Tag: AMC Short Squeeze News (Page 1 of 3)

Is It Too Late To Get In On AMC Stock?

June 16, 2021 / / 38 Comments
Is it too late to get in on AMC stock?
Is it too late to buy AMC Entertainment stock?

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

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

Shorting a stock is the process by which sellers essentially bet on the stock price to drop. They borrow stocks at higher cost and sell the stock low, profiting the difference.

Well, investors over at r/wallstreetbets found that by purchasing stocks at low price in heavy volumes it would drive a short squeeze. A short squeeze occurs when a stock jumps sharply higher, forcing short sellers to buy higher, causing them to lose money. Lots of it.

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Will we see a squeeze with AMC?

AMC Entertainment short Squeeze

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

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

Big institutions keep buying AMC stock

We’re seeing huge institutions are investing in AMC stock while it’s affordable. Because it’s affordable we’re also seeing average people invest in this stock.

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

AMC stock closed at $55.18 on June 16th. The stock has been green for quite some days now and is more bullish than ever. However, shorts continue to short ladder the stock causing some consolidation. AMC wants to keep climbing.

Short-laddering occurs when short investors buy back their shares at a low price, driving down (or leveling the stock) gains. These are the attacks we’ve been seeing whenever AMC begins to see gains, all year.

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

Great news for AMC Entertainment

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

BREAKING: AMC’s short borrow fee as of 6/16 is 1.68%, via. Fintel.

The fee is going up although it had recently come down.

What is a short borrow fee?

AMC short borrow fee Franknez.com

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

This means shorts are losing money every day by not closing their positions. If we want to squeeze shorts from their positions we’ll need to see this short borrow fee gradually increase.

Why the short borrow fee rate matters

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

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

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

As hedge funds like Melvin Capital lose money, the short borrow fee will go up to make up for some loses. As the interest goes up, shorts will naturally cover. If they don’t, they will continue to pay interest for borrowing.

How high can AMC stock go up to?

AMC to the moon

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

This is actually quite logical given that we’re seeing more and more people and institutions alike purchase AMC stock and hold their positions.

There’s a notion that all these suppressed gains will result in a massive short squeeze during the Summer. Again, this is all speculation but all signs are pointing towards big gains.

So, is it too late to purchase AMC stock?

Not at all. In fact, if you’re looking to get into the AMC train now is the perfect time to do so.

The price after a short squeeze eventually fall back down and level out, but this will take time. With AMC stock treading below $100, now could be the perfect time to buy. Just don’t wait too long because we hear it’s going to the moon.

AMC’s short borrow fee keeps going up, hedge funds continue to short it, volume is increasing; it’s the perfect storm for a short squeeze.

Things to expect in the market with AMC

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

How many AMC shares should I buy?

If you’re planning on taking a position in AMC Entertainment set a budget for investing. Since the market is volatile at the moment, purchase shares incrementally.

The best time to buy a stock is when the share price has dipped. This will allow your investment to see gains when the stock price rises again.

Ladies and gentlemen, the last thing you want to do is to invest more than you can handle to lose. This advisory must be made.

If you’re holding AMC stock leave a comment below and let me know what a short squeeze would mean for you. Retail investors can feel it, the tendies are coming.

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

If you have not opened a brokerage account to begin investing, read how to invest in the stock market (step by step). In this post you will see a number of linked platforms that you can check out!

I personally use Vanguard. Vanguard has proven to be useful and it has never failed me before. Here, I hold long-terms stocks as well as a position in AMC.

Brokerage account Vanguard AMC

Important Advisory

It is important to note that I am not a licensed financial advisor. Like many traders and self taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.

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

More info on AMC from Trey’s Trades (Analyst)

Trey is an analyst in the stock marketing and trading world. His videos are super fun to watch as they are very informative and downright transparent. Furthermore, Trey’s personality just makes the videos all that much better.

Be sure to follow Trey as he engages his audience live when the market opens for real-life discussions.

Trey’s Trades – AMC Huge Institutional Buyers!

It’s important to keep yourself updated with the latest AMC news so you can invest with confidence.

This is not Trey’s Trades most recent video but it’s a very important one. Be sure to keep up with AMC analytics so that you’re aware of the play.

Another great Analyst covering AMC right now is Roensch Capital. They’re a little more analytical, but a trustworthy source nonetheless.

Everything is falling into place for AMC stock

Other YouTubers covering AMC in depth include Matt Kohrs, Max Maher, and Andrew Mo Money.

What’s cool about these YouTubers is that they all go on each others channels from time to time and do collaborations regarding DD. Trey and Roensch Capital are by far my favorite channels covering AMC.

I personally started following Trey’s Trades when he had about 10,000 subscribers. He’s nearing 300,000 now, and well deserved by the way.

But, if you want daily technical analysis on AMC, Roensch Capital is the channel for you.

Ignore the bogus headlines from The Motley Fool and other sources

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

The fool vs AMC

Fortunately we’ve been backed up by the real Wolf of Wall Street as well as Mark Cuban, Chance The Rapper, and other big names.

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

What we’re seeing right now is that the big guys are losing money due to the price of shorted stocks going up. They will say and do whatever they can to divert the public from trading this stock.

My personal suggestion to you is to not let these sources intimidate you. Do your research to see how the stock price has been manipulated through bogus headlines and short-ladder attacks.

Not to mention, the complete halt of trading AMC stock by Robinhood. That’ll be another post for you.

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

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How High Can AMC Stock Price Skyrocket Up To?

June 16, 2021 / / 98 Comments
How High Can AMC Stock Price Skyrocket Up To? Franknez.com
How high can AMC stock price skyrocket up to?

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

It looks as if AMC has now entered bullish territory. And yet again sources such as The Fool and other hedge fund partners are trying to steer the public from investing in this specific stock. Shame on you shills. Well, just how high can AMC stock price skyrocket up to?

AMC stock price closed at $55.18 on June 16th. The share volume has been increasing with new retail investors getting in on stock before it takes off. AMC Entertainment had an amazing runup today. The crazy thing is shorts haven’t even begun to close their positions. Ladies and gentlemen, the short squeeze hasn’t started.

Most of the market has been on sale and AMC has been no exception to that until now. AMC wants to keep climbing. The stock has seen green candles for a week straight now both during market hours and after hours.

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

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What do we know about AMC stock price?

AMC’s stock price continues to be volatile although we’ve seen the stock is scared of single digit share price numbers.

No matter how many times this stock is attacked by short sellers, it keeps correcting itself upwards.

