Tag: AMC Squeeze (Page 2 of 6)

AMC CEO Says a DRS Will Prevent Shorting

DRS AMC shares
Stock Market News: AMC CEO says Registering AMC Shares prevents shorting.

AMC CEO Adam Aron said during Q3 announcements that by using a DRS, or Direct Registration System, investors could prevent the company stock from being shorted.

“If you direct register your shares, they cannot be shorted”, said the CEO.

Now investors who were once skeptical on DRS suggest this could be the only way to trigger a massive short squeeze event.

Institutions have been able to suppress AMC’s share price through overleveraged shorting in the market.

And unfortunately for retail investors, the real demand for the stock has been hidden for far too long.

Is DRS the strategy to beating Wall Street again?

Let’s discuss it.

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What is a DRS?

should you DRS AMC shares?
Should you DRS AMC shares? AMC DRS Reddit.

The Direct Registration System, or DRS, is a system for book-entry ownership.

DRS offers investors and shareholders an alternative from receiving a physical certificate, by allowing the shares to be recorded in the books electronically.

The way AMC shareholders can transfer their shares to a DRS is by contacting their brokers and requesting the transfer directly.

Shares registered through DRS cannot be lent to short-sellers by brokerage firms.

DRS might also be able to expose the fraud that occurs behind the doors of market makers and other financial institutions.

Naked shorting has been a real problem in the finance sector and unfortunately the SEC has not tackled it head on.

It’s very possible DRS kills two birds with one stone.

But I’d love to hear your thoughts on the segment.

Should AMC shareholders DRS their shares?

And do you think it will make a difference?

Leave your thoughts in the comment section below.

Latest AMC Stock News

franknez news

AMC beat earnings expectations for Q3 of 2022, ending the quarter with just under $900 million in liquidity.

The company seated more than 53 million guests in Q3, a 33% increase from Q3 of 2021.

Zoom and AMC are partnering up to arm the movie theatre chain with communication services across movie theatres in 17 U.S. states.

The company also plans to issue AMC credit cards by the early 2023.

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Shareholders and The Public Are AMC’s Only Hope

AMC Entertainment CEO Adam Aron: Stock Market News + more.
AMC Entertainment CEO Adam Aron: Stock Market News + more.

Short and distort campaigns are flooding Twitter after AMC Entertainment beat Q3 earnings.

AMC’s share price tumbled despite the company having beat earnings expectations for Q3 of 2022.

Variety says AMC’s partnership with Zoom is bizarre and Hollywood Reporter is focused on AMC’s $227 million loss ($0.22 loss per share) despite revenue for Q3 being up $968.4 million.

Zacks Consensus Estimate predicted a loss per share of 25 cents, so AMC performed better than expected.

What we’re seeing is that the public alongside AMC shareholders are the only hope for the company.

Mainstream media isn’t willing to give AMC the credit it deserves.

Below are highlights from AMC’s Q3 earnings call.

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AMC Q3 Earnings Highlights

AMC Q3 Earnings
AMC Q3 Earnings Beat – Stock Market News + more.

Here’s a quick look into AMC’s Q3 earnings call.

  • 53 Million guests attended AMC Theatres in Q3, a 33% increase from Q3 of 2021.
  • $1.5 billion in debt financing
  • AMC finished Q3 with just under $900 million in liquidity ($896m in cash).
  • AMC’s Preferred Equity (APE) helped the company raise $37 million in capital to pay down debt.
  • The movie theatre company says market conditions are out of their control when addressing falling share prices.
  • AMC had $500 million of improved and adjusted EBITDA, and an increase of $18.21 per patron.
  • A new AMC credit card is set to be released early next year and retail AMC popcorn will be hitting the shelves soon.
  • The company is striving for positive cash operations by Q4 of 2022.

AMC Entertainment had an overall successful Q3 for 2022.

On the list of the most anticipated movie theatres coming to AMC this year, is Black Adam, which has surpassed $300 million in earnings since its release three weeks ago.

Two other anticipated films coming to AMC theatres in Q4 include Black Panter: Wakanda Forever and Avatar 2.

AMC’s Market Cap is Still Below Its Debt Load

AMC stock Reddit
Wallstreetbets: AMC Stock Reddit.

AMC Entertainment’s current market cap is sitting at $2.88bn, the company has north of $5bn in debt.

The movie theatre chain company has done an incredible job at paying down its debt, although company shareholders and the public are what’s keeping AMC Entertainment afloat.

