as of 5/16 is 1.80%, via. Fintel.

The fee is going up after being down for many months.

What is a short borrow fee?

AMC short borrow fee
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The short borrow fee is the interest shorts pay for borrowing shares of AMC stock.

This means shorts are losing money every day by not closing their positions.

A surging short borrow fee rate could incentivize shorts to close their positions due to higher borrowing costs.

Why the short borrow fee rate matters

It costs shorts interest to hold while it costs the retail investor absolutely nothing to hold.

Shorts are losing money every day they hold because of this interest fee for borrowing the stock.

For some reason shorts still think AMC Entertainment can go bankrupt, although they have enough money to continue doing business.. I know, I don’t understand this either.

As hedge funds like Citadel lose money, the short borrow fee only increases those losses.

AMC’s share price might be on discount right now, but hedge funds are experiencing losses on top of losses.

They’ll eventually have to close their short positions, will you miss it?

Related: Will This Market Meltdown Trigger AMC to Squeeze?

How high can AMC stock go up to?

AMC to the moon

Because we’ve seen a lot of suppression in the market, many traders are anticipating AMC stock can get as high if not higher than GME (GameStop).

This of course is just speculation as both stocks are heavily shorted and more people and institutions alike are buying and holding the stocks.

There’s a notion that all these suppressed gains will result in a massive short squeeze in the coming months.

So, is it too late to purchase AMC stock?

The price after a short squeeze eventually fall back down and level out, but this will take time.

With AMC stock trading below $100, now could be the perfect time to buy.

Despite what corporate media is pushing, AMC’s growth tells us the stock is undervalued.

But most importantly, big shorts have not covered.

Just don’t wait too long because we hear it’s going to the moon.

Hedge funds continue to short AMC and the volume is increasing; it’s the perfect storm for a short squeeze.

Read: What The Fool isn’t telling you about AMC could hurt you

Things to expect in the market with AMC

  • Volatility followed with an upward trend in price action
  • Short-ladder attacks
  • Headlines advising you to trade in something else
  • Hedge funds to lose a lot of money
  • More retail investors buying this stock right now
  • A series of gamma squeezes
  • And, a highly potential short squeeze that can happen at any time
Related: Are Institutions Preparing to Close Short Positions in AMC?

How many AMC shares should I buy?

If you’re planning on taking a position in AMC Entertainment set a budget for investing.

Since the market is volatile at the moment, purchase shares incrementally.

The best time to buy a stock is when the share price has dipped.

This will allow your investment to see gains when the stock price rises again.

Ladies and gentlemen, the last thing you want to do is to invest more than you can handle to lose.

This advisory must be made.

If you’re holding AMC stock leave a comment below and let me know what a short squeeze would mean for you.

Retail investors can feel it, the tendies are coming.


Where can I invest in AMC? What’s a good platform?

If you have not opened a brokerage account to begin investing, read how to invest in the stock market (step by step).

In this post you will see a number of linked platforms that you can check out!

I personally use Vanguard.

Vanguard has proven to be useful, and it has never failed me before.

Brokerage account Vanguard
AMC

Important Advisory

It is important to note that I am not a licensed financial advisor.

Like many traders and self-taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.

On another note: It would be wise to not invest more than you can afford to lose. In other words, invest money you would be okay with losing for simpler terms.

Ignore the bogus headlines from The Motley Fool and other sources

AMC and r/wallstreetbets have been given lots of negative press from the likes of The Motley Fool and other sources; shaming the purchase of the stock.

The fool vs AMC

Fortunately, we’ve been backed up by Mark Cuban, Chance the Rapper, and other big names.

Influential outlets with powerful hedge fund partners (institutions who short the stock) have been attacking traders and investors by providing false information wherever they can.

What we’re seeing right now is that the big guys are losing money due to the price of shorted stocks going up.

They will say and do whatever they can to divert the public from trading this stock.

My personal suggestion to you is to not let these sources intimidate you.

Do your research to see how the stock price has been manipulated through bogus headlines and short-ladder attacks.

