Tag: AMCtothemoon (Page 1 of 9)

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.

Market News Published Daily

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

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

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


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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.

Market News Published Daily

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

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


Franknez.com

You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
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Is AMC Stock A Buy Or Is It Too Late?

is AMC a good stock to buy? Is it too late to buy AMC Entertainment stock?
Is AMC a good stock to buy? Is it too late to buy AMC Entertainment stock?

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, sell it, and buy back 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.

franknez.com

Welcome to Franknez.com – the blog where you can digest content on personal finance, stocks, crypto, and other trending investing news.

Let’s get started!

Will we see a squeeze with AMC?

AMC Entertainment short Squeeze

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 heavily shorted, with more than 22% short interest.
  • 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
Related: 93% of AMC Shareholders Say They're Holding This Year

Retail investors keep buying AMC stock

We’re seeing retail investors continue to invest in AMC stock while it’s affordable.

And 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 $6.08 on February 2nd.

The stock has been on discount.

However, the community sentiment remains bullish meaning retail investors keep buying and holding the stock to squeeze shorts from their positions.

Shorts continue to short ladder the stock causing the downtrend we’ve been seeing for over two years now.

But AMC wants to keep climbing.

As long as AMC shareholders continue to hold and buy the dip, short investors are at a disadvantage.

Great news for AMC Entertainment (Archive Data)

News from 2021 helped drive AMC stock prices up momentarily when AMC Entertainment announcement that most AMC theaters had begun to reopen.

AMC’s cost to borrow the stock today is 213%.

The fee is going up after being down for many months.

What is AMC cost to borrow?

AMC short borrow fee
Franknez.com

The cost to 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.

A surging short borrow fee rate could incentivize shorts to close their positions due to higher borrowing costs.

Why does the cost to borrow rate matter?

It costs shorts interest to hold while it costs the retail investor absolutely nothing to hold.

Shorts are losing money month 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 Citadel lose money, the short borrow fee only increases those losses.

AMC’s share price might be on discount right now, but hedge funds are experiencing losses on top of losses.

They’ll eventually have to close their short positions; will you miss it?

How high can AMC stock go up to?

AMC to the moon

Because we’ve seen a lot of suppression in the market, many traders are anticipating AMC stock can get as high if not higher than GME (GameStop).

This of course is just speculation as both stocks are heavily shorted and more people and institutions alike are buying and holding the stocks.

There’s a notion that all these suppressed gains may result in a massive short squeeze at any moment.

There are AMC short squeeze price predictions ranging from $100 to $1,000, and higher.

Related: How Big Could an AMC Short Squeeze Potential Surge?

So, is it too late to purchase AMC stock?

The price after a short squeeze eventually fall back down and level out, but this will take time.

AMC seems to have bottomed out and begin to bounce back after its incredible climb to $72 per share more than a year ago.

Despite what corporate media is pushing, AMC’s growth tells us the stock is undervalued.

But most importantly, there are plenty of short sellers that have yet to close their positions.

Hedge funds continue to short AMC and the volume is increasing; it’s the perfect storm for a short squeeze.

Trending: Analyst Predicts AMC Free Cash Flow Coming in 2024

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
Related: Are Institutions Preparing to Close Short Positions in AMC?

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.

Related: How to Buy AMC Stock (2023 Guide)


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).

While the US investors over at r/wallstreetbets use Robinhood, it’s not available if you live in Canada.

Instead, you can use WealthSimple Trade or InteractiveBrokers

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.

Brokerage account Vanguard
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.

Avoid 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.

The fool vs AMC

Fortunately, the AMC community has been backed up by 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.

Market News Published Daily

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

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


Franknez.com

You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.

When Do Shorts Have to Close Their Positions in AMC?

When will shorts close their short positions in AMC? When will shorts cover AMC?
When will shorts close their positions in AMC? When will shorts cover AMC?

Every retail investor holding a position in AMC wants to know, when will shorts close their positions?

And I don’t blame you.

This one is a little tricky.

See, it’s like saying, “when will retail investors sell their positions?”

franknez.com

Welcome to Franknez.com – the blog that fights for you, the retail investor. Today I want to discuss shorts closing.

Let’s get started!

Retail investors have been waiting patiently for AMC Entertainment stock to rip.

You’ve been holding through the ups and downs and even buying the dips.

And although we did see AMC’s share price surge in 2021, the short sellers are still here in 2023.