AMC stock price bull market

Key highlights

  1. We’re seeing AMC stock price enter bullish territory due to an increase of retail investors buying the stock.
  2. ‘W’ shape formations in the performance of the stock also indicate bullish territory.
  3. Retail investors and large institutions alike, like the stock. Buyers include Vanguard, Charles Schwab, Wells Fargo, and BlackRock.
  4. What causes AMC stock price to rise during ‘power hour’ is how many more shares are being purchased before trading hours close. As retail investors continue to buy the dip and hold, we’re going to continue to see this trend of perpetual gains.
  5. The stock price is still relatively low enough for majority of people to buy, but hurry before it’s too late.
  6. The short borrow fee continues to increase, this means shorts will have to close their positions soon

For more on FTDs read: A message to the SEC on fails to deliver (AMC)

Adam Aron, CEO of AMC Entertainment Interview

Adam Aron AMC interview Franknez.com
Adam Aron, CEO & President of AMC Entertainment

Adam Aron has done an outstanding job with the media in the past months and continues to show a positive and bullish sentiment towards AMC.

He is now praised among the retail investors community holding AMC. And for good reason too.

See what CEO and President of AMC entertainment has to say to CNBC news about AMC Entertainment reopening and the Reddit movement.

As of today, all AMC movie theaters are now open 4/14
  • AMC Entertainment has raised more than 2.2 billion dollars in cash
  • 90% of AMC theaters in the United States are now open with New York and Los Angeles finally reopening
  • Vaccinations and policies are making movie theaters safe
  • New movie titles are guaranteed to increase sales revenues
  • CEO and President Adam Aron expresses an optimistic future for AMC Entertainment

In a more recent interview we get an exclusive behind the scenes moment with Trey’s Trades and Adam Aron.

If you haven’t watched the video you’re not gonna want to miss out.

In this personal interview from the CEOs home, Adam Aron talks about the 500 million share dilution, which by the way as of today has been taken off the table, as well as his experience and perspective behind the the Reddit phenomenon.

I wrote a small piece on Adam Aron being rightfully named the king ape here.

AMC’s Short Borrow Fee

AMC short borrow fee interest

AMC’s short borrow fee as of 6/16 is: 1.68% via. Fintel.

The longer shorts-sellers hold their positions means the higher the borrow fee may increase. This is great news for retail investors.

Shorts eventually have to cover their positions and when they do, AMC’s stock price action will continue to rise, inevitably creating a short squeeze.

Why AMC’s short borrow fee matters

While it costs the retail investor nothing to hold their position in AMC, it costs shorts interest.

Shorts are more willing to hold their positions if the short borrow fee is low so they’re losing money every day they hold.

Remember, shorts still think they can bankrupt a company that is no longer going bankrupt.. I know right?

As hedge funds like Melvin Capital lose money, the short borrow fee will go up to make up for some loses. As the interest goes up, shorts will naturally cover. If they don’t, they will bleed bad. With the short borrow fee being so high at the moment, it has retail investors speculating a short squeeze will start soon.

Melvin Capital suffered 49% loss 1st quarter

Melvin Capital AMC stock
Hedge Fund Melvin Capital – AMC Entertainment

Melvin Capital is a hedge fund that has been shorting both AMC and GameStop. Well it turns out holding has paid off one way. The company was down almost half percent their first quarter of 2021!

These are people who want to put your favorite businesses out of business. Ladies and gentlemen, the good guys always win.

If retail investors keep holding, institutions are going to raise the short borrow fee. Unless hedge funds don’t start closing their short positions, they will cease to exist. Or at least cease to run operations until they open a new firm from scratch. But who will trust them? Their clients are losing money.

Hedge funds are a sinking ship

Hedge funds are losing money shorting AMC stock

Cramer said, anyone shorting AMC and GameStop are going to lose. And he’s right. Retail investors are holding until shorts are squeezed out of their positions.

Shorts can either:

  1. Take the loses and close their positions right now where the stock price is around $55.
  2. Or, get squeezed out of their positions at a high interest rate above $55, resulting in even bigger losses.

With hedge funds shorting AMC losing billions of dollars its first quarter, it’s no surprise we’re going to the see this occur their second quarter as well.

How will this affect AMC stock price?

I can imagine shorts and hedge funds alike must be furious. The little guy causing a disruption, what!?!

My personal take is retail investors are going to continue to see foul play. You’re going to experience this from bogus headlines. They’ll usually try to steer the public from buying AMC stock to keep the volume and hype down.

Not sure if hedge funds know this yet but you do know documentaries of what’s taking place are in the works right?

Independent filmmakers such as the Mulligan Brothers will be covering this story from the retail investors perspective and rumor has it Netflix will be writing as well.

Expect AMC stock price to rise and continue to be shorted. We will see volatility with shorts attacking the price action. They do this by trading synthetic shares at low bids.

Read: How do hedge funds manipulate the stock market.

AMC Gamma squeeze before short squeeze

AMC Entertainment is currently the most shorted stock in the market (via. MarketWatch).

AMC Gamma Squeeze Before Short Squeeze
AMC Most Shorted Stock

Unfortunately, MarketWatch has completely eliminated AMC from their list. Retail investors are suspecting foul play from the hedge fund affiliates.

Because AMC is an extremely high shorted stock, analysts continue to demonstrate their conviction towards an AMC short squeeze.

The key here is for retail investors to hold their positions as they see some momentum beginning to build. #diamondhands

Key: If investors want to see AMC squeeze, they’ll have to refrain from selling at the sight of early profits.

AMC stock predictions (analyst)

AMC prediction from Fidelity TRADER PRO

Trey’s Trades walks us through the positive moves AMC has been making from an analysts perspective. Trey presents his audience with transparent information and has been a key player in the analytics world for ticker symbol AMC.

Although this video is an earlier video, Trey’s videos are packed with relevant information that still apply to where the stock is today.

r/wallstreet bets and Discord

Members over at r/wallstreetbets and Discord anticipate AMC stock price can skyrocket as high as $1,000-$10,000 mainly due to the stock’s popularity and trends in analytics. Yup, that’s crypto numbers.

The number of phantom shares hedge funds have to cover is astronomical which is why the community is calling this the mother of all short squeezes (MOASS).

AMC stock price wallstreetbets

By holding shares in AMC, retail investors are setting up a supply and demand scenario where short-sellers will eventually need to buy from them.

This in turn can drive the stock up as high as the retail investor chooses, theoretically speaking.

Large institutions such as Vanguard, Wells Fargo, BMO Harris, BlackRock, Fidelity and many more are buying AMC stock while it’s still low (via. CNN Business).

Take that for what it is.

Whether that number comes to fruition or not, retail investors will have to continue to hold and to add to their positions in order to skyrocket AMC’s share price.

We’re seeing more and more retail investors join the fight against short-sellers. Short-sellers are the investors betting on AMC Entertainment to lose.

Read: When do shorts have to cover their position? (AMC)

Can AMC reach $100K or $500K per share?

There’s been a lot of speculation that due to the possible number of outstanding synthetics could be in the billions, AMC may potentially squeeze past 6-figures.

Personally, I’m open to this concept. Shouldn’t we all be? I just recently found ReviewDork on YouTube. Gabe talks about this possibility and walks us through some math. Check him out.

