Tag: AMC Stock Dividend

The rise of the movie theatre industry is here.

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Dark pools and off exchange trading?

AMC dark pools — AMC Dark Pools | AMC off exchange trading

Are dark pools and off exchange trading the reason why AMC has not squeeze yet?

Not quite.

See, dark pools and off exchange trading have unfortunately been unfair suppression retail investors have no control over.

These loopholes did not magically appear after January’s runups; they’ve always been there.

While majority of retail investor’s orders are not processed through the lit exchange, high volume has always had a positive effect for investors going long.

As a collective, the small percentage that is processed through the lit exchange accumulates to create the momentum necessary to drive prices upward.

And Redditors on r/wallstreetbets knew this.

All they needed to know was that these stocks were heavily shorted in order to create a short squeeze from fueled buying momentum.

AMC gained attention in January when it surged from $2 per share to $22 per share.

But we noticed many short sellers were still hanging around, so we advised to the public of the possibility at hand.

Months later AMC surged to $72 per share and it was all due to the massive crowd of retail investors who purchased the stock.

AMC was having 500,000,000 to 900,000,000 volume days.

Also Read: Big Reddit Stocks Worth Putting on Your Watchlist This Year

Why Hasn’t AMC Squeezed Yet?

Speaking of volume, AMC’s current average volume today is 26.5 million.

Recently, AMC’s trading volume has surged by twice its average volume.

Today’s economic downturn has made it difficult for retail investors across the entire market to fork out money to buy stock.

The lack of liquidity then triggers financial institutions to further sell assets for capital – which in turn drives stocks lower.

Why hasn’t AMC squeezed yet?

What’s stopping AMC from squeezing today is the lack of buying pressure from retail investors as a unit.

By that I mean BIG buying pressure, not the buying pressure we’re seeing today.

Yes, of course shareholders continue to buy the stock today.

The difference is MORE retail investors were buying AMC stock in 2021.

But this doesn’t mean the short squeeze is over, far from it.

It just means market conditions have to change from bearish territory to bullish territory.

In fact, out of nearly 4,000 market participants, 93% said they were still planning to hold AMC shares in 2023.

Will AMC Stock Squeeze in 2023?

From $2-$22, From $14-$72, From $5 to What?

AMC Stock update — Why isn’t AMC squeezing? Will AMC squeeze? AMC stock update + more.

Retail investors took AMC from $2 to $22 together.

As a unit, they also took the stock price from $14 to $72 per share.

So, what’s next?

Will retail investors decide to take AMC from $5 per share to the next level?

Time will certainly tell.

At the moment, it seems AMC has bottomed out around $4-$5 per share.

And the stock continues to be a trending topic amongst many social media outlets.

One thing is certain, retail investors aren’t going anywhere anytime soon.

Latest AMC Stock News and Updates

The movie theatre industry is no longer struggling to attract movie lovers back to the big screen.

While pandemic lockdowns threatened the existence of thriving cinemas, rapidly growing numbers of attendees have continued to grow over the past two years.

The only thing movie theatres are missing is more movie titles, says CEO of AMC Entertainment Adam Aron.

As “Avatar: The Way of Water” gets closer to the $2 billion mark at the worldwide box office, James Cameron says it’s a reminder that moviegoers still value the theatrical experience in an era of streaming dominance.

“I’m thinking of it in the terms of we’re going back to theaters around the world. They’re even going back to theaters in China where they’re having this big COVID surge. We’re saying as a society, ‘We need this! We need to go to theaters.’ Enough with the streaming already! I’m tired of sitting on my ass. Source: Variety.

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AMC Warns Short Sellers of Possible APE Short Squeeze

January 13, 2023 / Frank Nez

AMC has released a report warning shareholders from the risks of buying APE shares as the company gets ready to sell up to 425 million shares.

However, the report also warned short sellers of the possibility of an APE short squeeze.

APE traded below $2 on Friday despite strong shareholder sentiment.

The equity has an average trading volume of 19.8 million but has traded lower in the past week.

As the markets continue to tumble and short sellers double down on their positions, stocks such as AMC and APE also continue to take the heat.

But short sellers could be in for a big surprise.

All it takes is coordinated heavy trading activity to trigger massive price fluctuations, at least according to AMC Entertainment’s statement.

Let’s discuss it.

