Advantages retail investors holding AMC stock have over hedge funds
Community, today I want to remind you why you’re winning. We’ve been holding AMC stock for many months now. Us seasoned apes have seen some gains at this point. New retail investors buying the stock, don’t get overwhelmed if you’re not there yet because your time is closer than you think.
If you’re feeling uncertain at some point just come back to this article. Here are 5 advantages us retail investors holding AMC stock have over hedge funds.
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#1. Holding AMC stock costs us nothing
You hear it over and over and over again community. Hodling doesn’t cost us a thing. Hedge funds on the other hand are paying a fee to continuously short AMC stock.
Hedge funds have lost billions from apes simply not cashing in profits yet. They can’t keep playing this game forever, our community is a big threat to their customers and business as a whole.
Whether you have gains or not on paper, know that you holding a position in AMC is costing the bad guys money. Remember, patience is a virtue. We can hold at ease while they hold in stress.
#2. Apes own majority of AMC’s float
The combined percentage of whales and apes that own AMC’s float is 80% according to Adam Aron, CEO and President of AMC Entertainment. I’ve heard Trey mention the retail investor percentage is about 60%.
Ladies and gentlemen, we literally own the company. Just to put things into perspective, Tesla has about 33% retail investors while Apple has approximately 40%.
Whales, or institutions, will be selling on the way up. We’ve seen this happen before. I bring this up because it means that at some point we will own more of the company. This is significant because it allows us to be in control of when we want to sell stock and what price we’d like to sell the stock.
What you hold is more valuable than you know. By the time hedge funds and short sellers have to cover their position, it’s going to be very expensive for them. We hold the supply, their request for the stock back is the demand. When demand increases the price also increases.
#3. We’re investing our money, not other people’s money
This is big psychologically speaking. As retail investors we have more sentimental value attached to the dollar that’s being invested. We will hold because we simply have no other option.
Our families depend on it and there’s absolutely no way we will ever cut our losses or cash in anything other than life changing profits. We’ve locked ourselves in on this game and have put away the key until the time is right.
Hedge funds on the other hand are burning their clients money. It’s not theirs so they don’t care. They’ve borrowed money from every crevice that will lend it to them but continue to severely take losses. If hedge funds were playing with their money, they would have closed their positions months ago.
And although leveraging other peoples money has played in their favor short term, the gash it’s going to leave long term is monumental.
#4. The AMC community is getting loud
Our community is being heard now by the media. We now have Melissa Lee from CNBC and Charles Payne from FOX Business questioning the SEC regarding the illicit activity of naked shorting.
When a community is loud enough change begins to slowly happen. We are more powerful than you think. Unification of the people is one thing governments fear the most. At some point the people who denied the manipulation in the market, like Charles Payne did many years back, will be joining us.
This revolution will be one of those things where it simply can’t be swept under the rug anymore. These are different times.
There’s been headlines about the SEC allegedly fining hedge funds for naked shorting. Not much information has been released regarding this. However, if the SEC doesn’t do their job then our community will be exposing them as well.
Leadership in the community
Apes in the community are also using the platforms we have as a means to help fight FUD and the manipulation. We fight the lies with the truth and educate our fellow members any way we can. Unlike hedge funds who have superiors, we have multiple leaders in our community.
#5. We’ve saved the entire movie industry
Have you ever stepped back and thought about this? If you hold AMC stock you literally helped save the entire movie industry along with the oldest movie theater business in history.
Our community did that, you did that. That is how powerful we are united. The fact of the matter is that there’s a future, a blimp in time where shorts get squeezed out of their positions. If the community can save an entire movie industry from going bankrupt, then the community can certainly squeeze the culprits who’s goal was to drive AMC Entertainment into extinction, out of their positions.
These short sellers have a backwards way of thinking. We should be supporting our businesses worldwide, not betting on them to shut down. Their way is not the way and for that reason they will continue to suffer extreme losses.
They said this is what we’re doing and we said no, this is what’s going to happen. It’s time for change. The biggest transfer of wealth is about to take place and it’s going to be marked in history.
And lastly . . .
Remember your why. Write down your goals and affirmations. Practice visualization because your mind and thoughts are that powerful. You become what you think about the most.
Red days, green days it’s all part of the process. Red days are needed just as much as the green days are. Any red days we experience become buying opportunities and help us stair step the way up.
Short sellers will continue to borrow shares to drive the price down. This is only going to make this squeeze that much BIGGER. The only reason hedge funds continue to short the stock is because they’ve run out of options. They’re desperate and it’s all they can do. Their defeat is already written.
If you’ve been following the stock market news you’ve probably heard of all the hype surrounding AMC stock and GME (GameStop).
It wasn’t long before traders flocked over to AMC after the massive gains GameStop yielded due to the high percentage of shorting within the stocks.
Shorting a stock is the process by which sellers essentially bet on the stock price to drop. They borrow stocks at higher cost and sell the stock low, profiting the difference.
Well, investors over at r/wallstreetbets found that by purchasing stocks at low price in heavy volumes it would drive a short squeeze. A short squeeze occurs when a stock jumps sharply higher, forcing short sellers to buy higher, causing them to lose money. Lots of it.
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Will we see a squeeze with AMC?
There are numerous news that lead traders and investors alike to predict an upcoming short squeeze like we saw with GME (Gamestop).
CEO of AMC announces AMC is no longer going bankrupt (via. Los Angeles Times)
Vanguard, Wells Fargo, BMO Harris, BlackRock, Fidelity and many more institutions are buying AMC stock while it’s low (via. CNN Business)
AMC is currently the most shorted stock (via. MarketWatch) Unfortunately MarketWatch has hidden AMC from their list. Retail investors suspect foul play.
AMC is also currently one of the most held stocks surpassing Apple (AAPL) and Tesla (TSLA) (via. Nasdaq)
More publicity and awareness has average people investing in AMC which is driving volume for a potential squeeze
Big institutions keep buying AMC stock
We’re seeing huge institutions are investing in AMC stock while it’s affordable. Because it’s affordable we’re also seeing average people invest in this stock.
As long as the stock is being held, though lows and through highs, a squeeze like we saw with GME (GameStop) is certainly possible.
AMC stock closed at $55.18 on June 16th. The stock has been green for quite some days now and is more bullish than ever. However, shorts continue to short ladder the stock causing some consolidation. AMC wants to keep climbing.
Short-laddering occurs when short investors buy back their shares at a low price, driving down (or leveling the stock) gains. These are the attacks we’ve been seeing whenever AMC begins to see gains, all year.
As long as AMC shareholders continue to hold and buy the dip, short investors are at a disadvantage.
Great news for AMC Entertainment
Other news that can further drive the share price of AMC stock is the announcement that most AMC theaters have now begun to open up.
BREAKING: AMC’s short borrow fee as of 6/16 is 1.68%, via. Fintel.
The fee is going up although it had recently come down.
What is a short borrow fee?
The short borrow fee is the interest shorts pay for borrowing shares of AMC stock.
This means shorts are losing money every day by not closing their positions. If we want to squeeze shorts from their positions we’ll need to see this short borrow fee gradually increase.
Why the short borrow fee rate matters
It costs shorts interest to hold while it costs the retail investor absolutely nothing to hold.
Shorts are losing money every day they hold because of this interest fee for borrowing the stock.
For some reason shorts still think AMC Entertainment can go bankrupt, although they have enough money to continue doing business.. I know, I don’t understand this either.