Is it too late to get in on AMC stock?

If you’re looking to take on a position in AMC you might want to get on the train before it takes off for good.

Retail investors are teaming up together to see their visions come to fruition. And they’re not waiting on anyone.

What we do know is that the current share price is still affordable.

Trending: Is It Too Late To Get In On AMC Stock?

Why hasn’t AMC squeezed yet?

AMC stock consolidation

AMC hasn’t squeezed for two primary reasons.

  1. The volume isn’t all there yet. The volume needs to be quite high. Trey’s Trades referenced 500+ million being an outstanding number.
  2. Shorts are holding – they need to close their positions if retail investors are to squeeze them.

It’s not illegal for shorts to hold long on their positions; however, they lose money every day they hold.

Fortunately for retail investors it’s free to hold.

Read: When do shorts have to cover their positions ? (AMC)

What will AMC’s stock price be when it squeezes?

AMC short squeeze

AMC’s stock price can really be anywhere. It really depends on when shorts close their positions.

Short could have covered when they drove the price back down to $8. It would have been wise considering the stock continues to correct itself in an upward trend and has now set itself up for the perfect squeeze.

If shorts continue to play the long game, AMC’s stock price could potentially be higher when it squeezes. In this case, shorts would have lost a lot more money due to accumulating and rising short borrow fees.

Can AMC squeeze after hours?

A question some people might have is whether or not AMC could potentially squeeze after hours.

AMC can certainly squeeze after hours when the market closes. In fact, it wouldn’t be surprising if it did this. AMC’s stock price would continue to surge as retail investors watch immobile.

For one, shorts could decide to cover before the market closes in attempts to throw one final blow to retail investors. This would give the price action to potentially come back down after hours.

Should you worry?

I wouldn’t worry if this was the case. Although squeezes can last anywhere between minutes to hours, they can certainly last days too.

Volkswagen’s squeeze back in 2008 lasted approximately four days. GameStop’s lasted even longer.

Here’s how you can prepare for a short squeeze

A squeeze can technically happen at any time. The short interest doesn’t necessarily have to be high. Shorts could choose to close their positions with little loss opposed to massive losses.

  1. If you’re in a position to keep an open tab on your browser that is updated AMC’s stock price in real-time then I would suggest doing so.
  2. Own an Apple watch? Keep the stock in your background. This is a very convenient way to keeping tabs on the stocks performance.
  3. Join discords where you can be notified when something massive is going on.

When a squeeze happens you’ll know. Just don’t get a short squeeze confused with gamma squeezes.

Gamma squeezes are usually small spikes resulting from extremely bullish actions coming together at once. Otherwise known as relatively healthy gains of built momentum.

A short squeeze will be something more sudden and disruptive. You’ll know when this goes to the moon. AMC’s stock price will break through the charts and leave earths atmosphere.

What should I do when AMC squeezes?

AMC stock price short squeeze

This is completely up to you! Congrats for holding and seeing this through.

You can choose to sell your entire position and collect your profits or you can continue to hold and find out whether the squeeze continues to go up.

Unfortunately, we can’t time the spike. For all we know, the initial squeeze might not be the potential price action. This makes it difficult to calculate the best time to sell.

You could sell a portion of position and wait to see how AMC’s stock price moves.

We created a thread for you to share how you will use the money when AMC squeezes as a means to spread positivity and share with the community. You can check it out here.

What is a circuit breaker halt?

A circuit breaker is usually a rule in the market that essentially pauses or halts trading for 5-15 minutes.

A common circuit breaker type is the Volatility Pause. This helps smooth volatility in the market and prevent flash crashes. It forces traders to take a 5 minute timeout, research the stock, news, etc. Often times if a stock is spiking up and is halted, it will reopen higher.

Inversely, a stock selling off will often open lower.

Related: Everything you need to know about Dogecoin Crypto

Why this is worth mentioning

This is worth mentioning because it’s important for our readers and the ape community to be aware of possible halts as AMC’s stock price becomes more volatile. If you happen to experience a circuit breaker halt do not panic. It’s a policy to make sure trading goes as smooth as possible.

Important Advisory

It is important to note that I am not a licensed financial advisor. Like many traders and self taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.

Note: Before roaring kitty blew up as the analyst for GME, only a handful of people followed him through and reaped the rewards.

We’re seeing another analyst obtain a similar following with AMC. Take that for what it is.

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

Vanguard AMC

If you have not opened a brokerage account to begin investing, read this post on how to invest in the stock market (step by step) to get started. In this post you will see a number of linked platforms that you can check out!

Our recommendation: Vanguard -> Link

AMC stock price: quick overview

AMC sat around $5 for quite some time before moving back up to the $14 range. We’re currently seeing AMC trade around $55. with some consolidation. AMC’s stock price has been trending upwards with consolidation and has been less volatile. This is very good price movement. AMC stock has never had a healthier setup.

Are you holding AMC stock?

Let me know what a short squeeze would mean for you in the comments section below.

A quick message from Frank Nez

A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at.

So, I published this video to tell you just that. Thank you.

And lastly…

AMC with Franknez.com Discord

Join the AMC with Franknez.com Discord here.

You can support the blog on Patreon.

If you found this post to be helpful or of value share it with an ape. The community needs positivity and truthful DD.

If you have not subscribed to the blog be sure to do so as we’re going to continue to update our readers on this historic event taking place.

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

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How Soon Will We See An AMC Short Squeeze?

June 16, 2021 / / 211 Comments
How soon will we see an AMC short squeeze? Franknez.com
AMC Short Squeeze – #AMCtothemoon #AMC

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What a storm. What a battle right? AMC keeps on keeping on, and although AMC has been on discount recently, the stock seems to have a very nasty and bullish attitude.

Yes, shorts have been able to drive the price down through naked short selling but more on that later. Retail investors are very excited about the data that’s been collected for months now. Will we see an AMC short squeeze while we continue to ride this bull? And if so, how soon?

franknez.com

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

Lets get started!

How soon will we see an AMC short squeeze? Retail investors all want to know. Is it this week? Will it be next week? Or, are we looking at a longer game here? Here’s what we know.

Key Highlights

  • AMC closed at $55.18 on June 16th. The stock has fundamentally surged despite short sellers attacking it. AMC Entertainment is set up for a short squeeze.
  • The perfect time to buy AMC stock is when the market is red, or what we refer to as on ‘discount’. AMC is looking bullish though, red days might just be over.
  • AMC entertainment continues to be the most heavily shorted stock in the market.
  • AMC’s short borrow fee continues to increase.

Some of you reading this article might have been holding since February now. Kuddos to you for holding the line. If you’re a new retail investor getting in on AMC be sure to thank the seasoned apes when you get a chance.

Below is a series of documented facts and positive news that all influence AMC’s potential towards a short squeeze. One thing is certain, it’s inevitable.

