Tag: AMC News (Page 1 of 2)

Feds Hunt For $720 Billion Dollars From Reverse Repo

fed reserve repo amc

Get mind blown. The feds are cutting off what could be the last lifeline institutions have for borrowing money. They’re hunting down a whopping $720 billion dollars from a reverse repo.

franknez.com AMC

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

What is a reverse repo?

A reverse repo is where feds loan out money to institutions such as hedge funds due to cash flow issues. The reason an institution would borrow money from the feds is because they don’t have other cash reserves. When hedge funds borrow money from the fed it usually means it’s a last resort type of situation.

How does this connect with AMC?

Why is this is significant to AMC and the ape community? The feds need their money back, like now. This could explain all the selloffs in the markets. It seems like institutions have liquidated a lot of their positions in the both the stock and crypto markets in order to pay back the feds now.

If hedge funds and institutions don’t have enough capital left in their margin accounts then they’re going to be in some real deep waters. This could finally be the end of it my friends. Short sellers’ nightmares have truly become a reality. I hear margin calls baby. Lets dive in some more.

The Federal Reserve is stepping in

Fed Reverse Repo Chart
Fed Reverse Repo Chart

Right off the bat I want to point out that the Federal Reserve is collecting $720 billion back from institutions who borrowed the money. What’s insane is that this maturity, or expiration date is on NET15 from the issue date of Wednesday June 9th, 2021.

This means institutions who borrowed all this money have to pay it all back by June 24th. This could very well explain why the stock market as well as the crypto market have tanked recently. Institutions need cash ASAP.

It’s likely institutions such as hedge funds needed to liquidate their accounts in order to pay back the feds. I mean what else could have possibly caused the entire markets to tumble all at once?

If institutions were borrowing money from the fed as a last resort, what does this mean for hedge funds moving forward? Will hedge funds who borrowed money from a reverse repo be able to cover their minimum margin requirement? And if so at what costs?

Will hedge funds be able to pay back the feds?

Hedge funds borrow money from reverse repos betting that they’re going to make money from it before they pay back the feds. Unfortunately for them this might not be the case this time.

Any institution that has been shorting AMC, GameStop and other ‘meme stocks’ will be paying back the feds at a loss. But it gets worse for short sellers.

Not only are they paying the feds interest, but they’ve also paid a short borrow fee interest all year to borrow stock. Hedge funds are getting hit with a storm of karma if you ask me.

According to Business Insider, hedge funds lost well over $6 billion dollars since the start of May alone and short sellers have lost another $5 billion dollars since the start of the year. Millions more are disintegrating by the day.

Hedge funds are having a terrible 2021 to say the very least. I said this many months back and I’ll say it again. They should have closed their positions when AMC’s stock price fell back down to $8-$14. But I guess ego is king right? Their year is about to get a whole lot worse.

Key Points

  • Reverse repo’s are when feds loan money to institutions having cash flow issues
  • Institutions have to pay back $720 billion dollars by June 24th
  • Hedge funds continue to lose millions to billions each day and are running out of lifelines
  • Short sellers could face margin calls very soon if they cannot meet minimum margin requirements

This is a very exciting time for retail investors. Something incredible is unfolding right before our very own eyes.

Not only is history being written, but justice will be served for the 2008 financial crisis. The average retail investor is about to make the trade of a lifetime.

Will AMC finally squeeze?

I personally think we’re about to start seeing gamma squeeze after gamma squeeze. This will primarily be due to the continued buying pressure from retail investors as well as institutions losing a lot of money, resulting in willingly closing out their positions. And if it’s not willingly then the significant loss of money could lead to immediate liquidation through margin calls.

Short sellers will cave in, they will lose. Whether it’s now or later it really doesn’t matter. But they will. Just like a short squeeze, their fate is inevitable.

AMC Stock – Feds are done with hedgies

Trey’s Trades – Fed reverse repo

I want to leave this video from Trey the man himself regarding this topic on the reverse repo. If you aren’t subscribed to Trey yet be sure to do so.

He’s a technical analyst that sparked this entire movement with AMC’s short squeeze. I have a tremendous respect for Trey and will always give credit where it’s due.

And lastly. . .

franknez.com

If you found this article to be of value be sure to share it with the rest of the community. Most hedge fund affiliate media platforms will not report the positive occurrences that play in the retail investors favor.

It is up to us to help new retail investors become aware of the situation at hand and all news related to AMC.

This is why I publish articles that support the AMC community and the cause to the absolute fullest. The public deserves to know this information and they deserve this chance 💯.

Related: What is margin call in stocks? AMC saga

Twitter | Facebook | Instagram | Patreon


Here’s Why People Are Buying AMC Stock: Investors Guide

Here's why people are buying AMC stock

Not investing in the stock market yet? Click here to learn how!

By now you’ve probably heard all the hype surrounding AMC Entertainment. If you’ve been following me for a while then you know I’ve been covering AMC since the beginning of February.

It is absolutely amazing to see more and more people begin to invest in the stock market. You can bookmark this step by step guide on how to invest in the stock market in case you haven’t opened your brokerage account yet.

My goal is to help guide you in your journey to becoming financially free.

franknez.com AMC news

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

Why are people investing in AMC stock?

AMC stock 
AMC Entertainment
AMC movie theater

People have the chance of a lifetime.

AMC was forced to close its doors to the world when the pandemic hit. AMC Entertainment suffered huge losses and hedge funds began doubling up on their short positions in attempts to bankrupt the company. Their goal was to get rid of the most respected movie theater franchise of all time, profit, and wash their hands clean.

Retail investors gathered on subreddit communities and decided to buy the stock and drive the price up; like they did with GameStop. This teamwork caused a gamma squeeze driving the price action from $2 up to $20. This allowed AMC Entertainment to raise enough capital for bankruptcy to no longer be on the table.

Since then, AMC Entertainment has been able to raise more than $2 billion dollars from life long partners. These partners have supported AMC since the inception of the company 100 years ago.

Retail investors saved AMC and are now looking to squeeze short sellers out of their positions.

