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The Markets in General Are Bouncing
The SPY has created a triple bottom around the $360 level so far and hasn’t come down since.
First in June, again in September, and last in October.
October is the month when SPY began to bounce from this major level of support.
Around the same time, AMC Entertainment stock was having a bounce from its major level of support around $6.30 per share.
Is it possible the market in general has hit the bottom?
It’s very probable, although it’s fair to mention any official talks of a recession can easily crash the market.
If we do begin to see further continuation, we might enter a short squeeze season where stocks begin to have sudden price surges from shorts closing positions.
Last year, AMC and GameStop gained mainstream attention when retail investors began to buy heavily into these two ‘meme stocks’ despite their high short interest.
Users over at Wall Street Bets identified that with enough buying pressure, they could force short sellers to rush and close their short positions in order to refrain from taking on massive losses.
This buy-back of shares would further fuel the buying pressure already being applied from retail investors; GameStop shot up over $483 per share.
In June of 2021, AMC Entertainment stock surged from $14 per share to $72 per share.
Will History Repeat Itself?
Market News: Will AMC squeeze again?
AMC’s short interest was around 21%-22% before short positions began to get closed.
AMC’s current short interest is at 21.64%.
This means that with enough buying pressure, retail investors might just have the chance to recreate the events that occurred last year, possibly even bigger.
But I’m curious to hear your thoughts on AMC’s rising short interest today.
AMC Entertainment is now up more than 40% since the publication of my ‘buy alert‘ on the blog and newsletter.
Take it from someone who said buy AMC at $6 per share last year before it ultimately surged to $72 per share and crippled Wall Street.
The point I’m making is the market is shifting and it’s very possible we begin to see AMC retrace to higher levels it created last year.
Of course, there are many factors that may break or make this a possibility.
The major one being retail and institutional investors both buying the stock en masse.
Which as we know, usually tends to happen during a bull market.
AMC’s Fundamentals Today will Play a HUGE Role Tomorrow
Institutions were buying AMC stock mainly during the second quarter of 2021 when retail investors sparked confidence towards the upside.
And retail investors haven’t left despite massive shorting in the market.
Based on what we’ve seen in the past, a new all-time high for AMC could very well come to fruition in the next bull market.
The reason behind this observation is that institutions and retail investors were buying AMC Entertainment stock even when the movie theater chain was on its knees.
There was still big suppression from short sellers who did not see any fundamental value in the company.
It’s for this sole reason why more institutions will likely purchase the stock during the next bull run, because AMC has significantly improved fundamentally.
AMC’s fundamentals today are going to play a huge role tomorrow.
It’s just a matter of time before retail investors get to see this play out in real-time.
Granted that we enter a bull market in 2023, it’s very possible AMC has a short squeeze due to excessive buying pressure from both institutional and retail investors.
Fintel is currently reporting AMC’s short interest at 21.64%, which means there are plenty of open short positions that may trigger an AMC short squeeze in 2023.
When AMC’s share price skyrocketed to $72 per share, AMC’s short interest dropped from 21% to 14% due to hedge funds buying back their shares.
And with AMC’s increasing borrow fee rate, it only puts more pressure on hedge funds to begin this process.
Market News: Short sellers face major risk as AMC’s short interest, volume, and short borrow fees rise.
AMC’s high short interest is one of the biggest confirmations AMC Entertainment stock can squeeze again.
Of course, there’s the second component which will trigger it, and that’s volume.
We’ve seen spikes in AMC’s share price during heavy volume days, something we saw on a weekly basis before AMC reached its all-time high of $72 per share last year.
Retail investors bombarded the stock market and fueled massive rallies through heavy buying pressure.
AMC might have the short interest it needs to rip again, but does it have the liquidity it needs from retail investors?
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AMC Short Interest Today
Fintel is reporting AMC’s short interest today at 19.76%.
Other platforms are reporting AMC’s short interest at 20%; so, we have an idea of where it’s rounded at.
