Tag: AMC (Page 1 of 26)

AMC’s Cost to Borrow Has Hedge Funds Burning Money

AMC Cost to borrow
Market News: AMC’s cost to borrow increases

AMC’s cost to borrow continues to rise.

In the past, we’ve seen how important this data has been regarding major price runup.

Not only does a high cost to borrow incentivize short sellers to close their positions, but it gets AMC one step closer to a squeezing.

In this article I’m going to break down the number figures and explain why the CTB and other data is pointing AMC in the right direction.

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Cost To Borrow explained

The cost to borrow is the average annualized percent (%) of interest on loans hedge funds have to pay.

For example:

AMC has approximately 197.22 million shares on loan as of the publication of this article.

Hedge funds are paying 215% annually on these loans.

This translates to approximately $424 million per year, or $35 million per month.

In the meantime, it’s costing retail investors $0 to hold their positions in AMC stock.

Hedge funds will continue to pay more as AMC’s cost to borrow rises.

Free Live Daily Updates: AMC Short Interest + more

Short interest

AMC short interest

AMC’s current short interest is: 24.36%.

This is the percent of a company’s free float that is shorted.

AMC is a short squeeze play because of this number figure.

This number figures tells retail investors that there is a high interest in shorting the company stock.

It’s this data that allowed retail investors to foresee big price moves in January and in June of 2021.

This same data tells investors today that AMC has the potential to hit another all-time high.

Some of you might be familiar with the correlations between short interest and rise to $72 per share last year.

AMC’s short interest dropped from 22% to 20%, then to 14% when it ultimately skyrocketed in price from $14 per share to $72 per share.

Despite what mainstream media has said in the past, no, AMC’s short interest is not too low to squeeze shorts from their positions.

Related: 93% of AMC Shareholders Say They’re Holding This Year

Will AMC’s cost to borrow force shorts to close?

AMC short squeeze
AMC cost to borrow – AMC short squeeze

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.

BREAKING: AMC Entertainment Gets $1bn Boost in Titles from Apple

Do you own AMC stock?

Are you an AMC shareholder or are thinking about buying AMC stock?

Leave a comment below.

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AMC Stock: Strategist Says Mother of All Short Squeezes is Here

Strategist Says Mother of All Short Squeezes is Here
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
AMC Stock: Mother of all short squeezes

A short squeeze requires a company to be heavily shorted, which AMC is.

AMC has a high short interest of 25%.

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
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).
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.

You can read more about AMC’s development’s here.

An AMC short squeeze isn’t as far-fetched as some might think

As you can see, there are no conspiracy theories or “what if’s”.

I’ve been documenting AMC’s short squeeze since 2021, shortly after shares rose to $22 per share and came back down in late January.

I witnessed months of momentum build until shares jumped to $72 per share.

And yes, it can be replicated.

Related: Will AMC Stock Squeeze in 2023?

Latest Naked Shorting News

Credit Suisse (NYSE:CS) clients have withdrawn billions of dollars.

In November, the bank warned investors in a 6-K filing of potential losses due to naked short covering.

Disarming these types of overleveraged positions won’t be easy.

Credit Suisse took a massive hit of $4.09 billion in Q3 and hinted at occurring losses in an upturn in markets.

Now Credit Suisse as postponed publication of its annual report, per Reuters — more on that below.

The bank hired 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster.

Is Credit Suisse on the verge of collapsing?

You can read more here.

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Market News: Strategist says Mother of All Short Squeezes is Here (MOASS).
Market News: Strategist says Mother of All Short Squeezes is Here (MOASS).

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Is AMC Entertainment Getting Ready for a New All-Time High?

is AMC Entertainment getting ready for a new all-time high?
Market News Today: Will AMC stock reach a new all-time high?

AMC Entertainment (NYSE:AMC) has officially surpassed gains upwards of more than +100% in 2023, is AMC getting ready for a new all-time high?

The movie theatre stock hit $8.41 on Tuesday during the market open.

On January 3rd, AMC stock traded below $3.93.

AMC’s short interest has also gone up significantly this week alone, rising from 23% to nearly 26% on Tuesday.

Why does AMC’s short interest matter?

In this article, I go over the importance of this number figure and how it is one part of the equation to an AMC short squeeze this year.

But more on that soon.

Share of AMC Entertainment jumped to $72 per share in June of 2021, months after the first price runup in late January.

Shareholders were able to capitalize on the move to $20 during the ‘meme stock’ frenzy, and again months later when AMC reached its all-time high.

Will a third runup be the biggest one yet?

Let’s discuss it.

AMC’s Short Interest is Higher than It Was in June

AMC all-time high
AMC all-time high 2021 – Franknez.com.

That’s right, AMC’s short interest is now higher than what it was in June when the company stock surged to $72 per share.

AMC’s short interest was near 23% before we saw shorts begin to close some positions.

Today, AMC’s short interest is nearly 26% and has more than 197 million shares out on loan.

AMC’s shares on loan (shares borrowed to short the stock) have been steadily rising ever since the movie theatre stock peaked in 2021.

These are shares that will eventually have to be returned back to the lender through a market buy-back; causing share prices to rise.

See, short sellers were able to take advantage of extremely low fees to short the stock but have now come across an interesting issue.