AMC stock news and highlights

FOX Business reported AMC to have a strong chance of a short squeeze. Coming from a big news platform it certainly brings the stock sentiment up for most retail investors.

This is the type of news retail investors need to keep an eye out for.

AMC Short Squeeze News Fox Business
Strong chance of a short squeeze – Fox Business AMC

AMC is still currently the most shorted stock in the market.

Unfortunately, MarketWatch has completely obliterated AMC from their list. Being a hedge fund affiliate, retail investors suspect foul play.

President and CEO of AMC Entertainment Adam Aron, announced AMC will reopen all 13 AMC theaters in New York City as of March 5th. As of today, all AMC movie theaters are now open across the United States with many selling out.

Check out what Adam Aron had to say (via. Investor Relations AMC)

“Since reopening our first theatres with AMC Safe & Clean in August, AMC has welcomed back nearly 10 million moviegoers nationwide without a single reported case of COVID-19 transmission among moviegoers at our theatres. We look forward to welcoming back our New York City guests to the big seats, big sounds and big screens that are only possible at a movie theatre.”

Adam aron, President and CEO of AMC Entertainment

For those who thought AMC was a dead company, think again. The company is now generating big revenue since it’s reopening.

Melvin Capital suffered 49% loss 1st quarter

Melvin Capital AMC Stock
Melvin Capital Hedge Fund – AMC

This is huge! Melvin Capital is a hedge fund that has been shorting both AMC and GME stock.

Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider.

Here’s why this matters:

  • Not only are shorts losing money every day but huge hedge funds are bleeding
  • This is a huge win for retail investors
  • Unless shorts close their positions, hedge funds will continue to suffer
  • Interest rates can skyrocket for short sellers enabling them to close their positions
  • An AMC short squeeze might be closer than we think

Here’s what retail investors can do:

  1. Continue to hold your positions, it’s free
  2. Buy the dips to counter any short attacks
  3. Share articles on social platforms that can provide value to the community
  4. Keep a close eye on the stock to not miss the squeeze

I’m going to discuss a little more on the short borrow fee that continues to increase for these hedge funds shorting the stock. This is going to be a massive component to a short squeeze.

Positive news for AMC Entertainment

Adam Aron gives positive news on AMC Entertainment
  • AMC Entertainment has raised more than 2.2 billion dollars in cash
  • 90% of AMC theaters in the United States are now open with New York and Los Angeles finally reopening
  • Vaccinations and policies are making movie theaters safe
  • New movie titles are guaranteed to increase sales revenues
  • CEO and President Adam Aron expresses an optimistic future for AMC Entertainment
  • AMC Entertainment has implemented a Safe & Clean program under the advisement from Harvard University’s prestigious School of Public health as well as well as the No. 1 U.S. cleaning brand, The Clorox Company. This means movie goers can now return at ease knowing a proper sanitation program has been put in place.

Hedge fund affiliate partners such as MarketWatch, The Fool, and other finance website have been trying to redirect the public from investing in this stock. That’s primarily because hedge funds are losing millions by the day.

A short squeeze could even put them out of business. This is why it’s important for me to spread the positive news surrounding AMC. I don’t believe in the manipulation of the media and I will continue to update these articles as more great news unfolds.

There will not be a 500 million AMC share dilution!

In recent news, Adam Aron has announced that AMC Entertainment no longer plans on proceeding with the plans of adding 500 million more AMC shares to the arsenal in a tweet on Tuesday, April 27th.

Adam Aron AMC Entertainment CEO Twitter
Adam Aron – President & CEO of AMC Entertainment

You can read AMC Entertainment’s official announcement on their press release page here.

Short sellers fell for an AMC dilution

As of 6/16, we’re seeing 2.3 million short shares have been made available to borrow, via Fintel.

AMC short shares available Fintel

Was Adam Aron’s approval request of a 500 million share dilution to his shareholders a strategy to trick shorts into borrowing more shares? I personally think so and it’s absolutely genius. Shorts continue to borrow shares.

While shorts might have the capability to short AMC stock, this is only temporary. They will run out of borrowed shares and eventually have to cover. There are finally investigations going around regarding naked shorting.

Yeah.. I sense a grand mother of all short squeezes. #GMOASS

What does this mean for the AMC shareholder?

Expect to see gains after shorts have run out of borrowed shares to use. Hedge funds and short sellers alike have dug a deeper hole for themselves. What this means for the AMC shareholder is a squeeze bigger than anything the market has ever seen before. I am personally doubling down.

Not only is bankruptcy off the table (via. Los Angeles Times), but AMC movie theaters are now about to begin reopening in larger parts of the United States. Which of course now introduces revenue.

AMC Q1 earnings for 2021

AMC announced their Q1 earnings for 2021 on Thursday, May 6th. Things are looking particularly bullish and optimistic to say the very least.

For the retail investor this means the upper hand is yours. AMC Entertainment has raised over $2 billion dollars to hold them off until the year 2022. And we still have to go through Q2, Q3, and Q4!

Unfortunately for hedge funds shorting the stock, it’s over. If you missed the conference call you can view it here for your viewing pleasure.

AMC Q1 2021 highlights

  • The AMC community is recognized
  • Q1 earnings are higher than last years 4th quarter
  • Expectations for Q2 – Q4 are much higher
  • Food and beverage sales are up by 45%
  • Sales revenue will continue to rise as new titles are being released

When will an AMC short squeeze happen?

When will an AMC short squeeze happen?

It’s really hard to tell. Even experts can’t identify an exact date and time. However, the possibility of an AMC short squeeze is certainly possible given that it is still the most shorted stock in the market and the stocks volume continues to rise. We also now have more data then ever before that indicate a massive short squeeze is almost certain to happen. Especially now that the SEC has announced some crackdown on shorting.

With Melvin Capital and other hedge funds losing money, it’s only a matter of time before the short borrow fee continues to skyrocket and shorts have to close their positions.

It’s tendie time!

Analyst AMC predictions

With that being said, Trey’s Trades predicts a short squeeze is now certainly guaranteed. Trey has been a leader in the AMC community and deserves a spot on this page.

More data points towards the stock reaching $1000+ per share.

See what stock analyst Trey has to say.

AMC short squeeze

The real questions is how can retail investors make this AMC short squeeze happen?

We know that short-sellers eventually have to cover their spots. This means that they will eventually have to buy AMC stock at the current share price.

  1. If retail investors continue to drive the share price up by buying the dip and holding their positions, short-sellers will have no other option than to buy from the retail investor at a higher share price.

NOTE: Retail investors do have to sell a bit as the price goes up in order to keep that momentum. Look at it as giving rats crumbs. Not only will they want more but they’ll need more.

2. Retail investors will also need to buy the climbs in order to show a demand for the stock. This doesn’t have to be huge buys, rather incremental to validate the current share price.