As long as there are moviegoers and investors feeding the company with liquidity, AMC Entertainment is far from gone like many short sellers would hope.

The public’s eye on the largest movie theatre chain company in the world has not faltered; for them, going to the movies is merely a means of reality going back to normal after the pandemic lockdowns.

And as we saw in Q3 earnings, AMC’s attendees have increased 33% from Q3 of last year, seating more than 53 million guests in Q3 alone.

Shareholders also play a massive role in the success of the century old movie theatre company.

The difference is shareholders are battling short and distort campaigns in a conflict of interest with mainstream media and Wall Street institutions who hope to profit from the possibility of bankruptcy.

And although AMC is no longer on the brink of going bankrupt, Wall Street seems to have a personal vendetta against retail investors who disrupted the flow of their short scheme.

Holding AMC Stock?

What are your current thoughts on AMC stock and in the direction the company is going?

Leave your thoughts in the comment section down below.

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Also Read: Short-Term AMC Price Analysis


AMC Downtrend: Will We See a Shift Soon?

AMC Downtrend: Will AMC shares go up
Stock Market News: Will AMC Shares go up?

AMC is on a downtrend and shares of AMC’s Preferred Equity (APE) also continue to tumble.

In this article I’m going to break down two short-term scenarios we may see for the movie theatre chain stock in the coming days.

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Let’s get started.

Will AMC Keep Falling?

AMC Entertainment Stock News Today | Will AMC keep falling.
AMC Entertainment Stock News Today | Will AMC keep falling or will AMC shares go up?

AMC’s current downtrend shows us that there is still room for the movie theatre chain stock to fall.

However, the stock finished testing a support level turned resistance on Monday.

If AMC stock is able to break through the resistance level circled in the chart above of $5.40, then it’s likely we see the stock retest its next level at around $5.55 per share.

Breaking above that level and we see $5.70, then $6 again.

On the contrary, if AMC stock is unable to break through resistance at $5.40, then it’s very likely that we continue to see downtrend towards $5 per share or lower.

What’s it going to take for AMC to break through?

Heavy buying volume from retail.

And it’s possible AMC’s upcoming Q3 announcement for 2022 kickstarts this momentum.

The company is announcing Q3 earnings on Tuesday, November 8th.

Recent AMC Entertainment News

CEO Adam Aron announced on Monday AMC and Zoom are launching ZOOM ROOMS AT AMC, at theatres in 17 U.S. cities.

The project is meant to configure multi-city meetings at AMC locations.

“AMC enters the multi-billion-dollar meeting market”, says the CEO.

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Read: AMC FTDs Spiked to $9.9 Million in October


Report: AMC FTDs Spiked to $9.9 Million in October

Market News: AMC FTDs top $9.9 Million for the month of October.
Market News: AMC FTDs top $9.9 Million for the month of October.

The latest report on AMC FTDs shows failure-to-delivers spiked to $9,906,536 for the month of October so far, with data still coming in.

This is equivalent to 1,640,155 FTDs.

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

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

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

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

AMC Entertainment has been a big target for short sellers looking to profit from the demise of the century old movie theatre chain.

Let’s discuss it.

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AMC Gets Hammered by Clearing Houses

AMC FTDs - AMC Failure to deliver
AMC FTDs – Stocksera AMC Failure to Deliver.

According to Investopedia, AMC FTDs can occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

Seeing as Citadel Clearing LLC transacts orders worldwide, there’s a major conflict of interest here.

Ken Griffin’s Citadel LLC is short on AMC Entertainment stock, so there’s a very distinct connection here.

It’s unlikely FTDs have been a result of retail buyers since the majority are purchasing the equity on cash accounts where orders execute almost immediately.

Naked short selling seems to be the most probable cause here as $AMC has tumbled despite heavy retail interest.

So far, it seems like the SEC isn’t willing to tackle FTDs in both AMC and APE.

In fact, Gary Gensler says there’s a possibility that naked shorting isn’t even involved.

But I’m curious to know your thoughts on this.

Leave a comment down below.

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Also Read: Credit Suisse Warns Investors of Naked Short Covering


Will AMC Stock Go Up? [2022 Deep Dive]

Will AMC stock go up?
Will AMC stock surge again?

AMC has been trending downwards since its rise up to $72 per share and now retail investors are wondering, will AMC stock go up?

In a recent article I break down 3 BIG factors that have influenced AMC’s downward trajectory in the past few months.

Although AMC’s share price has been plummeting, the demand for the stock has not.

This key point is going to play a big role in what happens to AMC stock after this bear market is over.

