Tag: AMC Short Squeeze News (Page 1 of 25)

Will APE Now Trigger an AMC Short Squeeze Soon?

Market News Daily - Will APE Now Trigger an AMC Short Squeeze Soon?
Market News Daily – Will APE Now Trigger an AMC Short Squeeze Soon?

Will APE now trigger an AMC short squeeze soon? The Street says an AMC short squeeze is now more likely to occur due to rising retail demand.

On Wednesday, AMC’s volume skyrocketed to 197 million while APE’s volume followed suit, surging past 134 million.

AMC stock fell more than -23% while APE stock fell nearly -8% intraday despite this massive spike in trading volume.

Another reason the former Jim Cramer-owned media site says an AMC short squeeze is likely is due to the incredibly high cost to borrow.

AMC’s max cost to borrow has reached upwards of 1,006%, per Ortex data.

Similarly, S3 Partners, a financial analytics firm has also reiterated this same thesis.

“Although the threat of significant share dilution is obviously bearish, the upshot on AMC’s share price is still hard to guess.

With borrowing fees closing in on 1000%, any upward trend in AMC’s price could spell disaster for bears.

Given the tremendous short pressure on AMC and the tremendous attention the stock is receiving from retail traders, high volatility and high trading volume are to be expected.

Placing a short bet on AMC may seem perfectly logical given the upcoming APE conversion, but shorts have been burned many times betting against this retail favorite, reports The Street.

Will AMC squeeze after the APE conversion? I’d love to hear your thesis.

Recently two institutions have purchased shares of AMC stock prior to its approved conversion.

Hedge fund CEO Bruce Richards also says he’s ‘super bullish’ on AMC’s new APE conversion.

In the end, whether or not investors manage to trigger a short squeeze, AMC Entertainment will benefit from raising billions in cash.

According to CEO Adam Aron, the only way to eliminate the Wall Street short thesis is by improving the company’s fundamentals.

Also Read: The SEC Approves New Disclosures From Big Hedge Funds

AMC Speaks on Short Sellers Covering Prior to New Conversion

Market News Daily - Will APE Now Trigger an AMC Short Squeeze Soon?
Market News Daily – Will APE Now Trigger an AMC Short Squeeze Soon?

Last week, AMC Entertainment published a statement to shareholders relating to short sellers closing prior to the new APE conversion.

Will short sellers be required to cover their positions before the Reverse Stock Split and Conversion?

According to AMC’s new 8-K filing, AMC expects that the deliveries under stock borrowing arrangements will be adjusted in the regular way to account for the Reverse Stock Split or, in the case of contracts on APEs, the Conversion.

However, AMC states that it “does not determine and is unable to provide interpretive advice on the impact of these events on the contractual terms governing stock borrowing arrangements.”

How will short sellers be affected by the Litigation Settlement Payment?

“AMC does not determine and is unable to provide interpretive advice on the impact of the Litigation Settlement Payment on the contractual terms
governing stock borrowing arrangements.”

AMC’s reverse stock split will go into effect on Thursday, August 24.

The conversion of APE shares into AMC common stock will occur the following day, Friday August 25.

The litigation settlement will then take place on Monday, August 28.

Will there be large failure-to-deliver (“FTDs”) like when the APE was distributed?

AMC Entertainment states that while they cannot predict the trading impact of these corporate events, given the significant transactions that will occur over successive trading days, it is possible there will be large FTDs like when the APE was distributed.

What do you think will occur upon converting? Leave your thoughts below.

[stock_market_widget type=”chart” template=”basic” color=”#5679FF” assets=”AMC” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” display_currency_symbol=”true” api=”yf”]

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Market News Today - Will APE Now Trigger an AMC Short Squeeze Soon?
Market News Today – Will APE Now Trigger an AMC Short Squeeze Soon?

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New Report: AMC Cost to Borrow Surges Up to 1000%

Market News Daily - AMC Cost to Borrow Skyrockets to 1,000%.
Market News Daily – AMC Cost to Borrow Skyrockets to 1000%.

AMC Entertainment (NYSE:AMC) stock has reached a max cost to borrow of more than 1,000% (1.04k%), per Ortex data.

The last time AMC’s CTB surged past 1,000% was back in April and early July.

AMC’s cost to borrow average is currently reported at 974.83%, respectively.

The cost to borrow, per Ortex, is the annualized percent of interest on loans, typically borrowed by brokers and hedge funds.

