Community, I’m going to be updating this list of momentum stock and their short interest and utilization daily (AMC short interest).
Be sure to bookmark this page for daily AMC short interest updates. This information is being taken straight from Ortex. I understand not everyone has insight to this information so I will be making it all public for you.
Other metrics being updated daily will include the cost to borrow and the shares on loan.
If there are other heavily shorted stocks you’d like me to update daily, please leave a comment below and I’ll be sure to look into them before adding them to the list!
Ortex costs $79/mo., consider supporting the blog on Patreonfor only$4.
#1. BBIG Short Interest
Short Interest: 23.74% | Utilization: 100.00 | Cost To Borrow: 236.24 | Shares On Loan: 60.23 Million | Days To Cover: 3.17
#2. SNDL Short Interest
Short Interest: 9.38 | Utilization: 92.84 | Cost To Borrow: 4.72 | Shares On Loan: 328.61 Million | Days To Cover: 4.46
Debt is the only thing holding AMC Entertainment from being a fundamental buy in the eyes of most in the industry.
AMC Entertainment partnerships
AMC partnered with Chance the Rapper last year for his concert movie release.
CEO Adam Aron announced that they would be working on partnering up with industry leaders for licensing agreements that would allow AMC to provide more of these experiences to their audiences around the world.
Another successful showing was the UFC fight they held in theatres.
The CEO also expressed his optimism surrounding showing highly anticipated sports events in theatres, granted licensing of course.
Retail investors have been specifically waiting for an AMC-GameStop partnership.
A topic Adam Aron teased could be in the works at some point.
AMC theatres released “GameStop: Rise of the Players” on January 28th, earlier this year.
One thing you cannot deny is the community strength and company relationship to its shareholders.
It’s never been seen before.
Do you own AMC stock?
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So, will AMC stock go up again?
Based on trader sentiment, community sentiment, and continuous innovation from the company, AMC stock will surge again.
This bear market won’t last forever.
And although the entire market is rather shaky at the moment, there will be a correction.
Hedge funds might have leverage to short the stock, but the people aren’t leaving.
AMC Entertainment will have to focus on growth and revenue if they are to get out of debt in the future.
This is the percent of a company’s free float that is shorted.
AMC is a short squeeze play because of this number figure.
This number figures tells retail investors that there is a high interest in shorting the company stock.
It’s this data that allowed retail investors to foresee big price moves in January and in June of 2021.
This same data tells investors today that AMC has the potential to hit another all-time high.
Some of you might be familiar with the correlations between short interest and rise to $72 per share last year.
AMC’s short interest dropped from 23% to 20%, then to 14% when it ultimately skyrocketed in price from $14 per share to $72 per share.
Despite what mainstream media has said in the past, no, AMC’s short interest is not too low to squeeze shorts from their positions.
Will AMC’s cost to borrow force shorts to close?
Hedge funds may be incentivized to close their short positions in AMC stock as the cost to borrow increases. At some point, it’s not worth paying that high of a fee to continue shorting a company that has fundamentally improved.
AMC is no longer the same endangered company it once was during the pandemic.
The company has improved every quarter since 2021 and has managed to get rid of most of its debt.
The world’s largest movie theatre continues to innovate and adapt to the changing world.
While online streaming threatened the industry, revenue from box office hits has proved people are still going to the movie theatres, despite the convenience of watching movies at home.
Short sellers are betting against a recovering and innovating film industry generating billions in revenue now.
As AMC continues to prove itself fundamentally and the cost to borrow rises, expect short sellers to begin closing their short positions.
Here is where patient investors will see massive returns.
Do you own AMC stock?
Are you an AMC shareholder or are thinking about buying AMC stock?
Leave a comment below.
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That’s more than enough short interest to send AMC stock into the hundreds of dollars per share level.
When AMC’s short interest dropped from 20% to 14% back in June the price rose to $72 per share.
Are 100m+ volume days on the horizon?
Welcome to Franknez.com – 65% of you are new to the blog. Be sure you join our newsletter so you don’t miss out on new content! Today we’re discussing financial institutions buying AMC and why it matters.
It’s only a matter of time before bigger shorts get squeezed from their short positions in AMC stock.
Financial institutions buying AMC stock
Here’s a list of the 15 financial institutions who bought AMC stock in January of 2022, via MarketBeat.
Many of these financial institutions buying AMC stock have millions of dollars in market value.
About 60% of the companies who increased their positions in AMC in January alone are holding more than 100,000 shares.
Since AMC’s earnings call figures have improved every quarter since last year, I estimate more financial institutions will continue to increase their positions leading up to this year’s Q4 announcement in March.
Meanwhile, retail investors continue to buy and hold the stock to ignite a short squeeze.
The same way we can pull each other up, we can also pull one another down.
Short Interest Data
To the best of my knowledge, there are two major factors that will allow us to identify when shorts cover.
The first is through the short interest data.
What does short interest data tell us?
The short interest helps us understand how much of a stock’s float is being shorted.
It’s the number of shares that have been sold short but have not yet been covered or closed out.
For example, a heavily shorted such as AMC has a short interest of 16.56% (currently).
Apple on the other hand has an SI of 0.62%.
Apple has almost no shorts to squeeze from their positions where AMC has 16.56% of the float shorting the stock.
That’s approximately 106.82 million shares out on loan that have yet to be covered.
So in theory, as shorts begin to cover their positions, AMC’s short interest data should begin to decrease.
Price Action Change
Another common way to identify whether shorts cover their positions is through sudden price movements.
Short covering adds momentum to the buying pressure of a stock which results in a spike or bullish run.
What makes identifying when shorts cover is that the price action and short interest data don’t align at the same exact moment.
The reported short interest doesn’t happen right away.
It’s actually released a week and a half.
However, when we look at AMC’s runup back in June, we see that AMC peaked two days after it’s last report high short interest.
It took two business days for AMC’s small short covering to take AMC from $31.81 to an all-time high of $72.62 per share.
The chart from Ortex below shows us a drop in short interest between the dates of May 28th and June 9th where the stock began to cool down from it’s runup.
We saw the short interest drop from 20% to 14.76% by mid July before shorts began taking new positions, further driving the short interest up past 19%.
And I know what some of you might be thinking. Shorts haven’t covered! They never did!
Community, I’m presenting you with data that shows how price fluctuated based on the short interest updates.
Strangely enough, when the short seller, not hedge fund, Iceberg Research announced they closed their short position in AMC, two days later we saw a very small increase in price action though retail volume was low.
People were quick to dismiss Iceberg simply because it’s one analyst publicly shorting AMC but I though the news was super bullish.
In fact, I hoped other short sellers would follow in closing too.
Will AMC Squeeze Based On The Current SI?
AMC’s current short interest as of the date of this publication is 16.39%.
AMC’s current short interest by definition is considered to be extremely high.
There is more than enough juice to get some serious price action out of AMC with this data.
And of course, if more shorts begin taking positions in AMC then the short interest percentage will continue to go up.
Otherwise, we can expect it to stay the same if they continue to hold, or decrease even if very small short positions are indeed being closed.
With AMC’s short interest slowly going down and an incredible amount of short shares being borrowed, I’m curious whether their exit strategy is to heavily short the stock while closing smaller short positions.
You can see how many short shares are being borrowed daily via. StonkOTracker.
Tinfoil hat on but I can see a strategy where the amount of overleveraged shorting is countering any small short covering.
Even then, this scenario is just speculation to be quite frank.
If you have any idea why the short interest is slowly going down I’d love to hear your thoughts in the comment section below.