This play essentially creates a supply and demand scenario between retail investors and short-sellers. The results? A short squeeze.

Hedge funds are doing everything they can to prevent an AMC short squeeze from happening

How are they doing this?

  • By promoting false information online (we’re certain you’ve seen it)
  • Through strategies such as short-ladder attacks in the market
  • And, by restricting certain brokerage accounts from allowing its retail investors to purchase or buy shorted stocks (Robing hood)
AMC Gorilla

This is what retail investors can do to fight corruption

  • Share content that presents facts (blog posts, analysis videos, etc.)
  • Continue to educate yourself and make investment decisions based on your personal analysis
  • Protect the community and one another
  • Follow your instincts

Read: How Hedge Funds Manipulate The Stock Market

What will an AMC short squeeze look like?

We’ll begin to see a trend similar to that of GME (Gamestop). AMC will enter a bullish territory before hitting an ‘abnormal’ peak in which AMC would have ‘squoze’.

What will an AMC short squeeze look like?

According to Trey’s Trades we’ve already hit the bottom. AMC is now extremely bullish. We’ve seen resistant levels around $14-$16 recently which is a great push from $5. We’re now sitting at $55.18 per share.

Recent performance and news is leaving retail investors with positive speculations. An AMC short squeeze will certainly make headlines. Expect to see various gains prior to any sort of major peak as well as volatility.

Retail investors will have to hold their positions through upcoming gains if they want to see AMC short squeeze.

But most importantly, they’ll have to refrain from selling at the first sight of gains if they are to see bigger and more massive gains.

Gamma squeeze vs Short squeeze

Don’t confuse gains and momentum with a short squeeze.

Here’s the difference between a gamma squeeze and a short squeeze:

A gamma squeeze are momentum gains. These usually occur from call options closing in the pocket resulting in heavy buys or purchases in the market.

A short squeeze is vigorous and can spike with no warning. This is where you see 100% gains in a matter of seconds and minutes. A short squeeze can even reach 1000% and 10,000% gains.

AMC Short Squeeze Stock Prediction

New retail investors are wondering whether $1k, $10k, or even $100k per share is even possible.

Gabe from ReviewDork does some math that’s going to leave you with an open mind.

AMC stock price predictions range from $1,000 to $100k+.

Will AMC reach peaks like GME?

AMC has been fortunate enough to receive more publicity and hype than GME did, at least recently. The volume will speak for itself and retail investors will just have to wait to find out.

We’ve seen that abnormal gains are naturally part of a short squeeze. Volkswagen rose up to nearly $1,000 when it squeezed back in 2008 due to a similar strategy produced by car manufacturer Porsche.

Analysts are predicting AMC can even go above the $1K mark if retail investors and institutions alike continue to buy and hold their positions. Wouldn’t this be something. If you’re holding 1,000 shares and AMC spikes to $1K per share, you my friend have made 1 million dollars!

Trending: Is It Too Late To Get In On AMC Stock?

Is it too late to get in on AMC stock?

Absolutely not, at least not yet. AMC Entertainment is still heavily shorted. You will have to decide whether its current share price is worth it if trades at $100, $500, or even $1,000+. AMC Entertainment stock has not even started squeezing yet.

Redditors have touched base on this topic and advise anything below $100 is a buy. I’ve been personally buying the stock when it dips. This allows me to pick up more shares at a discount.

If you’re a beginner, I recommend buying 5-10 shares of AMC stock. This amount will give you a feel of the market. Not only is it affordable, but if the market is red you won’t see much loss on paper.

Where was AMC trading at before the pandemic?

AMC was actually trading between $30-$35 back in the booming party economy of 16′! AMC stock started to decline as their debt increased and hedge funds began to heavily short it.

What if a short squeeze doesn’t happen?

If an AMC short squeeze doesn’t occur, AMC stock price will still go up allowing shareholders to make at least some sort of profit.

With AMC theaters now open, it’s inevitable that the company will begin to see bigger sales revenue every time a new title is released. I update this post when new titles make the headlines regarding earnings.

Keep in mind that AMC’s share price during the booming party economy of 16′ was roughly around $30 per share. If a short squeeze doesn’t happen, fundamentals will continue to bring the stock up as more investors are buying the stock.

However, a short squeeze not happening is very unlikely as AMC is currently the most shorted stock in the market and most held stock, beating both Apple (AAPL) and Tesla (TSLA), via. NASDAQ. Majority of the float is also held by retail investors and short sellers are going to be forced to close their positions very soon, more on that coming up.

As Mark Cuban bluntly put it, keep holding.

Why hasn’t AMC squeezed yet?

AMC hasn’t squeezed yet primarily to two main reasons.

  1. We need more volume to drive the stock price action up
  2. Shorts need to close their positions

Volume really just comes to more and more retail investors as well as institutions getting in on AMC stock.

Regarding shorts covering, retail investors need to squeeze them out of their positions by holding their positions and helping increase AMC’s short borrow fee. You can keep tabs on AMC’s short borrow fee as it changes every day via. Ortex, or Fintel.

AMC short borrow fee (Fintel)

As of 6/16 AMC’s short borrow fee rate is 1.68%.

Unfortunately for shorts, an AMC short squeeze is inevitable. Retail investors are not giving up.

Read: When do shorts have to cover their position? (AMC)

Aside from this, Wanda Group had caused a little bit of disruption for retail investors by profiting on the first sight of gains.

This turmoil was only short-term but is a reason why we’ve seen some selloff in the market a few weeks ago.

However, Adam Aron has recently brought awareness in an interview with Trey’s Trades that this selloff from Wanda is simply policy from China. Retail investors should not be concerned.

We’re bullish on AMC stock

All the numbers point towards the right direction for a massive short squeeze. Shorts and hedge funds continue to lose money every day. The interest is growing at an alarming rate and AMC’s current utilization is at 100%.

The lives of these retail investors are about to completely change. Say goodbye to your old world.

Related: AMC margin call: the squeeze is inevitable

And lastly…

A quick message from Frank Nez

A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.

Franknez.com

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What will an AMC short squeeze mean for you?

Let us know in the comments section below what an AMC short squeeze would mean for you! If you’re an AMC shareholder let us know in the comment section below.

#AMCtothemoon #Diamondhands #AMC1000 #SaveAMC

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

June 16, 2021 / / 4 Comments
Here's why people are buying AMC stock

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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 $55.18 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.

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Why is AMC Entertainment Stock Going Up Again?

June 14, 2021 / / 19 Comments
Why is AMC Stock Going Up Again?
#AMCtothemoon #diamondhands

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AMC stock is going up and continues to leave hedge funds and publishers such as Yahoo Finance, The Fool, and other sources baffled.

Although hedge fund partners are sticking together to mislead the publics opinion when investing in AMC (and other “meme stocks”), we’re going to let you know why this particular stock is going up.

