AMC Entertainment’s (NYSE:AMC) short borrow fee has risen to 244.40%.
This is the fee short sellers are paying annually to borrow short shares in efforts to suppress the stock’s share price from creating a short squeeze.
Short sellers could face serious losses as the movie theatre chain stock begins to move up in price again from retail buying pressure.
As hedge funds begin to play the long game and begin to buy the stock again, the reality for the short seller could be disastrous.
In 2021, AMC shareholders were able to move AMC’s share price from $2 per share to $20, and then from $9 per share to its all-time high of $72 per share based on momentum alone.
AMC retested the heavy demand zone at $6 per share and even retested above the $8 level in the beginning of 2023.
However, share prices have broken below these levels today.
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AMC’s Rising Share Price Spells Trouble for Short Sellers
Is AMC about to squeeze shorts again?
Retail investors continue to take on Wall Street in 2023 as long-term shareholders continue to buy and hold the world’s largest movie theatre chain stock.
#AMCSTOCK and #AMCSQUEEZE have been trending on Twitter for two years in a row now, signifying shareholders aren’t leaving.
After price rejection at $6 levels, AMC found itself trading above $7 per share having retested $8.32 earlier this year.
AMC’s short interest is already over 25% according to Ortex data, higher than the short interest it was before it began surging to its all-time high.
Retail investors have been waiting for AMC to trade above $100 per share since 2021 when it nearly reached those levels.
And with the extremely high short borrow fee rate, shareholders are waiting to see the stock’s price skyrocket again.
Short sellers betting against the movie theatre chain are no longer paying the 1% short borrow fee rate like they were last year.
According to Stonk-O-Tracker, hedge funds are currently facing a 244.40% short borrow fee rate to short AMC.
In this article, we’re going to go over some of the latest developments in AMC, it’s history since redditors took over, and an AMC short squeeze update for the year of 2023.
AMC keeps on keeping on, and although AMC has been on discount recently, retail investors continue to buy and hold it.
Retail investors remain excited about the data that has been collected for years now.
Will we see an AMC short squeeze while we continue to ride today’s bear market?
And if so, how soon?
Welcome to Franknez.com – the blog providing you with content on stocks, crypto, and market news. Today we’re discussing AMC Entertainment stock and its short squeeze update and history.
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 $4.55 on March 27th. The stock continues to be heavily shorted. AMC Entertainment is set up for a short squeeze despite its split.
Shareholders continue to buy and hold the stock.
AMC’s short interest data shows us the stock has the perfect setup for a short squeeze.
Below is a series of documented facts and positive news that all influence AMC’s potential towards a short squeeze.
“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 and has beat every quarter since 2021.
Positive News for AMC Entertainment (Archive 2021)
Adam Aron gives positive news on AMC Entertainment – Archive 2021
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 and always has been for me to spread any 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.
Experts, analysts, and shareholders can’t identify an exact date and time.
However, the possibility of an AMC short squeeze is certainly possible given that it is still a very heavily shorted stock.
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 out of the picture, it’s only a matter of time before others close their positions.
It’s tendie time!
Analyst AMC predictions 2021
With that being said, Trey’s Trades predicted a short squeeze in 2021. Trey has been a leader in the AMC community, though he’s recently taken time off from stock content on YouTube.
Data points towards AMC stock reaching $1000+ per share.
See what Trey had to say.
AMC short squeeze – AMC Stock Forecast – AMC Stocktwits
The real question is, how can retail investors make this AMC short squeeze happen?
We know that short-sellers eventually have to close their positions. This means that they will eventually have to buy AMC stock at the current share price.
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.
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.
Just make sure to take your profits.
The last thing you want is to see your gains turn into losses.
Hedge funds are doing everything they can to prevent a short squeeze
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)
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
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’.
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.
That is, for those whose majority of shares were purchased at today’s current lows.
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.
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 still one of the most heavily 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, so the company has a huge support.
AMC hasn’t squeezed yet primarily to two main reasons.
The stock requires volume to drive the stock price action up
Shorts need to close their positions
Volume will surge as more and more retail investors (as well as institutions) get in on AMC stock.
Regarding shorts closing, 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.
In 2021, 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 brought awareness in an interview with Trey’s Trades that this selloff from Wanda is simply policy from China.