As hedge funds like Melvin Capital lose money, the short borrow fee will go up to make up for some loses. As the interest goes up, shorts will naturally cover. If they don’t, they will continue to pay interest for borrowing.
How high can AMC stock go up to?
Because we’ve seen a lot of suppression in the market due to short-ladder attacks, many traders are anticipating AMC stock can get as high if not higher than GME (GameStop).
This is actually quite logical given that we’re seeing more and more people and institutions alike purchase AMC stock and hold their positions.
There’s a notion that all these suppressed gains will result in a massive short squeeze during the Summer. Again, this is all speculation but all signs are pointing towards big gains.
So, is it too late to purchase AMC stock?
Not at all. In fact, if you’re looking to get into the AMC train now is the perfect time to do so.
The price after a short squeeze eventually fall back down and level out, but this will take time. With AMC stock treading below $100, now could be the perfect time to buy. Just don’t wait too long because we hear it’s going to the moon.
AMC’s short borrow fee keeps going up, hedge funds continue to short it, volume is increasing; it’s the perfect storm for a short squeeze.
Things to expect in the market with AMC
Volatility followed with an upward trend in price action
Short-ladder attacks
Headlines advising you to trade in something else
Hedge funds to lose a lot of money
More retail investors buying this stock right now
A series of gamma squeezes
And, a highly potential short squeeze that can happen at any time
How many AMC shares should I buy?
If you’re planning on taking a position in AMC Entertainment set a budget for investing. Since the market is volatile at the moment, purchase shares incrementally.
The best time to buy a stock is when the share price has dipped. This will allow your investment to see gains when the stock price rises again.
Ladies and gentlemen, the last thing you want to do is to invest more than you can handle to lose. This advisory must be made.
If you’re holding AMC stock leave a comment below and let me know what a short squeeze would mean for you. Retail investors can feel it, the tendies are coming.
Where can I invest in AMC? What’s a good platform?
If you have not opened a brokerage account to begin investing, read how to invest in the stock market (step by step). In this post you will see a number of linked platforms that you can check out!
I personally use Vanguard. Vanguard has proven to be useful and it has never failed me before. Here, I hold long-terms stocks as well as a position in AMC.
Important Advisory
It is important to note that I am not a licensed financial advisor. Like many traders and self taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.
On another note: It would be wise to not invest more than you can afford to lose. In other words, invest money you would be okay with losing for simpler terms.
More info on AMC from Trey’s Trades (Analyst)
Trey is an analyst in the stock marketing and trading world. His videos are super fun to watch as they are very informative and downright transparent. Furthermore, Trey’s personality just makes the videos all that much better.
Be sure to follow Trey as he engages his audience live when the market opens for real-life discussions.
Trey’s Trades – AMC Huge Institutional Buyers!
It’s important to keep yourself updated with the latest AMC news so you can invest with confidence.
This is not Trey’s Trades most recent video but it’s a very important one. Be sure to keep up with AMC analytics so that you’re aware of the play.
Another great Analyst covering AMC right now is Roensch Capital. They’re a little more analytical, but a trustworthy source nonetheless.
Everything is falling into place for AMC stock
Other YouTubers covering AMC in depth include Matt Kohrs, Max Maher, and Andrew Mo Money.
What’s cool about these YouTubers is that they all go on each others channels from time to time and do collaborations regarding DD. Trey and Roensch Capital are by far my favorite channels covering AMC.
I personally started following Trey’s Trades when he had about 10,000 subscribers. He’s nearing 300,000 now, and well deserved by the way.
But, if you want daily technical analysis on AMC, Roensch Capital is the channel for you.
Ignore the bogus headlines from The Motley Fool and other sources
AMC and r/wallstreetbets have been given lots of negative press from the likes of The Motley Fool and other sources; shaming the purchase of the stock.
Fortunately we’ve been backed up by the real Wolf of Wall Street as well as Mark Cuban, Chance The Rapper, and other big names.
Influential outlets with powerful hedge fund partners (institutions who short the stock) have been attacking traders and investors by providing false information wherever they can.
What we’re seeing right now is that the big guys are losing money due to the price of shorted stocks going up. They will say and do whatever they can to divert the public from trading this stock.
My personal suggestion to you is to not let these sources intimidate you. Do your research to see how the stock price has been manipulated through bogus headlines and short-ladder attacks.
Not to mention, the complete halt of trading AMC stock by Robinhood. That’ll be another post for you.
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It looks as if AMC has now entered bullish territory. And yet again sources such as The Fool and other hedge fund partners are trying to steer the public from investing in this specific stock. Shame on you shills. Well, just how high can AMC stock price skyrocket up to?
AMC stock price closed at $55.18 on June 16th. The share volume has been increasing with new retail investors getting in on stock before it takes off. AMC Entertainment had an amazing runup today. The crazy thing is shorts haven’t even begun to close their positions. Ladies and gentlemen, the short squeeze hasn’t started.
Most of the market has been on sale and AMC has been no exception to that until now. AMC wants to keep climbing. The stock has seen green candles for a week straight now both during market hours and after hours.
Welcome to Franknez.com – the blog where you can digest posts on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
Lets get started.
What do we know about AMC stock price?
AMC’s stock price continues to be volatile although we’ve seen the stock is scared of single digit share price numbers.
No matter how many times this stock is attacked by short sellers, it keeps correcting itself upwards.
Key highlights
We’re seeing AMC stock price enter bullish territory due to an increase of retail investors buying the stock.
‘W’ shape formations in the performance of the stock also indicate bullish territory.
Retail investors and large institutions alike, like the stock. Buyers include Vanguard, Charles Schwab, Wells Fargo, and BlackRock.
What causes AMC stock price to rise during ‘power hour’ is how many more shares are being purchased before trading hours close. As retail investors continue to buy the dip and hold, we’re going to continue to see this trend of perpetual gains.
The stock price is still relatively low enough for majority of people to buy, but hurry before it’s too late.
The short borrow fee continues to increase, this means shorts will have to close their positions soon
Adam Aron has done an outstanding job with the media in the past months and continues to show a positive and bullish sentiment towards AMC.
He is now praised among the retail investors community holding AMC. And for good reason too.
See what CEO and President of AMC entertainment has to say to CNBC news about AMC Entertainment reopening and the Reddit movement.
As of today, all AMC movie theaters are now open 4/14
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
In a more recent interview we get an exclusive behind the scenes moment with Trey’s Trades and Adam Aron.
If you haven’t watched the video you’re not gonna want to miss out.
In this personal interview from the CEOs home, Adam Aron talks about the 500 million share dilution, which by the way as of today has been taken off the table, as well as his experience and perspective behind the the Reddit phenomenon.
I wrote a small piece on Adam Aron being rightfully named the king ape here.
AMC’s Short Borrow Fee
AMC’s short borrow fee as of 6/16 is: 1.68% via. Fintel.
The longer shorts-sellers hold their positions means the higher the borrow fee may increase. This is great news for retail investors.
Shorts eventually have to cover their positions and when they do, AMC’s stock price action will continue to rise, inevitably creating a short squeeze.
Why AMC’s short borrow fee matters
While it costs the retail investor nothing to hold their position in AMC, it costs shorts interest.
Shorts are more willing to hold their positions if the short borrow fee is low so they’re losing money every day they hold.
Remember, shorts still think they can bankrupt a company that is no longer going bankrupt.. I know right?
As hedge funds like Melvin Capital lose money, the short borrow fee will go up to make up for some loses. As the interest goes up, shorts will naturally cover. If they don’t, they will bleed bad. With the short borrow fee being so high at the moment, it has retail investors speculating a short squeeze will start soon.