AMC is currently the heaviest shorted stock in the market

Analysts discovered that AMC has a massive short squeeze potential. A short squeeze is a massive move up in price action. Short squeezes are violent and may produce 100%, 1,000%, and 10,000%+ gains.

What we discovered is that hedge funds shorting AMC Entertainment were overleveraging their positions. Meaning they were borrowing shares from brokers at an interest to drive the price down.

Short selling is the process of borrowing a share, selling it much lower, and profiting the difference when they pay back their lender. Short sellers usually bet on the price of a stock to tumble.

Here’s an example of short selling

AMC’s stock price was around $30 back in the booming party economy of 2016. Say short sellers borrowed 10 shares of AMC for $300 betting it would drop. Shorts would then sell the stock at the market value of $300 (you and I purchase it at $30) and wait for it to drop in due time. If the stock price fell to $25 per share then the short seller could buy back those 10 shares, profit the difference ($50) and give back the 10 shares they borrowed back to the lender.

AMC stock is going up, what happens then?

AMC stock is going up

Here is what’s attracted millions of retail investors and huge institutions such as Wells Fargo, Vanguard, Morgan Stanley and many more to AMC Entertainment.

AMC stock is no longer on the brink of bankruptcy and it is having an extremely healthy bullish run. The reason we’ve seen consolidation and red days is due to the massive amount of short ladder attacks conducted from short sellers and hedge funds.

A short ladder attack is a method used by short sellers where they transact synthetic shares amongst one another to drive the price of a stock down. This is only one of many ways we’ve seen foul play in the stock market.

Read: How do hedge funds manipulate the stock market?

Hedge funds shorting AMC are losing millions of dollars every day they don’t close their positions

Now here’s where it gets interesting. What happens to short sellers when a stock they’re shorting is going up instead of down?

The fee to borrow the share from their lender goes up and they’re pressured with two options.

  1. Pay the short borrow fee and continue to hold your short position in hopes the stock price will go back down, or
  2. Close your position, take your profit or loss, and possibly go long instead

Now, hedge funds such as Citadel and Melvin Capital have been quite stubborn. They’ve continued to overleverage their short position in AMC Entertainment to drive the price action down.

However, the AMC community isn’t leaving. It’s personal now and they’re willing to buy and hold the stock until shorts are squeezed out of their positions. Analysts have figured out that retail investors can continue to drive the price action up with enough volume in the stock.

Recently, there’s been a surge of new retail investors buying AMC stock. This increase moved AMC up to $15.50 after hours. Short sellers eventually drove the price back down to the $12 range; however, seasoned retail investors aren’t phased. AMC stock is currently trading around $57.00 now. The stock continues to go up.

The data shows a MOASS

MOASS, mother of all short squeezes.

Brokers have never seen this much shorting occur in a single stock in the existence of the stock market. The data predicts a short squeeze unprecedented like anything we’ve ever seen historically.

This is primarily due to the amount of synthetic shares and overleveraged positions that must be covered during a margin call. A margin call could force shorts out of their position resulting in a short squeeze.

How high can AMC’s stock price go up to? There’s no ceiling. However, more data will be released as the stock begins to squeeze.

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

Markets are being liquidated

Massive institutions have begun to liquidate assets in both the stock market and crypto market. Retail investors cannot cause the extreme price drop we’re seeing in both markets.

I speculate institutions are building capital to prepare for margin calls or raised margin requirements.

Proposal ICC-007 APPROVED

This proposal provides brokers with the flexibility to raise margin requirements on investors holding risky investments, such as a short position in AMC.

Brokers need collateral. If short sellers cannot meet the margin requirement then they will be forced to liquidate their entire positions, resulting in several gamma squeezes and inevitably a short squeeze.

If margin requirements are raised then shorts will have to either deleverage their positions (gamma squeezes), or fund their accounts with capital. Is this massive selloff in both the stock market and crypto market related to potential AMC margin calls and regulations? I think so.

Read: AMC margin call: the squeeze is inevitable

An abundant opportunity

amc money

The reason why retail investors are buying AMC stock is for the opportunity of a lifetime. Not only is the public starting to invest but big institutions on retail investors’ side known as ‘whales’ are bulking up on the stock.

“Beware of the stock” (paid) articles

Platforms such as the Fool, MarketWatch and InvestorPlace are hedge fund affiliates. Retail investors encourage newcomers to do their own due diligence oppose to reading FUD articles (fear, uncertainty, and doubt).

Is it too late to buy AMC stock?

That depends. Look at AMC’s current share price. If it squeezes to $100, $1,000, or even $10,000+ would the trade have been worth it if you bought today at it’s current share price? You decide.

More info on AMC stock

Here’s where you can find more helpful information regarding AMC stocks’ data & predictions, technical analysis.

On the very top right part of my blog you can see my top 6 articles at the moment are on various AMC posts. These posts go further into detail with DD (due diligence) surrounding AMC stock and the short squeeze data.

Best YouTubers covering AMC Entertainment stock

Trey’s Trades

Credit will be given where it’s due. Trey’s Trades is the man, the leader of this AMC movement. Nothing but tremendous respect for this brother. Take the time to watch his videos, I promise you you will not regret it.

Roensch Capital

For less entertaining but otherwise very valuable information on AMC stock, watch Roensch Capital. RC provides commentary on chart analysis.

ReviewDork

I was quick to connect with Gabe from ReviewDork. His videos are honest, genuine, and entertaining to watch. This channel is currently one of my favorites covering AMC and I know you’ll enjoy Gabe’s videos as well.

Questions regarding AMC stock?

Join my Discord group. Members here share new videos, posts, and conversations relating to AMC. Members here get the links to new articles first 😉 If you join the newsletter you will receive weekly emails from me when I post a new article. You can always connect with me on social platforms to see them as well.

AMC with franknez.com discord

Support the blog on Patreon!

Not investing in the stock market yet? Click here to learn how!