This percentage figure may change on a daily basis and level out through its ‘cost to borrow average’.

According to the Securities Lending Agreement (SLA), this fee must be charged prior to the stock being borrowed.

Short sellers rely on brokers to have stock shares available to borrow. 

Stocks on the hard-to-borrow list may not be short-sellable or have higher stock loan fees, hence why we’re seeing AMC’s cost to borrow at 1,000%.

AMC Entertainment is in high demand, both for short sellers and long investors.

But with fees this high, is it really worth shorting the movie theatre company?

AMC Entertainment stock is currently down -4.58% this year-to-date.

Here are the latest developments happening with AMC Entertainment today.

[stock_market_widget type=”chart” template=”basic” color=”#5679FF” assets=”AMC” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” display_currency_symbol=”true” api=”yf”]

AMC Shareholders Have Now Saved The Movie Theatre Company Again

Market News Daily - AMC Cost to Borrow Skyrockets to 1000%.
Market News Daily – AMC Cost to Borrow Skyrockets to 1000%.

AMC shareholders have now saved the movie theatre company again after two major proposals were finally passed following an exhausting lawsuit.

A reverse stock split and conversion of APE shares to common stock will now go into effect later this August.

AMC’s 1-for-10 reverse stock split will go into effect on Thursday, August 24.

The conversion of APE shares into AMC common stock will occur the following day, Friday August 25.

The litigation settlement will then take place on Monday, August 28.

CEO Adam Aron says these dilutive proposals will help AMC Entertainment raise plenty of cash to survive another catastrophic event.

“AMC must be in a position to raise equity capital. I repeat, to protect AMC’s shareholder value over the long term, we MUST be able to raise equity capital.

That is especially the case now with the added uncertainty caused by the writers and actors strikes, which could delay the release of movies currently scheduled for 2024 and 2025.

If we are unable to raise equity capital, the risk materially increases of AMC conceivably running out of cash in 2024 or 2025, or of AMC being unable to satisfactorily refinance and stretch out the maturity of some of our debt (which is required of us beginning as early as 2024.)

The risk of financial collapse is not whimsical. Cineworld/Regal, the second largest movie theatre chain in the world, fell into bankruptcy and their equity holders were essentially wiped out. Bed, Bath and Beyond which was viewed as the third most watched meme stock, also fell into bankruptcy and their equity holders also were essentially wiped out.

Fortunately, at AMC, we have been much smarter, much more agile and much more skillful. We have risen to every Covid challenge heretofore, and I have every confidence in our continued ability to successfully navigate through these complicated times,” Adam Aron said in a July letter.

Also Read: AMC Is Now Hit With a New Class Action Lawsuit

Why Does AMC Stock Keep Getting Shorted?

AMC cost to borrow 1000% news.

AMC Entertainment continues to be a strong target by Wall Street, but why?

Movie theatres are no longer dead, and AMC Entertainment is no longer on the brink of going bankrupt.

Giants Amazon and Apple are now investing billions of dollars in the movie theatre industry, which is going to bring more movie titles to cinemas across the country including industry leader AMC Entertainment.

Today, AMC’s short interest is high at 28.48%.

AMC’s cost to borrow has surged as high as 1,000% — showing there is a scarcity of shares to borrow and a high demand to short the stock.

CEO Adam Aron has stated that the only thing the company needs to enter profitability again is more movie titles, and they’re coming.

So why does Wall Street continue to overleverage themselves and fight the movie theatre chain?

I’d love to hear your thoughts in the comment section below.

Also Read: Everything You Need to Know About an AMC Short Squeeze

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Market News Daily - AMC Cost to Borrow Skyrockets to 1000%.
Market News Today – AMC’s Cost to Borrow Skyrockets to 1,000%.

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AMC Is Now Back on The Threshold Securities List

Market News Daily - AMC Is Now Back on The Threshold Securities List.
Market News Daily – AMC Is Now Back on The Threshold Securities List.

AMC Entertainment (NYSE:AMC) is now back on the NYSE Threshold Securites List.

The last time AMC made the list, it stayed on it for an entire month.

This is the third time the security has been listed on the threshold list this year.

In April, The SEC (Securities and Exchange Commission) violated the 13-day threshold rule, which states that a broker-dealer with fail-to-deliver positions for 13 consecutive settlement days must immediately close out the ‘FTD’ position by purchasing shares in the open market.