Not to mention, the complete halt of trading AMC stock by Robinhood.

Trending: How High Can AMC Stock Price Skyrocket Up To?

And lastly…

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Are Institutions Preparing to Close Short Positions in AMC?

how soon will institutions close short positions in AMC stock?
How soon will institutions close short positions in AMC stock?

Retail investors have been waiting for big institutions to close their short positions in AMC for over a year now.

Many short positions in AMC Entertainment stock still remained open after January’s and May’s runup last year.

This year’s bear market has dropped stock prices back to all-time lows.

Will this provide institutions with incentive to close short positions in AMC now?

Let’s discuss it below.

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AMC drops to all-time lows again

Are institutions preparing to close short positions in AMC stock?
Are institutions preparing to close short positions in AMC stock?

The entire market is on a free-fall.

AMC Entertainment stock managed to fall below $13 on Monday despite heavy buying volume.

The off-exchange trading for AMC is currently around 62.26% according to Fintel, and shorts have borrowed an additional 1M shares to short the stock according to Stonk-O-Tracker.

These predatorial strategies have retail investors pinned and losing money on their investment.

The economy’s health isn’t helping much either, but further fueling the market’s stress.

Interest rates are rising, inflation is at an all-time high, and the U.S is battling several issues outside the country with Russia and Ukraine, and at home.

Today’s economy has the entire market beat.

And AMC Entertainment is no exception the free-fall despite the company’s continuous progress.

AMC has become a trading ground

Traders and institutions are trading AMC at all times.

At some point, positions will have to get closed.

DTCC B16845-22 raised margin requirements by 25% for stock trading above $10 per share.

If AMC stock drops below $10 per share, then margin requirements will be raised to 30%.

This is rather significant because it requires institutions shorting AMC stock to carry more collateral.

Unfortunately for the rest of the market, institutions will continue to create massive selloffs just to keep up with these margin requirements.

But it gets worse for them because the lower AMC drops, the more collateral will be required of them.

Financial institutions are being stretched beyond their means and it’s not going to end well for them.

We’ve already seen hedge funds fall – and we can expect this trend to continue.

Related: Hedge Fund Melvin Capital is Shutting Down in June

Could institutions be preparing to close short positions?

Institutions will eventually begin to hedge on the upside (long).

For this to happen, they will need to identify the market’s bottom.

Economists believe there is still quite aways to go before the market begins bottoming out.

Others such as Forbes believes the stock market is finishing this crater of a selloff.

With this in mind, institutions always strategize when it comes to market conditions.

It is very possible AMC short sellers could begin to close their positions as the markets begin to bottom out.

When this will occur is unknown.

No one has been able to perfectly time the market; however, there are always signals in the market that allow investors to foresee specific trends.

A reversal is imminent

Despite where the bottom lies, investors holding AMC stock should know that a reversal is imminent.

A reversal is a change in the price of an asset which can occur to the upside or downside – depending on a securities’ current trendline.

For AMC, a reversal would push the stock up.

Not only is a reversal imminent for AMC stock, but for the entire market as well.

Stocks can’t keep going down forever, at some point they must go up again.

I have a feeling this is going to be one of the biggest reversals in history.

I’m interested to learn what you think.

Leave a comment down below.

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Related: Is AMC Stock Due to Go Up Next Week?

AMC Surges More Than 15% Entering the New Week

AMC Surges more than 15%
A deep dive into AMC stock’s market performance

Today AMC surged more than 15% closing at $18.26 per share.

The movie theatre chain stock closed at $15.86 per share on Monday.

Retail volume fueled today’s price action which also surged compared to its average volume of 44 million.

Let’s go over AMC’s market stats, short interest, and weekly prediction below.

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AMC sees surge in retail volume

AMC stock market stats
AMC stock market stats

Today AMC Entertainment Holdings saw a surge in retail trading volume.

The stock’s average trading volume is 44 million but rose to 75 million today.

Is AMC getting ready to begin a new bull run?

Today marks the third day in a row AMC surges from its previous market downtrend.