Melvin Capital suffered 49% loss 1st quarter
Hedge Fund Melvin Capital – AMC Entertainment
Melvin Capital is a hedge fund that has been shorting both AMC and GameStop. Well it turns out holding has paid off one way. The company was down almost half percent their first quarter of 2021!
These are people who want to put your favorite businesses out of business. Ladies and gentlemen, the good guys always win.
If retail investors keep holding, institutions are going to raise the short borrow fee. Unless hedge funds don’t start closing their short positions, they will cease to exist. Or at least cease to run operations until they open a new firm from scratch. But who will trust them? Their clients are losing money.
Hedge funds are a sinking ship
Cramer said, anyone shorting AMC and GameStop are going to lose. And he’s right. Retail investors are holding until shorts are squeezed out of their positions.
Shorts can either:
Take the loses and close their positions right now where the stock price is around $55.
Or, get squeezed out of their positions at a high interest rate above $55, resulting in even bigger losses.
With hedge funds shorting AMC losing billions of dollars its first quarter, it’s no surprise we’re going to the see this occur their second quarter as well.
How will this affect AMC stock price?
I can imagine shorts and hedge funds alike must be furious. The little guy causing a disruption, what!?!
My personal take is retail investors are going to continue to see foul play. You’re going to experience this from bogus headlines. They’ll usually try to steer the public from buying AMC stock to keep the volume and hype down.
Not sure if hedge funds know this yet but you do know documentaries of what’s taking place are in the works right?
Independent filmmakers such as the Mulligan Brothers will be covering this story from the retail investors perspective and rumor has it Netflix will be writing as well.
Expect AMC stock price to rise and continue to be shorted. We will see volatility with shorts attacking the price action. They do this by trading synthetic shares at low bids.
AMC Entertainment is currently the most shorted stock in the market (via. MarketWatch).
Unfortunately, MarketWatch has completely eliminated AMC from their list. Retail investors are suspecting foul play from the hedge fund affiliates.
Because AMC is an extremely high shorted stock, analysts continue to demonstrate their conviction towards an AMC short squeeze.
The key here is for retail investors to hold their positions as they see some momentum beginning to build. #diamondhands
Key: If investors want to see AMC squeeze, they’ll have to refrain from selling at the sight of early profits.
AMC stock predictions (analyst)
AMC prediction from Fidelity TRADER PRO
Trey’s Trades walks us through the positive moves AMC has been making from an analysts perspective. Trey presents his audience with transparent information and has been a key player in the analytics world for ticker symbol AMC.
Although this video is an earlier video, Trey’s videos are packed with relevant information that still apply to where the stock is today.
r/wallstreet bets and Discord
Members over at r/wallstreetbets and Discord anticipate AMC stock price can skyrocket as high as $1,000-$10,000 mainly due to the stock’s popularity and trends in analytics. Yup, that’s crypto numbers.
The number of phantom shares hedge funds have to cover is astronomical which is why the community is calling this the mother of all short squeezes (MOASS).
By holding shares in AMC, retail investors are setting up a supply and demand scenario where short-sellers will eventually need to buy from them.
This in turn can drive the stock up as high as the retail investor chooses, theoretically speaking.
Large institutions such as Vanguard, Wells Fargo, BMO Harris, BlackRock, Fidelity and many more are buying AMC stock while it’s still low (via. CNN Business).
Take that for what it is.
Whether that number comes to fruition or not, retail investors will have to continue to hold and to add to their positions in order to skyrocket AMC’s share price.
We’re seeing more and more retail investors join the fight against short-sellers. Short-sellers are the investors betting on AMC Entertainment to lose.
There’s been a lot of speculation that due to the possible number of outstanding synthetics could be in the billions, AMC may potentially squeeze past 6-figures.
Personally, I’m open to this concept. Shouldn’t we all be? I just recently found ReviewDork on YouTube. Gabe talks about this possibility and walks us through some math. Check him out.
Is it too late to get in on AMC stock?
If you’re looking to take on a position in AMC you might want to get on the train before it takes off for good.
Retail investors are teaming up together to see their visions come to fruition. And they’re not waiting on anyone.
What we do know is that the current share price is still affordable.
AMC’s stock price can really be anywhere. It really depends on when shorts close their positions.
Short could have covered when they drove the price back down to $8. It would have been wise considering the stock continues to correct itself in an upward trend and has now set itself up for the perfect squeeze.
If shorts continue to play the long game, AMC’s stock price could potentially be higher when it squeezes. In this case, shorts would have lost a lot more money due to accumulating and rising short borrow fees.
Can AMC squeeze after hours?
A question some people might have is whether or not AMC could potentially squeeze after hours.
AMC can certainly squeeze after hours when the market closes. In fact, it wouldn’t be surprising if it did this. AMC’s stock price would continue to surge as retail investors watch immobile.
For one, shorts could decide to cover before the market closes in attempts to throw one final blow to retail investors. This would give the price action to potentially come back down after hours.
Should you worry?
I wouldn’t worry if this was the case. Although squeezes can last anywhere between minutes to hours, they can certainly last days too.
Volkswagen’s squeeze back in 2008 lasted approximately four days. GameStop’s lasted even longer.
Here’s how you can prepare for a short squeeze
A squeeze can technically happen at any time. The short interest doesn’t necessarily have to be high. Shorts could choose to close their positions with little loss opposed to massive losses.
If you’re in a position to keep an open tab on your browser that is updated AMC’s stock price in real-time then I would suggest doing so.
Own an Apple watch? Keep the stock in your background. This is a very convenient way to keeping tabs on the stocks performance.
Join discords where you can be notified when something massive is going on.
When a squeeze happens you’ll know. Just don’t get a short squeeze confused with gamma squeezes.
Gamma squeezes are usually small spikes resulting from extremely bullish actions coming together at once. Otherwise known as relatively healthy gains of built momentum.
A short squeeze will be something more sudden and disruptive. You’ll know when this goes to the moon. AMC’s stock price will break through the charts and leave earths atmosphere.
What should I do when AMC squeezes?
This is completely up to you! Congrats for holding and seeing this through.
You can choose to sell your entire position and collect your profits or you can continue to hold and find out whether the squeeze continues to go up.
Unfortunately, we can’t time the spike. For all we know, the initial squeeze might not be the potential price action. This makes it difficult to calculate the best time to sell.
You could sell a portion of position and wait to see how AMC’s stock price moves.
We created a thread for you to share how you will use the money when AMC squeezes as a means to spread positivity and share with the community. You can check it out here.
What is a circuit breaker halt?
A circuit breaker is usually a rule in the market that essentially pauses or halts trading for 5-15 minutes.
A common circuit breaker type is the Volatility Pause. This helps smooth volatility in the market and prevent flash crashes. It forces traders to take a 5 minute timeout, research the stock, news, etc. Often times if a stock is spiking up and is halted, it will reopen higher.
Inversely, a stock selling off will often open lower.
This is worth mentioning because it’s important for our readers and the ape community to be aware of possible halts as AMC’s stock price becomes more volatile. If you happen to experience a circuit breaker halt do not panic. It’s a policy to make sure trading goes as smooth as possible.
Important Advisory
It is important to note that I am not a licensed financial advisor. Like many traders and self taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.
Note: Before roaring kitty blew up as the analyst for GME, only a handful of people followed him through and reaped the rewards.
We’re seeing another analyst obtain a similar following with AMC. Take that for what it is.