AMC should have seen big buying pressure but instead plunged after it was removed from the threshold list.

CEO Adam Aron announced that the company has contacted both FINRA and the NYSE to look closely at the trading of their stock.

“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.

Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”

But investors never received an update after the announcement and the stock is back on the threshold list, alerting investors of high FTDs and continued naked shorting in AMC stock.

Market News Daily - AMC Is Now Back on The Threshold Securities List.
Market News Daily – AMC Is Now Back on The Threshold Securities List.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.

Nasdaq Has Reported Unusual Put Option Activity in AMC Stock

Back in April, Nasdaq reported very unusual AMC Entertainment put option activity.

According to the report first picked up by Fintel, a rather strange $781.04K block of Put contracts in AMC Entertainment was bought with a strike price of $11.00/share, expiring on April 21, 2023.

Fintel tracks all large options trades, and the premium spent on this trade was 5.07 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AMC options.

Today we’re seeing big sell walls around $4-$5 per share.

But retail investors have noticed AMC Entertainment stock has experienced unusual put option activity ever since the ‘meme stock’ frenzy in 2021.

The derivatives market has been a back door for institutions to flood AMC stock with put option contracts, in one form suppressing the stock from rising or simply having a greater advantage than average investors.

Still, the unusual put option activity in AMC Entertainment stock shows just how aggressive institutions are fighting to keep shares from rising.

AMC stock is currently up +3% this year-to-date but down more than -71% in the past year.

Related: AMC FTDs Reaches New High Records This Year

Extremely High Cost to Borrow Fees

AMC’s max cost to borrow reached more than 1,000% (1.05k%) in April before deflating.

However, AMC’s cost to borrow is quickly rising, currently being reported at 400%, respectively.

The cost to borrow, per Ortex, is the annualized percent of interest on loans, typically borrowed by brokers and hedge funds.

This percentage figure may change on a daily basis and level out through its ‘cost to borrow average’.

According to the Securities Lending Agreement (SLA), this fee must be charged prior to the stock being borrowed.

Short sellers rely on brokers to have stock shares available to borrow. 

AMC Entertainment is in high demand, both for short sellers and long investors.

AMC’s short interest has also risen in the past week; currently at 24%, updated daily here.

Hedge funds continue to bet against the movie theatre chain company although AMC Entertainment is no longer a screaming short.

High box office numbers today are indicating big growth for AMC Entertainment.

Analyst Names AMC Amongst Most “Squeezable” Stocks

S3 analyst says AMC Entertainment and GameStop (NYSE:GME) stock have the highest squeeze potential in the market.

“As the broader stock market has been on a tear for about a month, things are looking grim for investors with big short positions in stocks like AMC Entertainment Holdings Inc. and GameStop.”

But retail investors point out that the constant manipulation in these stocks is keeping shares from rising exponentially.

And they’re right — naked shorting, dark pool trading, off exchange trading, spoofing, and short and distort have all played a role in suppressing AMC and GameStop shares.

We’re now seeing AMC back on the NYSE Threshold Securities List for a big reason.

Yahoo Finance says the reason why stock tickers make it on the NYSE Threshold Securities List is due to market manipulation through naked shorting.

Mainstream media and Wall Street personalities have managed to brush aside this very big issue in the market but it’s no longer a secret that counterfeit shares are used to provide ‘liquidity’ in the market.

The incredible thing is that ‘meme stocks’ aren’t the only stocks in the market experiencing naked shorting or price manipulation from short sellers.

This is a very big problem; how long will the SEC and other regulatory bodies continue to ignore it?

Read: “The Game is Rigged” Says Ex-Citadel Data Scientist

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Market News Today - AMC Is Now Back on The Threshold Securities List.
Market News Today – AMC Is Now Back on The Threshold Securities List.

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AMC Lawsuit to Be Resolved in Late June

Market News Daily - AMC Lawsuit to Be Resolved in Late June.
Market News Daily – AMC Lawsuit to Be Resolved in Late June.

The AMC Entertainment (NYSE:AMC) lawsuit is scheduled to be resolved sometime in late June.

A Delaware court is targeting June 29-30 for a hearing to consider the proposed settlement between AMC and plaintiffs regarding the conversion of APE equity into class A common shares, share issuance, and a 1-for-10 reverse stock split.

The approved proposals will allow AMC Entertainment to raise capital to pay down its debt and use cash towards other business ventures and ideas.