Please keep in mind that I am not a licensed financial advisor. All the information you are about to read is based on expert sources and will be presented in a manor that informs you why AMC stock is going up.

Franknez.com Why is AMC stock going up

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

Lets get started.

Volatility is normal in the stock market

We’ve seen a lot of volatility in the market recently. If you’re a new investor chances are you might have been scared off to sell and then noticed the stock slightly go up again in the green tier.

Don’t feel bad, volatility in the stock market is normal. This doesn’t just apply to AMC stock. But if you haven’t sold, kudos to you. #diamondhands.

So, what’s causing the stock to go back up? Well, there are numerous reasons why AMC is back in the green tier. Keep reading to find out whether this stock might be a good pick for you.

Reasons why AMC stock is going up

reasons why amc stock is going up
  1. Large institutions such as Wells Fargo, Vanguard, BMO Harris, Charles Schwab, Fidelity, & BlackRock are buying the stock right now (via. CNN Business)
  2. AMC CEO Adam Aron, announced bankruptcy is officially “off the table” and have raised $2.2 billion in cash this new year.
  3. Because AMC is currently the most shorted stock (via. MarketWatch), the stock price has gone up and will continue to go up as long as retail investors keep buying the stock. *Unfortunately MarketWatch has removed AMC from their list. Retail investors suspect foul play from this hedge fund partner.
  4. AMC is currently the most held stock surpassing Apple (AAPL) and Tesla (TSLA) – via Nasdaq.
  5. Godzilla vs. Kong secures $9.6 million in ticket sales on it’s opening night! Keep reading below for the numbers on NEW titles increasing AMC Entertainment’s revenue.
  6. SEC is starting to crackdown on short sellers.

AMC Entertainment is no longer on the brink of bankruptcy

There’s actually a lot of positive things going on for AMC Entertainment despite what The Fool, InvestorPlace and other shill news might try to convince you of.

The sentiment behind AMC stock keeps getting bigger and bigger and bigger by the day. This is primarily because people are smarter than these hedge funds think. Ultimately, the data speaks for itself.

Now, Adam Aron who is the President and CEO of AMC Entertainment has done an outstanding job with the media. In this video we can hear his optimism for the movie theater chain before AMC theaters began to reopen.

As of April 2021 all AMC movie theaters are now open with many even selling out.

If you’re familiar with Trey’s Trades you’ve more than likely seen his interview with Adam. I wrote a piece on this to highlight key moments of the interview.

You can check it out here.

AMC Q1 2021 Earnings

AMC just announced their Q1 earnings for 2021. Things are looking particularly bullish and optimistic to say the very least.

For the retail investor this means the upper hand is yours. AMC Entertainment has raised over $2 billion dollars to hold them off until the year 2022. And we still have to go through Q2, Q3, and Q4!

If you missed the conference you can check it out from Matt Kohrs imbedded here for your viewing pleasure.

Fundamentals are also causing AMC stock to go up

AMC Entertainment as a company has a lot of partners and friends they’ve gained throughout the 100 years they’ve been in business.

They’ve been able to raise money to pay off debt and focus on ways to welcome people back to the movie theaters safely.

Revenue is a very positive factor playing into the fundamentals of AMC’s stock price action. AMC Entertainment is set to release a ton of awesome titles this year which has people excited for that movie theater experience.

AMC’s CEO is one great leader

With this being said, Adam Aron, CEO and President of AMC Entertainment is not backing down. Adam has talked about his experience saving Norwegian Cruise Line and how he intends to to keep AMC alive for as long as he lives to run the company.

If you haven’t seen his interview with Trey’s Trades you can watch the video embedded here for a more in depth perspective of what AMC Entertainment means to him.

Why are large institutions buying AMC stock?

Vanguard AMC

Speculation would point out AMC is possibly a good investment, contrary to what Yahoo Finance, The Fool, and other resources are leading the public to believe, right?

It is important to note that these institutions are purchasing millions in AMC stock. Just a side note here: if AMC isn’t a good investment like some sources are pumping out, then why are large institutions buying while the stock is low in price? Hmm..

My educated guess? Large institutions aren’t going to be wanting to miss out on upcoming gains from a short squeeze.

Aside from a short squeeze however, AMC Entertainment seems to be a good buy even as a long-term stock. Adam Aron, CEO and President of AMC has shared his optimistic views towards the direction of his company.

AMC is a good buy with or without a short squeeze.

What is a short squeeze?

A short squeeze occurs when a stock jumps sharply higher, forcing short sellers to buy higher, causing them to lose money. This in turn makes the retail investor (you and I) a LOT of money.

This notion of an upcoming short squeeze is drawing in a lot of attention. This is why we’re seeing AMC stock go up as well. Its purchase share volume is going up.

And where there’s attention, there’s money to be made.

Volume is important for an AMC short squeeze

As more and more retail investors get in on AMC and continue to buy and hold, we’re going to keep experiencing the stock price rise.

Because volume is such an important factor, retail investors and institutions will need to not only buy the dips but the gains as well.

By buying the gains in increments, the market processes this as a demand in the stock; further driving up the share price.

The main reason why AMC stock will keep going up

A short squeeze needs volume

AMC is currently the most shorted stock in the market.

Short-sellers such as Melvin Capital bet on the businesses like AMC to lose. These are the folk that don’t care about workers losing their jobs, or about the companies success. This hits home to most retail investors which means convictions towards AMC stock is strong.

The way these short-sellers make money is quite simple. They short the stock. However, they’re not making any money right now. In face, they’re upside down by billions of dollars.

Shorting a stock is the process by which sellers essentially bet on the stock price to drop. They borrow stocks at a higher cost and sell the stock low, profiting the difference and driving the share price to the ground.

Fortunately, retail investors like the stock and are against shorting it. This is why AMC continues to go up. Retail investors have all the time in the world to see this short squeeze through. Shorts however, are paying the price every day.

And if you’re wondering, yes this is exactly what occurred with GameStop. Except AMC might just be the MOASS (mother of all short squeezes).

Melvin Capital suffered 49% loss 1st quarter

Melvin Capital

This is huge for retail investors. Melvin Capital is a hedge fund that has been shorting both AMC and GME stock for quite some time now.

Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider.

The importance of this is very significant. AMC is not a dead cat. Hedge funds continue to short the stock in hopes that they can reverse what’s been done. Unfortunately for them it’s only a matter of time before shorts are squeezed out of their positions due to the increase in short borrow fee and utilization of the stock.

AMC Entertainment has been heavily short laddered in the recent weeks. However, the stock seems to continuously correct itself which is why we’re seeing AMC go up again.

For some reason AMC does not like single digit numbers. This stock is going to continue to test high levels of support as fundamentals push the stock in an upwards trend. Fundamentals such as earnings will play a major role in this organic push up.

r/wallstreetbets like AMC stock

r/wallstreet bets like AMC stock

The people, along with r/wallstreetbets do not want the movie theaters closed. They are purchasing AMC at the dip and holding. This is where the terms diamond hands comes from.