This high short interest is quite risky for short sellers as any major rebound could put bets against the movie theatre chain in significant losses.
While it made sense for institutions to go short when AMC’s share price began dropping after its peak, AMC has hit strong levels of support today, making it ideal for buyers to step in.
Institutions may also begin to buy back in at current levels, very well knowing an AMC short squeeze is possible.
AMC’s short interest today is around the same as it was prior to the massive surge from $14 to $72 per share.
This means those betting on AMC to squeeze this year already have one major component checked off.
Big players closing their short positions in AMC may trigger big price runup at any moment.
They just have to decide the tide is turning against their position for retail to see this.
Volume Forced Big Price Action Last Year
What will trigger AMC to squeeze?
Average volume this year for AMC Entertainment stock has come down significantly from last year’s bull market.
But this is expected as massive selloffs occur in a bear market and investor confidence subsides momentarily.
Soon institutions along with retail investors combined will begin to pick the markets back up.
And with it, turn the tide against short sellers.
The market will experience major squeezes, not just from AMC, but from various shorted stocks too.
Heavy buying pressure is the key to successfully trigger a short squeeze in the market.
AMC and GameStop proved that last year when massive crowds of retail investors began to buy shares of both companies in heavy volumes over a period of months.
If you missed last year’s momentum waive, it’s possible very soon we may see what could be the last time an event like this occurs again.
But of course, this will all depend on investor sentiment.
Because if there are no investors in AMC, then there is no volume.
And if there is no volume, there’s no tide to turn against short sellers.
Short Borrow Fee Rises
AMC’s short borrow fee rate has risen substantially compared to earlier this year.
The short borrow fee rate is currently at 44.30% compared to 1% in early 2022.
This is the fee hedge funds pay annually to borrow shares to short AMC stock.
Last week the short borrow fee had increased to96.30%!
This means it’s becoming less convenient to borrow shares at the moment; a risk headstrong short sellers must currently face.
Now it’s costing more than ever to short AMC stock and it’s also riskier than it was prior to this year’s bear market.
Bear markets usually only last about a year compared to bull markets who tend to make it to almost 4 years.
At some point, a reversal is imminent, and short sellers who fail to close their positions while they still can, will be caught in a massive tide.
An AMC short squeeze is a ticking timebomb, and unless stocks can drop forever, it’s one you cannot disarm.
Stock Market News: AMC’s high short interest and borrow fee indicate a short squeeze is near.
Shareholders are preparing for an AMC short squeeze as the stock continues to trend upwards and break new levels of resistance.
The movie theatre stock is up +18.40% on the month and up more than +37% in the past week.
Volume has steadily increased and even surpassed the average trading volume of 30 million.
AMC shareholders are speculating big moves may be underway as the rising price triggers short sellers to close out their positions.
AMC’s current short interest is still high at 19.76% per Fintel.
This means there is plenty of shorting in the stock for retail to trigger another massive price move like they did in January but more specifically in June of 2021 when the stock soared to $72 per share.
The company has performed well considering it almost faced bankruptcy early last year.
AMC Entertainment has beat quarterly earnings since 2021, striking confidence for an AMC short squeeze in 2022.
And the cost to borrow short shares has also skyrocketed in recent times.
Borrowers are now paying a whopping 66.4% to short the stock!
This is big news.
Let’s discuss it more below.
AMC Short Interest Today
According to Fintel, AMC’s short interest today is sitting at a high 19.76%.
AMC shot up to $72 per share last year when the stock was heavily shorted around 20% short interest.
AMC’s short interest came down to approximately 14% when it had reached its all-time high of $72.
The stock’s price may have come down a long way, but shorting has increased since and so has the short interest.
But AMC is seeing a slight bounce as it rejects the major level of support around $6 per share, currently trading between $7.50 and $8.
Heavy buying pressure is all the movie theatre stock needs to begin following previous trends back up to $9, $14, and $20+ levels.
If retail investors are able to successfully trigger this event, a short squeeze is inevitable.