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AMC Issues Strong Short Squeeze Statement

I’ve touched topic on the warning AMC released for shareholders below as the company prepares to sell up to 425 million APE shares.

“Under the circumstances, we caution you against investing in our AMC Preferred Equity Units, unless you are prepared to incur the risk of losing all or a substantial portion of your investment,” said an official statement from AMC Entertainment.

However, the company also warns short sellers of a potential APE short squeeze, resulting in severe losses for those betting against the security.

“purchasers of our Class A common stock and AMC Preferred Equity Units could incur substantial losses if there are declines in market prices driven by a return to earlier valuations; to the extent volatility in our Class A common stock and AMC Preferred Equity Units is caused, or may from time to time be caused, as has widely been reported, by a “short squeeze” in which coordinated trading activity causes a spike in the market price of our Class A common stock and AMC Preferred Equity Units as traders with a short position make market purchases to avoid or to mitigate potential losses, investors purchase at inflated prices unrelated to our financial performance or prospects, and may thereafter suffer substantial losses as prices decline.”

In this passage here, AMC is warning both retail investors and short sellers alike of what a short squeeze could muster.

The losses for short sellers could be grand as coordinated trading activity causes a major spike in price.

For retail investors, buying the spike could cause significant losses as the stock enters a cooldown period.

What AMC is accepting though is the possibility of a short squeeze whether it be AMC or APE shares.

What Will Trigger a Short Squeeze?

According to AMC’s statement, a short squeeze is triggered by coordinated trading activity, resulting in share price spikes.

Volume was key in January when AMC surged to $20 per share, it was key when the stock skyrocketed to $72 per share in June, and it will be the key today.

The bear market is pinning stocks, but as the market reverses, it’s very possible we see a surge in trading activity in AMC (and APE) again like we did in 2021.

AMC surged in March when it’s weekly volume had surpassed 100 million.

The stock was halted but shares rose despite the market’s downtrend.

AMC’s current average trading volume is 41.2 million though it has been trading at only half.

Will retail investors be able to trigger AMC or APE to squeeze?

I’d love to hear your thoughts on this.

Leave a comment down below.

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Now is The Time to Buy AMC Stock

October 25, 2022 / Frank Nez

Stock Market News: AMC Stock — Stock Market News: Should you buy AMC stock?

Now is the time to buy AMC stock.

The movie theatre company stock is trading at a bargain of $6.35, respectively.

AMC Entertainment stock has rejected submersing below the historically strong level of support at the $6 range.

Some of the biggest institutions currently holding AMC stock include Vanguard, BlackRock, and Goldman Sachs.

Now is the time for value investors to bulk up on this particular ticker before a massive rebound.

The stock has come down so low that now could be a great time for investors to add to their portfolios before the market in general turns around.

In this article I’m going to discuss why AMC in its uniqueness could be a stock you don’t want to miss out on.

Let’s get started!

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Let’s dive right into it!

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The Biggest Institutions Own AMC Stock

It’s true, according to InvestorPlace, the top 5 institutional owners of AMC stock are Vanguard, BlackRock, Goldman Sachs, State Street, and Bank of America.

Vanguard holds approximately 95.18 million shares of AMC Entertainment stock, which is equivalent to approximately 18.42% of the outstanding shares.

BlackRock holds 51.77 million shares of AMC stock, or 10.02% of the float.

Goldman Sachs 5.98 million shares, or 1.16% of the float.

State Street holds 20.53 million shares, or 4% of AMC’s float.

And Bank of America holds 5.42 million shares of the stock, equivalent to 1.05% of AMC Entertainment’s outstanding shares.

These 5 institutional AMC investors make up roughly 35% of the float.

If some of the biggest corporations in the world are currently hold AMC stock, it should tell retail investors something.

Here’s the latest on the channel.

A Market Rebound is Inevitable

AMC along with the entire market has for the most part of 2022 been on a steep decline.

And the issuance of APE (AMC Preferred Equity) only further contributed to AMC’s falling share prices.

But majority of retail investors are still not selling.

And with the market due for a rebound, it’s fair to project that with a montage of hungry retail buyers during the next bull run or bull market, an AMC short squeeze is inevitable.

Whether it’s what ‘Apes’ have referred to as a MOASS, or simply some gnarly price action, the opportunity to make money will be there.

If you missed the last two runups last year, now could be the time to buy AMC stock before the market turns on short sellers.