So, why aren’t shorts closing their positions yet?

What do retail investors need to do to squeeze hedge funds out of their money?

Let’s discuss it.

Are shorts obligated to close their positions?

When do shorts have to close their positions in AMC?

Let’s start with the fundamental question.

Are shorts obligated to close their positions?

Now, there are currently no rules regarding how long a short can hold before closing out their position.

However, lenders do have the right to demand the seller closes their position with minimal notice.

This is rare and only occurs if the the seller isn’t paying the interest fee, or the interest fee is ridiculously high.

“A short position may be maintained as long as the investor is able to honor the margin requirements and pay the required interest and the broker lending the shares allows them to be borrowed.” – Investopedia

When an interest fee is extremely high, it makes a stock difficult to borrow which obligates the short seller to close their positions.

Short sellers are burning big money to keep these positions open in 2023 though.

You’ll want to keep an eye on this interest as it will determine just how much shorts are bleeding.

I update AMC’s short interest data (and others) here daily.

Why does the “Cost to Borrow” fee matter?

The cost to borrow fee is an interest that short sellers must pay for borrowing AMC shares to short the company stock.

These fees are currently at an all-time high.

AMC short borrow fee interest

Short sellers will hold in hopes to drive AMC’s share price right back down to the floor.

However, AMC is trending upwards now and has absolutely no intention of going back down.

Analysts data and AI predictions all point towards a high possibility of a short squeeze.

Even Fintel’s short squeeze score has been as high as 80-90% in recent weeks.

AMC Short squeeze Score Fintel

This short borrow fee is going to continue to go up as AMC stock becomes harder to borrow.

For short sellers, a low short borrow fee is in their favor.

Hedge funds much rather pay the fee and stubbornly continue to hold their positions against retail investors.

But, if the short borrow fee is high enough to hurt the borrower, they will be more inclined to close their positions before losing an excruciating amount of money.

Just In: Short Sellers Are Down $81 Billion This Year

How can retail investors help drive the short borrow fee up?

Retail investors have helped drive the short borrow fee up simply by holding their positions.

When AMC squeezes, not every short will close their positions immediately.

This means retail investors won’t ever be able to time the high.

There will be short sellers who will continue to short even as share prices rise.

If we begin to see AMC’s price action rise monumentally, it is important to have a plan on how to take profits.

Just like a day trade, investors may be profitable for some time until they see gains turn into losses, which usually occurs due to greed in the markets.

This is what you want to avoid.

Important advisory: I am not a licensed financial advisory. I simply have a passion for finance and writing.

What happens when a short close their position?

A short position will be profitable if it is closed at a lower price than the initial transaction; it is at a loss if it is closed at a higher price.

In AMC’s case, shorts who drove began to short around $5 but are still holding to-date are at a loss.

AMC is currently trading around $6.08 per share as of 2/2.

When there’s a ton of shorts closing (in a particular stock), it will result in a short squeeze.

What is a short squeeze?

What is a short squeeze?

A short squeeze occurs when a stock spikes in price action due to an increase of short-sellers closing out their positions.

We’ve seen a short squeeze happen with both GameStop and Volkswagen. GME topped almost $500 while Volkswagen spiked shy below $1,000 back in 2008.

Some short sellers closed in June of 2021 when AMC shares rose to $72 per share as well.

AMC’s price skyrockets to more than +3,000% that year!

Short squeezes are massively profitable for retail investors.

These phenomena are how people are able to accumulate wealth in such little time.

Read: 5 Big Signs Pointing to An AMC Short Squeeze

So, when will AMC shorts close?

When do shorts have to close their position?
When will shorts close their short positions in AMC? When will shorts cover AMC?

Instead of exiting, short sellers have been holding.

Just as retail investors have high conviction on massive price action, hedge funds still have conviction on shorting the company to delist it.

But AMC Entertainment isn’t going bankrupt and AMC shareholders aren’t leaving.

AMC said bankruptcy was no longer on the table years ago and some Wall Street analysts have said the industry is on a solid path to resurgence, via Hollywood Reporter.

In fact, the short thesis is beginning to change with many incredible developments happening in the movie theatre industry.

AMC Entertainment (NYSE:AMC) is up more than 54% this year-to-date and it looks like the stock has bottomed out.

As we continue to see a high utilization and the short borrow fee increase, we can only expect shorts may be incentivized to close sooner than later.

Will AMC’s price action continue to go up?