Where can I invest in AMC? What’s a good platform?
If you have not opened a brokerage account to begin investing, read this post on how to invest in the stock market (step by step) to get started. In this post you will see a number of linked platforms that you can check out!
AMC sat around $5 for quite some time before moving back up to the $14 range. We’re currently seeing AMC trade around $55. with some consolidation. AMC’s stock price has been trending upwards with consolidation and has been less volatile. This is very good price movement. AMC stock has never had a healthier setup.
Are you holding AMC stock?
Let me know what a short squeeze would mean for you in the comments section below.
A quick message from Frank Nez
A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at.
So, I published this video to tell you just that. Thank you.
What a storm. What a battle right? AMC keeps on keeping on, and although AMC has been on discount recently, the stock seems to have a very nasty and bullish attitude.
Yes, shorts have been able to drive the price down through naked short selling but more on that later. Retail investors are very excited about the data that’s been collected for months now. Will we see an AMC short squeeze while we continue to ride this bull? And if so, how soon?
Welcome to Franknez.com – the blog where you can digest posts on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
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 $55.18 on June 16th. The stock has fundamentally surged despite short sellers attacking it. AMC Entertainment is set up for a short squeeze.
The perfect time to buy AMC stock is when the market is red, or what we refer to as on ‘discount’. AMC is looking bullish though, red days might just be over.
AMC entertainment continues to be the most heavily shorted stock in the market.
AMC’s short borrow fee continues to increase.
Some of you reading this article might have been holding since February now. Kuddos to you for holding the line. If you’re a new retail investor getting in on AMC be sure to thank the seasoned apes when you get a chance.
Below is a series of documented facts and positive news that all influence AMC’s potential towards a short squeeze. One thing is certain, it’s inevitable.
AMC stock news and highlights
FOX Business reported AMC to have a strong chance of a short squeeze. Coming from a big news platform it certainly brings the stock sentiment up for most retail investors.
This is the type of news retail investors need to keep an eye out for.
Strong chance of a short squeeze – Fox Business AMC
AMC is still currently the most shorted stock in the market.
Unfortunately, MarketWatch has completely obliterated AMC from their list. Being a hedge fund affiliate, retail investors suspect foul play.
President and CEO of AMC Entertainment Adam Aron, announced AMC will reopen all 13 AMC theaters in New York City as of March 5th. As of today, all AMC movie theaters are now open across the United States with many selling out.
“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.
Melvin Capital suffered 49% loss 1st quarter
Melvin Capital Hedge Fund – AMC
This is huge! Melvin Capital is a hedge fund that has been shorting both AMC and GME stock.
Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider.
Here’s why this matters:
Not only are shorts losing money every day but huge hedge funds are bleeding
This is a huge win for retail investors
Unless shorts close their positions, hedge funds will continue to suffer
Interest rates can skyrocket for short sellers enabling them to close their positions
An AMC short squeeze might be closer than we think
Here’s what retail investors can do:
Continue to hold your positions, it’s free
Buy the dips to counter any short attacks
Share articles on social platforms that can provide value to the community
Keep a close eye on the stock to not miss the squeeze
I’m going to discuss a little more on the short borrow fee that continues to increase for these hedge funds shorting the stock. This is going to be a massive component to a short squeeze.
Positive news for AMC Entertainment
Adam Aron gives positive news on AMC Entertainment
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 for me to spread the 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.
There will not be a 500 million AMC share dilution!
In recent news, Adam Aron has announced that AMC Entertainment no longer plans on proceeding with the plans of adding 500 million more AMC shares to the arsenal in a tweet on Tuesday, April 27th.
Adam Aron – President & CEO of AMC Entertainment
You can read AMC Entertainment’s official announcement on their press release page here.
Short sellers fell for an AMC dilution
As of 6/16, we’re seeing 2.3 million short shares have been made available to borrow, via Fintel.
Was Adam Aron’s approval request of a 500 million share dilution to his shareholders a strategy to trick shorts into borrowing more shares? I personally think so and it’s absolutely genius. Shorts continue to borrow shares.
While shorts might have the capability to short AMC stock, this is only temporary. They will run out of borrowed shares and eventually have to cover. There are finally investigations going around regarding naked shorting.
Yeah.. I sense a grand mother of all short squeezes. #GMOASS
What does this mean for the AMC shareholder?
Expect to see gains after shorts have run out of borrowed shares to use. Hedge funds and short sellers alike have dug a deeper hole for themselves. What this means for the AMC shareholder is a squeeze bigger than anything the market has ever seen before. I am personally doubling down.
Not only is bankruptcy off the table (via. Los Angeles Times), but AMC movie theaters are now about to begin reopening in larger parts of the United States. Which of course now introduces revenue.
AMC Q1 earnings for 2021
AMC announced their Q1 earnings for 2021 on Thursday, May 6th. Things are looking particularly bullish and optimistic to say the very least.
For the retail investor this means the upper hand is yours. AMC Entertainment has raised over $2 billion dollars to hold them off until the year 2022. And we still have to go through Q2, Q3, and Q4!
Unfortunately for hedge funds shorting the stock, it’s over. If you missed the conference call you can view it here for your viewing pleasure.
AMC Q1 2021 highlights
The AMC community is recognized
Q1 earnings are higher than last years 4th quarter
Expectations for Q2 – Q4 are much higher
Food and beverage sales are up by 45%
Sales revenue will continue to rise as new titles are being released
When will an AMC short squeeze happen?
It’s really hard to tell. Even experts can’t identify an exact date and time. However, the possibility of an AMC short squeeze is certainly possible given that it is still the most shorted stock in the market and the stocks volume continues to rise. 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 losing money, it’s only a matter of time before the short borrow fee continues to skyrocket and shorts have to close their positions.
It’s tendie time!
Analyst AMC predictions
With that being said, Trey’s Trades predicts a short squeeze is now certainly guaranteed. Trey has been a leader in the AMC community and deserves a spot on this page.
More data points towards the stock reaching $1000+ per share.
See what stock analyst Trey has to say.
AMC short squeeze
The real questions is how can retail investors make this AMC short squeeze happen?
We know that short-sellers eventually have to cover their spots. 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.
NOTE: Retail investors do have to sell a bit as the price goes up in order to keep that momentum. Look at it as giving rats crumbs. Not only will they want more but they’ll need more.
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.
Hedge funds are doing everything they can to prevent an AMC short squeeze from happening
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’.
According to Trey’s Trades we’ve already hit the bottom. AMC is now extremely bullish. We’ve seen resistant levels around $14-$16 recently which is a great push from $5. We’re now sitting at $55.18 per share.
Recent performance and news is leaving retail investors with positive speculations. An AMC short squeeze will certainly make headlines. Expect to see various gains prior to any sort of major peak as well as volatility.
Retail investors will have to hold their positions through upcoming gains if they want to see AMC short squeeze.
But most importantly, they’ll have to refrain from selling at the first sight of gains if they are to see bigger and more massive gains.
Gamma squeeze vs Short squeeze
Don’t confuse gains and momentum with a short squeeze.
Here’s the difference between a gamma squeeze and a short squeeze:
A gamma squeeze are momentum gains. These usually occur from call options closing in the pocket resulting in heavy buys or purchases in the market.
A short squeeze is vigorous and can spike with no warning. This is where you see 100% gains in a matter of seconds and minutes. A short squeeze can even reach 1000% and 10,000% gains.
AMC Short Squeeze Stock Prediction
New retail investors are wondering whether $1k, $10k, or even $100k per share is even possible.
