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.
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.
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 $5.46 on March 13th. 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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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.
As I’ve mentioned in previous articles this week, AMC shareholders now have more runway to bring share prices up through sheer buying power.
Why?
Because short sellers cannot afford a 250%-700% borrow fee to short the stock like they used to.
This means some suppression in the share price has lifted — hence why buying power has been driving the price up this year.
AMC’s trading volume rose to more than twice its average trading volume of 35 million on Tuesday.
We did see the stock get short laddered which explains why we saw an increase in short interest, but it’s costing institutions a lot of money to do so.
Is buying time with an interest rate of 250%-700% worth it?
Short sellers may be stalling momentum from completely taking over, but eventually the pressure has to let off.
A rising short borrow fee and heavy buying pressure may just be the thing AMC needs to reach a new all-time high this year.
Market News: Pension fund files lawsuit against Adam Aron and AMC.
(Reuters) 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 Allegheny County Employees’ Retirement System is pursuing a class-action complaint in Delaware’s Court of Chancery against AMC and its board members, including CEO Adam Aron, seeking a temporary restraining order against a planned March 14 conversion vote.
The pension fund asked the Delaware Chancery Court to declare the preferred shares invalid and ban the holders of the preferred shares from voting.
“This Action challenges a course of complex and disloyal corporate engineering by the Defendants — described by AMC’s Chief Executive Officer and Chairman, Defendant Adam M. Aron as an exercise in ‘3-D chess’ — devised to achieve a simple aim: eviscerating the voting power of AMC’s Class A stockholders in order to force through approval of a proposed dilutive share count increase that those stockholders repeatedly had rebuffed and were not willing to support at the corporate ballot box,” the complaint says.
Plaintiffs are seeking an order restraining the defendants from submitting the proposals for a vote until the plaintiffs can take expedited discovery and present a motion for a preliminary injunction – and they anticipate it can complete the necessary discovery within 30 days of a temporary restraining order.
The latest AMC news has shareholders wondering why the institution is taking legal action to slow down the conversion of APE shares to AMC common stock.
It’s been five months since the inception of APE and the pension fund never took legal action in the months prior.
What are your thoughts on what’s happening with AMC?
Market News: Pension Fund AMC Lawsuit News.
AMC Entertainment shares rose by +16.41% on Tuesday, its equity (NYSE:APE) fell by -7.92%.
The company explored two main proposals:
To convert shares of its equity APE back into common shares of AMC stock.
Stock Market News: Just how high can AMC short squeeze spike up to?
An AMC short squeeze potential has been a huge debate for retail investors and shareholders amongst the Reddit and social media communities.
Exactly how high an AMC short squeeze could possibly go up to has plagued AMC shareholders since the very first publication of the short interest data (archived data).
AMC Entertainment stock was trading around $14 when I began to share the short interest data after shooting up to $22 per share during its first big push from $2.50.
The stock fell back down to $5 per share but the short interest told a story, which is why I continued to share it, because retail investors had a shot at something big here.
Four months after my publications, AMC reached its all-time high of $72 per share.
I knew investors that were up thousands of dollars, and others that were up hundreds of thousands of dollars.
Another community member posted his brand-new Polestar.
You can actually go and see their comments on my Instagram highlights under ‘Gains‘.
But what’s more interesting is that AMC never shot up to its potential, did it?
In this article, I’m going to go over AMC short squeeze price predictions along with some TA on key levels the movie theatre chain stock will have to break in order to truly reach its potential.
Let’s get started.
AMC Stock Price Today
Today, AMC stock is trading around $5 per share, respectively.
Shares rose to $8 in December before rejecting and coming back down to roughly $6 and eventually to current share price levels.
2022’s bear market dragged many companies down, and AMC Entertainment Holdings Inc. was no exception.
And with talks of a recession creeping in this year, it’s difficult to determine whether prices will stagnate or bounce back soon.
While a short squeeze does not discriminate whether we’re in a bear market or bull market, it’s heavy buying pressure that will ultimately trigger it.
And while AMC’s trading volume hasn’t been anywhere near 2021’s levels, it doesn’t mean it can’t be later this year.
There are many AMC short squeeze price predictions from the retail community.
One of the biggest price predictions being $1,000.
In the past year, some would have laughed at you for your lesser capability to see beyond.