According to Robinhood, AMC is the most held stock beating both Apple (AAPL) and Tesla (TSLA)! Source: via Nasdaq.

This means AMC shareholders will eventually have leverage over the stock from short-sellers as the price goes up.

As long as retail investors continue to hold, we’ll begin to see a supply and demand situation.

Short-sellers will eventually have to buy from retail investors to cover their spots, inevitably driving AMC share price higher.

Positive AMC Theater news!

AMC movie theaters across the entire country are selling out! New releases are serving the movie theater industry very well.

Godzilla vs. Kong secures $9.6 million in ticket sales

AMC theater - Godzilla vs Kong

Warner Bros. said Thursday that “Godzilla vs. Kong” secured $9.6 million in ticket sales on its opening night. This has been a record debut for the pandemic. As of April 26th it has done over $400 million global!

Leave me a comment below if you watched the film. I personally loved everything about it.

Mortal Kombat & Demon Slayer outperform earnings

Mortal Kombat brought in 23.3 million its opening weekend. Critics expected Mortal Kombat to reach no more than 15 million. A huge victory for the cinema industry! Not only that but Demon Slayer drew in another whopping 19.5 million its opening weekend.

AMC theater Mortal Kombat

Mortal Kombat reps the biggest R-rated opening to-date during the pandemic. The beautiful thing is that we have other amazing titles coming to the movies that can continue to scale beyond these numbers.

The top 10 locations for Mortal Kombat were:

1. AMC Burbank Los Angeles, 2. Santikos Palladium San Antonio, 3. Cinemark Tinseltown El Paso, 4. Santikos Casa Blanca San Antonio, 5. AMC Orange Los Angeles, 6. Cinemark Pharr Town Center (Texas), 7. AMC Empire New York, 8. Cinemark Century 16 Corpus Christi, 9. AMC Gulf Pointe Houston, and 10. AMC Southlake Pavilion Atlanta.

Source, via. Deadline.

I have not watched Demon Slayer yet but Mortal Kombat was a fun film to watch. I grew up on the video games (shoutout to GameStop) and the older films so seeing this today made my year. If you have not gone out to your local AMC theater I recommend you do.

A Quiet Place Part II: $57 Million Pandemic Record

A Quiet Place Part 2 earnings
Movie theater earnings: A Quiet Place Part 2

A Quiet Place Part 2 debuted in theaters on Friday May 28 and broke pandemic records in the cinema industry.

Paramount’s A Quiet Place Part 2 topped Godzilla vs. Kong and Mortal Kombat combined on their opening night reaching $57 million over the Memorial Day Weekend. A huge congrats to the industry and AMC Entertainment.

As more Americans continue to get vaccinated, health concerns ease. AMC Entertainment is seeing a critical mass effect as the public feels safer. I’m personally happy for the century old company and its shareholders invested in the stock.

The Conjuring Earns $11.5 Million Opening Weekend in the U.S.

The Conjuring: The Devil Made Me Do It earned $11.5 million its opening weekend and grossing 57.1 million worldwide. Congrats to James Wan and the movie theater industry. The Conjuring films are currently the top grossing horror franchise of all time with $1.9 billion at the global box office.

Wall Street analyst upgrades AMC Theatres

Wall street analyst says, ‘Godzilla vs. Kong’ “Destroys lingering concerns around theatrical window importance and demonstrates a solid path to resurgence”, via. Hollywood Reporter.

Eric Wold goes on to say, “Consumers want to leave the house and return to the theater.”

There seems to be a massiveness of positivity going around for the theater industry, especially AMC being the leader. As AMC continues to increase their sales revenue with hit titles, you can expect AMC’s stock price to continue surging. Massive victory for the AMC theaters!

Upcoming movie news and revenue will be updated here so be sure to follow me on Twitter to know when the post has been updated.

Is it too late to get in on AMC stock?

In short, no. With the price of AMC stock being affordable to majority of the public, it’s a steal right now. Especially considering it was much higher prior to the pandemic. The share price was around $30 back in the booming party economy year of 16′!

I strongly believe AMC will do well post pandemic, and apparently so do other institutions (with or without a short squeeze).

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

Are you holding AMC Stock? Let me know in the comments section below!

Where can I learn more about AMC’s short squeeze?

Trey’s Trades is currently blowing up. He’s an analyst who trades in the market and provides outstanding material on his YouTube channel. If you haven’t checked out Trey’s Trades make sure to do so, you’ll be happy you found this channel.

Trey’s Trades – Huge Institutional AMC buyers!

Another great analyst on YouTube is Roensch Capital. They provide more detailed analysis on the stock if you’re into deep chart digging. While Trey is more energetic and entertaining to watch, Roensch Capital is a little more serious and dives in straight to the research.

These are two channels I particularly enjoy which is why I’m sharing them with you today. My mission is to provide you with valuable information. While there’s a lot more people covering AMC on YouTube, these two channels are by far the best analysts on the platform in my opinion. If you’ve never heard of them before, make sure you leave them a comment and let them know you found them through FrankNez.

And lastly…

A quick message from Frank Nez

A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.

FrankNez has a message for you
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If you haven’t subscribed to our newsletter please be sure to do so to stay informed when a new blog post is published. Blog posts will range from personal finance to business, side hustle ideas, and more trending investing posts like this one.

Also, please give this post a social share as it helps provide curious investors like you and I with valuable information to help them come up with an investing decision.

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Are you hodling AMC? Leave a comment below what a short squeeze would mean for you or your loved ones.

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Related: How soon will we see an AMC short squeeze?

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Feds Hunt For $720 Billion Dollars From Reverse Repo

June 14, 2021 / / 5 Comments
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.

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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

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Naked Shorting is Making it’s Way to Mainstream Media

June 13, 2021 / / 0 Comments
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.

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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)

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AMC Margin Call: The Squeeze is Inevitable

June 12, 2021 / / 28 Comments
AMC Margin Call: The squeeze is inevitable Franknez.com

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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.

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

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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.

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AMC Stock: Retail Investors Now Own The Float

June 11, 2021 / / 4 Comments
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.

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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

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When Do Shorts Have to Cover Their Positions? (AMC)

June 10, 2021 / / 36 Comments

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

When do shorts have to cover their position?

Every retail investor holding a position in AMC wants to know, when will shorts cover their positions? And I don’t blame you.

This one is a little tricky. See, it’s like saying, “when will retail investors sell their positions”?

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

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Retail investors have been waiting patiently for AMC Entertainment stock to rip. You’ve been holding through the ups and downs and even buying the dips.

So, why aren’t shorts covering their positions yet? What do retail investors need to do to squeeze hedge funds out of their money?

Are shorts obligated to close their positions?

Let’s start with the fundamental question. Are shorts obligated to close their positions? Now, there are currently no rules regarding how long a short can hold before closing out their position.