“Some misunderstand the 1-for-10 reverse stock split, approved by 87% of March 14 votes, saying we are “stealing 90%” of your shares. You forget that the share price rises 10-fold at that time. EXACTLY the same as trading ten $1 bills for one $10 bill. Either way, you have $10.”

Investors are questioning why go through a reverse stock split in the first place if ‘nothing’ truly changes.

“In your comments, some fear that after a RS, short pressure could cause price to go back down. But you neglect that it is EVERY bit as easy to short a stock priced at $3.00 as it is on a stock priced at $30. A RS itself has NOTHING to do with any subsequent prices afterwards,” said the CEO on Twitter.

But there are more details shareholders should know about the proposals.

One of the biggest being how much more challenging it’s going to be to break even or become profitable at such a high share price due to the RS.

And the biggest risk of course is if share prices fall back down to current levels through heavily manipulation of the stock as we’ve seen for the past two years.

Latest AMC Lawsuit Update

Vice Chancellor Morgan Zurn was set to consider the proposed settlement in early April that would allow AMC to move forward with its conversion plan.

However, it seems this case might be bigger than we thought.

“I think it’s going to be almost impossible to do this in less than 60 days, given the stockholder interest that we anticipate,” Zurn said.

The judge was open to “getting this wrapped up by the end of June,” tentatively suggesting June 29 or June 30 for a settlement hearing.

AMC stock closed up nearly 4% on Tuesday to $5.15 while APE shares fell more than -6.5% to $1.42.

This is a developing story – join the newsletter below for the latest AMC stock news and updates.

Related: Antara Capital Discloses Shorting AMC Entertainment Stock

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Market News Today - AMC Lawsuit to Be Resolved in Late June.
Market News Today – AMC Lawsuit to Be Resolved in Late June.

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AMC Stock: Short Sellers Paid $1.91 Billion in Fees

Market News Daily - AMC Stock: Short Sellers Paid $1.91 Billion in Fees.
Market News Daily – AMC Stock: Short Sellers Paid $1.91 Billion in Fees.

AMC Entertainment (NYSE:AMC) short sellers paid $1.91 billion in short borrow fees during the first quarter of 2023.

In March, AMC stock was ranked the #1 stock with the highest borrow fee rate according to data from S3 Partners.

AMC’s cost to borrow shot up to 1,000% during the start of the second quarter this year.

“High stock borrow fees can test the conviction level of short sellers as financing costs can take a large bite out of expected Alpha,” S3 analyst Ihor Dusaniwsky said.

Short sellers rely on brokers to have stock shares available to borrow. 

If the broker has very few shares of a stock available, then that stock is placed on the hard-to-borrow list, a list AMC Entertainment is currently on.

Stocks on the hard-to-borrow list may not be short-sellable or have higher stock loan fees, hence why we’re seeing AMC’s cost to borrow rise significantly.

S3 Partners estimates AMC short sellers paid a total of $1.91 billion in stock borrow fees in the first quarter of 2023, up from $1.54 billion in the fourth quarter of 2022.

To make matters worse, AMC Entertainment is up nearly 30% this year-to-date which means 2023 has not been a good year for AMC short sellers.

AMC’s Short Borrow Fee Today

Sources such as Ortex and Stonk-O-Tracker are reporting AMC’s short borrow fee near 200% today.

However, Ortex reports AMC’s max cost to borrow at 1.05K%.

The cost to borrow, per Ortex, is the annualized percent of interest on loans, typically borrowed by brokers and hedge funds.

AMC stock is currently hard to borrow which is why brokerage firms have been increasing their short borrow fees.

Investors going long on the movie theatre company have been buying and holding their stock for over two year now in efforts to drive shares up again and squeeze short sellers from their positions.

Today, AMC’s short interest has risen to 26.39% with at least 192 million shares out on loan.

AMC’s short interest was only at 23% when buyers were able to squeeze a percent of short sellers from the play, sending share prices to their all-time high of $72.

Related: Adam Aron Speaks on AMC’s New Reverse Stock Split

[stock_market_widget type=”chart” template=”basic” color=”#5679FF” assets=”AMC” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” display_currency_symbol=”true” api=”yf”]

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Market News Today - Is Amazon buying AMC Entertainment?
Market News Today – AMC Stock: Short Sellers Paid $1.91 Billion in Fees.