The movie theatre chain is up more than 25% in the past 5 trading days and 71% in the past year.

Mainstream media has been misleading investors not to expect and ‘encore’, but it seems we’re about to get a full show again.

Last year AMC reached an all-time high of $72 per share when retail began to buy the stock en masse.

AMC only had a short interest of 20% when it surged.

Today AMC’s short interest is at 21% with utilization at 100.

‘Apes’ understand this is a very important figure.

Let’s break it down together.

AMC’s high short interest is a guarantee the stock will continue to soar

AMC short interest
Bookmark the short interest updated daily

I published an article this past weekend breaking down the data that shows AMC is on trajectory for another massive price runup.

You can read the data here.

AMC’s chart patterns are showing a ‘squeeze’ type runup is forming.

We know this by analyzing the short interest percentage, utilization rate, cost to borrow, days to cover, and previous runup patterns.

The AMC surges we’ve seen in the past few days proves corporate media is merely fueling a narrative that benefits its owners, who in most part are short selling AMC and GameStop.

Early investors are profitable again, but they are not leaving.

‘Bag holders’ did not hold the bag for months to break even.

The data has always been there, and it says AMC will soar into the hundreds of dollars per share as small short sellers begin to close.

This doesn’t take into account the number of positions that have to be closed by overleveraged hedge funds.

There’s no doubt those who got in late will too be profitable as AMC surges past triple digit numbers.

AMC surges after hours

A typical sign of more bullish path is rising after hours price.

While this price should be taken with a grain of salt, it’s been a bullish indicator, nonetheless.

AMC saw a 1.33% increase after hours last Friday.

Similarly, AMC saw many of these after hour increases prior to its runup to $72 per share last year.

While the small price influx isn’t a ‘make it or break it’, it certainly builds investor confidence.

AMC outlook looks positive

The available data, earnings, and community sentiment is extremely positive for AMC Entertainment.

Most AMC shareholders say they will invest back into the company after they squeeze shorts from their positions.

Follow me on Twitter and join the world’s most incredible retail investor community.

AMC Entertainment as a company is doing very well in terms of fundamentals.

If you don’t know how much the company has grown over the past two years you have to read their Q4 highlights here.

If you’re thinking of investing in AMC but have never invested before, read this step-by-step guide on how to start investing in the stock market for beginners.

I walk you step by step on how to open your brokerage account and make your first stock purchase.

Avoid trading apps such as Robinhood and Webull.

And if you’re already in the markets, send the guide over to someone who isn’t.

If you enjoyed this article, be sure to leave a comment below and give it a social share.

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It’s all 100% organic so thank you!

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SR 21-19: The Fed Is About to Impose Massive Margin Calls

SR 21-19 Margin Calls
SR 21-19 Margin Call Requirements

The Fed’s just published a letter under SR 21-19 to supervise and assess the actions that led to the Archegos default by examining financial institutions and their relationships to investment funds.

The Federal Reserve is issuing this guidance to limit risk management.

SR 21-19 is intended for banking organizations with large portfolios and relationships with investment funds, such as hedge funds.

Some of you in the community wanted me to explain what this letter means and so I’m going to be breaking it down for you today.

franknez.com

Welcome to Franknez.com – today’s market news has to do with the Fed’s cracking down on banks and hedge funds. Interesting things are happening at the end of the year, aren’t they?

Let’s get started!

Speaking of interesting things happening.

The ape community has attracted the attention of the SEC, mainstream media, and now the Federal Reserve.

It’s worth noting that progress is progress, no matter how slow or long it takes.

Why is SR 21-19 Significant?

SR 21-19 Margin Calls

This federal piece of document is significant for many reasons.

  1. It highlights lack of transparency in the markets.
  2. The letter acknowledges a relationship amongst financial entities and confirms strategic involvement.
  3. It expresses how overleveraging positions pose a major risk towards meeting debt obligations.
  4. And finally, SR 21-19 touches topic on providing proper margin terms to these institutions.

Reserve banks are being asked to distribute this letter to the supervised organizations in their districts and to appropriate supervisory staff.

