Tag: AMC News Today

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.


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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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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Pension Fund Attacks AMC CEO and Board Members in Lawsuit

Market News: Pension fund files lawsuit against Adam Aron and AMC.

(Reuters) Allegheny County Employees’ Retirement System filed a lawsuit against AMC Entertainment (NYSE:AMC) claiming that the company and several of its directors violated state law to “eviscerate” the voting power of common stockholders, who had not supported issuing new shares.

The Allegheny County Employees’ Retirement System is pursuing a class-action complaint in Delaware’s Court of Chancery against AMC and its board members, including CEO Adam Aron, seeking a temporary restraining order against a planned March 14 conversion vote.

The pension fund asked the Delaware Chancery Court to declare the preferred shares invalid and ban the holders of the preferred shares from voting.

“This Action challenges a course of complex and disloyal corporate engineering by the Defendants — described by AMC’s Chief Executive Officer and Chairman, Defendant Adam M. Aron as an exercise in ‘3-D chess’ — devised to achieve a simple aim: eviscerating the voting power of AMC’s Class A stockholders in order to force through approval of a proposed dilutive share count increase that those stockholders repeatedly had rebuffed and were not willing to support at the corporate ballot box,” the complaint says.

Plaintiffs are seeking an order restraining the defendants from submitting the proposals for a vote until the plaintiffs can take expedited discovery and present a motion for a preliminary injunction – and they anticipate it can complete the necessary discovery within 30 days of a temporary restraining order.

The latest AMC news has shareholders wondering why the institution is taking legal action to slow down the conversion of APE shares to AMC common stock.

It’s been five months since the inception of APE and the pension fund never took legal action in the months prior.

What are your thoughts on what’s happening with AMC?

Market News: Pension Fund AMC Lawsuit News.
Market News: Pension Fund AMC Lawsuit News.

AMC Entertainment shares rose by +16.41% on Tuesday, its equity (NYSE:APE) fell by -7.92%.

The company explored two main proposals:

  1. To convert shares of its equity APE back into common shares of AMC stock.
  2. Undergo a 1-for-10 reverse stock split.

More than 82% of shareholders said they were voting ‘yes’ on the proposals that would dilute shares and play in the company’s favor fundamentally.

CEO Adam Aron has not addressed the lawsuit against him and the company publicly to shareholders yet.

Leave your thoughts on what’s happening with AMC Entertainment in the comment section below.

You can read more breaking AMC stock news here.

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Market News Today: AMC and Adam Aron Lawsuit News.
Market News Today: AMC and Adam Aron Lawsuit News.

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Netflix’s Showing in Theatres Could Have Made $200 Million!

Netflix showing in theatres could have made $200 million
Market News: Netflix misses out on hundreds of millions of dollars for only streaming in movie theatres for a week.

In October, AMC announced its first ever Netflix showing in 200 theatres.

Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.

CEO Adam Aron stated on Twitter that success here could lead to more Netflix (NFLX) movies at AMC.

The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.

The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.

Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.

Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.

The strange release for “Glass Onion” also prompted industry insiders to question the streamer’s theatrical release strategy. 

CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue.

Why The Movie Theatre Industry Is Essential for Films

“With a traditional wide release, premium screen spread, and full marketing campaign, I think ‘Glass Onion’ could have generated at least $50 million to $60 million to lead the entire market,” said Shawn Robbins, chief analyst at BoxOffice.com.

In 2019, “Knives Out” snared $312 million globally on a budget of just $40 million.

The first film’s performance at the box office has provoked questions about why Netflix has limited the release of “Glass Onion” to just one week in a limited number of theaters.

After all, the streamer reportedly shelled out $400 million for the rights to two sequels, OUCH.

Box office analysts predicted the film could have hauled in more than $200 million in ticket sales before the end of its run if it had been given a wider global release.

“This is exactly the kind of movie adults want to see in theaters right now,” said Robbins.

“The family element made ‘Knives Out’ a perfect Thanksgiving release for audiences across the country three years ago. Daniel Craig’s return as Benoit Blanc, Rian Johnson’s sharp storytelling, and another round of positive reviews for ‘Glass Onion’ are building on the excellent goodwill from the prior film as this semi-sequel reaps some rewards, but it arguably could have achieved even more.”

Streaming Didn’t Kill Movie Theatres

Despite what Wall Street and media personalities such as Charles Gasparino argue for, streaming did not kill the movie theatre industry.

In fact, this proves companies such as Netflix need movie theaters to thrive.

What’s stopping the movie theatre industry from fully thriving is the lack of movie titles.

This is why Amazon CEO Jeff Bezos is investing more than $1 billion per year in the movie theater industry.

Amazon.com Inc. will be investing billions of dollars to produce movies that will release in theatres, according to people familiar with the company’s plans.

This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.

The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.

Amazon is still sorting out this strategy said people who asked not to be identified.

That number of releases puts Amazon on par with major studios such as Paramount Pictures.

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AMC Entertainment Shares Fall to January 2021 Levels

Here is the latest AMC stock news.
Here is the latest AMC stock news.

AMC Entertainment shares have fallen below $5.

The last time shares traded at this level retail investors were aiming at squeezing short sellers from their positions.

Retailers who aimed to push AMC’s share price above $100 per share when it reached its all-time high of $72 persist on squeezing shorts today.