Despite going around the breaking partnership, Wanda cashed out completely two years ago, making retail investors the biggest stakeholder in the company.
Is AMC Ever Going to Squeeze?
All the numbers point towards the right direction for a massive short squeeze.
Shorts and hedge funds continue to lose money every day.
Interactive Brokers Chief Strategist Steve Sosnick says there’s big demand to short AMC Entertainment (NYSE:AMC) 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.
Is AMC Entertainment stock about to squeeze this year?
“Redditors, thank you so much for helping create the best pipeline we’ve ever had”, said Ken Griffin on Business Insider.
Ken Griffin, on how the GameStop frenzy helped raise Citadel’s profile with potential hires.
Business Insider says the SEC found no truth to any of the conspiracy theories but how can the SEC really go against one of the most powerful hedge funds in the world?
Transcripts showed Citadel and Robinhood did in fact have “blunt negotiations” the night prior to the halts.
A Miami district court judge admitted the Citadel and Robinhood transcripts were suspicious.
However, the federal court has dismissed the case due to a ‘lack of evidence’.
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.
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AMC Short Squeeze – AMC Entertainment 2023 – AMC Stock Price – AMC Stock Squeeze
Will AMC squeeze This Year?
The Fool thinks you should sell your stock, but retail investors aren’t budging.
Mainstream media who serve hedge funds in a conflict of interest have been egging retail investors to not buy the stock all of 2021.
If you listened to The Fool who told you not to buy AMC when its share price was low, then you would have missed out on a trade that went as high as 3000% in gains!
While the runup to $72 per share might have caused AMC’s short interest to drop to 14% from 20%, AMC’s short interest has now gone up to 22%.
Ladies and gentlemen, AMC stock has plenty of room for growth in 2023.
Welcome to Franknez.com – the blog that provides retail investors market news with integrity. Today we’re discussing AMC’s short interest data to determine whether it will squeeze in 2023.
Will AMC stock squeeze in 2023? Game over short sellers | AMC Stock 2023 – AMC Stock Price
AMC has a high enough short interest to squeeze shorts from their positions in 2023.
Sitting at 24% short interest, it’s more than enough to get the price up well into the high hundreds of dollars per share.
Whether regulators will investigate naked shares, FTDs, and other forms of counterfeit shares for hedge funds to cover is another topic.
AMC will need momentum if it’s to see another massive runup in share price.
Furthermore, hedge funds will lead their customers into losses for the second year in a row if retail investors continue to buy and hold the stock in 2023.
AMC Entertainment stock has plenty of room for growth and mainstream media doesn’t want you to know it.
If you’re lucky enough to get involved in the ape community you’ll find yourself fighting for a fair and transparent market, where your voice means everything.
The AMC community has not had a problem holding or buying the stock.
One of the biggest problems the community faces today is regulators not protecting retail investors against the predatorial strategies from hedge funds.
The community has always been a beacon for change.
Apes will need to voice market concerns to elevate awareness.
AMC stock had multiple chances to squeeze in 2021, however, hedge funds always found a loophole that would prevent them from reporting information, or trading stock in the lit exchange.
Market manipulation continues to be a threat to every retail investor in the market.
AMC Entertainment was on the brink of extinction, it was about to go bankrupt.
Hedge funds took this opportunity to overleverage their short positions in the stock, betting it would close forever.
Once retail investors got in and saved the company, the community uncovered a number of market manipulation tactics that allowed hedge funds to prevent the stock’s share price from soaring.
The fight for a fair market continues in 2023.
For the ape community, this is more than just a short squeeze play.
Your support helps maintain all the costs it takes to run a blog at this scale.
Together, we’ve been able to place AMC Entertainment articles on the #1 page results on Google and get featured on the ‘news’ section, combating mainstream media.
The mission of this platform is to spread the truth corporate media isn’t willing to, by giving the people in our community a voice.
Market News Today – AMC Reverse Stock Split on Hold Until After Lawsuit Clears.
Shareholders have approved an AMC reverse stock split as well as the conversion of APE equity to common AMC stock, but CEO Adam Aron says they cannot implement the proposals until the Delaware lawsuit clears.