More ambitious short squeeze predictions say AMC can reach upwards of $10,000 per share!
Then of course, you have the strong big D energy ‘apes’ that say an AMC MOASS (mother of all short squeezes) will yield $100,000-$500,000 per share.
All fascinating without a doubt.
You might ask, what in the world led retail investors to believe such impossible numbers could be possible to begin with?
The truth is, while hypothetical, these numbers (technically speaking) may be possible.
See, what happened was that wrinkled brain apes from the Reddit community began to experiment with a series of predictions based on the number of naked shares circulating outside the original (and legal) float.
Redditors began to create brackets of equations to identify what (potential) share prices could look like if hedge funds (hypothetically) closed billions upon billions of ‘synthetic shares’.
What did we find?
Denial. Over and over again.
Mainstream media and Wall Street bullied the retail community into a corner and said naked shorting no longer existed.
Retail investors were called conspiracy theorists.
Naked shorting later proved to be the highest probable outcome for an incredible amount of FTDs (fails-to-deliver) in AMC.
CNBC’s Melissa Lee and FOX Business’s Charles Payne eventually began to touch topic on the matter after Trey’s Trades addressed retail’s concerns on interviews.
Naked shorting was now officially being discussed on live television.
But Wall Street kept pressing, denying the existence of dark pools, exchanges used to essentially suppress the price of security or to refrain from the full demand of a stock to reflect its actual share price.
In February of 2022, SEC Chairman Gary Gensler said in an exclusive Bloomberg interview that 90%-95% of retail orders are not processed through the lit exchange but rather through dark pools.
In an interview later in December, the Chairman told ‘We The Investors‘ that he understands retail’s frustrations.
The SEC Chairman was asked if dark pools suppressed the price of stock and whether retail investors could influence the price of a stock if majority of orders traded in the lit exchange.
While there was no direct answer to the suppression of price, the Chairman says that with so much trading happening off-exchange, he doesn’t think it’s a leveled playing field as dark pools give institutions an unfair advantage.
So far, there has been no ‘official confirmation‘ of ‘synthetic shares’ to back up the highest AMC short squeeze predictions.
There’s only been denial.
What’s an AMC Short Squeeze Potential Factoring Out Synthetics?
I’ve shared this equation in the past and the prediction is not accounting for synthetics.
When AMC surged to $72 per share, its short interest had dropped from 22% to 14%, an 8% difference.
Now, while there is no sure way to identify how large positions are per percentage drops, we can gain a little more clarity by analyzing these proven numbers.
Is it probable that if AMC’s short interest had dropped another 8% from 14% down to 6%, the stock would have surged twice its all-time high of $72 per share to $144 per share?
Sure – although not 100% certain, we can begin to see a clearer picture here.
Could we then predict an AMC short squeeze potential to peak between $100-$200 as a rough estimate?
Absolutely.
At these numbers, every shareholder (even late buyers) will be in profit.
Having reached $72 per share, it’s fair to say $100-$200 per share is a fair short squeeze potential when you exclude the existence of synthetics.
Some may agree, others will certainly differ.
But if there’s a hard lesson I’ve learned as an options trader, it’s been to never get too greedy when you’re already in profit.
Are Shareholders Still Holding AMC?
There’s been some controversy recently within the community surrounding the CEO.
There are shareholders who criticize Adam Aron for cashing in more than $40 million between late 2021 and early 2022 while shareholders held in order to prevent shares from sliding.
Others are happy to hear the CEO has no interest in selling shares any time soon and has rejected a pay raise for the new year.
Despite the controversy, majority of shareholders continue to hold their stock.
So far, more than 90% of shareholders say they continue to hold their AMC shares in 2023.
A threshold security protects stocks that have had 5 consecutive settlement days in a clearing house as “Fail-To-Delivers“.
Protection from the SEC also requires that the stocks FTDs total more than 10,000 shares.
A fail-to-deliver for our new retail investors basically means that an investors trading contract, such as a call option, was not executed when it should have been.
This occurs when a clearing house does not deliver on their obligation to close the contract.
This creates fail-to-delivers which in turn limits the momentum and growth of a stocks price action.
In other words, it tampers with the natural flow of a stock’s growth.
FTDs and naked shorting
Another known cause for FTDs is the practice of naked short selling.