Twitter | Facebook | Instagram


Naked Shorting is Making it’s Way to Mainstream Media

Naked shorting AMC

The illegal practice of naked shorting has now publicly made it’s debut in the mainstream media. CNBC and FOX Business have both acknowledged the manipulation, and the AMC community is loving it.

Franknez.com

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

Hedge funds have been using illegal tactics such as naked shorting, to drive down the price of meme stocks.

Naked shorting became illegal back in 2008 when the economy collapsed. Retail investors are questioning why the SEC hasn’t stopped these illegal and unethical tactics on AMC or GameStop. So, what’s naked shorting anyway?

What is naked shorting?

Naked shorting is the illegal practice of trading a stock that is not available or does not exist. Clearing houses are responsible for allowing or denying these transactions to execute, or go through.

Citadel is a hedge fund that has been shorting AMC Entertainment. They are also a clearing house which means they hold accountability for allowing these illegal activities to occur in the first place.

The SEC needs to understand that hedge funds have too much power. Their power must be divided.

CNBC on naked shorting / Melissa Lee

Melissa Lee has been the talk recently on social media regarding the mentioning of naked shorting. It seems she accidentally let it out on live television.

Melissa Lee Naked Shorting AMC CNBC

I didn’t want to embed the video simply because of the noise. Sometimes noise is just irking you know? Here’s the link to the video.

The community is speculating it was a mistake on Melissa Lee’s end but I don’t think so. I personally think she was speaking freely. The panel did not seem to like it though.

This clip came shortly after CNBC’s interview with Trey’s Trades. The mention of naked shorts is incredibly helpful to the AMC community because it puts us on the radar at scale with what’s going on.

Retail investors have been filing reports since February regarding the illicit activities. The question is why did it take the SEC several months to finally make a statement that they were looking into tightening restrictions on short sellers?

Jefferies Prime Brokerage blocks short sellers

Jefferies Prime Brokerage announced they will no longer allow the execution of short sells. This gives retail investors the momentum they need to continue driving AMC’s share price through volume pressure.

With a source plugged for short sellers, AMC stock should now have more runway to continue surging.

FOX Business on naked shorting

Charles Payne from FOX Business makes a great point when he questions why the SEC has allowed the illegal activities of naked shorting.

In this video you’ll find just how much FOX Business and its partners are against naked short selling. Naked short selling was the cause of the last financial disaster in 2008 and could be the reckoning of the market today as well.

It’s amazing to see experts back up the community regarding naked shorting. This is exactly what retail investors need in order to start seeing some change.

One of the biggest things the community wants to see happen is for margin calls to begin taking place. Margin calls would essentially force short sellers to close their positions ending this once and for all.

And for the retail investors? This would mean a short squeeze of a lifetime.

Naked short selling and FTDs

Naked shorting has been the cause of many fails-to-deliver that were in the pocket and needed to execute.

Because many synthetic shares have been floating around in the market, call options in the pocket that should have gone through never did.

Hedge funds have been cheating the system. Any fine the SEC gives to these institutions is only an operating expense. The SEC must be investigated by the FBI.

What can the community do about the manipulation?

The community has to be loud. Share this information. But don’t just share it, voice your opinion too because it matters more than you know.

Tag people in power, tag the news, get things trending. This generation is the generation to make real change happen. In 2020 we saw what happened when the community stood up against corruption.

We are powerful united. Hedge funds must be margin called. And once they are, their power must be divided.

Sign the petition to margin call Citadel here and be sure to share it with the community.

Read: A message to the SEC on fails to deliver (AMC)

Twitter | Facebook | Instagram | Patreon


AMC Margin Call: The Squeeze is Inevitable

AMC Margin Call: The squeeze is inevitable 
Franknez.com

Not investing in the stock market yet? Click here to learn how!

Lives are about to change for the new and seasoned holder in AMC stock. With a surge of retail investors in the stock, the SEC is finally cracking down on hedge funds. AMC community, you were loud and they heard you. Here’s why I think there’s an AMC margin call right around the corner.

franknez.com

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

I recently published an article exposing the ‘lobbied SEC’. The lack of regulation on short positions in AMC has been ignored for too long. Many of you shared this post on Twitter and used the hashtag #SECdoyourjob. I’m confident they saw YOU. So thank you for standing up for change because you got their attention.

Everything is falling right into place for AMC Entertainment stock

everything is falling into place for AMC entertainment stock

Hedge funds betting against this stock are destined to lose. Here’s why:

  • AMC’s fundamentals are no longer fragile. Retail investors and institutions alike are buying the stock. AMC Entertainment is experiencing a surge in sales revenue now that the movie theater franchise is open.
  • Shorts betting against the stock have bitten more than they can chew by continuously shorting AMC stock through the use of synthetic shares.
  • Regulators are now taking the necessary precautions to ensure they don’t lose money as hedge funds continue betting against a soaring and bullish stock.

Retail investors now have the higher floor. The CEO of AMC Entertainment is in touch with his shareholders. Celebrities such as Chance the Rapper have publicly announced the opportunity of this investment. And more people are learning how to invest in the stock market through the platforms such as Franknez.com and other subreddit communities.

Wanna know what hedge funds have? Absolutely no respect nor support.

ICC-2021-007 proposal gets APPROVED

ICC-2021-007 proposal
SEC AMC

This is huge news for retail investors holding AMC. This document is 9 pages long but I’ve done the DD to help you understand what this proposal means for AMC and how it can trigger a short squeeze.

Approved on 5/18

Many retail investors have been curious as to what this proposal means and why it’s such great news for AMC. This article is going to provide you with a quick rundown of this new proposal and will be updated as new margin call news begin to develop.

1. Flexibility on margin requirements

This proposal provides brokers with flexibility on margin requirements for institutions (hedge funds) maintaining a position in risky plays, such as a short position in AMC.

If brokers feel a short position is too risky then they can raise the amount of equity required in an account.

2. Regulators request collateral

The proposal ensures regulators have some sort of collateral from all the shorting that’s been occurring. Regulators want to make sure that hedge funds have enough cash reserves to meet their minimum equity requirement

Risk management is the biggest takeaway from this proposal.