“Today was a huge step forward for AMC. You voted YES, YES & YES! And it was a landslide vote too — 88% yes for Proposal 1, 87% yes for Proposal 2, and 87% yes for Proposal 3. My sincerest thanks for giving AMC the tools we need to continue fighting the good fight on your behalf.
Saving AMC is my professional mission. And remember that I own millions of AMC shares and APE units too. So, I very much want for AMC to succeed. I am absolutely and passionately convinced that what you approved today is in the best interests of AMC and of all our shareholders.
So what happens now? We can not implement what you approved today until the litigation in Delaware courts is resolved. The next Court hearing on this matter is set for April 27, 2023. We will update stockholders when we have additional information.”
The 1-for-10 reverse stock split will divide shares by 10 and multiple AMC’s share price by 10.
For example, with AMC’s current share price today at $4.60, the stock price will reflect $46 but shareholders holding 100 shares will now hold 10 shares.
Investors holding 1,000 shares of AMC stock will hold 100 shares after the reverse split.
Allegheny County Employees’ Retirement System filed a lawsuit against AMC Entertainment (NYSE:AMC) claiming that the company and several of its directors violated state law to “eviscerate” the voting power of common stockholders, who had not supported issuing new shares.
The Purpose Behind a Reverse Stock Split
Market News Daily – AMC Reverse Stock Split on Hold Until After Lawsuit Clears.
AMC Entertainment, while it’s improved drastically over the past two years, continues to burn cash.
Developments such as AMC Perfectly Popcorn and branded merchandise are just two innovations the company has created to increase revenue.
While the developments are still new, AMC needs big cash quick, which is why a reverse stock split and APE merge was proposed.
An AMC and APE merge will combine the value of both the equity and common stock of the company.
A reverse stock split will buy the company time and stay listed on the NYSE as short sellers continue to drive shares down — this time from a higher share price than current levels.
The approved proposals will dilute the stock by increasing the number of shares from 524,173,073 to 550,000,000.
This gives AMC Entertainment millions of shares to liquidate as soon as they hit the market, allowing the company to raise big cash once again.
However, the reverse stock split now makes it 10 times more challenging for shareholders who got in at the peak of 2021 to break even.
Shareholders will have to repurchase 10 times their shares to be unaffected by this type of dilution.
This repurchase may have the potential to move stocks up, but at a hefty cost.
Market News: Strategist says Mother of All Short Squeezes is Here.
Interactive Brokers Chief Strategist Steve Sosnick says there’s big demand to short AMC Entertainment (NYSE:AMC) 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.
Is AMC Entertainment stock about to squeeze this year?
Here are 5 big signs that point to a mother of all short squeezes.
#1. AMC’s Short Interest is Really High
AMC Stock: Mother of all short squeezes
A short squeeze requires a company to be heavily shorted, which AMC is.
Did you know that before AMC’s share price surged from $14 per share to its all-time high of $72 per share it only had a short interest of 22%?
AMC’s short interest dropped from 22% to 14% as short sellers began to close their positions.
Well, I’m sorry to break it to skeptics, but AMC’s high short interest means there are shorts to squeeze.
I’d love to hear the rebuttal on this one; I don’t get the counterargument.
#2. There Are Millions of Shares on Loan
This ties back to AMC’s short interest data.
There are currently 197.10 million shares on loan, per Ortex.
These are shares that have been borrowed and not yet returned to the lender.
Hedge funds borrow these shares to short AMC stock.
At some point, these shares eventually have to be returned whether short sellers simply return them without necessarily selling them in the market, or through a ‘buy-back’ when closing their short positions.
Small spikes in AMC’s share price in correspondence with a drop in short interest suggests some short closing.
We’ve seen this on very high-volume trading days.
Now imagine all of these shares getting returned to the lender from shorts closing positions.
That’s a lot of buying power getting injected into the stock, forcing shares to spike.
Also known as a short squeeze.
#3.The Cost to Borrow AMC is Higher Than Ever
The cost to borrow is the annual fee hedge funds are paying to borrow shares to short the company stock.
AMC’s current CTB is a whopping 260%.
Hedge funds are currently paying more than $30 million monthly in fees alone.
This lucrative fee alone could incentivize short sellers to ditch this play and close their positions.
#4. AMC Entertainment Has the Community to Trigger Big Buying Pressure
AMC Stock: Mother of all short squeezes.
This is one of the biggest catalysts for an AMC short squeeze.