Could we see more price action from AMC Entertainment stock like we saw last year?

Absolutely.

So, while we don’t know when exactly the market will begin to rebound, we do know that the market never falls forever.

And when the market gets ready to bounce back, expect AMC to do the same, but due to the strong community behind it, with extra force.

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AMC Reduces Debt by $106 Million And Extends Maturities

October 17, 2022 / Frank Nez

AMC has reduced its debt load by $106 million and has extended its maturities until the year 2027.

The company capitalized on APE to cut some debt off the top before taking on new debt due in five years from now.

AMC has replaced $506 million due in 2023 with $400 million of new debt due in 2027.

The updated balance sheet is going to ensure the movie theatre chain company is able to grow while it slowly pays off its debt.

This is a fundamental improvement for AMC.

Is the company headed in the right direction?

Let’s discuss it.

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AMC vs Wall Street

Wall Street has long betted against the century old movie theatre chain, hoping for its bankruptcy in 2020 to capitalize on short selling.

But AMC has always fought back, and I mean everyone has fought back.

CEO Adam Aron has built a relationship with shareholders and transformed the company with its innovation in crypto and NFTs.

Shareholders looking to squeeze hedge funds betting against the company evolved into investor activists, raising awareness of the malpractices on Wall Street.

Even television hosts such as Charles Payne and Jon Stewart have been a voice for retail, speaking out against the SEC’s inability to stop PFOF and dark pools from taking advantage of investors.

On the other hand, mainstream media idolizes Citadel’s Ken Griffin with no regard for the hedge fund’s long history of market manipulation.

Gary Gensler says the industry is fighting back against policies he wants to implement that will even out the playfield for retail investors.

In July, Citadel lost the court case to the IEX order type.

“The SEC’s determination that the DLimit order does not violate the Exchange Act by unfairly discriminating or unduly burdening competition was reasonable and supported by substantial evidence,” the court found.

And now the industry is fighting the SEC on the possibility of eliminating payment-for-order-flow (PFOF).

A practice where market makers pay brokers a fee to reroute retail orders over to them.

Market makers tend to be short-biased and may use retails orders against them in a variety of ways.

AMC’s Fundamental Growth

AMC Entertainment has been improving fundamentally since its first quarter of 2021 when retail investors injected the company with billions of dollars in liquidity.

The movie theatre chain company had its best 2nd quarter in 3 years, seating more than 59 million guests, up 61% from two years prior.

In Q2, AMC had $52 million of positive operating cash flow and $107 million positive EBITDA, which is relative to the strength of a company.

The company ended Q2 with $1.18 billion in liquidity, a trend we’ve seen in the past with Q1 of 2022.

AMC announced in Q2 earnings it had reduced its deferred rent by more than $250 million and planned to reduce it by another $40 million ending the year.

However, AMC has announced that thanks to $APE (AMC Preferred Equity), the company has now paid off an additional $106 million in debt and extended $400 million in maturities for the year 2027.

It’s fair to say the company is far from going bankrupt today.

I’d love to hear your thoughts on AMC.

Leave a comment down below.

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Is A Massive AMC Rebound Underway?

October 13, 2022 / Frank Nez

Market News: Will AMC rebound anytime soon?

AMC Entertainment stock is respecting the $6 level of support very well.

The stock rejected a breakout towards the downside five times on Tuesday.

While the stock did end up below $6 on Wednesday, it began moving back towards the support level after hours.

AMC closed at $6.04 on Thursday.

Is a massive AMC rebound underway now that AMC has proven a strong support level?

Let’s discuss it!

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SPY Rallies on Thursday

The S&P 500 rallied on Thursday sending the entire markets up with it, including AMC Entertainment stock.

SPY rallied from $348.12 to a high of $367.51, a $19 jump!

Traders who cautiously warned about today’s possible volatility in the market following CPI announcements were caught off guard as SPY was pumped.

But AMC’s spike up to $6.28 was only temporary.

The movie theatre chain stock hovered above and below the support level of $6 per share throughout the day until market close.

Still, the market hasn’t been able to completely knock AMC Entertainment stock to ground levels.

Is it possible AMC has hit the bottom?

We’ll need to keep a close eye on how the theatre chain stock performs as the markets continue to bleed.