The board is continuing to review firms’ weaknesses to take further action.

The Feds are looking for a solution that will mitigate risk and prevent hedge funds from defaulting, as seen with Archegos.

Archegos defaulted on March 26, 2021, causing over $10 billion in losses across several large banks.

Today we’re seeing Citadel has lost billions of dollars this year from shorting AMC stock.

The hedge fund has begun freezing any attempts for its clients to pull their investments out by issuing ultimatums that would make it impossible for the customer to return.

And on top of that, a hefty fee for withdrawing their investments.

New Margin Call Terms Are on The Horizon

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It is unclear what the margin call terms will be for these overleveraged financial institutions.

However, the letter states that they will be ensuring that these institutions receive the appropriate margin requirements.

They will either avoid inflexible and risk-insensitive margin terms or extend close-out periods.

Risk-insensitive meaning appropriately raising the margin requirements dependent upon how overleveraged a financial institution is.

Hedge funds shorting AMC and GME stock have amounted an overwhelming number of borrowed shares to short the stocks.

Yet these stocks have remained leveled due to the strength of retail investors.

The feds are about to impose massive margin requirements on overleveraged hedge funds.

Now, we won’t know how long this process will take.

What we do know is that the federal government isn’t taking hedge funds lightly anymore.

And if the appropriate margin terms are too high for hedge funds to maintain, then they’ll be forced to close short positions.

Getting To the Bottom of Synthetic Shares

AMC Synthetic Shares

Will the feds come across the millions of synthetic shares these overleveraged hedge funds have created?

It will be a massive surprise if they don’t.

See, the feds are requiring their supervisors to receive adequate information to fully understand the risks of the investment funds they are investigating.

This includes positions and counterparty concentrations, or a specific sector in which two financial entities are specifically focused on.

Failing to meet transparency will mean the feds will take action on setting conservative terms between the parties.

Identifying synthetic shares in the market is a rabbit hole the feds themselves will have to go down.

My suggestion is for the community to push the Department of Justice to investigate these synthetics.

Raising awareness to these problems in the market is key to sparking a MOASS.

2022 Is Going to Be an Interesting Year for Hedge Funds

ken griffin meme

Hedge funds face more scrutiny than ever before in history.

They have created system risk and pose a threat to our businesses and economy.

Hedge funds never saw a community of activists fight them for a fair market.

Retail investors caused Archegos to default and Melvin Capital to lose billions of dollars resulting in a life-line from Citadel Securities.

Melvin Capital has stated that they’re out of the game.

However, financial institutions such as Citadel Securities and Bank of America Corp continue to short AMC stock.

With the feds now involved, 2022 is going to be an interesting year for both hedge funds and retail investors.

Leave Your Thoughts Below

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What do you think of the SR 21-19 letter?

Could this federal document be the first step towards the uncovering of synthetics in the market?

Are we closer to margin calls than ever before?

Leave your thoughts below.

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Why Didn’t AMC Squeeze Last Year in 2021? [Deep Dive]

Why didn't AMC squeeze last year?
Why didn’t AMC squeeze? And can it squeeze this year?

Many of you might be wondering why AMC didn’t squeeze last year in 2021.

The stock had an incredible year overall.

Retail investors who got in for a short squeeze play early came up more than 1000%!

However, these retail investors knowns as ‘apes’ continue to hold the stock into 2022.

After all, people got in for a short squeeze play, not to make a quick buck.

So, why didn’t AMC squeeze last year in 2021?

franknez.com

Welcome to Franknez.com – today I want to touch topic on AMC since it’s been the most anticipated stock of all 2021. You’re going to want to stick around for this one.

Let’s get started!

AMC was one of the most searched for ticker symbols in 2021 and consistently trended on Yahoo Finance throughout the year.

Many of you aren’t new to the blog.

I was an early adopter in the AMC saga and helped a ton of people get in on this play early.

So, what was so special about buying AMC stock in 2021?

After GameStop’s share price increased to incredible levels nearing $500 per share, retail investors noticed AMC’s short interest was also high.