Gabe from ReviewDork does some math that’s going to leave you with an open mind.
AMC stock price predictions range from $1,000 to $100k+.
Will AMC reach peaks like GME?
AMC has been fortunate enough to receive more publicity and hype than GME did, at least recently. The volume will speak for itself and retail investors will just have to wait to find out.
We’ve seen that abnormal gains are naturally part of a short squeeze. Volkswagen rose up to nearly $1,000 when it squeezed back in 2008 due to a similar strategy produced by car manufacturer Porsche.
Analysts are predicting AMC can even go above the $1K mark if retail investors and institutions alike continue to buy and hold their positions. Wouldn’t this be something. If you’re holding 1,000 shares and AMC spikes to $1K per share, you my friend have made 1 million dollars!
Absolutely not, at least not yet. AMC Entertainment is still heavily shorted. You will have to decide whether its current share price is worth it if trades at $100, $500, or even $1,000+. AMC Entertainment stock has not even started squeezing yet.
Redditors have touched base on this topic and advise anything below $100 is a buy. I’ve been personally buying the stock when it dips. This allows me to pick up more shares at a discount.
If you’re a beginner, I recommend buying 5-10 shares of AMC stock. This amount will give you a feel of the market. Not only is it affordable, but if the market is red you won’t see much loss on paper.
Where was AMC trading at before the pandemic?
AMC was actually trading between $30-$35 back in the booming party economy of 16′! AMC stock started to decline as their debt increased and hedge funds began to heavily short it.
What if a short squeeze doesn’t happen?
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.
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. I update this post when new titles make the headlines regarding earnings.
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 the most 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 and short sellers are going to be forced to close their positions very soon, more on that coming up.
As Mark Cuban bluntly put it, keep holding.
Why hasn’t AMC squeezed yet?
AMC hasn’t squeezed yet primarily to two main reasons.
We need more volume to drive the stock price action up
Shorts need to close their positions
Volume really just comes to more and more retail investors as well as institutions getting in on AMC stock.
Regarding shorts covering, 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.
AMC short borrow fee (Fintel)
As of 6/16 AMC’s short borrow fee rate is 1.68%.
Unfortunately for shorts, an AMC short squeeze is inevitable. Retail investors are not giving up.
Aside from this, 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 recently brought awareness in an interview with Trey’s Trades that this selloff from Wanda is simply policy from China. Retail investors should not be concerned.
We’re bullish on AMC stock
All the numbers point towards the right direction for a massive short squeeze. Shorts and hedge funds continue to lose money every day. The interest is growing at an alarming rate and AMC’s current utilization is at 100%.
The lives of these retail investors are about to completely change. Say goodbye to your old world.
A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.
If you haven’t subscribed to our newsletter be sure to do so to stay informed when a new blog post is published. Blog posts will range from personal finance to business and even investing posts like this one.
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.
By now you’ve probably heard all the hype surrounding AMC Entertainment. If you’ve been following me for a while then you know I’ve been covering AMC since the beginning of February.
It is absolutely amazing to see more and more people begin to invest in the stock market. You can bookmark this step by step guide on how to invest in the stock market in case you haven’t opened your brokerage account yet.
My goal is to help guide you in your journey to becoming financially free.
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Why are people investing in AMC stock?
People have the chance of a lifetime.
AMC was forced to close its doors to the world when the pandemic hit. AMC Entertainment suffered huge losses and hedge funds began doubling up on their short positions in attempts to bankrupt the company. Their goal was to get rid of the most respected movie theater franchise of all time, profit, and wash their hands clean.
Retail investors gathered on subreddit communities and decided to buy the stock and drive the price up; like they did with GameStop. This teamwork caused a gamma squeeze driving the price action from $2 up to $20. This allowed AMC Entertainment to raise enough capital for bankruptcy to no longer be on the table.
Since then, AMC Entertainment has been able to raise more than $2 billion dollars from life long partners. These partners have supported AMC since the inception of the company 100 years ago.
Retail investors saved AMC and are now looking to squeeze short sellers out of their positions.
AMC is currently the heaviest shorted stock in the market
Analysts discovered that AMC has a massive short squeeze potential. A short squeeze is a massive move up in price action. Short squeezes are violent and may produce 100%, 1,000%, and 10,000%+ gains.
What we discovered is that hedge funds shorting AMC Entertainment were overleveraging their positions. Meaning they were borrowing shares from brokers at an interest to drive the price down.
Short selling is the process of borrowing a share, selling it much lower, and profiting the difference when they pay back their lender. Short sellers usually bet on the price of a stock to tumble.
Here’s an example of short selling
AMC’s stock price was around $30 back in the booming party economy of 2016. Say short sellers borrowed 10 shares of AMC for $300 betting it would drop. Shorts would then sell the stock at the market value of $300 (you and I purchase it at $30) and wait for it to drop in due time. If the stock price fell to $25 per share then the short seller could buy back those 10 shares, profit the difference ($50) and give back the 10 shares they borrowed back to the lender.
AMC stock is going up, what happens then?
Here is what’s attracted millions of retail investors and huge institutions such as Wells Fargo, Vanguard, Morgan Stanley and many more to AMC Entertainment.
AMC stock is no longer on the brink of bankruptcy and it is having an extremely healthy bullish run. The reason we’ve seen consolidation and red days is due to the massive amount of short ladder attacks conducted from short sellers and hedge funds.
A short ladder attack is a method used by short sellers where they transact synthetic shares amongst one another to drive the price of a stock down. This is only one of many ways we’ve seen foul play in the stock market.
Hedge funds shorting AMC are losing millions of dollars every day they don’t close their positions
Now here’s where it gets interesting. What happens to short sellers when a stock they’re shorting is going up instead of down?
The fee to borrow the share from their lender goes up and they’re pressured with two options.
Pay the short borrow fee and continue to hold your short position in hopes the stock price will go back down, or
Close your position, take your profit or loss, and possibly go long instead
Now, hedge funds such as Citadel and Melvin Capital have been quite stubborn. They’ve continued to overleverage their short position in AMC Entertainment to drive the price action down.
However, the AMC community isn’t leaving. It’s personal now and they’re willing to buy and hold the stock until shorts are squeezed out of their positions. Analysts have figured out that retail investors can continue to drive the price action up with enough volume in the stock.
Recently, there’s been a surge of new retail investors buying AMC stock. This increase moved AMC up to $15.50 after hours. Short sellers eventually drove the price back down to the $12 range; however, seasoned retail investors aren’t phased. AMC stock is currently trading around $55.18 now. The stock continues to go up.
The data shows a MOASS
MOASS, mother of all short squeezes.
Brokers have never seen this much shorting occur in a single stock in the existence of the stock market. The data predicts a short squeeze unprecedented like anything we’ve ever seen historically.
This is primarily due to the amount of synthetic shares and overleveraged positions that must be covered during a margin call. A margin call could force shorts out of their position resulting in a short squeeze.
How high can AMC’s stock price go up to? There’s no ceiling. However, more data will be released as the stock begins to squeeze.
Massive institutions have begun to liquidate assets in both the stock market and crypto market. Retail investors cannot cause the extreme price drop we’re seeing in both markets.
I speculate institutions are building capital to prepare for margin calls or raised margin requirements.
Proposal ICC-007 APPROVED
This proposal provides brokers with the flexibility to raise margin requirements on investors holding risky investments, such as a short position in AMC.