The cost to borrow AMC stock has risen to astronomical numbers, currently going as high as 731% to borrow overnight.

Ortex is reporting the CTB at over 250%; a fee this high may cost short sellers several millions of dollars per month.

Also Read: What Happens if AMC’s CTB Keeps Rising?

Will AMC Stock Keep Going Up?

will AMC stock keep going up
Will AMC stock go up?

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.

But I’m curious to know what you think.

Leave a comment down below.

🔥Related: Interactive Brokers Strategist Says Mother of All Short Squeezes is Here

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Pension Fund Attacks AMC CEO and Board Members in Lawsuit

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.
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:

  1. To convert shares of its equity APE back into common shares of AMC stock.
  2. Undergo a 1-for-10 reverse stock split.

More than 82% of shareholders said they were voting ‘yes’ on the proposals that would dilute shares and play in the company’s favor fundamentally.

CEO Adam Aron has not addressed the lawsuit against him and the company publicly to shareholders yet.

Leave your thoughts on what’s happening with AMC Entertainment in the comment section below.

You can read more breaking AMC stock news here.

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Market News Today: AMC and Adam Aron Lawsuit News.
Market News Today: AMC and Adam Aron Lawsuit News.

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How Big Could an AMC Short Squeeze Potential Surge?

AMC Short Squeeze Potential
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

AMC Stock 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.

Related: 5 Big Signs Pointing to An AMC Short Squeeze

How High is An AMC Short Squeeze Predicted to Go?

amc short squeeze price prediction

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.

Related: Latest Report Shows AMC FTDs Spiked to $31 Million

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?

AMC all-time high price

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.

I will update the numbers as more investors continue to participate.

Still, some argue that those who voted ‘no’ may have never been shareholders in the first place.

Nasdaq reports that AMC’s Preferred Equity (APE) has only 0.18% institutional ownership.

This means retail investors are the sole owners of AMC’s equity too.

So, the sentiment lines up.

Related: How to Buy AMC Stock (2023 Guide)

What is Your Top AMC Stock Price Prediction?

Your AMC price prediction might differ from someone else’s in the retail community.

Leave a comment down below what an AMC short squeeze potential looks like to you.

For more AMC stock news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

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It’s True, The Threshold Security Could Change The Game: AMC

AMC Threshold List
The SEC’s Threshold Security protects AMC from hedge fund manipulation

AMC Entertainment has joined the NYSE Threshold Securities list again.

The last time made this list was sometime in June of 2021.

This educational article is going to go over what this means for the company and how it even made the list in the first place.

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What is a Threshold Securities List?

AMC threshold securities list
Threshold Securities AMC List.

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.

We’ve been heard community.

And this is massive news.

Here’s how this will affect AMC’s stock price.

Related: Investors Say CEOs Should Fight Naked Short Like GNS

Why is a threshold security significant to AMC?

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.

SEC

“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

  1. 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.
  2. 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.

What do you think?

Leave your thoughts below.

Read: Deputy Global Treasurer Michael Kurlander resigns from Citadel

Sources

  • NYSE Threshold Securities AMC List – visit here
  • SEC Key Points About Regulation SHO – visit here
  • Threshold Securities – Investor.gov – visit here
  • Threshold List Definition – Investopedia – visit here

Market News Published Daily

AMC Stock News Today – AMC Threshold Securities List Update.

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The Rise of The Movie Theatre Industry Is Here

Movie Theatre Industry
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.

Related: How to Buy AMC Stock (2023 Guide)

Will AMC Have a Short Squeeze Soon? All You Need to Know

Streaming Services Aren’t Enough

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.

In October, AMC announced its first ever Netflix showing in 200 theatres.

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.
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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How Do Hedge Funds Manipulate The Stock Market?

how do hedge funds manipulate the stock market.
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.

Franknez.com

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.

Stock market manipulation
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.

Though the SEC is trying to implement the D-Limit order that will allow stocks to trade under IEX, they’re having trouble from hedge funds and market makers.

Citadel has sued the SEC on this matter, we have yet to receive a public update on the case.

Related: 95% of Retail Orders Don’t Go Through the Lit Exchange

Naked Shorting

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.

Related: GTII Pursues Legal Action Against Naked Shorts

The Use of Mainstream Media Outlets

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

robinhood stock market manipulation
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.

Read: Why new retail investors investing in AMC should avoid Robinhood

A House of Cards, r/superstonks (Reddit Post)

A Redditor just posted an insane amount of DD on Reddit.

This long form post discusses the transition from paper filled orders in the stock market to the use of computers going tracing back to the mid 80s.

The post reveals the beginning of issuing naked shares.

We’re also learning that a lot of transaction are being held by the actual institutions that are shorting these stocks.

Robinhood routes more than half of it’s customers to Citadel.

This information has now been disclosed via the Washington Post.

You can read the full Reddit post here.

Trey’s Trades does a quick breakdown on this DD as well.

The video is embedded for your viewing pleasure.

It costs retail investors nothing to hold, but it costs shorts and hedge funds money every day.

It’s only a matter of time before a squeeze occurs, no matter how manipulated the stock market gets.

Related: Citadel loses billions: Hedge funds are getting dragged down

Franknez.com fights The Fool, Yahoo Finance, and InvestorPlace

franknez.com

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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