Why?
Because volume is what drove share prices up during the Wall Street Bets movement in GameStop, AMC, and other heavily shorted stocks at the time.
DFV knew that buying pressure is what would trigger spikes in GameStop, causing short sellers to run for the hills.
AMC shareholders replicated it in 2021, sending shares from $6 per share to $72 per share by literally buying every dip.
Yeah, it was wild -but it worked.
And shareholders haven’t left, they are still holding in 2023.
#5. The Company Isn’t Going Bankrupt
Market News: Strategist says Mother of All Short Squeezes is Here (MOASS).
The short thesis made sense during the height of the pandemic when movie theatres were forced to close their doors to the public.
CEO Adam Aron said AMC Entertainment went from one day making millions per day to income suddenly halting due to the lockdowns.
But AMC Entertainment is no longer going bankrupt.
The company has improved and restructured its debt every quarter since 2021 and has beat earnings expectations ever since.
While the company does carry debt, Adam Aron has proved to be a master at raising cash from thin air.
Some of his efforts have included branded merchandise, the introduction of its equity APE, and through partnerships in the entertainment industry which Disney and Netflix.
The company is expected to launch a new credit card this year and put AMC branded popcorn in retail stores.
This means the SEC (Securities and Exchange Commission) is in direct violation of the 13-day threshold rule.
What is the 13-day threshold rule?
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.
There has been no ‘buy’ back of these AMC FTDs nor have we seen the company get removed from the NYSE Threshold Securities List.
AMC FTDs spiked up to more than $36 million in FTDs last month, through the report is still in the process of updating via T+35.
Last week, AMC Entertainment CEO said he asked FINRA and the NYSE to look closely at their stock due to the amounting FTDs.
“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.”
AMC Stock: SEC violates 13-day threshold list rule.
A buyback of shares in the lit market would result in price action driving share prices up.
In the past month, AMC stock has fallen by nearly -15%.
What are FTDs?
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.
According to Investopedia, AMC failure-to-delivers can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).
Is the SEC Complicit in Market Injustices?
According to Patrick McConlogue, an ex-Citadel Data Scientist, rules tend to heavily favor hedge funds over the average investor.
Known for exposing Citadel during the ‘meme stock’ frenzy, Patrick says “the game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game.”
Many investors refuse to believe that FINRA or the NYSE will attend to AMC’s CEO Adam Aron in regard to the violation of the 13-day threshold rule.
These institutions have more power than the SEC themselves, how could these rules be enforced?
AMC shareholders are demanding a formal letter from the CEO showing proof of contact with our regulators.
No update since the initial announcement has been made public so far.
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.
According to Investopedia, AMC failure-to-delivers can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).
Investors say there’s a major conflict of interest when Citadel Clearing LLC processes retail orders worldwide.
Are AMC’s FTDs a result of naked shorting?
Majority of the retail community seems to think so.
Companies are even beginning to take legal action against the predatorial short selling strategy.
GNS CEO Shares Petition to End Naked Shorting
Recently, Genius Group ($GNS) CEO Roger Hamilton shared a petition to end naked shorting in the market.
The Naked Shorts War activist urged the retail community to sign it in efforts to raise awareness of manipulative tactics that occur in the market every day.
“They’re predators. They’re doing something illegal, and we want it to stop”, says GNS CEO Roger Hamilton.
The Board of Directors of Genius Group Limited, a leading entrepreneur edtech and education group, approved at a meeting of the Board held on Wednesday 18th January 2023, an action plan to address illegal short selling of its stock.
AMC shareholders have criticized AMC CEO Adam Aron for not addressing the manipulation in AMC Entertainment stock.
This action plan includes creating a Board-led ‘Illegal Trading Task Force’ to actively pursue all possible actions together with the regulators in their discovery and prosecution of persons engaging in market manipulation involving the ordinary shares of Genius Group.
Waging war against naked shorts is something that won’t succeed so easily, but raising awareness is a sure way to start.
SEC Chairman Gary Gensler has said in the past that FTDs aren’t always the result of naked shares — but that’s as much as he’s mentioned the term.
FTDs can also result in buyers not having the funds to cover costs during execution of a security, though for retail investors this is a very unlikely scenario.
The stock market has seen its fair share of manipulation throughout the decades.