Brokers need collateral. If short sellers cannot meet the margin requirement then they will be forced to liquidate their entire positions, resulting in several gamma squeezes and inevitably a short squeeze.
If margin requirements are raised then shorts will have to either deleverage their positions (gamma squeezes), or fund their accounts with capital. Is this massive selloff in both the stock market and crypto market related to potential AMC margin calls and regulations? I think so.
The reason why retail investors are buying AMC stock is for the opportunity of a lifetime. Not only is the public starting to invest but big institutions on retail investors’ side known as ‘whales’ are bulking up on the stock.
“Beware of the stock” (paid) articles
Platforms such as the Fool, MarketWatch and InvestorPlace are hedge fund affiliates. Retail investors encourage newcomers to do their own due diligence oppose to reading FUD articles (fear, uncertainty, and doubt).
Is it too late to buy AMC stock?
That depends. Look at AMC’s current share price. If it squeezes to $100, $1,000, or even $10,000+ would the trade have been worth it if you bought today at it’s current share price? You decide.
More info on AMC stock
Here’s where you can find more helpful information regarding AMC stocks’ data & predictions, technical analysis.
On the very top right part of my blog you can see my top 6 articles at the moment are on various AMC posts. These posts go further into detail with DD (due diligence) surrounding AMC stock and the short squeeze data.
Best YouTubers covering AMC Entertainment stock
Trey’s Trades
Credit will be given where it’s due. Trey’s Trades is the man, the leader of this AMC movement. Nothing but tremendous respect for this brother. Take the time to watch his videos, I promise you you will not regret it.
Roensch Capital
For less entertaining but otherwise very valuable information on AMC stock, watch Roensch Capital. RC provides commentary on chart analysis.
ReviewDork
I was quick to connect with Gabe from ReviewDork. His videos are honest, genuine, and entertaining to watch. This channel is currently one of my favorites covering AMC and I know you’ll enjoy Gabe’s videos as well.
Questions regarding AMC stock?
Join my Discord group. Members here share new videos, posts, and conversations relating to AMC. Members here get the links to new articles first 😉 If you join the newsletter you will receive weekly emails from me when I post a new article. You can always connect with me on social platforms to see them as well.
Community, today I want to provide some advice from someone who’s been holding AMC stock since February. I’m going to be providing new retail investors as well as seasoned apes with some real talk regarding AMC. This is not financial advice. Ape to ape talk.
Here are 6 things retail investors holding AMC stock should know.
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Investing in AMC stock has been a battle. A lot of us have sparked new relationships and connected with genuine people.
I’m publishing this article today because I care about the community and I want to help guide new retail investors. Here are some things I wish we would have been told from the get go.
#1. Detach your emotions from AMC stock
One thing I learned fairly quickly when I first started investing in AMC was to detach myself emotionally from the stock. There were days where I would be moody so to speak because the stock wasn’t having a green day.
It’s easy to get coiled with emotions. Especially when you have a reason for this investment. Your why per say. But it’s childish and we’re not children. We’re grown adults.
When I detached myself emotionally from the stock, I found myself being able to become more productive for my family. At some point you have to pull yourself out and participate level headed. Something beautiful is occurring, just be sure you detach your emotions from the stock so it doesn’t impact your daily life negatively or render you from being productive.
Smile at the wins, but don’t let them get to your head either. Trust in your conviction and data at hand, and trust the process.
#2. Shun negative people
If you haven’t come across these type of people yet you will at some point. There’s a lot of angry retail investors who who got in late in GameStop and were left bag holding for example.
These people are hurt and target people in the AMC community. I saw this occur for a few months at the beginning. Not everyone is like this of course, but there are naysayers who will try to put you down.
Today, it seems like AMC and GME apes have more of a mutual respect now more than ever. However, bots and shills are still a very real pest within the community. My advice to you is to ignore these type of people.
If you see someone being bullied then stand up for them. You may speak out if it’s too protect a fellow member of the community. This is why I began publishing DD on my platform. I couldn’t stand seeing the community being bullied by the mainstream media.
If you have power to remove negative people via Discord, Reddit, Facebook groups, etc. then have the courage to do so.
#3. The market manipulation is real
This game isn’t for the soft. Retail investors must know that there will be situations from which are completely out of your control. The stress may sometimes get real.
The reason being is that although you might have already detached your emotions from the stock, other entities have an unfair advantage over retail investors. Oh well, life is unfair sometimes. We simply have to play with the cards we’ve been dealt with.
Fortunately for new retail investors, a lot of this market manipulation in AMC stock is now becoming public. This was in the shadows for us many months back. Apes must not focus too much on the things that are out of our control. We must focus on the things that are in our control, such as our attitudes and resilience towards this common goal.
I strongly believe that the good guys will always win. There’s no option for those in power but to hear the community out. You saw what occurred back in 2020 when the community and world united against the injustice of our police force in the United States. We have more power than you know.
Be strong and move past the things that are out of our control.
#4. Don’t invest more than you can afford to lose
I like to think most people have this one down. There is risk involved here. There is always risk involved whether you’re betting on a stock to either go up or down.
Hedge funds have risked their play too and unfortunately for them they’re getting burned. My suggestion is to only invest what you can afford to lose. My conviction in this stock is so strong that I truly believe you cannot lose on this trade unless you’re completely careless. The only reasons you’d lose on this trade is if you sold and cut your losses or you didn’t do any research at all.
The information is out there. Take the time to read it and digest the content. Educate yourself so you can make the best financial decision for yourself and your family.
Never use a credit card to invest. This is playing with money that’s not yours and it’s going to end up biting you if you do this. I mean look at the hedgies. If you’re going to add to your position, make sure you can pay your bills first.
#5. Share positive content with the community
Change happens when enough people get loud and spread a message. When you see FUD articles from the mainstream media don’t share it. Instead, find other content that completely rebuttals it with straight facts.
If you see an article, document, or video within the community that proves to be valuable to the movement, be sure to share it. You make a tremendous difference when you do.
This courage is what allows the community to grow and presents more people with opportunities like AMC and GME plays. Once this chapter is over there will be more chapters. You more than likely were introduced to AMC stock through FrankNez articles, Trey’s Trades videos, or from someone else in the community.
When the media attacks our community we must attack back with factual information. We cannot let the lies and manipulation shake off our new fellow members. Protect the community by sharing positive content within the community. Memes included ☝.
This trade with AMC stock will be successful. It’s inevitable. However, success always requires patience.
Seasoned apes are profitable at the moment. This took 4-5 months of holding the stock though. Some of us are up thousands to tens of thousands of dollars and even up to hundreds of thousands of dollars. But guess what? We’re still holding the stock.
Why? Because our conviction in AMC is strong and we have complete and utter trust in the process. The data speaks for itself; numbers don’t lie. If there’s something that new retail investors can learn from seasoned apes it should be to be patient.
When AMC hits $100 per share you will be profitable and seasoned apes will be even more profitable. But be patient. This movement is not betting on $100. This squeeze will be astronomical and it will require the community to be patient. The move up to $100 will all be fundamental and hype; this will not be the squeeze. When the squeeze happens, you will know.
Get mind blown. The feds are cutting off what could be the last lifeline institutions have for borrowing money. They’re hunting down a whopping $720 billion dollars from a reverse repo.
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What is a reverse repo?
A reverse repo is where feds loan out money to institutions such as hedge funds due to cash flow issues. The reason an institution would borrow money from the feds is because they don’t have other cash reserves. When hedge funds borrow money from the fed it usually means it’s a last resort type of situation.