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

Margin calls everywhere

Regulators are going to start raising margins depending on how risky the plays are for certain institutions. Their purpose is to limit the amount of leverage hedge funds are able to use. The ICC does not want to be responsible for closing out closing hedge funds’ positions.

This is where we can begin to see shorts cover their positions. If an accounts updated margin exceeds the accounts capital, the broker can either margin call them (cover some risk) or completely liquidate their positions until the margin no longer exceeds the capital.

Overleveraged accounts could get margin called

Margin call

Now, because hedge funds shorting AMC are betting against a bullish stock that only knows up, shorting the stock at the moment is ultra risky. Regulators are going to start demanding higher margin requirements as collateral.

Short sellers are sitting on nearly $1 billion dollars in loses, via REUTERS. A margin call usually occurs when an investment suffers enough losses that the investors margin account goes below a certain amount.

If hedge funds shorting AMC fail to meet a margin call requirement then the broker can begin liquidating their assets without notice. Regulators will only step in to liquidate accounts if hedge funds continue to take a nosedive in loses.

Furthermore, hedge funds are drowning every day retail investors hold the stock.

Expect a surge in price action and volatility

Retail investors can expect a surge in price action in AMC as well as volatility. Hedge funds are still borrowing shares to short the stock meaning they have ammo in their arsenal to drive the price down during upticks.

Shorts are going to begin covering their positions as the stock continues to skyrocket and as margin requirements are increased. A short squeeze is inevitable. Retail investors need to hold, stay the course, and be patient.

Citadel buys AMC stock

Citadel buys AMC stock

Citadel just recently bought AMC stock leaving many retail investors curious behind their motive.

Will they try to reduce their loses through a debit and credit scenario where they’re forced to close their positions but also break even from a squeeze?

Or is their motive to sell and disrupt AMC’s short squeeze? Citadel’s motives will become clear as this squeeze begins to unfold.

Why do I think Citadel is going long on AMC?

The entire market is crashing. These institutions are beginning to deleverage. Pretty soon there’s going to be margin calls liquidating accounts left and right. I think Citadel bought AMC long in order to keep the stocks value. They know they’re losing and they know AMC is now a value play.

A margin call will ensure they have no money left so I personally think AMC is Citadels collateral, or emergency fund post squeeze.

Related: What is margin call in stocks? AMC saga

AMC margin call news

The purpose of this post was primarily to explain the ICC-2021-007 proposal in simple ape language for the community.

Be sure to bookmark this article as it will be a foundation to more AMC margin call news and updates.

Support the blog on Patreon.

Twitter | Instagram | Facebook | Discord (AMC)


AMC Stock: Retail Investors Now Own The Float

AMC stock: retail investors now own the float

The CEO and President of AMC Entertainment, Adam Aron, just tweeted that retail investors now own more than 80% of AMC’s float. This is astonishing.

If you’re holding AMC stock then you my friend have something very valuable in your possession. Retail investors literally own AMC Entertainment right now. This surge in price action we’ve seen so far is simply momentum. Shorts eventually have to buy the stock back and we won’t have to sell it; inevitably moving the price up even more. Hold apes. This is about to moon.

AMC stock Franknez.com

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

I’ve noticed a lot of sentiment from the community. Apes who’ve been holding their position in AMC for months now, aren’t phased by red days. However, new retail investors getting in on this trade are quick to express their concerns.

This is only normal. It’s up to us to educate and inform new retail investors on what’s going on so they can determine their own conviction towards this trade. Today’s article is going to simply be a message and reminder to the community that all is well.

The data speaks for itself

One thing I’d like to remind seasoned apes along with the new retail investors is that the data speaks for itself.

What do we know? AMC Entertainment is being heavily shorted and as long as it is, shorts can be squeezed out. We know that the manipulation in the market is real and it’s only helping short sellers prolong the inevitable.

Short sellers still have to cover their positions and retail investors hold majority of it. Supply and demand baby.

Seasoned apes aren’t going anywhere

Retail investors who have been holding AMC stock since February continue to hold. New retail investors getting in on this trade worry older apes will take profits.

Why aren’t seasoned retail investors taking profits on tens and hundreds of thousands of dollars right now? That’s because AMC’s stock price is no where near its potential.

We aren’t looking at the profit we’ve made on paper. We are not looking at short term gains. The data we’ve been shown by technical analysists point towards a short squeeze. We’re not there yet.

AMC’s chart is fundamentally healthy. We haven’t seen any wild volatility but rather ascending and consolidating levels of support.

The community is prepared for the squeeze and believe me you’ll know when it begins to happen. AMC’s price action is getting comfortable in the double digits before it moves up to triple digits.

The stock market is a device for transferring money from the impatient to the patient

I want to remind the community to remember your why. I’ve been fortunate enough to hear a lot of your stories. Most of us are taking this opportunity for bigger and better opportunity.

This is a reminder that this is real, it’s happening, and it will require your patience. Certain days will be green, some will be red; or on discount. Detach yourself emotionally from the price. Practice this and the ride will be much easier.

I don’t usually rant like this but I want to express to the community that everything is going well. Everything will be fine. Things come to us at the right time so prepare for it. Your life is about to change. Keep hodling on and remember your why.

Keep sharing DD (due diligence)

Before I close this article I want to leave you with these last thoughts. Continue to share positive articles and DD from apes in the community. The content is nothing without you.

When you share a video from Trey, or an article from me you might find valuable, you keep someone else informed. You keep the community growing stronger than ever.

Thank you for being here today. I will continue to publish new articles for the community every week. If you haven’t joined my Discord group here’s a personal invite. I’ve created this safe community for retail investors to discuss AMC stock with confidence. See you there.

Read: AMC stock is up 2600% and it’s only the beginning

Twitter | Facebook | Instagram | Patreon


What is Margin Call in Stocks? AMC Saga

What is margin call in stocks? AMC stock
What is margin call in stocks? AMC stock

I’ve taken notice many new retail investors aren’t familiar with what a margin call is yet. This term is used a lot within the AMC community when referring to hedge funds.