What we do know is that AMC Entertainment’s current stock price has held relatively well in the past prior to the massive run to $72.

Retail investors were able to inject the century-old company with so much liquidity that it drove the stock’s prices up while instilling institutional investor confidence.

Will retail investors be able to replicate the trading activity from last year?

Time will certainly tell.

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Will Stocks Keep Falling?

Despite the SPY’s bullish rally on Thursday, it’s very likely that the market continues its downward trend as the Fed prepares to announce bank earnings on Friday – which so far have not looked too great.

This means that AMC will likely follow for now until the market begins to reverse.

It seems as if the economy is preparing for heavier announcements, which will undoubtedly affect the entire market.

AMC will have a rebound, but not until big buyers are ready to step in and enter the market again.

Unfortunately, retail investors cannot control the situation.

It’s important to pivot during this state of economic downturn our country is facing.

Large cap companies have announced the firing of several employees and Bank of America has stated that the U.S. economy will start losing 175,000 jobs per month in late 2022, early 2023.

The announcement of a recession seems inevitable, but it doesn’t mean retail investors should be a part of it.

Learning how to pivot will be key to your success in today’s shifting economy.

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How High Can APE Stock Go?

October 10, 2022 / Frank Nez

AMC’s Preferred Equity (APE stock) has made it available for the company to raise cash instantaneously.

The company announced in September it would sell up to 425 million APE shares to pay down their debt.

AMC Entertainment has steadily improved fundamentally since 2021 when retail investors injected the company with liquidity to squeeze short sellers.

The movie theatre chain has acquired several new theaters, entered the crypto and NFT space, and has beat every quarter for two years in a row now.

Despite what mainstream media has portrayed, retail investors have not ditched the pursuit of squeezing Wall Street again.

The massive retail community who participated in the trading activity which caused AMC and GameStop to rise are now looking to squeeze AMC’s Preferred Equity, APE stock.

How high can APE stock go?

Let’s discuss it.

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What is APE Stock?

APE stands for ‘AMC Preferred Equity’ and is a tradable security in the stock market deriving from an AMC stock split.

Retail investors who held or purchased AMC shares before the stock split would be granted with 1 APE share for every AMC share they held.

The stock split was marketed as a dividend which confused many shareholders at first.

Some retail investors weren’t too pleased to hear AMC’s share price would be divided evenly between AMC and APE stock, but others viewed the split as an opportunity.

The main purpose of APE stock was to allow the company to capitalize from its shareholders during a time of need.

AMC Entertainment would need approval from shareholders to dilute the stock and raise cash, but not with APE.

APE would act as a pool of liquidity for the company to pull money from.

How is APE’s Value Determined?

At first, APE’s value was divided in half from the close of AMC’s trading price prior to the stock split.

Both securities’ value has been determined by market conditions since.

This means how high APE stock goes will highly depend on how much buying power the security receives from retail and institutional investors.

But the market in general has been tough for most investors.

Today’s bear market has only set lower prices for both AMC Entertainment and APE stock.

It’s fair to predict that APE’s value will see more downside before a reversal.

AMC Entertainment made a statement warning short sellers of severe losses that may occur in a ‘short squeeze’ scenario.

An APE short squeeze triggered by coordinated trading activity would result in huge gains for retail investors going long.

But the debate whether APE can squeeze in the first place or not has become a subject few within the retail community half touched topic on.

What do you think?

Leave your thoughts in the comment section below.

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Related: APE Topped $304 Million in FTDs in August

APE Trades At $2 Despite Strong Shareholder Sentiment

October 8, 2022 / Frank Nez

Stock Market News: APE stock price continues to fall.

APE shares have fallen from $7 to the current $2 price.

AMC’s Preferred Equity reached 20.1 million in average volume but has been dropping by nearly half during this market downturn.

Shareholders remain bullish despite the company announcing the sell of up to 425 million shares of APE to pay down its debt.

But is APE merely a fundamental tool to push AMC in the right direction?

Or is it more than that?

Let’s discuss it below!

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APE and Synthetic AMC Shares

APE shares were distributed to AMC shareholder in August.

AMC shareholders received 1 APE share for every 1 AMC share they held.

The theory was that the issuance of APE would unveil synthetic shares in the market, and for a while, some shareholders actually didn’t receive their APE shares on time.

Come to find out, majority of these shareholders were using brokers outside the U.S. which delayed the delivery of the equity.