This is when hedge funds trade imaginary shares that they don’t own or exist.
These transactions fail to clear since the shares were never in a traders account to begin with.
This illicit activity is basically like adding zeros to a check you received without the full amount being in that account.
When you get caught you’ll eventually have to pay it back.
It’s that or you go to jail but we all know these sleezy people always get bail.
Well now the SEC has gotten involved and is saying no more.
A threshold security comes with regulations that heavily play in retail’s favor.
One of the regulations is known as rule 204.
Rule 204 requires brokers and dealers that are participants of a clearing house to close out failure-to-deliver positions.
Yes you read that correctly.
Here is the source straight from the SEC’s “key points” under III. Regulation SHO.
“Closing out requires the broker or dealer to purchase or borrow securities of like kind and quantity.”
SEC
AMC Entertainment was added to the NYSE Threshold Securities list on Friday, June 25th 2021 during the ‘meme stock frenzy’.
This year it made the list this month.
Section 203(b)(3) states that clearing houses must close FTDs if they persist on to 13 consecutive trading days.
Why it Matters
It’s a win-win situation for retail investors. If hedge funds continue to manipulate the market and generate FTDs then they’ll be obligated by law to cover the millions of dollars and shares they’ve been failing to process.
On the other hand, if shorts begin to properly exercise contracts then we will begin to see momentum pick up rather quickly from executed trades. This too can create several gamma squeezes due to the amount of volume being pumped into the market.
By adding AMC Entertainment to the Threshold Securities list, the SEC is basically stepping in and calling hedge funds out on the court.
It’s a way of saying things need to be done the right way or else.
I’m extremely curious to see how this will play out.
Market News: Should you invest in the movie theatre industry?
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.
Last year, the industry leader had a 33% increase in attendees from Q3 of 2021, seating more than 53 million guests in Q3 of 2022 alone.
The company has also shown massive progress as debt is substantially cut every year.
AMC’s debt seems to be the #1 problem for Wall Street.
If AMC is able to eliminate this burden, the company might be able to offer more incentives to its shareholders again, such as a cash paying dividend like prior years.
AMC and APE Shares Bounce Back from Record Lows
AMC and APE shares are making a big comeback beginning of the new year already.
AMC Entertainment Holdings, Inc. (NYSE:AMC) shares have managed to rise above its low of $3.86 to $5.80, respectively.
The movie theatre’s equity APE (NYSE:APE) fell below $0.70 in December but has managed to rise to current levels around $3.
Shares of AMC are up more than +47% in the past month while APE’s are up nearly +115%.
AMC Entertainment stock has been a buy for quite a while now given the high probability that it has bottomed.
Although shares can always come back down to retest key levels, an increase in trading volume is suggesting that more investors have begun to buy the movie theatre stock again.
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.
In recent news, Netflix’s showing of Glass Onion in movie theaters cost the streaming service $200 million for taking it out too early.
Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.
The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.
The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.
Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.
Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.
The strange release for “Glass Onion” also prompted industry insiders to question the streamer’s theatrical release strategy.
CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue. “
Amazon is Investing Billions in the Movie Theatre Industry
Stock Market News: Amazon plans to invest billions in Movie Theatre Industry.
Amazon plans to invest more than $1 billion per year into theatrical distribution releases per Bloomberg news.
Amazon.com Inc. will be investing billions of dollars to produce movies that will release in theatres, according to people familiar with the company’s plans.
This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.
The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.
Amazon is still sorting out this strategy said people who asked not to be identified.
That number of releases puts Amazon on par with major studios such as Paramount Pictures.
CNBC says this is a positive sign for the movie theatre industry.
“While a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business, which has struggled in the wake of the pandemic.”
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Market News: How hedge funds manipulate the stock market.
Hedge funds have been manipulating the stock market for decades.
But it wasn’t until now that a community has risen to raise awareness of market injustices.
The shorting of both AMC and GameStop stock have uncovered a number of nefarious strategies used against retail investors.
What is the SEC doing to regulate these financial entities?
We’re here to find out.
Welcome to Franknez.com – The blog that fights for retail investors. Today we’re discussing how hedge funds manipulate the stock market and what the SEC is doing about it.
Let’s get started!
Overleveraging Borrowed Shares
Hedge funds have an incredible supply of short shares available to borrow.