I’m going to explain what a margin call is in simple ape language and further explain how this relates to hedge funds shorting AMC stock.

Franknez.com what is a margin call?

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

I want to begin by saying thank you to the community who’s been reading and sharing my articles with new retail investors. You’ve been able to help out so many people and without you none of this possible.

What is a margin call?

A margin call occurs when the value of an investors brokerage account falls below the broker’s required amount. This is when a broker demands that an investor deposits additional money into their account so that it meets the minimum requirement.

A margin call is usually an indicator that a security (asset) held in the margin account has decreased in value. When a margin call occurs, the investor must either add funds to their account or liquidate (sell) some of their assets in that account.

Why does a margin call occur?

  • It may occur when an account runs low on funds usually as a result of a losing trade
  • A margin call occurs when a demand for additional capital is required to meet the minimum margin requirement
  • Brokers may force traders to sell assets, no matter the current market price, in order to meet the margin requirement if the trader does not deposit the funds

How does a margin call work for short sellers (hedge funds)?

Short sellers will always have a margin requirement because their practice involves selling a stock that is borrowed an not owned.

This means that short sellers will always be required to fund their accounts and meet the minimum margin requirement.

If the value of the position falls below the margin requirement, short sellers will be forced to close their positions or increase funds into their account.

Short sellers face major heat

Seeing as AMC has never been this high before, short sellers are more than likely already funding their accounts so they don’t fall below margin requirements. This means Kenny is taking money out of his pocket to keep his short position open in AMC and other so called ‘meme stocks’.

AMC’s highest share price was in the low to mid $30 dollar range back in 2016 before this squeeze play. This means hedge funds and short sellers have negative balances at the moment. Right now they’re feeding their accounts from their pockets.

Retail investors vs short sellers

Retail investors have the upper hand right now. Short sellers are losing a lot of money on paper, and in reality. It really is a game of who caves in first. The AMC community may continue to surge the share price as long as the stock is being bought and held.

Short sellers will be forced to put money from their pockets into their margin accounts or close out their entire position, so as long as the share price continues to keep them negative.

The result? A short squeeze.

When will short sellers be margin called?

Short sellers can be margin called at any given moment. I wouldn’t be surprised if some accounts were already margin called, forcing the investor to fund their account above the margin requirement.

How will we know when shorts begin to cover their positions in AMC?

AMC’s share price will be experiencing several gamma squeezes driving the price action up. These movements will be incremental and much smaller than an actual short squeeze. AMC’s short squeeze will be violent. Hedge funds with a lot of money can hold their positions much longer than individual investors short selling the stock.

When large institutions shorting AMC stock begin covering their positions, we’ll begin to experience the start of a short squeeze.

Retail investors participating in this once in a lifetime trade must continue to do what they’ve already known for months. The tide has turned and soon AMC’s short squeeze will begin to unfold.

Related: AMC margin call: The squeeze is inevitable

Leave me a comment in the comment section below

If you found this article to be valuable let me know in the comment section below. I love hearing from the community and value your thoughts and opinions 🤝.

Twitter | Facebook | Instagram | Patreon 🎉


AMC Stock is Up 2600% And It’s Only the Beginning

AMC stock is up 2600% and it's only the beginning
AMC stock soars with volume and fundamentals. Short sellers have yet to cover

AMC Entertainment stock has a Fintel score of 99 of 100 for a short squeeze. AMC stock is up more than 2600% year-to-date and shorts haven’t even begun to cover their positions.

What does this mean for the average retail investor? You can still get in, but hurry before this rocket flies past Pluto.

Welcome to franknez.com - the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

Contrary to what the mainstream financial platforms are advising, AMC Entertainment stock is only getting warmed up.

AMC stock is the #1 stock in the market right now. It’s also the most held stock in the market at the moment. AMC Entertainment’s market cap is currently sitting at 28.2 billion.

AMC also has a massive opportunity to move from the small cap Russell 2000 to the large-cap Russell 1000.

Will AMC stock keep going up?

AMC Entertainment stock will continue to fundamentally rise due to an increase in retail investors buying the stock. Gamma squeeze after gamma squeeze should put AMC’s stock price above $100 once we break the $80 level.

Once AMC’s stock price passes $100 I don’t doubt we could start to see short sellers begin to close out their positions. AMC is currently trading at $55.

New retail investors getting in on AMC right now are going to make money no matter what.

AMC is extremely bullish

AMC Entertainment has no means of becoming a penny stock again. The cinema industry is picking up the pace with new movie titles out-earning one other.

The company has raised billions in capital and any talk about dilution actually plays in AMC Entertainment’s favor. AMC’s fundamentals and positive news continue to be a support for retail investors holding the stock.

AMC’s volume is mainly being driven by the data that heavily supports an upcoming short squeeze. Majority of the AMC community has been holding their position since early February. This batch of retail investors are now seeing massive gains but aren’t selling.

New retail investors join the fight

New retail investors might be curious as to whether AMC’s share price will continue to rise. If you just joined the community of apes you’re more than likely under by a few dollars per share or up some.

Good news is you don’t have to worry. AMC Entertainment has a better setup than it did when we were holding months back. You’re in a safer zone than most of us were.

My advise to new retail investors joining the cause is to be patient and enjoy the ride. Yes there’s manipulation going on in the market but the community is making enough noise now to get our voice heard.

The greatest transfer of wealth in history

The greatest transfer of wealth in history AMC

Our generation is going to experience one of the greatest transfers of wealth in history. Overleveraged hedge funds are now being investigated. It’s only a matter of time before they get margin called and are forced to close their positions. The result? A massive short squeeze that’s been overdue for quite some time now.

Why is the media trying to scare people out of their money?

It seems recently the mainstream media has been both hot and cold about AMC. I think they’re beginning to see there’s no way they can sweep this under the rug anymore. Especially since more people are starting a position in AMC Entertainment.