A high short interest meant the stock was heavily shorted therefore short sellers could be squeezed out of their positions, triggering a short squeeze (massive price flux.).

AMC experienced massive gains from $2 per share up to $20 per share.

Momentum then further escalated AMC’s share price to $72 per share before slowly cooling off to today’s price levels.

However, AMC didn’t fully squeeze last year, it merely removed small shorts from their positions during these runups.

But more on that later, let’s break down what is currently going on with AMC stock.

AMC Continues to Be Shorted

AMC Short Shares Available to borrow

AMC was one of the heaviest shorted stocks in the market last year.

Though mainstream media might claim that AMC squeezed last year, it only experienced gamma squeezes (momentum).

Because the short interest did fluctuate, we can access that some short covering did indeed occur.

However, AMC’s short interest is still relatively high.

When AMC soared to $72 per share last year the short interest dropped from 20% to 14%.

AMC’s current short interest is at 20%.

AMC Short Interest 2022

This means there’s ample room for AMC’s share price to continue surging in 2022.

Why didn’t shorts cover their positions in AMC last year?

A few short sellers did cover their short positions in AMC last year, though according to the short interest many open positions remain.

In fact, according to the short interest data, there’s approximately more than 102 million shares on loan that have yet to be closed.

Financial institutions have to close these positions at some point, and that’s whether they’re profitable or not.

Because short squeeze plays are rare, we’re learning more about their development through AMC and GameStop.

The matter of the fact is that AMC Entertainment is no longer going bankrupt so even if the share price drops below $10 and shorts cover profitable, we can expect to see a massive runup from the buying pressure happening all at once.

Why bigger shorts didn’t cover AMC last year is almost like saying why didn’t retail investors sell their stock last year.

Both retail and short sellers are going long on AMC Entertainment stock.

This means eventually individual people from both groups will begin to cave in.

And it’s an entire ecosystem of some taking profits or cutting their losses.

As AMC’s share price continues to drop in 2022, it provides short sellers with open positions in AMC from last year to finally close this year.

The results?

Massive price movements.

Market manipulation events

Market manipulation exposed
Market manipulation exposed

Retail investors who bought AMC stock last year saw a number of ways hedge funds manipulate the market.

From borrowing shares that don’t exist to short the stock, to OTC trading and dark pool trading, retail saw it all.

These predatorial strategies were used in efforts to discourage retail from further buying the stock.

Last year we saw Melvin Capital almost close if it weren’t for Citadel giving them a lifeline.

Mudrick threw in the towel and Archegos went bankrupt.

Anchorage Capital closed after 18 years; they had more than 4 million put options in AMC stock and were one of the top 10 institutional firms shorting AMC stock last year.

Another hedge fund on that list is Citadel Securites who lost billions in AMC in 2021, negatively affecting their customers.

Will this trend continue in 2022?

Leave a comment below.

How long can shorts drag not covering?

Just as retail investors can go long on a stock for many years, short sellers can also drag not covering for long periods of time.

This squeeze play will have intermittent episodes where we see some covering before new shorts open a position.

AMC Entertaiment is a hot spot for short sellers to bet against the stock and the company’s progress.

Will AMC Squeeze in 2022?

Why didn't AMC Squeeze in 2021? Can AMC squeeze in 2022?
Why didn’t AMC squeeze in 2021? Can AMC still squeeze in 2022?

As AMC’s share price continues to tumble, short sellers may begin to take profits by closing their short positions.

It’s this buying pressure that will ultimately lead AMC to experience major price moves this year.

Whether these price moves will trigger a chain of short covering or not is an event that has yet to unfold.

Could AMC squeeze in 2022?

Absolutely.

But while regulators fall back on the uncovering of synthetics, for now the short interest is the only data that confirms how much potential this squeeze has.

Don’t miss today’s topic discussion on YouTube at the end of the article.

You can read more about AMC’s short interest data for 2022 here.

Subscribe to the blog for more content

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Don’t forget to watch this topic’s discussion on YouTube below.