AMC stock has always had high demand from shareholders.

While many of these retail activists continue to hold losses from June’s drop, it’s possible this changes – granted that short sellers close out their positions this year.

Short sellers will have the option to hold their loses on paper for months to come (with fees) or close their position at the current share prices.

Short selling is a risky business and bulls have sent a message – “we’re not leaving”.

With new titles coming to AMC movie theaters as well as new developments, we’re only going to continue to see a surge in price action due to an increase in the company’s fundamental growth.

Even if shorts continue to hold, lenders will eventually run up the interest rate again, forcing them to throw in the towel.

Leave a comment below and let the community know what a short squeeze would mean for you.

Market News Published Daily

Market News Today - When do shorts have to close their positions in AMC?
Market News Today – When do shorts have to close their positions in AMC?

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

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


Franknez.com

You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.


Why New Retail Investors Should Avoid Investing With Robinhood

why new retail investor investing in AMC should avoid robinhood
Investing with Robinhood?

There’s been a surge of new retail investors questioning why they should ditch Robinhood or avoid it.

Seasoned retail investors holding AMC stock have been guiding newcomers in order to help them prepare and maximize their profits for when AMC squeezes.

I’m going to go through a number of reasons why new retail investors investing in AMC should avoid Robinhood.

If you hold AMC stock (or even GME stock) in Robinhood or are thinking of investing in AMC, then this article is perfect for you.

franknez.com

Welcome to Franknez.com – the blog where you can digest content on personal finance, stock, crypto, and trending investing news.

Lets get started!

If you’re new to the AMC community be sure to read the articles on the stock & crypto news as well as on the momentum stocks tab to catch up on everything there is to know about AMC’s short squeeze, market manipulation, and the stock’s data.

Robinhood App Origin

Vlad Tenev Robinhood
Vlad Tenev, Robinhood

Robinhood is an American financial services company that was founded in April 2013 by Vladimir Tenev and Baiju Bhatt.

Robinhood is headquartered in Menlo Park, California.

The app was introduced in March of 2015 and offered commission-free trades of stock and other funds to its users making it an extremely attractive choice for new retail investors.

Robinhood for the most part had a very positive and outlook and following since its inception.

So, what happened to this beloved company and why are retail investors investing in AMC Entertainment staying clear from this trading application?

Robinhood halts GameStop
Robinhood halts trading

Lets get you caught up.

Robinhood Restricts Purchasing of GameStop and AMC Stock

Thursday, January 28th, 2021 – Robinhood halts purchasing of GameStop, AMC, and BlackBerry stock.

On Thursday, January 28th Robinhood announced it would restrict retail investors from trading in GameStop, AMC, and even BlackBerry stock.

This single handedly move would leave new retail investors baffled with their beloved trading application.

The catch with Robinhood trading halt

Robinhood AMC GameStop

What left retail investors more puzzled was the fact that Robinhood halted the purchasing of ‘meme’ stocks but not the selling of them.

This halt affected GameStop’s momentum.

The act of selling would play in hedge funds’ favor.

Retail investors were quick to make their concerns public and went as far as to connecting the dots on their own.

The Reddit community suspected foul play and the information that was discovered only confirmed more market manipulation.

The Connection between Robinhood, Citadel, and Melvin Capital

Connection between Robinhood, Citadel, and Robinhood

The Reddit community discovered that Citadel is Robinhood’s clearing house.

This means that this hedge fund shorting AMC and GameStop stock has direct access to processing retail investors transactions.

Citadel lends money to Melvin Capital who shorts these stocks.

Both Citadel and Melvin Capital have denied having anything to do with Robinhood’s decision to halt trading but this connection has severed the bond between Robinhood and it’s users investing in AMC and GameStop stock.

Hedge funds lost billions of dollars when GameStop squeezed and are currently losing millions of dollars every day from holding AMC.

Read: When do shorts have to cover their positions? (AMC)

Robinhood Protects Hedge Funds

Vlad Tenev has denied the idea that halting trading was done in order to protect its hedge fund affiliates.

It’s from this simple statement that retail investors lost all respect for the Robinhood CEO.

Robinhood stands for taking from the rich and distributing the wealth amongst the poor.

Robinhood’s ethics shattered its trust with the Reddit community by proving otherwise.

Read: How do hedge funds manipulate the stock market?

When a public figure messes up big time, the first step towards correcting your mistake is to be honest about it.