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Analyst: AMC and GME Have Highest Squeeze Potential

Market News Daily - Analyst say AMC and GME Have Highest Squeeze Potential.
Market News Daily – Analyst says AMC and GME Have Highest Squeeze Potential.

S3 analyst says AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME) stock have the highest squeeze potential in the market.

“As the broader stock market has been on a tear for about a month, things are looking grim for investors with big short positions in stocks like AMC Entertainment Holdings Inc. and GameStop.”

AMC’s and GME’s short interest data is what ignited the massive rallies in 2021.

Today, both AMC and GME have a high short interest of 26.69% (AMC) and 20.73% (GME).

AMC’s short interest was only 25% when it surged to its all-time high of $72 per share in June of 2021.

Short interest dropped to 14% as short sellers closed positions only to pick right back up throughout 2022 and 2023.

Both AMC and GameStop shares have been suppressed from rising through heavy dark pool trading and suspiciously through naked short selling, evident in high FTDs (fails-to-deliver).

Two years later and GameStop is finally a profitable company.

AMC Entertainment, the largest movie theatre chain in the world, continues to innovate and creatively raise cash with a mission to erase its debt accumulated during the pandemic.

Hedge Funds Face Big Risks

Ihor Dusaniwsky, head of predictive analytics at financial technology and analytics firm S3 Partners, compiled a list of those most vulnerable stocks, headed by such names as AMC (AMC), GameStop Inc. (GME), Coinbase Global Inc. (COIN) and CarMax Inc. (KMX).

“One factor that is also killing profits for short sellers is the borrowing costs on stocks that no one is willing to part with, and the stock that figures highest on that list is AMC.”

AMC’s cost to borrow recently skyrocketed to more than 1,000% with its cost to borrow average currently being reported at 928%.

“Short sellers want to short the stock, but they are not able to get a stock borrow locate and therefore cannot execute their short on the street,” Dusaniwsky told MarketWatch in an interview.

“But, when any stock borrows become available — lenders, brokers know they can charge inflated fees as there is huge demand for the name.”

“In this case there is an AMC–[preferred stock] APE arbitrage trade that will be profitable if the conversion occurs soon because the high financing costs are eating into those expected profits every day, including weekends,” Dusaniwsky said.

But the S3 analyst isn’t the only one stating there is big squeeze potential in AMC and GameStop.

Related: “The Game is Rigged” Says Ex-Citadel Data Scientist

Strategist Says Mother of All Short Squeezes is Here

Market News Today - Analyst: AMC and GME Have Highest Squeeze Potential.
Market News Today – Analyst: AMC and GME Have Highest Squeeze Potential.

Interactive Brokers Chief Strategist Steve Sosnick says there’s big demand to short AMC Entertainment stock.

He says the biggest reason aside from the company’s fundamentals is its new merge with its equity (NYSE:APE).

“It’s very hard to keep the momentum in these things because economic reality does take hold.

Bed Bath & Beyond, at one point was the best performing stock on the board until reality set in and they began defaulting, averted bankruptcy, but using a deal that is so dilutive that it’s unavoidable.”

Sosnick says AMC is in a very special situation because of the proposal to merge APE with AMC common shares.

“Right now we’re seeing such a demand to short AMC partly because of its difficulties but partly because of the special situation.

This really is what they were looking for in some ways as the mother of all short squeezes.

The borrow rate, it costs you 700% to borrow the shares overnight — if you can find them,” said the Interactive Brokers Chief Strategist on Yahoo Finance.

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Market News Today - Is Amazon buying AMC Entertainment?
Market News Today – Analyst: AMC and GME Have Highest Squeeze Potential.

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Webull Reports AMC Hard to Borrow with Whopping Fee

Market News Daily - Webull Reports AMC Hard to Borrow with Whopping Fee.
Market News Daily – Webull Reports AMC Hard to Borrow with Whopping Fee.

Webull is reporting AMC Entertainment (NYSE:AMC) hard to borrow (HTB) with a fee rate of 436.26%.

We’ve seen AMC’s borrow fee dramatically increase to 244% and even get deemed the #1 stock with the highest borrow fees by S3 Partners.

AMC’s borrow fee rate is the annual fee hedge funds are paying to borrow AMC stock and short the company.

According to these numbers, hedge funds are burning several tens of millions of dollars every month shorting AMC Entertainment.

But Webull’s HTB fee rate works a little differently – more on that in just a moment.