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Topic discussion on YouTube – Subscribe to the channel for more content

AMC Short Squeeze Price: Expectations VS Reality

AMC Short Squeeze Price Potential
AMC Short Squeeze Price Potential

Retail investors often wonder how high AMC’s short squeeze price potential could be.

We heard many numbers get thrown out there earlier this year.

They ranged from $1,000 to $10,000 and even $100,000 and $500,000 per share.

What exactly are we dealing with here?

And, could AMC’s short squeeze price even be higher?

franknez.com

Welcome to Franknez.com – the blog that fights for retail investors. Today we’re going over AMC’s short squeeze price potential.

Let’s get started!

Measuring AMC’s Market Cap For Squeeze Potential

AMC’s current market cap is approximately $21.86b with a share price of $42.60 (11.16).

Volkswagen short squeeze chart

When Volkswagen’s short squeeze price reached 1005 euros, the market cap was worth $296b euros, or $370b dollars, via Reuters.

Let’s calculate AMC’s share price at a $370b dollar market cap just for comparison.

$370b market cap รท 513.145 million outstanding shares = $721.04 per share.

AMC’s market cap would have to be almost 17x more than it’s current market cap.

Now, keep in mind synthetics/naked shares aren’t being calculated and I’ll get more into this later.

Is this market cap possible? Absolutely.

Here are a few companies with similar market caps:

  • Walmart $399.23b
  • Procter & Gamble $356.192b
  • Nestle $366.725b
  • Mastercard $363.114b
  • Johnson & Johnson $428.245b

AMC’s market cap was worth $300m (Nov. 2020) -$500m (Jan. 14, 2021) earlier this year, via CompaniesMarketCap.

That’s a 72x market cap growth in a year; making a 17x market cap surge up to $721.04 per share rather feasible.

Community, a move up to the high hundreds seems fundamental to me.

Especially considering big shorts have not covered.

Short Interest

There’s not much data that ties AMC’s current share price to short covering.

We’ve seen AMC’s short interest come down 3.7% to its current 16.27% from a peak of 20% in the span of 5 months.

We’ve also seen AMC’s share price trade between the low $30s to low $40s.

One could argue that this small drop in short interest could be due to very small short covering, thus bringing the share price back up to $40 from the $30 level.

We’ve been trading sideways for quite some time now.

What’s to say the $30 level isn’t being used to cover small positions, driving the share price back up to $40; and rinse and repeat?

If that’s the play, hypothetically speaking, then the ones benefiting from apes holding are day traders and some shorts.

Buy VS Sell Ratio

If this is the case, we’ll need to start seeing more buying pressure and less selling.

AMC Buy vs Sell Ratio
AMC Buy VS Sell Ratio 11/15, via. FIDELITY

Otherwise, retail investors could be creating an escape route for short sellers and a playground for day traders.

This $40 range is reminding me of the $14 level Wanda Group wouldn’t let us get passed by.

Every time we would hit $14, the company would sell shares.

Only this time it seems it’s a combination of day traders selling high, short sellers shorting the stock, and some retail selling (non-apes).

This MOASS play is not for everyone.

But if more investors dedicated this play to squeezing shorts from their positions, then retail could certainly 17x AMC’s market cap up to the $700 per share price range just from momentum alone.

Short Squeeze Price With Synthetics Covered

There are many reasons to believe millions upon millions of synthetic shares have been used to short AMC stock.

Billions!

But we don’t have the support from anyone to confirm this to the point where it can be calculated.

Here we can come up with numbers based on estimations but I’m not here to do that for you.

Do I believe synthetics have been used to drive AMC’s share price down?

Absolutely.

Do I believe hedge funds will do the ‘right thing’ by covering these?

Off exchange markets allow hedge funds to swap stock back and forth behind the lit market.

Who’s going to regulate and ensure hedge funds cover these shares?

So until that happens, you can count a short squeeze price calculation with synthetics out for now.

But it’s for this exact reason why retail must fight for a fair market and for proper regulation.

Covering billions of synthetics could absolutely push AMC’s share price into the high thousands to even tens of thousands.