Frank Nez

Has the SEC done anything to regulate the manipulation?

SEC

In short, no. Members of the SEC have more than likely been lobbied to ease regulations.

The AMC community has recently gotten together and shared their concerns via Twitter generating the hashtag, #SECdoyourjob.

I wrote an in-depth article on the SEC which many in the community have shared and tagged them directly.

You can check it out here.

Since the publish of this article, we’ve actually seen the SEC raise some concern regarding the excessive shorting hedge funds continue to practice on both AMC and GameStop stock.

We’ve made some progress apes.

But we must not let off the gas pedal.

Warren Buffett expresses his concerns about Robinhood

Warren Buffett warns new retail investors the potential of losing a lot of money through Robinhood calling it a gambling app.

Graham Stephen goes more into detail about what Warren had to say during his annual conference and also provides insight on Robinhood’s cancellation.

Robinhood just got cancelled

Robinhood just got cancelled – Graham Stephen

This video goes into other details as to why Robinhood is losing its reputation other than the reasons mentioned on this article.

Why should retail investors investing in AMC ditch Robinhood?

AMC Entertainment stock has the perfect setup for a short squeeze. The biggest concern the AMC community has is that Robinhood is going to halt trading AMC stock once it moons.

If this happens, say goodbye to the opportunity of a lifetime.

What broker should I invest with instead?

There a numerous broker accounts you can use. I personally use Vanguard.

Some of you may know Vanguard from being one of the biggest AMC shareholders in the market.

They’ve been adding to their position all year and have proven to be an outstanding broker.

Here’s a list of other brokers you can use to invest in AMC:

  • Fidelity
  • Charles Schwab
  • ETrade
  • TD Ameritrade
Robinhood Vanguard

I published an article on how to invest in stock market step by step using Vanguard.

If you know friends or family who are curious about investing but haven’t pulled the trigger, link them to save you the time teaching them.

How to transfer stocks out of your Robinhood Account

If you hold AMC stock in a Robinhood account and are afraid they might restrict you when AMC squeezes, you can transfer your stocks out of Robinhood using their Automated Customer Account Transfers Service (ACATS) to other brokerages.

Note: If you transfer all of your assets over to another brokerage, Robinhood will close your account.

Is there a fee to transfer stocks out of Robinhood?

Yes. Robinhood charges its users a $75 fee to transfer your assets out of Robinhood.

How long does it take for my assets to transfer out of Robinhood?

Robinhood users are experiencing up to 4 days for their assets to transfer out of their broker account.

The time it takes for your assets to show up on your new brokerage account may vary.

What you can do to speed up the process is setup you new brokerage account ahead of time in order to avoid delays.

What if I miss AMC’s short squeeze?

Analysts such as Trey’s Trades are anticipating AMC’s short squeeze can last several days to even several weeks.

If you’re nervous about transferring your assets here are other solutions:

  1. Open an additional position with a different brokerage.
  2. Transfer some assets into a new brokerage.

AMC’s short squeeze is still unfolding.

The stock has the perfect setup and we’re finally beginning to see things play out in the retail investors favor.

Although we can’t calculate for certain the date the squeeze will occur, the data does seem to advise it’s close.

AMC short squeeze prediction

AMC short squeeze prediction

Although a short squeeze can happen at any moment, my instincts are telling me we could see this happen early 2022.

Will hedge funds move into 2022 facing losses again?

I think they’ll close leading into the new year.

Read: How soon will we see an AMC short squeeze?

Join the Discord community

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If you found this article to be helpful, then be sure to join the Discord community.

This safe community is where new retail investors can get help from seasoned retail investors as well as communicate with me one on one.

Leave the community a comment below and share your story.

Are you having issues switching out of Robinhood?

How long did the process personally take you?

Let the community know bellow.

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How High Can AMC Stock Price Skyrocket Up To?

how high can AMC stock price go
How high can AMC stock price skyrocket up to? AMC News and updates

Bookmark this step-by-step guide on how to invest in the stock market

AMC continues to be one of retail investors favorite stocks.

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.

Well, just how high can AMC stock price skyrocket up to?

AMC stock price closed at $7.95 on November 15th.

The share volume remains healthy despite having gone down during today’s bear market.

Most of the market has been on sale and AMC has been no exception.

franknez.com

Welcome to Franknez.com – the blog where you can digest content on stocks, crypto, and trending market news.

Lets get started.