Nonetheless, the media continues to scare people out of their money by advising people to avoid it or invest in something else. Now why would they do that? Simple. They’re hedge fund affiliates and get paid to write FUD (fear, uncertainty, and doubt) articles.

The truth is an AMC short squeeze is inevitable

AMC short squeeze score fintel

Shorts keep borrowing shares to drive AMC’s stock price down. The number of short shares available has increased to 700,000, via Fintel.

The SEC seems to be taking things a little more seriously now too. FOX Business published a headline regarding the SEC charging a trading firm with naked short selling.

Naked short selling is the illegal practice of trading shares that are not available/exist to trade.

With that being said, AMC’s growing community continues to be heard. Once hedge funds are forced to close their short positions we can expect a violent short squeeze to come from it.

Join my Discord for free

AMC Discord

AMC with Franknez.com is a safe community where your voice and questions can be heard. Apes from all over the world are joining our discussions every day.

Twitter | Facebook | Instagram | Patreon


Is AMC a Buy Or a Sell?

Not investing in the stock market yet? Bookmark this page to learn how!

Should you buy, hold, or sell AMC stock?
Franknez.com

AMC stock has taken the finance world by a storm. Redditors, along with new retail investors have flocked to the stock after GameStop’s (GME) first short squeeze occurred. Why AMC? The stock is heavily shorted which means retail investors can drive the price up to the moon.

AMC is currently trading at $55.00 as of June 7th. It tested levels as high as $77 too. The community is growing and more institutions are buying the stock. So, should you buy, hold, or sell AMC stock?

franknez.com

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

Why is AMC price consolidating again?

AMC is experiencing a number of ‘short ladder attacks‘. This means investors who short the stock drive the price down by betting low on the stock for other short investors to borrow.

This repetition results in share price decrease, or consolidation as we’ve seen recently with AMC.

On the contrary, we’re seeing a lot of great things happen with AMC which should naturally drive the stock price back up again.

AMC Entertainment movie titles are outperforming one another. Movies are earning pandemic records in the millions of dollars.

Not only has AMC raised over 2 billion dollars in capital, but more and more institutions are buying and continue to add to their AMC position (via. MarketBeat).

What should retail investors do to counter these attacks?

Shorts eventually have to cover their positions which will result in a major loss for them, and a squeeze for retail investors. So, what should retail investors do in the meantime?

If you are looking to make a whopping trade like most people invested in AMC are, then you have two options:

  1. Hold your position – you hold real shares. Short sellers need to buy real shares at some point to pay back who they borrowed from. Do not sell.
  2. Buy the dip – If you’re still looking to increase your position in AMC, buying the dip is an opportunity to purchase the stock cheaper or average down.

Is it too late to buy AMC stock?

If you’re looking to buy the stock to potentially make a remarkable trade, now’s the time to buy the stock.

AMC’s recent price action has been caused primarily by fundamentals such as positive earnings reports and buying pressure. Large institutions are bulking up while they can so why shouldn’t the retail investor?

If you’re a novice retail investor I suggest you start off small and do your own due diligence. This will help you make a confident trade.

If you’re unfamiliar with Trey’s Trades be sure to check out this analysts videos on YouTube. He will catch you up with everything you need to know about AMC stock.

Related: Is it too late to get in on AMC stock?

How high can AMC go?

You might have heard that AMC can go as high as $100 – $1K per share. While this is crazy speculation, it is certainly possible when you look at a further in-depth analysis as to why and how this can happen. Analysts have also concluded that AMC stock can go as high as $100K.

In theory, this can happen if retail investors continue to increase the volume of shares being bought and keep holding their positions.

This essentially creates a supply and demand scenario where the retail investors have the supply (AMC Shares) and hedge funds are stuck having to cover their positions (demand).

AMC gamma squeeze and short squeeze

When short-sellers cover, this will essentially create what is known as a gamma squeeze, or several gamma squeezes. This is where the price of a share rises unexpectedly or rapidly.

Well, you get more shorts to cover their positions and it ultimately leads to a short squeeze where the price of the stock skyrockets.

The reason redditors believe that AMC; with volume, can squeeze at least to $1K is because Volkswagen had a squeeze back in 2008 that did it. The volume was pumped by car manufacturer Porche along with the German government.

With enough retail investors and institutions getting in on AMC, a short squeeze is inevitable, even with all the manipulation.

When should you sell your AMC shares?

Everyone has different financial circumstances. If your family is going through hardship and you absolutely need to pull out then you should do what’s right for your family.

No one is going to shame you for that.

When you should sell also depends on what your trading goals are for this specific stock. Find out what it is you’re trying to accomplish by investing in AMC.

  1. Are you trying to make a little profit?
  2. Do you see yourself doubling your investment?
  3. Or can you see yourself cashing in a life-changing investment?

Make an honest assessment to find out what the best moves are for you financially.

Read: An excellent AMC exit strategy guide: short squeeze

How is AMC looking at the moment?

AMC is performing amazingly. Technical analysists are predicting AMC stock could begin to see it’s first $100 very soon simply from buying pressure.

We’re seeing a ton of momentum and short sellers haven’t even begun to cover their positions.

Roensch Capital is another one of my favorite analysts for this stock. This analyst goes a little more in depth with AMC’s performance and calls out healthy movements.

One thing analysts keep preaching is patience.

The stock market is a device for transferring money from the impatient to the patient.

Warren buffett

If we think back on GameStop, the retail investors who made big buck are the ones who held the stock through both green and red days.

So, should you buy, hold, or sell AMC stock?

I personally like the stock. I’m in favor of buying and holding while the stock is still affordable.

Although a lot of the market is having a discount, analysts and myself included are more bullish than ever on AMC stock.

AMC reopens theaters across the U.S

AMC’s CEO and President, Adam Aron demonstrates nothing but positivity towards AMC chains across the United States.

AMC Entertainment has also raised over 2.2 billion dollars in cash and any talk regarding bankruptcy is off the table.