How does this connect with AMC?
Why is this is significant to AMC and the ape community? The feds need their money back, like now. This could explain all the selloffs in the markets. It seems like institutions have liquidated a lot of their positions in the both the stock and crypto markets in order to pay back the feds now.
If hedge funds and institutions don’t have enough capital left in their margin accounts then they’re going to be in some real deep waters. This could finally be the end of it my friends. Short sellers’ nightmares have truly become a reality. I hear margin calls baby. Lets dive in some more.
Right off the bat I want to point out that the Federal Reserve is collecting $720 billion back from institutions who borrowed the money. What’s insane is that this maturity, or expiration date is on NET15 from the issue date of Wednesday June 9th, 2021.
This means institutions who borrowed all this money have to pay it all back by June 24th. This could very well explain why the stock market as well as the crypto market have tanked recently. Institutions need cash ASAP.
It’s likely institutions such as hedge funds needed to liquidate their accounts in order to pay back the feds. I mean what else could have possibly caused the entire markets to tumble all at once?
If institutions were borrowing money from the fed as a last resort, what does this mean for hedge funds moving forward? Will hedge funds who borrowed money from a reverse repo be able to cover their minimum margin requirement? And if so at what costs?
Will hedge funds be able to pay back the feds?
Hedge funds borrow money from reverse repos betting that they’re going to make money from it before they pay back the feds. Unfortunately for them this might not be the case this time.
Any institution that has been shorting AMC, GameStop and other ‘meme stocks’ will be paying back the feds at a loss. But it gets worse for short sellers.
Not only are they paying the feds interest, but they’ve also paid a short borrow fee interest all year to borrow stock. Hedge funds are getting hit with a storm of karma if you ask me.
According to Business Insider, hedge funds lost well over $6 billion dollars since the start of May alone and short sellers have lost another $5 billion dollars since the start of the year. Millions more are disintegrating by the day.
Hedge funds are having a terrible 2021 to say the very least. I said this many months back and I’ll say it again. They should have closed their positions when AMC’s stock price fell back down to $8-$14. But I guess ego is king right? Their year is about to get a whole lot worse.
Key Points
Reverse repo’s are when feds loan money to institutions having cash flow issues
Institutions have to pay back $720 billion dollars by June 24th
Hedge funds continue to lose millions to billions each day and are running out of lifelines
Short sellers could face margin calls very soon if they cannot meet minimum margin requirements
This is a very exciting time for retail investors. Something incredible is unfolding right before our very own eyes.
Not only is history being written, but justice will be served for the 2008 financial crisis. The average retail investor is about to make the trade of a lifetime.
Will AMC finally squeeze?
I personally think we’re about to start seeing gamma squeeze after gamma squeeze. This will primarily be due to the continued buying pressure from retail investors as well as institutions losing a lot of money, resulting in willingly closing out their positions. And if it’s not willingly then the significant loss of money could lead to immediate liquidation through margin calls.
Short sellers will cave in, they will lose. Whether it’s now or later it really doesn’t matter. But they will. Just like a short squeeze, their fate is inevitable.
AMC Stock – Feds are done with hedgies
Trey’s Trades – Fed reverse repo
I want to leave this video from Trey the man himself regarding this topic on the reverse repo. If you aren’t subscribed to Trey yet be sure to do so.
He’s a technical analyst that sparked this entire movement with AMC’s short squeeze. I have a tremendous respect for Trey and will always give credit where it’s due.
And lastly. . .
If you found this article to be of value be sure to share it with the rest of the community. Most hedge fund affiliate media platforms will not report the positive occurrences that play in the retail investors favor.
It is up to us to help new retail investors become aware of the situation at hand and all news related to AMC.
This is why I publish articles that support the AMC community and the cause to the absolute fullest. The public deserves to know this information and they deserve this chance 💯.
The illegal practice of naked shorting has now publicly made it’s debut in the mainstream media. CNBC and FOX Business have both acknowledged the manipulation, and the AMC community is loving it.
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Hedge funds have been using illegal tactics such as naked shorting, to drive down the price of meme stocks.
Naked shorting became illegal back in 2008 when the economy collapsed. Retail investors are questioning why the SEC hasn’t stopped these illegal and unethical tactics on AMC or GameStop. So, what’s naked shorting anyway?
What is naked shorting?
Naked shorting is the illegal practice of trading a stock that is not available or does not exist. Clearing houses are responsible for allowing or denying these transactions to execute, or go through.
Citadel is a hedge fund that has been shorting AMC Entertainment. They are also a clearing house which means they hold accountability for allowing these illegal activities to occur in the first place.
The SEC needs to understand that hedge funds have too much power. Their power must be divided.
CNBC on naked shorting / Melissa Lee
Melissa Lee has been the talk recently on social media regarding the mentioning of naked shorting. It seems she accidentally let it out on live television.
I didn’t want to embed the video simply because of the noise. Sometimes noise is just irking you know? Here’s the link to the video.
The community is speculating it was a mistake on Melissa Lee’s end but I don’t think so. I personally think she was speaking freely. The panel did not seem to like it though.
This clip came shortly after CNBC’s interview with Trey’s Trades. The mention of naked shorts is incredibly helpful to the AMC community because it puts us on the radar at scale with what’s going on.
Retail investors have been filing reports since February regarding the illicit activities. The question is why did it take the SEC several months to finally make a statement that they were looking into tightening restrictions on short sellers?
Jefferies Prime Brokerage blocks short sellers
Jefferies Prime Brokerage announced they will no longer allow the execution of short sells. This gives retail investors the momentum they need to continue driving AMC’s share price through volume pressure.
With a source plugged for short sellers, AMC stock should now have more runway to continue surging.
FOX Business on naked shorting
Charles Payne from FOX Business makes a great point when he questions why the SEC has allowed the illegal activities of naked shorting.
In this video you’ll find just how much FOX Business and its partners are against naked short selling. Naked short selling was the cause of the last financial disaster in 2008 and could be the reckoning of the market today as well.
It’s amazing to see experts back up the community regarding naked shorting. This is exactly what retail investors need in order to start seeing some change.
One of the biggest things the community wants to see happen is for margin calls to begin taking place. Margin calls would essentially force short sellers to close their positions ending this once and for all.
And for the retail investors? This would mean a short squeeze of a lifetime.
Naked short selling and FTDs
Naked shorting has been the cause of many fails-to-deliver that were in the pocket and needed to execute.
Because many synthetic shares have been floating around in the market, call options in the pocket that should have gone through never did.
Hedge funds have been cheating the system. Any fine the SEC gives to these institutions is only an operating expense. The SEC must be investigated by the FBI.
What can the community do about the manipulation?
The community has to be loud. Share this information. But don’t just share it, voice your opinion too because it matters more than you know.
Tag people in power, tag the news, get things trending. This generation is the generation to make real change happen. In 2020 we saw what happened when the community stood up against corruption.
We are powerful united. Hedge funds must be margin called. And once they are, their power must be divided.
Lives are about to change for the new and seasoned holder in AMC stock. With a surge of retail investors in the stock, the SEC is finally cracking down on hedge funds. AMC community, you were loud and they heard you. Here’s why I think there’s an AMC margin call right around the corner.
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I recently published an article exposing the ‘lobbied SEC’. The lack of regulation on short positions in AMC has been ignored for too long. Many of you shared this post on Twitter and used the hashtag #SECdoyourjob. I’m confident they saw YOU. So thank you for standing up for change because you got their attention.