Institutions can spoof the market with ‘naked shares’ to move the price without ever having to take accountability for any real asset.
They can also lend shares they don’t own as IOUs and never have to take accountability when it comes to delivering them but rather simply reporting them as failure-to-delivers.
So, there are certainly loopholes our regulators must take into account.
And as far as the retail community is concerned, our regulators know all too well what’s occurring in the market.
Putting pressure on these regulators could be the first steps towards creating real change in the near future.
Retail investors might just be the ones to make history this decade.
Market News Daily: AMC Entertainment CEO Adam Aron hints at destroying Wall Street short thesis.
AMC Entertainment (NYSE:AMC) CEO Adam Aron just hinted at destroying the short thesis.
The movie theatre chain has been under attack by short sellers since before the pandemic.
However, short sellers saw an opportunity when the world’s largest movie theatre chain closed its doors in 2020 due to the pandemic lockdowns.
Adam Aron says the company went from earning millions per month to $0 overnight during the wake of the Coronavirus pandemic.
When retail investors found how high the short interest data in AMC was, they piled up to squeeze short sellers from their positions by purchasing shares of the movie theater chain en masse.
At first, investors were able to drive AMC’s stock price to $20 in January.
Then, shareholders saw AMC stock hit an all-time high of $72 per share in June.
Since then, low borrow fees have made it easier for short sellers to bring the stock back down.
AMC Entertainment CEO Adam Aron hints at destroying Wall Street short thesis.
AMC CEO Adam Aron has said in the past that to his personal knowledge, there are no synthetic AMC shares (naked shares used to illegally drive the price of a share down).
Genius Group (GNS) CEO Roger Hamilton, who is leading a group of CEOs to take legal action against short sellers and toxic lenders has reached out to Adam Aron in efforts to fight market injustices.
“It may boil down to this. Many of you are frustrated, strongly urging us to address market forces that you are convinced are unfair. We continuously think about what actions would be wise and CREDIBLE. Certainly good ideas: Build up our cash reserves and smartly lead AMC forward,” said Adam Aron on Twitter.
Some investors believe AMC’s debt covenants are restricting the CEO from speaking publicly about the short seller stock manipulation happening with AMC since the lenders themselves are short on AMC Entertainment stock.
Debt covenants are restrictions that lenders (creditors, debt holders, investors) put on lending agreements to limit the actions of the borrower (debtor), AMC Entertainment.
In other words, debt covenants are agreements between a company (AMC) and its lenders (Citi, Goldman, Credit Suisse) that the company will operate within certain rules set by the lenders.
Should a borrower violate a covenant, such as not maintaining a certain interest coverage ratio or engaging in unpermitted business activities, it may constitute a loan default, per The Balance.
Destroying the Short Thesis
On Twitter, Adam Aron responded directly to a user regarding AMC’s short thesis.
The user said, “Shorts attack companies they feel they can destroy. If you become a successful company you destroy a short’s thesis hence no logical reason to continue shorting. This is @CEOAdam strategy and the only strategy that has ever worked in the history of the market! #AMC#AMCSqueeze.”
To which the CEO answered:
“Joe, you nailed it. I could not have put it better myself”.
Market News: AMC stock is now making higher lows and higher highs in 2023.
AMC Entertainment (NYSE:AMC) stock is now making higher lows this year after shares fell in throughout 2022.
The movie theatre stock’s trendline has shifted during the first quarter of the new year as we begin to see share prices make higher lows and higher highs in 2023.
AMC is currently up more than +50% this year-to-date but was recently up as high as 110% towards the end of February.
On January, shares rose to $6.07 from $3.93 at the start of the year.
In early February share prices went up to $6.80, then to $8 towards the end of the month.
Shares have retested January’s levels around $6.07 at the start of March.
The macro trendline is now showing AMC Entertainment making higher lows and higher highs in 2023.
In technical analysis, this is seen as extremely bullish.
This is a trend we have not seen in AMC’s share price since 2021 when stocks surged to all-time highs.
One of the biggest roars in the retail community was during this specific timeline — when shares were establishing higher ground.
Will history repeat itself?
And will AMC Entertainment stock beat its all-time high record of $72 per share this year?
Let’s discuss it.