Movies we’re excited to see in theaters this year:

  • Godzilla VS Kong Wed, Mar 31
  • Mortal Kombat Fri, Apr 16
  • A Quiet Place Part II Fri, May 28
  • The Conjuring: TDMMDI Fri, Jun 4
  • Black Widow Fri, Jul 9
  • Candyman Fri, Aug 27
  • Eternals Fri, Nov 5

You can check out a list of upcoming films on FANDANGO here!

The biggest risk a person can take is to do nothing - Robert Kiyosaki
Franknez.com

Trending: How Soon Will We See An AMC Short Squeeze?

Twitter | Facebook | Instagram


Media Tries To Scare People Out of Their Money: AMC Saga

Media tries to scare people out of their money: AMC saga

The media doesn’t want you to know this because their partners are going to lose a lot of money. AMC Entertainment is the #1 stock in the market right now.

AMC stock is currently up over 1200% this year and hedge funds have lost billions of dollars due to heavily shorting the stock.

While hedge funds such as Citadel and Melvin Capital were profiting with the aim to bankrupt AMC Entertainment, new movie titles are breaking pandemic records netting millions in revenue.

One thing short sellers must understand is that they cannot remove the theatrical experience people yearn for when a new movie comes out.

Welcome to franknez.com - the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

Why doesn’t the media want the public investing in AMC?

Articles spreading fear, uncertainty, and doubt (FUD) are produced by the media who are affiliate partners to wealthy hedge funds.

The media fails to mention that AMC Entertainment is a ticking time bomb for a short squeeze. And no AMC did not mention to its investors they’re going to lose money. This headline is the epitome of FUD and manipulation.

What is a short squeeze?

A short squeeze occurs when a stocks share price skyrockets up to astronomical numbers.

When a short squeeze occurs, hedge funds lose billions of dollars and may go bankrupt (most get bailed). Unfortunately, these hedge funds take money from pensions and other retirement accounts in order to cover their positions.

AMC has a short squeeze score of 99.93 out of 100 via. Fintel.

AMC short squeeze score fintel

What will an AMC short squeeze mean for retail investors?

If you bought AMC stock back in February, you’re more than likely up several thousands to tens of thousands of dollars or more depending on your position.

AMC’s stock is up more than 1200% due to the companies fundamentals and a surge in retail share purchases. The media has attempted to mislead the public by announcing the stock squeezed.

However, AMC’s stock has not squeezed. Short sellers have not covered their positions yet. This momentum is a combination of an increase in retail investors buying the stock and positive AMC Entertainment news regarding the success of new movie titles and earnings.

Is it too late to buy AMC Entertainment stock?

An AMC short squeeze essentially has no ceiling. Technical analysists predict AMC’s share price can squeeze up to the thousands of dollars per share and even reach crypto price numbers.

The reason being is that hedge funds have overleveraged their positions so much that when it comes time to close out those positions, they will lose billions of dollars more while AMC’s stock price skyrockets to the moon.

We don’t know how many counterfeit shares hedge funds have been borrowing, but we do know that they have been heavily involved in the illegal practice of naked shorting. This strategy is essentially borrowing and trading shares they don’t own to drive the price down.

If you plan on buying AMC stock I strongly suggest you get involved with the community who is spreading this knowledge. The motive is very simple. Retail investors known as ‘apes’ are buying the stock when the price drops, and holding it through lows and gains.

The goal is financial freedom and our movie theaters back.

Why is the media trying to manipulate you?

Hedge funds understand that we are about to go through one of the biggest transfers of wealth in history.

They will do everything in their power to disrupt the community of retail investors sharing DD (due diligence), and mislead the public using bogus headlines. The media cannot scare people out of their money. The community is smarter and stronger than that.

How to prepare for the greatest wealth transfer in history

Forbes published a very good article last year that has key points to what’s occurring today with AMC Entertainment and the stock market.

They mention one-third of Americans will be hit hard by the recession, one-third will barely be able to maintain their lifestyle, and one-third of Americans will get richer.

Forbes warns that the stock market is artificially inflated with the printing of money and automated deposits from retirement accounts. “Hedge funds will sell short and take those dollars”.

Shorts will take pension money in order to begin covering their short positions. Ladies and gentlemen, AMC is the most shorted stock in the market and hedge funds have yet to cover. The stock market and crypto market tanked due to hedge funds liquidating (or taking profits) from their positions. I know people who’ve lost their entire 401k’s back in 2008, and people are taking it out now for this trade.

The greatest transfer of wealth in history is about to take place.

How can the public become aware?

Share this post, share the knowledge. There’s a lot of amazing content creators in the community covering this on YouTube.

I’ve published several posts to help new retail investors joining the fight for their financial freedom become educated with what’s occurring.

If you’ve never invested in the stock market before, you’ll have to open a brokerage account and fund it first. Once you set this up it’s relatively easy to purchase your first shares in the market.

Read: How to invest in the stock market (step by step) for beginners

Finance | Knowledge | Freedom

Franknez.com

I never planned on covering AMC. I thought the trade was going to be simple. But when I saw the community was being bullied, I knew deep down I had to stand up.

This movement has given meaning to my blogs tagline. It all makes so much sense now. Finance, knowledge, freedom. This is what I stand for.

Twitter | Facebook | Instagram | You can support the blog on Patreon


How Do Hedge Funds Manipulate The Stock Market?

Are you a new retail investor? Bookmark these investing tips from Frank Nez.

How Does The Media Manipulate The Stock Market?
Trusted and beloved sources show their true colors

We’ve recently seen a lot of misleading headlines in attempts to alter the course of the inevitable. Today we’re going to talk about AMC and how hedge fund partners are playing dirty to steer the public from the free trade. So, how exactly do hedge funds manipulate the stock market?

how do hedge funds manipulate the stock market - franknez.com

Lets get started.

The power of the media: MarketWatch removes AMC as the most shorted stock

The investing community knows AMC has been the most shorted stock in the market for quite some time now. However, on Wednesday February 24, it simply disappeared from MarketWatch’s website.

