Tag: AMC Stock (Page 1 of 44)

For years now retail investors have stated that short interest is much higher on most stocks than is being reported.

I’ve been sharing AMC’s, GME’s, and other ticker’s short interest daily for years now.

But something interesting happened post AMC’s approved proposals, short interest plunged heavily without any signs of shorts closing their positions.

And AMC is not the only retail favorite that has seen a significant drop.

AMC short interest is currently sitting at 11.54%, at least according to the latest Ortex data.

See, the thing is that according to FINRA, positions held overseas at a separate legal entity are not required to report short interest positions.

For this very reason, it means that there are several more short positions worldwide than meets the eye.

This also means that financial institutions may have subsidiaries as legal entities overseas without having to necessarily report their short selling activities.

This loophole is what has led many retail investors to believe that companies targeted by short sellers have fallen victim to possible fraudulent schemes.

Essentially, there are corners in the market that have hidden activity which take advantage of the average investor.

According to Science Direct, a big reason for hiding short positions is that disclosure could make them more costly or difficult to maintain and close.

“Such strategic disclosures can help activist short sellers reduce noise trader risk, making prices converge faster to their fundamental value (Kovbasyuk, Pagano, 2015, Ljungqvist, Qian, 2016, Zhao, 2018).

They also could be used as devices to coordinate predatory short selling and manipulate stock prices (Goldstein, Guembel, 2008, Brunnermeier, Oehmke, 2014).“

Are retail favorites being manipulated from accounts overseas? Most would say absolutely given the strange trading activity that persists even today.

But I would love to hear your thoughts — leave a comment down below.

Also Read: New Report: August Saw Whopping $129 Million in AMC FTDs

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A B. Riley analyst says AMC Entertainment (NYSE:AMC) is now safe after the company’s recent stock sale.

AMC Entertainment was able to raise $325 million in brand new equity according to the company’s latest report.

AMC raised approximately $325.5 million of new equity capital through the sale of 40 million shares, before commissions and fees, at an average price of approximately $8.14 per share.

“The Company intends to use the net proceeds, if any, from the sale of the Common Stock pursuant to the Equity Distribution Agreement to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness (including expenses, accrued interest and premium, if any) and for general corporate purposes,” it said in a filing.

B. Riley analyst Eric Wold has given AMC Entertainment a ‘neutral’ rating with a $45 price target.

He believes that management should continue to use the equity sales to pay off debt amid the uncertainty of the Hollywood strike and what that could mean for the movie industry.

However, when there is a conclusion to the strikes, Wold says the company could use the cash to buy new movie theaters and diversify growth strategies, reports Barrons.

“We believe these proceeds not only provide an increased near-term liquidity safety net while the lingering Hollywood strikes potentially put the 2024 film slate at risk but also provide an opportunity for the company to reduce the principal balances for the higher interest rate debt scheduled for maturity in 2026 and beyond,” Wold wrote.

“The completion of this ATM equity offering significantly boosts AMC’s cash reserves, addresses current liquidity concerns, and fortifies the balance sheet,” the company said in its news release.

Also Read: AMC Shareholders Now Look to CEO For Answers

What’s Happening with AMC Entertainment?

AMC Entertainment has had a major shift fundamentally, the movie theatre chain is improving drastically.

At the time of this publication, AMC is up more than +13 in the past 5-trading days.

The company has held relatively well post reverse stock split — shareholders continue to buy and hold in efforts to trigger a short squeeze.

AMC short interest has now begun to increase again after it had significantly dropped following the company’s approved proposals.

On Tuesday, AMC short interest was reported at 11.52% — however, short interest increased to 16.74% on Wednesday, indicating new short positions.

Short squeeze score also rose from 70 to 73 on Wednesday.

According to Ortex, ‘Short Score’ uses a multi-factor model that incorporates multiple short-related metrics, with a higher score indicating that the stock is heavily-shorted and has other characteristics that increase the possibility of a short squeeze occurring.

Will AMC Entertainment have a chance at squeezing again?

As previously mentioned, that will depend on whether investors are able to conjure up massive buying momentum like they did during the ‘meme stock’ frenzy of 2021.

The short interest is coming back up now, which indicates short sellers are certainly there.

Squeezing them out would require price action to move up, but this would require loads of buying pressure.

Related: AMC Stock: The SEC Has Now Violated Threshold Rule

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AMC Entertainment (NYSE:AMC) shareholders are now looking to the CEO for answers after the company’s stock has fallen more than -43% since its new proposals went into effect.

The movie theatre company, which was up between +20% and +40% earlier this year, has now fallen more than -79% this year-to-date.

At the current price, shares would be worth $0.718 pre-split, putting the company alongside other retail favorites such as Mullen Automotive (NASDAQ:MULN), respectively.

Like many other retail favorites, AMC Entertainment has been a victim of manipulative short selling.

While ‘no’ voters criticize ‘yes’ voters, the approved proposals will now allow AMC Entertainment to raise money by selling up to 40,000,000 shares.

The company announced on Wednesday that it has entered a new agreement with Citigroup, Barclays, B Riley Securities, and Goldman Sachs to periodically sell shares.

“The Company intends to use the net proceeds, if any, from the sale of the Common Stock pursuant to the Equity Distribution Agreement to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness (including expenses, accrued interest and premium, if any) and for general corporate purposes.”

While the company was just thrown a major lifeline from investors (yet again), shareholders have expressed concerns towards the CEOs plans, which has only caused shares to plummet.

Resentment grows as shareholders question the CEOs silence as well as swindling influencers who have been responsible for continuously leading on investors.

On social media, the CEO has focused his attention away from retail investors and doubled down on promoting the company’s latest theatrical developments.

The question lingers — will AMC squeeze?

Also Read: More Than 50% of AMC Stock is Now Trading Off Exchange This Month

What Happened to AMC’s Short Squeeze Post RS?

Anonymous influencers on social media have been misleading retail investors for quite some time now, neglecting all signs that could further hurt retail’s pockets.

Their answer to their theories? Another theory..

Investing in AMC Entertainment today is a marvelous way to crowdsource the movie theatre chain, especially if you’re a movie lover.

Is an AMC short squeeze still possible?

It is if investors are willing to replicate the events of 2021 when daily volume was between 700m and 1bn.

Rising share prices created by sheer momentum is what triggered short sellers to close positions in 2021.

They had no option! Price was heavily going against their bets.

However, momentum has come down quite drastically since then with no signs of building buying pressure.

Retail investors were able to create huge demand back then despite heavy off-exchange trading.

Even with 50% off exchange trading on 1bn volume, that’s still 500m in the lit exchange; much better than today’s average volume of 9m with 4.5m in the lit exchange.

🔥 500m > 4.5m.

Financial Times reports that in 2023 so far, AMC short-sellers made a profit of $407m while GameStop short-sellers have lost a little over $80m.

Investors must identify for themselves whether the probabilities of a short squeeze are stronger now more than ever, or whether the probabilities of a short squeeze are weaker now more than ever.

“Is it better to save some of my remaining capital and jump in once I see momentum brewing? Or am I okay letting my investment go to zero in a worst-case scenario?”

In the end, AMC Entertainment is a company and will do whatever it takes to survive before it thrives.

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors. This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

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