AMC closed at $4.89 on Monday with healthy trading volume around 28.5 million, 2 million more than its average.

The movie theatre’s market cap has fallen below 3 billion, currently at 2.5 billion.

Shareholders who are down significant amounts of dollars say market manipulation played a huge role in suppressing the demand created by retail investors.

SEC Chairman Gary Gensler admitted to dark exchanges having an unfair advantage over the average investor in an interview with ‘We The Investors‘.

He even claimed that he doesn’t believe the self-regulatory organization FINRA should have the ‘best execution rule‘, which allows them to execute orders in off-exchange and dark markets.

Here’s the latest market news.

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SEC Chairman Speaks on Dark Pools

In a recent interview conducted by ‘We The Investors’, SEC Chairman Gary Gensler says he understands retail frustrations.

But retail investors were quick to give the Chairman backlash, stating actions speak louder than words.

While ‘We The Investors’ has taken a historic step towards representing the retail community in front of regulators as a whole, many retail investors remain skeptical, lacking trust from government leaders.

The SEC Chairman says that short selling is a challenging area where the SEC is still working and pursuing focus on.

One of the biggest challenges according to Chairman Gensler is that Wall Street powers will send stacks of reports highlighting rebuttals on proposals aimed at protecting retail investors.

Dave Laurer asked the SEC Chairman if dark pools suppressed the price of stock and whether retail investors could influence the price of a stock if majority of orders traded in the lit exchange.

While there was no direct answer to the suppression of price, the Chairman says that with so much trading happening off-exchange, he doesn’t think it’s a leveled playing field as dark pools give institutions an unfair advantage.

Retail investors as individuals don’t have the power to move the markets, but retail orders combined could have significant price impact, said the SEC Chairman.

“FINRA must be investigated”, says The Retail Community

Self-regulated organization FINRA has been receiving a lot of attention on social media recently.

While FINRA requires firms to be able to meet their short sale requirements as well as have a process to close out fails to deliver within their required timeframes, the organization allows the manipulation in the markets to happen.

FTDS (fails-to-deliver) are mounting up every month according to SEC data, and FINRA is unable to get firms to close out these obligations.

The retail community is calling it foul play, alleging the possibility of lobbying within the self-regulated organization.

But despite the falling prices from both AMC Entertainment and its equity (APE), the company continues to trend on social media.

Investors haven’t been scared off so easily but rather empowered to fight for transparency in the markets.

What Are Your Thoughts on AMC Entertainment?

Are you a shareholder that is still buying and holding?

Leave your thoughts down below for the community to see.

Related: Adam Aron Addresses Falling APE Shares

Swipe and Choose! 👇

Should You Buy AMC Before or After the Dividend?

Market News: AMC Ape Dividend
Market News: AMC’s APE dividend is only a few days away

Many AMC shareholders are excited about the company’s introduction to APE stock.

However, others are wondering if the dividend is even worth it.

Should you buy AMC before or after the dividend goes through?

This article is going to help you decide the best route for you.

Let’s get started!


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Let’s dive right into it!

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APE is only a few days away

AMC APE stock
AMC Ape Stock | AMC Ape Dividend

Investors who hold or buy AMC stock prior to Friday the 19th will be granted with the same exact number of APE shares on Monday the 22nd for every AMC share they hold.

AMC and APE will make up the value evenly of AMC’s closing price at the end of the bell on Friday.

This means if AMC closes at $25 per share on Friday, both AMC and APE will be worth $12.50 on Monday.

Market conditions based on supply and demand will then decide the future price of both AMC and APE stock.

If you hold $1,000 in AMC, the value of your portfolio will still be worth $1,000 – the only difference is it will be split between two securities (AMC and APE).

APE Theory

The theory behind APE is that it’s supposed to uncover the vast amount of synthetic AMC shares out in the market.

And if it proves to be successful, this will be MASSIVE.

Brokers will have no other option than to open investigations and be obligated to provide investors with APE.

In the process, institutions holding synthetics will be forced to buy back every share they’ve flooded the market with, triggering MOASS (mother of all short squeezes).

This would mean pay day for AMC shareholders, and the greatest destruction of short sellers to ever happen in history.

The theory says that AMC and APE will follow each other relatively closely, so if one skyrockets so will the other.

In this scenario, shareholders are receiving value on top of value.

Who does this benefit?

AMC Ape Dividend | AMC Stock Update
AMC Ape Dividend | AMC Stock Update

If you decide to buy AMC stock due to the APE theory, then it’s worth the risk because the rewards could prove to be extremely high based on the theory.

Fundamentally however, it benefits AMC Entertainment as a company because they will be granted access to half of shareholders capital through APE.

This means the company may cash out at any moment should they decide to raise capital to pay off some debt; APE’s price would then tumble during a hypothetical selloff.

Buying AMC prior to the dividend means you will be granted with APE stock, but half of your capital will be at the company’s disposal should they require access to it.

Buying AMC after the dividend will mean AMC Entertainment stock will be at a bargain price – you can’t get a better deal than that.

Investors can’t go wrong with either, but it’s important to understand your finances and where your money is going.

But I’m curious to learn what you think.

Be sure to leave your thoughts in the comment section down below.

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Related: How Much Will APE Stock Be Worth?

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