The problem here is we have no proper or legal documentation that allows us to accurately identify this scenario.

A proper MOASS would require proper regulation, forcing hedge funds to close all borrowed and naked shares.

How Do We Get A Proper Synthetic Share Count?

By requesting it from regulators.

I saw a poll on Twitter tagging Adam Aron whether management should look into answering shareholder’s question regarding synthetics in the market.

Adam Aron has turned the cheek in the past saying they have no knowledge of these synthetics.

However, we should be tagging regulators, not the CEO of AMC.

I just personally don’t think he can get involved.

But if he could, as a shareholder himself, it would greatly play in our favor.

Only time will tell how this unfolds.

Setting Realistic Expectations

So, we don’t have an exact count of synthetics.

What we do know is that AMC’s short squeeze price potential can be massive when looking at just how many synthetic shares could be out there.

But we also know this.

If AMC’s market cap grew by 72x from November 2020 to November 2021, then it can certainly grow another 17x (VW short squeeze market cap example); where the share price will trade above $700 per share.

This could be caused by heavy buying pressure from retail, whales, some short covering, and FOMO buyers.

Now you have to ask yourselves, how large will my portfolio be worth at $700 per share?

Just for perspective of course.

Do you have enough shares to be happy with the results?

Or will you continue to hold 5 shares waiting for this to hit +$100,000?

Bulls make money, bears make money, pigs get slaughtered.

There’s no telling how high or low AMC’s short interest will be around $700 per share.

If it’s still relatively high then it would simply mean there’s more room for growth.

However, if there’s a significant drop then it’s a sign plenty of shorts covered.

MOASS Will Require A Synthetic Share Count

sec

If AMC is to experience a proper MOASS, it’s imperative that regulators undergo a synthetic share count investigation.

I’m going to publish an article regarding this matter that we can pitch to regulators and get circulating out there.

ADVISORY:

Keep in mind I’m only using Volkswagen’s short squeeze market cap as an example to paint a possible scenario for AMC based on a 17x market cap from its current market cap.

These type of plays are rare and there’s not much information about them.

This means we’re paving the way.

I hope that this article provides you with a perspective that helps you identify just how high AMC’s share price can go in general.

Should we push regulators to investigate?

Of course.

Should we sit on our hands and just wait on regulators?

Hell no.

Identify how many shares you’d need to meet your goal, not counting synthetics for now, and ensure you can walk away with a significant amount of money when you’re ready to.

This play is continuously unfolding.

I would love nothing more than to create another article time from now calculating a confirmed synthetic share count for the community.

Final Words

franknez.com

I hope you found this article helpful in one way or another.

Again, I’m using information I have at hand.

I could calculate several scenarios with different market caps but the reality is there could be enough synthetics to take AMC to Pluto and into the several thousands to tens of thousands of dollars per share.

Whether culprits take accountability for these synthetics or not will be up to us to fight for.

With that being said, I’m going to be using my platform to voice tackling this synthetic share count problem.

We cannot let hedge funds get away with this so easily.

I’d love to hear your thoughts. Leave them in the comment section of the article below.

franknez.com

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Bookmark: List of Momentum Stocks: AMC short interest and utilization


Will Evergrande’s Default Cause AMC To MOASS?

Will Evergrande default cause AMC MOASS
AMC MOASS

BREAKING: Evergrande is on the brink of default. Several key procedures are aligning in regards to an AMC MOASS.

If Evergrande defaults, it could lead to a massive global stock market meltdown.

And with AMC’s new increased negative beta, AMC has the perfect setup for a massive rebound.

BlackRock and the Swiss National Bank just bulked up on their AMC holdings.

Adam Aron is scheduled to incrementally sell some stock?

Apes, this is massive news.

If you sold your AMC stock recently you’re going to wish you had held on.

franknez.com

Welcome to Franknez.com – today’s news is a collection of events that point towards the highly anticipated AMC MOASS event.

Let’s get started!

Evergrande Is On The Brink of Default

Evergrande Default News

According to a press release, Evergrande has defaulted via. AP News.