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Welcome to Franknez.com – today I want to lay a few key points you should take into consideration if you’re holding AMC stock or thinking of buying it.

Let’s get started!

AMC stock had an incredible year in 2021.

The stock reached an all-time high of $72 per share with only 21% short interest at the time.

Once the share price began to come down, AMC’s short interest had come down to 14%.

Well, AMC’s short interest is back up to 18% again meaning short sellers have not learned their lesson (last updated in August).

Another key point I’m going to discuss below.

Can AMC’s share price still surge?

Can AMC's share price still go up?

As we start the new year, AMC’s average daily volume is incredibly high.

AMC has an average volume of 38.2 million with many days surpassing this amount.

So why isn’t AMC’s massive demand reflecting in the share price?

That’s the question the ‘ape community’ has been asking regulators all year 2021.

Too many eyes are on regulators right now and at some point, some suppression inflicted by hedge funds will have to subside.

And aside from Omicron and Covid news affecting the entire market, AMC’s massive volume will eventually push the stock price up during a correction.

What does this mean for retail investors?

If you’re looking to get in on AMC for a short squeeze, know the risks, but understand that once this stock takes off you will not be able to buy it at these prices again.

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Deflating the short interest

AMC Short Interest

Deflating AMC’s short interest like we saw back in January and June means AMC stock will go up significantly higher from its current share price.

Small short covering allowed AMC to reach $72 per share back in June of 2021.

So why can AMC stock still skyrocket?

Despite the heavy buying volume from retail, AMC still has more than enough short interest percentage to squeeze shorts from their positions.

2022 is only the sequel to 2021’s runup.

The reason mainstream media doesn’t want you to know this is because of their ties to hedge funds and private financial institutions.

These institutions are ‘short’ on AMC and GameStop, meaning they’re betting against them.

Pushing propaganda that will feed their narrative is the safest way for hedge funds to derail retail from further buying the stock that could cause them to default.

Hedge funds such as Melvin Capital, Anchorage Capital, Mudrick, & Archegos are out of the game.

Citadel Securities on the other hand continues to be short on AMC stock and seems to be having a hard time weathering this retail storm.

This is why mainstream media will not touch topic on the short interest data that could squeeze shorts from their positions.

Related: These Two Signs Will Tell You a Short Squeeze is Over

AMC Entertainment fundamentals

AMC Entertainment fundamentals

A short squeeze play has nothing to do with AMC Entertainment’s fundamentals.

The reason being is that retail goes based off of how much shorting there is in the company stock.

Buying the stock en masse (big volume) will cause AMC stock to go up, forcing shorts to close their positions and buy back their shares; triggering a short squeeze.

A short squeeze play does not depend on the performance of the company as a business.

AMC’s fundamentals are not the greatest, the company does have a lot of debt.

However, something mainstream media is not discussing is just how much their debt has gone down each quarter since 2021.

AMC Entertainment’s fundamentals are a discussion I will be touching topic on another blog post very soon so be sure to join the newsletter.

And although AMC still has quite aways to clear their debt, the company has become one of the first to lead crypto innovation and accept payment in cryptocurrencies.

Tesla has now followed by accepting cryptocurrency as a form of payment on their merchandise too.

Debt is the only thing holding AMC Entertainment from being a fundamental buy in the eyes of most in the industry.

AMC Entertainment partnerships

Partnerships

AMC partnered with Chance the Rapper last year for his concert movie release.

CEO Adam Aron announced that they would be working on partnering up with industry leaders for licensing agreements that would allow AMC to provide more of these experiences to their audiences around the world.

Another successful showing was the UFC fight they held in theatres.

The CEO also expressed his optimism surrounding showing highly anticipated sports events in theatres, granted licensing of course.

Retail investors have been specifically waiting for an AMC-GameStop partnership.

A topic Adam Aron teased could be in the works at some point.

AMC theatres released “GameStop: Rise of the Players” on January 28th, earlier this year.

One thing you cannot deny is the community strength and company relationship to its shareholders.

It’s never been seen before.

Do you own AMC stock?

Leave a comment below.

So, will AMC stock go up again?

franknez.com

Based on trader sentiment, community sentiment, and continuous innovation from the company, AMC stock will surge again.

This bear market won’t last forever.

And although the entire market is rather shaky at the moment, there will be a correction.

Hedge funds might have leverage to short the stock, but the people aren’t leaving.

AMC Entertainment will have to focus on growth and revenue if they are to get out of debt in the future.

You can read AMC’s Q1 highlights for 2022 here.

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