As some of you know, I update this article frequently. I update it with the intraday price action as well as any information pertaining to the stocks performance.

A lot of the information on here will be left untouched as it is a means to archive a lot of the information from both this year and last year.

Here’s the latest on the channel.

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.

The stock has been on a steep downtrend since it’s surge to its all-time high of $72 per share.

AMC stock price bull market

Key highlights

  1. We’re seeing strong support at the $6 levels.
  2. Big buyers include Vanguard, Charles Schwab, Wells Fargo, and BlackRock.
  3. The stock price is still relatively low enough for majority of people to buy, but hurry before it’s too late.
Related: Are You Holding Significant Losses in AMC Stock?

Adam Aron, CEO of AMC Entertainment Interview

Adam Aron AMC interview
Franknez.com
Adam Aron, CEO & President of AMC Entertainment

*[2021] Archive

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.

Related: Are Institutions Preparing to Close Short Positions in AMC?

AMC’s Short Borrow Fee

AMC short borrow fee interest

AMC’s short borrow fee as of 10/21 is: 18.20% via. Stonk-O-Tracker, this is different from the short interest of 19% (last updated in August).

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

Melvin Capital AMC stock
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.

Breaking: Hedge Fund Melvin Capital Is Shutting Down in June(2022)

Hedge funds are a sinking ship

Hedge funds are losing money shorting AMC stock

Hedge funds have lost billions of dollars shorting both AMC and GameStop.

Shorts can either:

  1. Take the loses and close their positions right now where the stock price is around $7.
  2. Or, get squeezed out of their positions at a high interest rate above $7, resulting in even bigger losses.

With that being said, short sellers have lost more than a billion dollars this second quarter according to Ortex data.

Will retail investors be able to create another rally?

Read: Citadel loses billions: hedge funds are getting dragged down

How will this affect AMC stock price?

Wall Street is 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 lower bids in off exchange markets.

Read: How do hedge funds manipulate the stock market.

AMC Gamma squeeze before short squeeze

*[2021 Archive]

AMC Entertainment continues to be one of the most shorted stocks in the market.

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

Related: Will AMC Squeeze in 2022? [ Short interest data]

AMC stock predictions (analyst)

AMC prediction from Fidelity TRADER PRO

*[2021 Archive]

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 with enough momentum.

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).

AMC stock price wallstreetbets

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.

Read: When do shorts have to cover their position? (AMC)

Can AMC reach $100K or $500K per share?

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.

I just recently found ReviewDork on YouTube.

Gabe talks about this possibility and walks us through some math.

Check him out.

But is it realistic?

Be sure to leave your thoughts in the comment section below.

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.

If you’re looking to get in for the short squeeze play, AMC stock is currently on bargain. This stock is still heavily shorted!

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 for most people.

Why hasn’t AMC squeezed yet?

AMC stock consolidation

AMC hasn’t squeezed for two primary reasons.

  1. The volume isn’t all there yet. The volume needs to be quite high. Trey’s Trades referenced 500+ million being an outstanding number.
  2. Shorts are holding – they need to close their positions if retail investors are to squeeze them.

It’s not illegal for shorts to hold long on their positions; however, hedge funds may lose money every day they hold due to the incurred short borrow fees.

Fortunately for retail investors it’s free to hold.

Read: When do shorts have to cover their positions ? (AMC)

What will AMC’s stock price be when it squeezes?

AMC

AMC’s stock price can really be anywhere.

It really depends on when shorts close their positions.

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?

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.

  1. 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.
  2. Own an Apple watch? Keep the stock in your background. This is a very convenient way to keeping tabs on the stocks performance.
  3. 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.

What should I do when AMC squeezes?

AMC stock price short squeeze

This is completely up to you!

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.

Why this is worth mentioning

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.

Where can I invest in AMC? What’s a good platform?

Vanguard

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 stock price: quick overview

We’re currently seeing AMC trade at $7.95.

Although AMC’s stock chart has been relatively healthy in the past, the price has been influenced by the market’s overall downtrend.

Are you holding AMC stock?

Let me know what a short squeeze would mean for you in the comments section below.

If you found this post to be helpful or of value share it with an ape.

If you have not subscribed to the blog be sure to do so as I update you on this historic event taking place.

Trending: Will AMC squeeze in 2022? [Short interest data]

AMC with Franknez.com Discord

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Read: Anchorage Capital closes after betting against AMC stock


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