This advantage has allowed them to manipulate a stock’s share price by initiating short-ladder attacks.
While supply and demand are pushing a stock’s price up, hedge funds short the stock using an insane amount of leverage.
This predatorial strategy has yet to be announced as illegal nor has it been addressed by the SEC.
Off Exchange Trading
Hedge funds and market makers are getting away with being able to trade and swap stock in foreign exchanges where the stock’s price isn’t required to be disclosed.
They’re taking retail orders and, in a way, manipulating the circulating supply by not reporting accurate transactions.
We’ve seen this happen with Barclays.
Barclays CEO, Jes Staley – Hedge fund manipulation
Reports by Finra have been made public detailing multiple fines on Barclays for inaccurate books and records.
Barclays is one of Citadel’s clearing houses.
Off exchange trading where transactions aren’t displayed on the list market such as the NYSE is a massive problem the SEC is still trying to figure out.
AMC and GameStop have had an incredible amount of FTDs, or failure-to-delivers.
These are orders that have not been executed in options, and are usually a result of a ‘short party’ not owning or not having all of the underlying asset.
This has led retail investors to the educated assessment that synthetic shares are floating in the market; shares known as naked shares used to short a stock.
According to Investopedia, “Despite being made illegal after the 2008–09 financial crisis, naked shorting continues to happen because of loopholes in rules and discrepancies between paper and electronic trading systems.”
Naked shorting has gone mainstream with CNBC’s Melissa Lee and Fox Business’s Charles Payne bringing light to this predatorial practice in the market.
Retail investors must use their voice to address these issues to the SEC.
According to The Fool, you should invest in this or that “instead”.
We’ve seen the headlines countless times.
The Motley Fool is a source that provides its subscribers with hand-picked stocks with potential gains.
With tremendous respect, stick to what you do.
The integrity of this company is to help investors pick winning stocks, not to divert them from a stock due to its potential upside that can cause hedge fund partners to lose billions of dollars.
And that’s exactly what happened.
No matter how many times mainstream media outlets tried to divert retail investors from buying AMC stock, it cost hedge funds a lot of money all year.
And at the same time, a lot of retail investors have a lot of unrealized gains.
This ladies and gentlemen is how the media has tried to manipulate the performance of a stock.
This influence can sway a new retail investor from adding to the surging volume of shares being purchased in the market.
To the new retail investor – make your financial decisions based on your own due diligence.
Not on what media sources get paid to write about.
Yahoo Finance & InvestorPlace
Platforms such as Yahoo Finance & InvestorPlace have also had their fair share of negative headlines to try and divert the public from skyrocketing AMC to the moon.
With InvestorPlace even throwing a jab at GME investors saying, “If You’ve Made Money On GameStop, You’re Not An Investing Genius”.
Perhaps not, but I’m pretty certain these investors are wealthier than the person who came up with that punchline.
These media sources have been discouraging new retail investors from investing in AMC since the beginning of the year although the stock is up year-to-date!
Manipulation In the Stock Market
Robing Hood? Stock market manipulation
I’m sure you’ve all heard of the Robinhood scandal.
This is another form of manipulation in the stock market caused by the halt of buying power.
Robinhood prevented its users from buying stocks such as AMC and GME (GameStop) during GME’s bull run.
Although restrictions aren’t as tight anymore, we’re beginning to see trusted and beloved companies get exposed as hedge funds worst nightmares become a reality.
Today we’re seeing more people learn about how the stock market moves.
If more of the public is to understand how hedge funds pose a risk to our economy and businesses, we must expose these financial institutions for who they really are.
Franknez.com fights The Fool, Yahoo Finance, and InvestorPlace
Franknez.com is fighting for the community against malpractice from all news media shunning AMC, GameStop, and other retail favorites.
This platform will serve as a positive media outlet for the community and only spread factual documentation, and news related cited-sources.
I will not encourage retail investors to take a position in any stock.
However, I will outline the facts and evidence to help you make your own personal financial decision.
How can retail investors bring awareness to the community?
Retail investors can expose false information on social media to shine light on manipulation tactics driven by hedge fund partners.
Sharing factual and positive articles relating to the performance or analytics of a particular stock is another way the investing community can stay united.
Franknez.com is a platform for the community.
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Franknez.com is the media blog that keeps retail investors informed.
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