AMC Entertainment Trendline 2023
When looking at AMC’s year-to-date chart, we find that the stock has begun to make higher highs and higher lows in 2023.
We had a low of $3.85 in January, a low of $4.50 in February, and what seems to be a low of $6 in March so far.
AMC Trend Chart – Franknez.com.
These types of trends in the market may suggest big moves to come.
Not only has technical analysis shown us this in the past but we’ve witnessed it before in 2021 during the height of AMC’s popularity.
AMC’s trend today is a picture perfect snapshot of the months prior to the company’s massive price surge in June of 2021.
If retail investors are able to create enough buying momentum to raise share prices, short sellers may incur a margin call and be forced to close their short positions unless they can meet margin requirements.
And as we know, it’s become much harder to borrow the stock due to the wild fees — recently reaching more than 731%.
Short sellers have been able to keep the lid on AMC from surging again, but for how much longer?
Recent AMC Developments
AMC Latest News – Latest AMC Stock News.
AMC Entertainment said during its earnings report that it is not out of the woods yet, but the company has made progress towards paying its debt and has stayed afloat despite burning through its capital.
AMC Perfectly Popcorn will be sold in more than 2,000 Walmart stores across the country by April — a means to increase revenue.
The company also plans to issue a credit card for customers and capitalize on that business venture as well.
Adam Aron and board members were recently sued for the issuance of its equity APE, which listed in the market back in August of 2022.
The lawsuit is expected to extend or limit the voting rights of AMC’s new proposals to convert APE shares back into common shares of AMC stock, and for a 1-for-10 reverse stock split.
It is still uncertain how the market will react to these proposals.
A reverse stock split will mean the stock will cost more to buy, potentially limiting buy volume from current and new investors.
If AMC’s CTB continues to increase, it may also incentivize short sellers to get out of the play, unless they’re willing to wait for fees to decrease before beginning to short the stock back down.
Rest assured, you can all your updates on Franknez.com.
Will AMC Stock Continue to Make Higher Lows and Higher Highs?
AMC’s current trend remains bullish.
In the past, we’ve seen this trendline lead shares higher and higher despite attempts to bring it back down.
At some point, when pressure is released, it becomes harder to keep the stock from rising.
They missed GameStop’s squeeze too, so AMC became very attractive, especially at such a lower price point.
This article was seen by more than half a million people and it attracted a lot of buyers to the stock.
Four months after the publication, AMC Entertainment stock squeezed to $72 per share.
Although many investors are still holding their shares in 2023, many of my readers ended up capitalizing on the move back in June.
AMC Gain Porn
Several readers were up 6-figures at some point.
One even shared the Polestar they purchased from their profits.
Reader buys Polestar with AMC gains – Franknez.com.Reader sees $720K in profit from AMC gains – Franknez.com.Reader sees $150K in profits from AMC stock – Franknez.com.
You can view more of these on my Instagram stories under the ‘gains’ highlights.
Bigger media outlets can’t relate to this — we really changed people’s lives.
While media platforms were saying to stay away from AMC stock, I said the short interest data is telling us a story of what may potentially happen and msm is not talking about it.
You saw what happened.
And the truth is, an AMC can still short squeeze in 2023.
Today’s data is just as relevant and just as strong as it was in 2021 when AMC saw big gains.
The only difference today is that we’re in a bear market instead of a bull market, creating a challenge in regard to liquidity and investor sentiment.
What is The Likelihood of AMC Squeezing at Any Moment?
Market News: AMC short squeeze update.
AMC Entertainment stock is only one decision away from short squeezing.
And this decision will be made by short sellers.
All AMC needs to squeeze right now this very moment, or tomorrow, or next week, is for short sellers to begin closing their short positions.
If retail investors are able to create enough buying power to move the stock price up, like they did in 2021, then short sellers will be pressured heavily into closing these positions, initiating a short squeeze.
Since AMC’s cost to borrow the stock is so high in 2023, it’s getting harder and harder for short sellers to short the company.
This means retail investors have a bigger advantage now they didn’t have in 2021 when shares rose to $72 per share.
It’s retail investors who are the key to another short squeeze, always have been.
How high will an AMC short squeeze go?
In January of 2021, the stock surged to $20 and in June it surged to $72.
Where will it go in 2023?
You can read more about how big a short squeeze potential may go in a separate article here.
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