Everything is falling right into place for AMC Entertainment stock
Hedge funds betting against this stock are destined to lose. Here’s why:
AMC’s fundamentals are no longer fragile. Retail investors and institutions alike are buying the stock. AMC Entertainment is experiencing a surge in sales revenue now that the movie theater franchise is open.
Shorts betting against the stock have bitten more than they can chew by continuously shorting AMC stock through the use of synthetic shares.
Regulators are now taking the necessary precautions to ensure they don’t lose money as hedge funds continue betting against a soaring and bullish stock.
Retail investors now have the higher floor. The CEO of AMC Entertainment is in touch with his shareholders. Celebrities such as Chance the Rapper have publicly announced the opportunity of this investment. And more people are learning how to invest in the stock market through the platforms such as Franknez.com and other subreddit communities.
Wanna know what hedge funds have? Absolutely no respect nor support.
ICC-2021-007 proposal gets APPROVED
This is huge news for retail investors holding AMC. This document is 9 pages long but I’ve done the DD to help you understand what this proposal means for AMC and how it can trigger a short squeeze.
Approved on 5/18
Many retail investors have been curious as to what this proposal means and why it’s such great news for AMC. This article is going to provide you with a quick rundown of this new proposal and will be updated as new margin call news begin to develop.
1. Flexibility on margin requirements
This proposal provides brokers with flexibility on margin requirements for institutions (hedge funds) maintaining a position in risky plays, such as a short position in AMC.
If brokers feel a short position is too risky then they can raise the amount of equity required in an account.
2. Regulators request collateral
The proposal ensures regulators have some sort of collateral from all the shorting that’s been occurring. Regulators want to make sure that hedge funds have enough cash reserves to meet their minimum equity requirement
Risk management is the biggest takeaway from this proposal.
Regulators are going to start raising margins depending on how risky the plays are for certain institutions. Their purpose is to limit the amount of leverage hedge funds are able to use. The ICC does not want to be responsible for closing out closing hedge funds’ positions.
This is where we can begin to see shorts cover their positions. If an accounts updated margin exceeds the accounts capital, the broker can either margin call them (cover some risk) or completely liquidate their positions until the margin no longer exceeds the capital.
Overleveraged accounts could get margin called
Now, because hedge funds shorting AMC are betting against a bullish stock that only knows up, shorting the stock at the moment is ultra risky. Regulators are going to start demanding higher margin requirements as collateral.
Short sellers are sitting on nearly $1 billion dollars in loses, via REUTERS. A margin call usually occurs when an investment suffers enough losses that the investors margin account goes below a certain amount.
If hedge funds shorting AMC fail to meet a margin call requirement then the broker can begin liquidating their assets without notice. Regulators will only step in to liquidate accounts if hedge funds continue to take a nosedive in loses.
Furthermore, hedge funds are drowning every day retail investors hold the stock.
Expect a surge in price action and volatility
Retail investors can expect a surge in price action in AMC as well as volatility. Hedge funds are still borrowing shares to short the stock meaning they have ammo in their arsenal to drive the price down during upticks.
Shorts are going to begin covering their positions as the stock continues to skyrocket and as margin requirements are increased. A short squeeze is inevitable. Retail investors need to hold, stay the course, and be patient.
Citadel buys AMC stock
Citadel just recently bought AMC stock leaving many retail investors curious behind their motive.
Will they try to reduce their loses through a debit and credit scenario where they’re forced to close their positions but also break even from a squeeze?
Or is their motive to sell and disrupt AMC’s short squeeze? Citadel’s motives will become clear as this squeeze begins to unfold.
Why do I think Citadel is going long on AMC?
The entire market is crashing. These institutions are beginning to deleverage. Pretty soon there’s going to be margin calls liquidating accounts left and right. I think Citadel bought AMC long in order to keep the stocks value. They know they’re losing and they know AMC is now a value play.
A margin call will ensure they have no money left so I personally think AMC is Citadels collateral, or emergency fund post squeeze.
I want to guide new retail investors in every way I can. I’ve received questions regarding what the information on Stonk-O-Tracker means. I’m going to break down what all the data is presenting.
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Stonk-O-Tracker AMC
The information at the very beginning of Stonk-O-Tracker is pretty self explanatory starting out with NYSE. This is the price closed from the New York Stock Exchange. This is the stocks price.
SSR stands for short sale restriction. The SSR prevents from short sellers from continuously shorting a stock. The SSR shows the price in which this regulation was triggered. When SSR triggers it’s usually due to an insane amount of shorting driving the share price of a stock down.
The SSR protects retail investors and activates once a stocks share price falls below 10% from the previous trading day.
FRA is the Frankfurt Stock Exchange. The FRA is German’s largest stock exchange. The price here is translated in euro.
Stonk-O-Tracker Calls ITM & Shares Available to Borrow
What are call options in stocks?
People in on AMC stock either buy the stock or buy call options. Call options are contracts that you can bet on to execute by a specific date. What makes these contracts attractive is that premiums are cheaper to purchase as they’re usually sold in ‘bundles’. Investors who buy call options are usually speculating the price of a stock will be significantly higher in the future.
Calls ITM expiring: This is the number of calls expiring on the specific date detailed. If an investor placed a strike price of $49 dollars by the end of Friday and Friday’s price action is $55 then that call option expires in the money, otherwise known as ITM.
Calls ITM expiring on Stonk-O-Tracker is the number of these contracts expiring on the date detailed.
Calls ITM: Calls ITM refers to the number of call options expiring at a specific dollar amount. In the reference above it details 21,823 calls are expiring in the money at $50.
Borrowed Shares Available
Borrowed shares available Stonk-O-Tracker
The borrowed shares refers to the number of shares short sellers have available to short a stock. This number decreases when a stock is being shorted, or the price is being driven down.
Short sellers can continue to borrow more shares even after they’ve used some or all. However, this comes at a price. Shorts must pay the fee detailed in the chart.
ETF available Stonk-O-Tracker
An ETF is known as an exchange trade fund. Like an index fund, these type of stocks pool a variety of stock in a bundle. AMC Entertainment stock is pooled a few ETFs that short sellers can also short.
The ETF available is the number of ETFs hedgies can short.
Option data: Calls vs puts
Stonk-O-Tracker Option Data: Calls vs puts
The option data chart shows a stocks call vs puts. I went over what calls were above. Puts are the exact opposite. Puts bet on the stock going down instead of up. When puts are executed, the stock is further laddered down.
This chart shows you how many options are in the money and out of the money. Out of the money are simply contracts made that have yet to be anywhere near the current price range of a stock.
Trading data Stonk-O-Tracker
Trading data – AMC dark pools
The short percentage in the trading data is simply the percentage of the volume that is being shorted.
The dark pool percentage shows the percentage of trading that’s done behind closed doors. This unknown platform is known as dark pools. This is where short sellers can get away with additional shorting tactics.
The SEC must look into this as it’s a manipulative way to further short a stock. In this case, AMC and other meme stocks.
Fails-to-Deliver
Fails to deliver AMC
Fails-to-deliver are contracts that did not execute in the pocket. These are reported by the SEC (securities exchange commission) and are updated once they release that information.
This chart details how many contracts failed to execute and at what closing price they failed.
The SSR trigger info at the very bottom of Stonk-O-Tracker simply reveals the close price at which it stopped going into effect as well as the price SSR was triggered.
If you found this article to be of value be sure to share it with the community. I feel it’s extremely important for us to share information and knowledge with new retail investors buying AMC stock and other short squeeze plays.