However, the company has not defaulted any of its offshore debt obligations, according to Daily Sabah.

Although, it is worth mentioning that the DMSA is preparing bankruptcy proceedings against Evergrande and calls on all bond investors to join it.

Blockworks has also confirmed bankruptcy proceedings have begun taking place.

The New York Times confirms Evergrande has defaulted as of 12/9.

The last time news on Evergrande’s debt crisis made it headlines, the stock markets bled heavy.

The U.S Federal Reserve warned Tuesday that China’s property sector could pose global risk.

Evergrande owes millions to U.S financial institutions and investors.

With institutions facing massive losses, liquidity issues begin to arise resulting in stock market chaos.

Evergrande’s default news is a developing story that only get’s worse and worse for the company.

Be sure to subscribe to the blog for updates.

AMC’s Negative Beta Surges To -9.80

A beta less than 0 indicates a reverse relation to the market and is an extreme occurrence according to Investopedia.

Why is this important?

Because when the majority of stocks go down, AMC will have the opposite effect contrary to the rest of the market.

Well, AMC just received an updated negative beta score of -9.80, source.

AMC negative beta Franknez

The company had a negative beta score of close to -4 earlier this past summer.

In general, negative beta stocks tend to do better when the stock market declines.

Any stock market crash that occurs, say one caused by an Evergrande default, could launch a negative beta stock’s share price such as AMC’s opposite of the market.

In simpler terms, a stock market crash would skyrocket a negative beta stock.

Although negative beta stocks have more risk, the rewards are also significantly higher.

Financial Institutions Buy Massive Amounts of AMC Shares

As AMC’s negative beta continues to get further from 0, we have large financial institutions such as BlackRock and the Swiss National Bank loading up on AMC shares.

In a time where the probability of a stock market crash is increasing by the day, these two massive financial institutions are buying this negative beta stock.

In a recent 13F filing, BlackRock increased their position by 31.28% bringing their AMC shares to a total of 40 million shares.

BlackRock increases AMC Shares
BlackRock increases AMC Shares, source

Notably, the Teacher Retirement System of Texas also increased their position by 73%.

In another 13F filing, we see that the Swiss National Bank increased their AMC positions by a whopping 138.16%.

They now hold close to 2 million AMC shares as of this month, November.

swiss national bank buys amc shares
Swiss National Bank buys AMC Shares, source

You can find the massive list of other financial institutions buying AMC stock here.

It’s No Coincidence Institutions Are Buying AMC Stock

The last time we saw heavy institutional buying was before June’s big runup to $72 per share.

The fact that Evergrande poses a risk to global markets means buying a negative beta stock such as AMC could be a way for financial institutions to hedge against any major losses.

On the flip side, it could be a way for financial institutions to cash in massive gains from an AMC MOASS play.

I presume financial institutions will be taking profits on the way up and on the way down.

Which leads to the final point.

Is Adam Aron Selling AMC Stock?

is Adam Aron selling amc stock
Adam Aron

Adam Aron announced mid this year that he would be selling stock later this year under a program filed through the SEC.

These incremental and automatic transactions will occur in the months to come.

His first automatic transaction occurred on Tuesday, where the CEO is using these profits to diversify his assets and offset capital gains taxes.

The silverback has a plan to begin distributing profits in other wealth building assets in the months to come.

In a time where AMC’s share price can drastically change at any moment, it’s easy to see why this executive would set an automatic “cash-in” system.

If there’s anything we can gain from Adam’s actions, it’s that he sees major profit opportunities in the short-term future.

Will The AMC MOASS Finally Happen?

mother of all short squeezes

Our financial system faces systemic risk and AMC’s rare negative beta score is a ticking time-bomb for an explosive upswing.

Financial institutions are buying AMC stock like citizens were emptying grocery stores during the pandemic lockdowns.

And now we see Adam Aron share his plan to take profits in the months to come.

An AMC MOASS could be underway.

I’m willing to hold this stock to see this incredible event play through.

Are you?

Leave me a comment below.

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Read: How high can AMC stock price skyrocket up to?


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