Adam Aron stated that although he didn’t have any knowledge of synthetic AMC shares, the issuance of these units should at best put the theory to rest.

But AMC’s Preferred Equity has not proven to be the catalyst retail investors hoped for, at least not for a short squeeze that is.

The markets are quite trickier than that, especially what occurs behind the scenes where much information is masked or hidden from the public and even the SEC.

Shareholder sentiment is strong, but many shareholders aren’t happy with the promised ‘pounce’ the CEO announced on Twitter.

A Tool for Retail Investors or AMC Entertainment?

Shareholders holding AMC’s Preferred Equity have suffered losses greater than what AMC stock alone could have.

While AMC stock is owned and decisions are primarily made by shareholders, APE is not.

APE grants AMC Entertainment with access to a large fraction of shareholder’s capital to use at any given moment whether it’s to pay down debt or other fundamental innovations.

For shareholders, purchasing APE shares would mean providing the company with liquidity, charity if you will.

But investing in a company can go two ways:

You either invest in a company to make money (trade, cash dividends, etc.)
Or you invest in a company you believe in, betting the value of the company will increase over time and cash out later

It’s important to identify these two types of investments when buying APE shares from AMC Entertainment.

AMC Entertainment has a gameplan and retail investor should too.

Will APE stock go up?

APE stock has the potential to go up, but it also has the potential to get delisted from the market, should it go to zero of course.

AMC released the following statement on APE stock:

It’s fair to assess that APE is a tool from which AMC Entertainment can take full advantage of to give them the edge to rise up fundamentally.

The company just announced it is collaborating with Netflix to show its first ever Netflix movie in 200 AMC movie theatres.

While AMC shareholder might not be benefiting so much at the moment, the movie theatre chain sure is.

And as the markets begin to reverse, so will shareholders’ luck.

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Related: How High Can APE Stock Go?

Will AMC Rebound in October?

October 7, 2022 / Frank Nez

Market News: Will AMC Go up in October? — Market News: Will AMC go up in October?

AMC traded below $7 this week and shareholders are wondering whether AMC will rebound in October.

September tends to be one of the most bearish months of the year while October tends to be the complete opposite.

Even in the crypto space investors prepare for big price action.

AMC recently filed a form 8-K filing confirming it is selling up to 425 million APE shares to reduce their debt.

This fundamental strategy could also play a big role in how the stock moves this month as it steers towards the right direction.

Let’s discuss it below.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

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Bullish October for AMC Entertainment Stock?

Is October a good month for stocks?

Historically, October has been a really positive month for stocks, although it has had its volatile moments.

Unusual Whales tweeted that October tends to be a “bear-market killer”, known for its historically strong returns, especially during midterm elections, per MarketWatch.

AMC Entertainment stock has tumbled all year alongside the market.

As the market reverses, we can expect AMC to follow.

Does this mean October will spark the beginning of a bull market?

Not quite, as it will take some time to see this develop.

The country is in a recession and just about every market has substantially more sellers than buyers.

October could yield a momentary bull run, but a bull market will take time to determine based on economic and buying conditions.

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Where does this leave APE?

AMC is selling up to 425 million shares of APE to pay down their debt, which means APE prices will tumble as a result of the selloff.

The company issued the following statement:

APE gave AMC Entertainment access to a portion of shareholders’ capital without needing the approval to dilute AMC shares.

This cash cow is now available for AMC to claim in order to pay down its debt.

Is APE worth investing in?

I personally think it’s more of an investment tool for the company rather than for shareholders aiming to squeeze shorts from their positions.

But I’m curious to know your thoughts.

Leave a comment down below.

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Related: APE Topped $304.9 Million FTDs Last Month

AMC is Selling 425 Million APE to Pay Down Debt

September 29, 2022 / Frank Nez

AMC Selling Ape — Market News: AMC Entertainment News Today

AMC Entertainment is selling 425 million APE shares according to the movie theatre chain’s recent Form 8-K filings.

CEO Adam Aron advised investors AMC’s Preferred Equity (APE) would provide the company with additional capital to pay down debt at some point during its inception.

I anticipated the company would begin selling shares sometime in Q4 to end the year strong with cash and lower debt.

Alas, AMC Entertainment is doing just that.

Let’s discuss it below.

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Let’s dive right into it!