A sharp rise in AMC stock will result in bigger losses for short sellers, though company shares are currently down more than -37% in the past month and -0.38% this year-to-date.

And with AMC’s legal settlement with APE (NYSE:APE) and approved reverse stock split from shareholders, there’s a lot of uncertainty of how shareholders will respond to the new market changes.

Many shareholders are growing resentful of CEO Adam Aron’s strategy, which has done nothing but dilute the stock and cause bigger losses for investors.

Still, the CEO’s strategy may be the only solution to end Wall Street’s short thesis.

But investors want more — the commencing of a short squeeze.

Webull Hard to Borrow Explained

According to Webull, “a hard-to-borrow stock is used to indicate what stocks are difficult to borrow for short sale transactions.

If you are short selling a ”hard-to-borrow” stock, you’ll have to pay a daily stock borrow fee, which changes based on the stock’s price and its availability.

Each stock’s hard-to-borrow fee rate varies depending on the volatility and scarcity of the stock.

Note that a fee rate change can significantly impact the profit or loss of any short sale.

If the stock you’ve shorted is classified by Webull as hard to borrow, the fee rate you pay on the loan of these stocks may vary depending on a number of factors, including availability and supply and demand of shares.”

Stonk-O-Tracker is currently showing there are 0 shares available to borrow through the borrow fee rate has been between 286% and 351% since the beginning of the week.

stonk o tracker borrow fee

Ortex is reporting a cost to borrow of 232.72 (updated daily).

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Market News Today - Webull Reports AMC Hard to Borrow with Whopping Fee.
Market News Today – Webull Reports AMC Hard to Borrow with Whopping Fee.

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AMC’s Cost to Borrow Has Hedge Funds Burning Money

AMC Cost to borrow
Market News: AMC’s cost to borrow increases

AMC’s cost to borrow continues to rise.

In the past, we’ve seen how important this data has been regarding major price runup.

Not only does a high cost to borrow incentivize short sellers to close their positions, but it gets AMC one step closer to a squeezing.

In this article I’m going to break down the number figures and explain why the CTB and other data is pointing AMC in the right direction.

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Cost To Borrow explained

The cost to borrow is the average annualized percent (%) of interest on loans hedge funds have to pay.

For example:

AMC has approximately 197.22 million shares on loan as of the publication of this article.

Hedge funds are paying 215% annually on these loans.

This translates to approximately $424 million per year, or $35 million per month.

In the meantime, it’s costing retail investors $0 to hold their positions in AMC stock.

Hedge funds will continue to pay more as AMC’s cost to borrow rises.

Free Live Daily Updates: AMC Short Interest + more

Short interest

AMC short interest

AMC’s current short interest is: 24.36%.

This is the percent of a company’s free float that is shorted.

AMC is a short squeeze play because of this number figure.

This number figures tells retail investors that there is a high interest in shorting the company stock.

It’s this data that allowed retail investors to foresee big price moves in January and in June of 2021.

This same data tells investors today that AMC has the potential to hit another all-time high.

Some of you might be familiar with the correlations between short interest and rise to $72 per share last year.

AMC’s short interest dropped from 22% to 20%, then to 14% when it ultimately skyrocketed in price from $14 per share to $72 per share.

Despite what mainstream media has said in the past, no, AMC’s short interest is not too low to squeeze shorts from their positions.

Related: 93% of AMC Shareholders Say They’re Holding This Year

Will AMC’s cost to borrow force shorts to close?

AMC short squeeze
AMC cost to borrow – AMC short squeeze

Hedge funds may be incentivized to close their short positions in AMC stock as the cost to borrow increases. At some point, it’s not worth paying that high of a fee to continue shorting a company that has fundamentally improved.

AMC is no longer the same endangered company it once was during the pandemic.

The company has improved every quarter since 2021 and has managed to get rid of a lot of debt.

The world’s largest movie theatre continues to innovate and adapt to the changing world.

While online streaming threatened the industry, revenue from box office hits has proved people are still going to the movie theatres, despite the convenience of watching movies at home.

Short sellers are betting against a recovering and innovating film industry generating billions in revenue now.

As AMC continues to prove itself fundamentally and the cost to borrow rises, expect short sellers to begin closing their short positions.

Here is where patient investors will see massive returns.

BREAKING: AMC Entertainment Gets $1bn Boost in Titles from Apple

Do you own AMC stock?

Are you an AMC shareholder or are thinking about buying AMC stock?

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