What makes AMC more interesting now than ever is how high short sellers are paying to borrow the stock compared to earlier this year.
Stonk-O-Tracker is reporting a whopping 66.40% short borrow fee rate.
This is the annual fee it is now costing hedge funds to short the recovering movie theatre chain.
Liquidation across the markets could explain the obligation to keep up with such a high fee.
But that’s not all, AMC’s short borrow fee rate was as high as 77.80% on Wednesday.
The question is, how long will hedge funds be able to keep up with these losses as retail investors continue to buy and hold AMC stock?
FUD Grows but the Community Still Stands
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There are many doom prophets infiltrating the retail community urging investors to sell their AMC shares.
Claiming that AMC is dead, and it will never squeeze.
Now more than ever, short sellers opposing heavy retail volume are trying to scare shareholders out of their money.
But the AMC community is still standing strong.
Is an AMC short squeeze happening soon?
The probability of retail investors squeezing shorts again is not a far-fetched idea.
We could begin to see bigger price action very soon.
Variety says AMC’s partnership with Zoom is bizarre and Hollywood Reporter is focused on AMC’s $227 million loss ($0.22 loss per share) despite revenue for Q3 being up $968.4 million.
Zacks Consensus Estimate predicted a loss per share of 25 cents, so AMC performed better than expected.
What we’re seeing is that the public alongside AMC shareholders are the only hope for the company.
Mainstream media isn’t willing to give AMC the credit it deserves.
Below are highlights from AMC’s Q3 earnings call.
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Two other anticipated films coming to AMC theatres in Q4 include Black Panter: Wakanda Forever and Avatar 2.
AMC’s Market Cap is Still Below Its Debt Load
Wallstreetbets: AMC Stock Reddit.
AMC Entertainment’s current market cap is sitting at $2.88bn, the company has north of $5bn in debt.
The movie theatre chain company has done an incredible job at paying down its debt, although company shareholders and the public are what’s keeping AMC Entertainment afloat.
As long as there are moviegoers and investors feeding the company with liquidity, AMC Entertainment is far from gone like many short sellers would hope.
The public’s eye on the largest movie theatre chain company in the world has not faltered; for them, going to the movies is merely a means of reality going back to normal after the pandemic lockdowns.
And as we saw in Q3 earnings, AMC’s attendees have increased 33% from Q3 of last year, seating more than 53 million guests in Q3 alone.
Shareholders also play a massive role in the success of the century old movie theatre company.
The difference is shareholders are battling short and distort campaigns in a conflict of interest with mainstream media and Wall Street institutions who hope to profit from the possibility of bankruptcy.
And although AMC is no longer on the brink of going bankrupt, Wall Street seems to have a personal vendetta against retail investors who disrupted the flow of their short scheme.
Holding AMC Stock?
What are your current thoughts on AMC stock and in the direction the company is going?
Leave your thoughts in the comment section down below.
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Market News: AMC FTDs top $9.9 Million for the month of October.
The latest report on AMC FTDs shows failure-to-delivers spiked to $9,906,536 for the month of October so far, with data still coming in.
This is equivalent to 1,640,155 FTDs.
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
Failure-to-deliver can occur in options trading or when selling short naked, per Investopedia.
AMC Entertainment has been a big target for short sellers looking to profit from the demise of the century old movie theatre chain.
Let’s discuss it.
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According to Investopedia, AMC FTDs can occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).
Seeing as Citadel Clearing LLC transacts orders worldwide, there’s a major conflict of interest here.
Ken Griffin’s Citadel LLC is short on AMC Entertainment stock, so there’s a very distinct connection here.
It’s unlikely FTDs have been a result of retail buyers since the majority are purchasing the equity on cash accounts where orders execute almost immediately.
Naked short selling seems to be the most probable cause here as $AMC has tumbled despite heavy retail interest.
So far, it seems like the SEC isn’t willing to tackle FTDs in both AMC and APE.
In fact, Gary Gensler says there’s a possibility that naked shorting isn’t even involved.
AMC has been trending downwards since its rise up to $72 per share and now retail investors are wondering, will AMC stock go up?
In a recent article I break down 3 BIG factors that have influenced AMC’s downward trajectory in the past few months.
Although AMC’s share price has been plummeting, the demand for the stock has not.
This key point is going to play a big role in what happens to AMC stock after this bear market is over.
Welcome to Franknez.com – today I want to lay a few key points you should take into consideration if you’re holding AMC stock or thinking of buying it.
Let’s get started!
AMC stock had an incredible year in 2021.
The stock reached an all-time high of $72 per share with only 21% short interest at the time.
Once the share price began to come down, AMC’s short interest had come down to 14%.
As we start the new year, AMC’s average daily volume is incredibly high.
AMC has an average volume of 38.2 million with many days surpassing this amount.
So why isn’t AMC’s massive demand reflecting in the share price?
That’s the question the ‘ape community’ has been asking regulators all year 2021.
Too many eyes are on regulators right now and at some point, some suppression inflicted by hedge funds will have to subside.
And aside from Omicron and Covid news affecting the entire market, AMC’s massive volume will eventually push the stock price up during a correction.
What does this mean for retail investors?
If you’re looking to get in on AMC for a short squeeze, know the risks, but understand that once this stock takes off you will not be able to buy it at these prices again.
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Deflating the short interest
Deflating AMC’s short interest like we saw back in January and June means AMC stock will go up significantly higher from its current share price.
Small short covering allowed AMC to reach $72 per share back in June of 2021.
So why can AMC stock still skyrocket?
Despite the heavy buying volume from retail, AMC still has more than enough short interest percentage to squeeze shorts from their positions.
2022 is only the sequel to 2021’s runup.
The reason mainstream media doesn’t want you to know this is because of their ties to hedge funds and private financial institutions.
These institutions are ‘short’ on AMC and GameStop, meaning they’re betting against them.
Pushing propaganda that will feed their narrative is the safest way for hedge funds to derail retail from further buying the stock that could cause them to default.
Hedge funds such as Melvin Capital, Anchorage Capital, Mudrick, & Archegos are out of the game.
A short squeeze play has nothing to do with AMC Entertainment’s fundamentals.
The reason being is that retail goes based off of how much shorting there is in the company stock.
Buying the stock en masse (big volume) will cause AMC stock to go up, forcing shorts to close their positions and buy back their shares; triggering a short squeeze.
A short squeeze play does not depend on the performance of the company as a business.
AMC’s fundamentals are not the greatest, the company does have a lot of debt.
However, something mainstream media is not discussing is just how much their debt has gone down each quarter since 2021.
AMC Entertainment’s fundamentals are a discussion I will be touching topic on another blog post very soon so be sure to join the newsletter.
Tesla has now followed by accepting cryptocurrency as a form of payment on their merchandise too.
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?
Leave a comment below.
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.
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The Biggest Institutions Own AMC Stock
It’s true, according to InvestorPlace, the top 5 institutional owners of AMC stock are Vanguard, BlackRock, Goldman Sachs, State Street, and Bank of America.
Vanguard holds approximately 95.18 million shares of AMC Entertainment stock, which is equivalent to approximately 18.42% of the outstanding shares.
BlackRock holds 51.77 million shares of AMC stock, or 10.02% of the float.
Goldman Sachs 5.98 million shares, or 1.16% of the float.
State Street holds 20.53 million shares, or 4% of AMC’s float.
And Bank of America holds 5.42 million shares of the stock, equivalent to 1.05% of AMC Entertainment’s outstanding shares.
These 5 institutional AMC investors make up roughly 35% of the float.
If some of the biggest corporations in the world are currently hold AMC stock, it should tell retail investors something.
Here’s the latest on the channel.
A Market Rebound is Inevitable
AMC along with the entire market has for the most part of 2022 been on a steep decline.
And the issuance of APE (AMC Preferred Equity) only further contributed to AMC’s falling share prices.
But majority of retail investors are still not selling.
And with the market due for a rebound, it’s fair to project that with a montage of hungry retail buyers during the next bull run or bull market, an AMC short squeeze is inevitable.
Whether it’s what ‘Apes’ have referred to as a MOASS, or simply some gnarly price action, the opportunity to make money will be there.
If you missed the last two runups last year, now could be the time to buy AMC stock before the market turns on short sellers.
Could we see more price action from AMC Entertainment stock like we saw last year?
Absolutely.
So, while we don’t know when exactly the market will begin to rebound, we do know that the market never falls forever.
And when the market gets ready to bounce back, expect AMC to do the same, but due to the strong community behind it, with extra force.
AMC Entertainment is boosting its social media presence game.
The company located in Leawood, Kansas is looking for a Social Media Director whose key role will be to strategically grow AMC’s engagement and revenue through media platforms.
AMC Entertainment has made big moves in the past two years since its resurrection from the Covid Pandemic, but its focus on social media has the potential to scale the company to higher heights.
In 2021, the movie theatre chain grew to billions of dollars in market capitalization when retail investors bought the company stock to squeeze short sellers.
It was social media platforms such as Reddit, Twitter, and Discord communities that set the stage for AMC Entertainment’s return on Wall Street.
The company nearly filed for bankruptcy but not before millions of retail investors saved it.
Here is the latest AMC news today.
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AMC Social Media Director Role
Stock Market News: AMC stock news today.
AMC Entertainment posted an application on Indeed describing a major role in the company that will strategically grow revenue and social media presence through social media platforms.
This leadership role will lead a small team to help build AMC’s brand and increase sales and profits through the use of social media marketing.
The key focus according to the application is to identify and engage with moviegoers while growing and evolving their social media presence.
AMC Entertainment will be optimizing their social media efforts on platforms such as Facebook, Instagram, Twitter, YouTube, Tik-Tok, and others.
AMC Entertainment understands the power of social media and it also understands the importance of its community.
Social media has changed the way we communicate and spread awareness.
Now that the company is focused on tapping into this gigantic tool, we can expect AMC to reach several more customers through social media, via paid advertising or organically.
And along the process, potentially an even bigger shareholder base.
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AMC vs Wall Street
Wall Street has long betted against the century old movie theatre chain, hoping for its bankruptcy in 2020 to capitalize on short selling.
But AMC has always fought back, and I mean everyone has fought back.
CEO Adam Aron has built a relationship with shareholders and transformed the company with its innovation in crypto and NFTs.
Shareholders looking to squeeze hedge funds betting against the company evolved into investor activists, raising awareness of the malpractices on Wall Street.
Even television hosts such as Charles Payne and Jon Stewart have been a voice for retail, speaking out against the SEC’s inability to stop PFOF and dark pools from taking advantage of investors.
“The SEC’s determination that the DLimit order does not violate the Exchange Act by unfairly discriminating or unduly burdening competition was reasonable and supported by substantial evidence,” the court found.
And now the industry is fighting the SEC on the possibility of eliminating payment-for-order-flow (PFOF).
A practice where market makers pay brokers a fee to reroute retail orders over to them.
Market makers tend to be short-biased and may use retails orders against them in a variety of ways.
AMC’s Fundamental Growth
AMC Entertainment has been improving fundamentally since its first quarter of 2021 when retail investors injected the company with billions of dollars in liquidity.
The movie theatre chain company had its best 2nd quarter in 3 years, seating more than 59 million guests, up 61% from two years prior.
In Q2, AMC had $52 million of positive operating cash flow and $107 million positive EBITDA, which is relative to the strength of a company.
The company ended Q2 with $1.18 billion in liquidity, a trend we’ve seen in the past with Q1 of 2022.
AMC announced in Q2 earnings it had reduced its deferred rent by more than $250 million and planned to reduce it by another $40 million ending the year.
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What about the argument that these billion dollar hedge funds can keep paying out forever?