However, lenders do have the right to demand the seller closes their position with minimal notice. This is rare and only occurs if the the seller isn’t paying the interest fee, or the interest fee is ridiculously high.

“A short position may be maintained as long as the investor is able to honor the margin requirements and pay the required interest and the broker lending the shares allows them to be borrowed.” – Investopedia

When an interest fee is extremely high, it makes a stock difficult to borrow which obligates the short seller to close their positions.

AMC’s short borrow fee rate as of 6/10 is: 2.95%.

Keep an eye on this interest as it will determine just how much shorts are bleeding. Hedge funds currently shorting the stock are losing money every day. And regrettably for them it’s getting worse the longer they hold. I can feel a short squeeze coming.

Why does the short borrow fee matter?

The short borrow fee is an interest that shorts must pay for borrowing AMC shares. And although the interest continues to rise for them, shorts aren’t going down without a fight.

AMC short borrow fee interest

They will hold in hopes to drive AMC’s share price right back down to the floor. However, AMC is trending upwards now and has absolutely no intention of going back down.

Analysts data and AI predictions all point towards a high possibility of a short squeeze. Even Fintel’s short squeeze score has been as high as 80-90% in recent weeks.

AMC Short squeeze Score Fintel

This short borrow fee is going to continue to go up as AMC stock becomes harder to borrow.

For short sellers, a low short borrow fee is in their favor. They would much rather pay the fee and stubbornly continue to hold their positions against retail investors.

But, if the short borrow fee is high enough to hurt the borrower, they will be more inclined to close their positions before losing an excruciating amount of money.

The short sellers conviction is strong, even though they’ve already lost. It’s only a matter of time before they have no other option than to forfeit.

How can retail investors help drive the short borrow fee up?

Retail investors can help drive the short borrow fee up simply by holding their positions.

When AMC squeezes, retail investors will have to continue to hold their position on the way up. Not every short will close their positions immediately.

If we begin to see AMC’s price action rise monumentally, it is important to understand that there’s more potential because not every short seller has closed their position.

We might see AMC drop a little after it peaks. However, if retail investors continue to hold, it’s only going to continue squeezing more and more shorts resulting an further perpetual gains.

Melvin Capital suffered 49% loss 1st quarter

Community, this is massive. Melvin Capital is a hedge fund that has been shorting both AMC and GME stock. These are the people trying to drive the stock to the ground.

Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider. Unfortunately for them, this is only going to get worse.

Retail investors are hodling to the moon. They are not waiting for $100 price action anymore, and some are certainly not waiting for $500+ share price anymore. The Reddit community is set new standards for the AMC’s stock price.

Here’s why this matters:

  • Not only are shorts losing money every day but huge hedge funds are bleeding billions of dollars due to retail investors holding
  • This is a huge win for retail investors – our favorite companies have been saved
  • Unless shorts close their positions, hedge funds will continue to suffer
  • Interest rates will continue to skyrocket for short sellers, enabling them to close their positions sooner than later
  • An AMC short squeeze might be closer than we think

Here’s what retail investors can do:

  1. Continue to hold your positions, it’s free
  2. Buy the dips to counter any short attacks
  3. Share articles on social platforms that can provide value to the community and keep everyone informed
  4. Keep a close eye on the stocks performance so you do not miss the squeeze

Hedge funds are not going to be able to recover from this. Yes they can possible receive help from huge banks but this too will be at a cost.

Furthermore, borrowing money from banks won’t change the fact that shorts still have to cover their positions. Retail investors are buying AMC stock every day. Shorts are fighting a war they cannot win.

Important advisory: I am not a licensed financial advisory. I simply have a passion for finance and writing.

What happens when a short covers their position?

A short position will be profitable if it is covered at a lower price than the initial transaction; it is at a loss if it is covered at a higher price.

In AMC’s case, shorts who drove the price down to $5 but are still holding to-date are at a loss. AMC is currently trading close to $42.81 give or take, as of June 10th.

When there’s a ton of short covering happening in a particular stock, it will result in a short squeeze.

What is a short squeeze?

What is a short squeeze?

A short squeeze occurs when a stock spikes in price action due to an increase of short-sellers closing out their positions.

We’ve seen a short squeeze happen with both GameStop and Volkswagen. GME topped almost $500 while Volkswagen spiked shy below $1,000 back in 2008.

Short squeezes are massively profitable for retail investors. These one-time phenomena are how people are able to accumulate wealth in such little time.

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

So, when will AMC shorts cover?

Instead of exiting, short sellers are holding. Some shorts might be waiting for a more favorable price to close their positions.

Another way shorts will be forced to close their positions in AMC is through a margin call. This is when their accounts don’t have the sufficient funds to meet the accounts minimum amount of dollar required. At this point they are forced to liquidate.

Now, because there’s no rule to how long they can hold their positions, they’re in the long game like most retail investors waiting on a short squeeze to happen are.

The good news is that AMC bankruptcy is no longer on the table and Wall Street analysts are even saying the industry is on a solid path to resurgence, via Hollywood Reporter.

As we continue to see a high utilization and the short borrow fee increase, we can only expect shorts will cover sooner than later.

Related: AMC Margin Call: The Squeeze is Inevitable

What percent does the short borrow fee have to be?

When GameStop squeezed the first time, the short borrow fee was somewhere around 80%.

AMC’s short borrow fee is currently at 2.95%, via. Fintel on 6/10 and reached up to 90% a few weeks back. AMC stock is getting harder and harder to borrow. There seems to be some sort of manipulation here. The interest should be much higher.

Short sellers have been borrowing millions of shares to short. It seems they thought AMC’s 500 million share dilution was going to go through. Funny enough Adam Aron, the CEO and President of AMC Entertainment actually scrapped that idea leaving short sellers in a deeper hole.

I personally think retail investors are going to experience the short squeeze of a lifetime. Strap in.

AMC’s price action will continue to go up

Journalists and analysts alike are now claiming AMC to be a big buy. Shorts can continue to hold their loses on paper for months to come, or close their positions while it’s at the current price action.

Closing now is recommended due to an overwhelming amount of attention AMC Entertainment has received.

With new titles coming to AMC movie theaters soon, we’re only going to continue to see a surge in price action due to an increase in the company’s sales revenue.

Even if shorts continue to hold, lenders will eventually run up the interest rate again and force them to cover. If you’re a retail investor reading this article, I’m already celebrating your success. Leave a comment below and let the community know what a short squeeze would mean for you.

AMC is on the ‘Potential Short Squeeze’ list via. Fox Business

fox business amc short squeeze list

In case you missed it, a squeeze is very possible, via FOX Business. All the data at hand point towards the inevitable for both shorts and retail investors.

Retail investors holding AMC stock are going to experience a once in a lifetime opportunity.

And lastly…

A quick message from Frank Nez

A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.

You can support the blog on Patreon.

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