Stock Market Manipulation - MarketWatch

AMC was not assorted to a place on the list, the ticker was simply removed from the eyes of the curious retail investor.

You can see it for yourself here –> Link

And no, the ticker symbol all the way at the bottom is not AMC theaters.

Why MarketWatch removing AMC from the list is manipulation

It’s a no brainer hedge fund partners need to stick together. When AMC squeezes, hedge funds are going to lose a lot of money.

Retail investors know this. It’s the newcomers who are looking to invest in AMC that are going to be misguided. See, the more people invest in AMC means the more the share price is driven to the moon. Something hedge funds betting against AMC cannot afford.

According to The Fool – You should invest in this or that “instead”

The Motley Fool is a source that provides its subscribers with hand picked stocks with potential gains.

With tremendous respect, stick to what you do.

The integrity of this company is to help investors pick winning stocks, not to divert them from a stock due to it’s potential upside that can cause hedge fund partners to lose billions of dollars.

For quite some time now we’ve been seeing The Fool attempt to divert the public from getting in on AMC stock by pumping negative headlines.

This ladies and gentlemen is how the media can manipulate the performance of a stock. This influence can sway a new retail investor from adding to the surging volume of shares being purchased in the market.

To the new retail investor – make your financial decisions based on your own due diligence. Not on what media sources get paid to write about.

Yahoo Finance & InvestorPlace

Platforms such as Yahoo Finance & InvestorPlace have also had their fair share of negative headlines to try and divert the public from skyrocketing AMC to the moon.

With InvestorPlace even throwing a jab at GME investors saying, “If You’ve Made Money On GameStop, You’re Not An Investing Genius”.

Perhaps not, but we’re pretty certain these investors are wealthier than the person who came up with that punchline.

These media sources have been discouraging new retail investors from investing in AMC since the beginning of the year although the stock is up year-to-date!

AMC’s average volume is now 136.8 million

AMC’s average volume is now a whopping 136.8 million. Retail investors have been holding and buying through red and green days.

The heavy volume is a sign retail investors continue to be bullish on AMC stock.

What is a short ladder attack?

A short-ladder attack is a strategy performed by short-sellers where they bid on the stock at a significantly lower sell price and purchase it from one another. Thus, driving the share price lower.

Retail investors have seen this tactic from hedge funds for quite some time now.

Manipulation in the stock market

Manipulation in the stock market - Robinhood
Robing Hood?

I’m sure you’ve all heard of the Robinhood scandal. This is another form of manipulation in the stock market caused by the halt of buying power. Robinhood prevented its users from buying stocks such as AMC and GME (GameStop) during GME’s bull run.

Although restrictions aren’t as tight anymore, we’re beginning to see trusted and beloved companies get exposed as hedge funds worst nightmares become a reality.

The stock market is no longer their playground. We’re now seeing more people learn about how the stock market moves. This is revealing a lot of unethical behavior on the hedge funds side that should be deemed as illicit activity.

Read: Why new retail investors investing in AMC should avoid Robinhood

A house of cards, r/superstonks (Reddit post)

A Redditor just posted an insane amount of DD on Reddit. This long form post discuses the transition from paper filled orders in the stock market to the use of computers going tracing back to the mid 80s.

The post reveals the beginning of issuing naked shares. We’re also learning that a lot of transaction are being held by the actual institutions that are shorting these stocks.

Robinhood routes more than half of it’s customers to Citadel. This information has now been disclosed via the Washington Post.

You can read the full Reddit post here.

Trey’s Trades does a quick breakdown on this DD as well. The video is embedded for your viewing pleasure.

With all this in mind, manipulation in the stock market has been able to keep AMC’s share price below $20 for the longest time. AMC is currently consolidating at $55 per share.

I also included this DD on the post, “Why hasn’t AMC squeezed yet?“.

Barclays is fined for inaccurate books and records

Stock market manipulation
Barclays CEO, Jes Staley

Reports by Finra have been made public detailing multiple fines on Barclays for inaccurate books and records.

Barclays is one of Citadels clearing houses. Although the fines won’t make a dent in their pocket, the unethical behavior of these clearing houses continue to be exposed.

This isn’t the first time Barclays has run into issues with fraud. There just simply hasn’t been a community to be loud about these investigations. Retail investors are now sharing this information and bringing light to all malpractice.

Positive news for retail investors

Melvin Capital hedge fund manipulation
Melvin Capital suffers a 49% loss its first quarter in 2021

With all this being said, retail investors should be aware that one the biggest hedge funds shorting AMC and GameStop have suffered a 49% loss their first quarter.

This ladies and gentlemen is justice. As long as both retail investors and shorts continue to hold, hedge funds such as Melvin Capital will continue seeing massive loses.

It costs retail investors nothing to hold, but it costs shorts and hedge funds money every day. It’s only a matter of time before a squeeze occurs, no matter how manipulated the stock market gets.

Related: Citadel loses billions: Hedge funds are getting dragged down

Franknez.com fights The Fool, Yahoo Finance, and InvestorPlace

Franknez.com is fighting for the community against malpractice from all news media shunning AMC and GameStop.

This platform will serve as a positive media outlet for the community and only spread factual documentation, and news related cited-sources.

Finance | Knowledge | Freedom

I will not encourage retail investors to take a position in AMC. However, I will outline the facts and evidence to help you make your own personal financial decision.

Read: A message to the SEC on fails to deliver (AMC)

How can retail investors bring awareness to the community?

Franknez.com

Retail investors can expose false information on social media to shine light on manipulation tactics driven by hedge fund partners.

Sharing factual and positive articles relating to the performance or analytics of a particular stock is another way the investing community can stay united.

Franknez.com is a platform for the community. I am 100% pro retail-investors and I will continue to share DD that point towards an AMC short squeeze as well as any relevant information that exposes malpractice in efforts to raise awareness.

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

Support the blog on Patreon.

Twitter | Facebook | Instagram


« Older posts

© 2021 Franknez.com

Theme by Anders NorenUp ↑

%d bloggers like this: