Tag: Ape Community (Page 1 of 9)

Will AMC Stock Squeeze This Year? [Short Interest Data]

March 20, 2023 / Frank Nez

Will AMC Squeeze in 2022? — AMC Short Squeeze – AMC Entertainment 2023 – AMC Stock Price – AMC Stock Squeeze

Will AMC squeeze This Year?

The Fool thinks you should sell your stock, but retail investors aren’t budging.

Mainstream media who serve hedge funds in a conflict of interest have been egging retail investors to not buy the stock all of 2021.

If you listened to The Fool who told you not to buy AMC when its share price was low, then you would have missed out on a trade that went as high as 3000% in gains!

While the runup to $72 per share might have caused AMC’s short interest to drop to 14% from 20%, AMC’s short interest has now gone up to 22%.

Ladies and gentlemen, AMC stock has plenty of room for growth in 2023.

Welcome to Franknez.com – the blog that provides retail investors market news with integrity. Today we’re discussing AMC’s short interest data to determine whether it will squeeze in 2023.

Let’s dive right into it!

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Mainstream media wants retail to lose

It’s no secret the financial platforms who have been attacking AMC stock are tied together.

Wall Street Journal’s parent company is News Corp., who also owns Barrons, MarketWatch, and DOW Jones Newswire.

Well, there’s a relationship between Citadel Securities’ CEO Ken Griffin and News Corp (he owns stock).

This creates conflict of interest because of the influence these people in power have who are shorting AMC stock.

Citadel Securities is one of the top 10 financial institutions shorting AMC stock.

So, let’s look at the data that shows whether or not AMC will squeeze in 2023.

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Read: 5 Big Signs Pointing to An AMC Short Squeeze

AMC Short Interest Data (2023)

AMC’s short interest is currently at 24.26%.

The short interest tells us the percentage of a stocks float that is being shorted (shares have been borrowed and not yet closed).

Because AMC is heavily shorted at 24%, this is a short squeeze play in 2023.

A 24% short interest is equivalent to approximately 195 million shares on loan (shares that have been borrowed and have not yet been closed).

When AMC’s short interest dropped from 22% to 14% (6 points), the share price rose to $72 per share.

New short positions have brought AMC’s short interest up to 24% again meaning there are many shorts that have yet to be squeezed from their positions.

AMC’s short interest for 2023 is updated here daily for free, via Ortex.

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Whether AMC’s stock price is up or down, the short interest tells us a large portion of AMC’s float continues to be shorted.

The short interest is the main recipe for a short squeeze.

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

Will AMC Squeeze in 2023?

AMC has a high enough short interest to squeeze shorts from their positions in 2023.

Sitting at 24% short interest, it’s more than enough to get the price up well into the high hundreds of dollars per share.

Whether regulators will investigate naked shares, FTDs, and other forms of counterfeit shares for hedge funds to cover is another topic.

AMC will need momentum if it’s to see another massive runup in share price.

Furthermore, hedge funds will lead their customers into losses for the second year in a row if retail investors continue to buy and hold the stock in 2023.

AMC Entertainment stock has plenty of room for growth and mainstream media doesn’t want you to know it.

Who is AMC stock for?

AMC stock is for the retail investors who are willing to take a little risk to multiply their investment through a short squeeze play.

A short squeeze play is a long commitment with incredible upside.

If you’re lucky enough to get involved in the ape community you’ll find yourself fighting for a fair and transparent market, where your voice means everything.

Also Read: AMC’s Rising Borrow Fee Rate Spells Trouble for Short Sellers

Reasons why AMC wont squeeze in 2023..

I’ve always been transparent with the community.

There are many of you who got in when I first began publishing the data early last year and are sitting on unrealized gains today.

And although AMC could have squeezed during various occasions last year, there are still things that can hinder AMC from squeezing this year.

Here’s a list of things that will refrain AMC from squeezing shorts from their positions:

Retail investors start selling AMC stock
Retail investors stop buying AMC stock
New buyers aren’t introduced to the stock or short interest data
Number of day-traders increase
Regulators don’t enforce margin calls / protect retail from market manipulation

The AMC community has not had a problem holding or buying the stock.

One of the biggest problems the community faces today is regulators not protecting retail investors against the predatorial strategies from hedge funds.

The community has always been a beacon for change.

Apes will need to voice market concerns to elevate awareness.

Related: These Two Signs Will Tell You a Short Squeeze is Over

Latest Market Regulation/Proposals

AMC stock had multiple chances to squeeze in 2021, however, hedge funds always found a loophole that would prevent them from reporting information, or trading stock in the lit exchange.

Market manipulation continues to be a threat to every retail investor in the market.

AMC Entertainment was on the brink of extinction, it was about to go bankrupt.

Hedge funds took this opportunity to overleverage their short positions in the stock, betting it would close forever.

Once retail investors got in and saved the company, the community uncovered a number of market manipulation tactics that allowed hedge funds to prevent the stock’s share price from soaring.

The fight for a fair market continues in 2023.

For the ape community, this is more than just a short squeeze play.

It’s about freedom.

Read: Strategist Says Mother of All Short Squeezes is Here

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TD Ameritrade Reports 40.25% AMC Short Interest

January 16, 2023 / Frank Nez

TD Ameritrade AMC Short Interest Glitch — Market News: TD Ameritrade AMC glitch.

Screenshots from TD Ameritrade have come up on Twitter of AMC’s short interest at 40.25%.

Ortex is reporting AMC to have a short interest of 16.99% (2021 Archive).

So where is TD Ameritrade pulling up this information from?

They actually have a response to that.

Welcome to Franknez.com – the ape community has mentioned from time to time that a lot of the data provided by financial institutions is skewed. Here’s an example that happening right now.

“Our news and research is provided by Third Party Vendors”

So, why is this short interest data important?

Retail investors rely on the short interest data to determine how much of a company’s float is being shorted.

The short interest that Ortex is reporting is significantly less than that of TD Ameritrade’s.

TD Ameritrade’s short interest data is more than double that of Ortex.

Short interest data also enables us to see how much ‘squeeze potential‘ there is in a heavily shorted stock.

At least to a certain degree.

So if we have sources reporting masked or hidden short interest data, it’s deceit in many accounts.

Or is this simply a glitch from TD Ameritrade?

The ape community is questioning why ticker symbol AMC is the only stock that has had a significant number of glitches throughout the year.

Or are the real numbers being masked to divert the public from jumping in on this short squeeze play.

Afterall, hedge funds have begun closing, with many losing billions this year.

Read: Anchorage Capital closes after betting against AMC stock

Where is this data coming from?

The data comes from MorningStar but both TD Ameritrade and ETrade experienced this anomaly in their system.

According to TD Ameritrade, this was a glitch in their system.

However, the data would have not been changed unless the retail community pointed it out.

Was this a mistake on their end that retail was not supposed to see?

Or was this legit one of several glitches that has been occurring specifically for AMC Entertainment stock?

I’d love to know your thoughts in the comment section below.

Thank you for asking. We've checked and found the data to not be correct. Our technology team is working to correct the information. We have no ETA but hope to have correct data restored soon. Thank you for your patience. ^ZJ
— TD Ameritrade (@TDAmeritrade) December 29, 2021

The broker is stating their technology team is working to correct the information but have no ETA as to when the correct data will be restored.

Why so many glitches with AMC stock?

AMC Entertainment has been experiencing several glitches throughout 2021.

They have varied from skewed data such as the short interest, to chart patterns, and even share price.

The ape community has concluded over the months that AMC’s short interest data is significantly higher than what is being displayed.

Lou from the YouTube channel has even concluded that AMC’s share price is being masked and could be in the hundreds to even thousands of dollars per share.

Now, while these are rather extreme claims, it’s not difficult to understand why such claims have been made.

AMC is one of the most overleveraged stocks from hedge funds shorting it.

Millions upon millions of shares have been borrowed to short it all year.

The feds have now begun investigating short selling practices and are tackling hedge funds who pose systemic risk.

As more hedge funds close, and others continue to bleed their customers, retail investors suspect they will do everything in their power to deceive retail from squeezing them from their short positions.

An interesting narrative, but a very likely one just as much.

What other glitches have you seen in AMC stock?

Out of the several glitches that have occurred, what other glitches do you recall seeing in AMC Entertainment stock?

APE Topped $304.9 Million in FTDs in August

January 13, 2023 / Frank Nez

Market News: APE failure to deliver surge since inception.

AMC’s Preferred Equity, APE, topped $304.9 million in FTDs last year.

The FTDs are reported for the month of August, per Stocksera.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

Failure-to-deliver can occur in options trading or when selling short naked, per Investopedia.

AMC Entertainment has been a big target for short sellers looking to profit from the demise of the century old movie theatre chain.

The alarming amount of APE FTDs further proves this.

Let’s discuss it below.

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Clearing houses attack APE

According to Investopedia, APE FTDs can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

There’s a major conflict of interest when Citadel Clearing LLC transacts orders worldwide.

Ken Griffin’s Citadel LLC is short on AMC Entertainment stock, so we can see how utilities play out in the hedge fund’s favor.

It’s unlikely FTDs have been a result of retail buyers since the majority are purchasing the equity on cash accounts where orders execute almost immediately.

Naked short selling seems to be the most probable cause here as $APE has tumbled despite heavy retail interest.

The large amount of FTDs is manipulative and quite common in stocks such as AMC and GameStop.

Retail investors have taken it to Twitter to express their concerns to SEC Chairman Gary Gensler.

And although activists continue to engage the Chairman, no action has taken place to justify the ongoing market manipulation in APE, AMC, and GameStop.

Others are suggesting protesting outside SEC locations across the country.

Leave your thoughts on APE

There’s a lot of speculation surrounding APE FTDs and APE stock in general.

Are you holding APE?

Leave your thoughts below.

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AMC Warns Short Sellers of Possible APE Short Squeeze

January 13, 2023 / Frank Nez

AMC has released a report warning shareholders from the risks of buying APE shares as the company gets ready to sell up to 425 million shares.

However, the report also warned short sellers of the possibility of an APE short squeeze.

APE traded below $2 on Friday despite strong shareholder sentiment.

The equity has an average trading volume of 19.8 million but has traded lower in the past week.

As the markets continue to tumble and short sellers double down on their positions, stocks such as AMC and APE also continue to take the heat.

But short sellers could be in for a big surprise.

All it takes is coordinated heavy trading activity to trigger massive price fluctuations, at least according to AMC Entertainment’s statement.

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

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AMC Issues Strong Short Squeeze Statement

I’ve touched topic on the warning AMC released for shareholders below as the company prepares to sell up to 425 million APE shares.

“Under the circumstances, we caution you against investing in our AMC Preferred Equity Units, unless you are prepared to incur the risk of losing all or a substantial portion of your investment,” said an official statement from AMC Entertainment.

However, the company also warns short sellers of a potential APE short squeeze, resulting in severe losses for those betting against the security.

“purchasers of our Class A common stock and AMC Preferred Equity Units could incur substantial losses if there are declines in market prices driven by a return to earlier valuations; to the extent volatility in our Class A common stock and AMC Preferred Equity Units is caused, or may from time to time be caused, as has widely been reported, by a “short squeeze” in which coordinated trading activity causes a spike in the market price of our Class A common stock and AMC Preferred Equity Units as traders with a short position make market purchases to avoid or to mitigate potential losses, investors purchase at inflated prices unrelated to our financial performance or prospects, and may thereafter suffer substantial losses as prices decline.”

In this passage here, AMC is warning both retail investors and short sellers alike of what a short squeeze could muster.

The losses for short sellers could be grand as coordinated trading activity causes a major spike in price.

For retail investors, buying the spike could cause significant losses as the stock enters a cooldown period.

What AMC is accepting though is the possibility of a short squeeze whether it be AMC or APE shares.

What Will Trigger a Short Squeeze?

According to AMC’s statement, a short squeeze is triggered by coordinated trading activity, resulting in share price spikes.

Volume was key in January when AMC surged to $20 per share, it was key when the stock skyrocketed to $72 per share in June, and it will be the key today.

The bear market is pinning stocks, but as the market reverses, it’s very possible we see a surge in trading activity in AMC (and APE) again like we did in 2021.

AMC surged in March when it’s weekly volume had surpassed 100 million.

The stock was halted but shares rose despite the market’s downtrend.

AMC’s current average trading volume is 41.2 million though it has been trading at only half.

Will retail investors be able to trigger AMC or APE to squeeze?

I’d love to hear your thoughts on this.

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Will Shorts Be Forced to Close Positions in APE?

December 31, 2022 / Frank Nez

Market News: Here's the latest on AMC and APE stock. — Market News: Here’s the latest on AMC and APE stock | APE short squeeze update.

A new proposal by CEO Adam Aron has been circulating the retail community where shareholders will get to vote on the conversion of APE equity to AMC common shares.

Shareholders are anticipating short sellers will close their positions in APE if the conversion to AMC common shares is approved.

While no official voting proxy has been distributed amongst shareholders, the talks are certainly on the table.

A second proposal will allow shareholders to vote on a 1-for-10 reverse stock split.

So far, more than 72% of shareholders said in a poll they’d vote ‘YES’ for the split.

$AMC $APE Will you vote 'YES' or 'NO' for a 1-for-10 Reverse Stock Split? 🍿https://t.co/AvinZ58p69 #AMCApe
— Frank Nez 🇺🇸 (@FNez_Blogger) December 22, 2022

You can read more about what a reverse stock split signifies for a company here.

Will shorts be forced to close their positions in APE if the conversion is approved?

There’s a very strong probability of that being the case.

Let’s discuss it.

What Happens to Shorted Stock During a Merge?

In the case of APE and AMC, the merge between the equity and common shares may temporarily increase the share price of AMC stock.

This is where short sellers are caught in a bind.

Short sellers betting against the company would see big losses during the surge of the newly reflected share price.

Short sellers will have the option to close out their positions completely prior to the conversion or keep holding their position.

While they will not be obligated to close out their positions, they are at higher risk from momentum taking over and further escalating rising share prices.

Here is where shareholders have the opportunity to buy in heavily to keep short sellers from only pushing the price down after the merge.

As short sellers begin to fear the tide turning against them, the buyback of shares will result in a short squeeze.

If shareholders fail to create momentum, then short sellers may identify weakness in buying power and further add to their short positions.

Is an APE Short Squeeze Over?

Not quite.

There’s a strong possibility short sellers close their positions in APE prior to a conversion (if approved by shareholders).

In doing so, they avoid seeing share prices rise and the probability of having losing positions during the merge.

APE momentarily became the #1 most short stock according to Yahoo Finance.

In the past week, APE has surged more than 150% with heavy buying volume.

Is it possible this was caused by a few shorts closing?

Perhaps, but an APE short squeeze prior the conversion is still very possible.

Despite so much market uncertainty happening today, both AMC and APE have fair shots at squeeze short sellers from their positions.

So far, this has been one of the biggest catalysts for a short squeeze.

But it’s going to require retail investors to play their part.

Leave your thoughts below

Are you holding AMC and APE?

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APE Becomes The #1 Most Shorted Stock

December 6, 2022 / Frank Nez

Market News: APE stock news and updates.

APE just became the #1 shorted stock on Yahoo Finance’s ‘Top Most Shorted Stocks List’.

According to Fintel, APE has 8.9 million shares going to dark pools with approximately more than 50.6 million shares having been shorted, via NYSE.

APE’s volume has been above its average volume of 16 million, but institutions are driving the price down through a significant number of borrowed shares.

One can say APE (AMC’s Preferred Equity) is one of the most manipulated securities in the market.

What is the most shorted stock? Yahoo Finance Top Most Shorted Stock List.

$APE comes just above Bed Bath & Beyond (BBBY) and Carvana (CVNA).

Other companies listed on Yahoo’s Top Most Shorted Stock’s includes Beyond Meat (BYND), MicroStrategy Inc. (MSTR), and Marathon Digital Holdings, Inc. (MARA).

In October alone, APE topped $304.9 million in FTDs.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

APE FTDs Chart - Franknez.com | Naked shorting in APE. Is APE shorted? — APE FTDs Chart – Franknez.com | Is APE shorted?

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

AMC Issues Warning of Possible APE Short Squeeze

That same month in October, AMC released a statement warning short sellers of the possible losses they could incur in the event of a short squeeze.

Retail investors have been buying APE stock in efforts to trigger a short squeeze like when shareholders drove AMC’s share price from $14 to $72 per share.

While one might argue that the price surge wasn’t an actual squeeze, it was certainly a significant move to the upside.

Especially after trading at $2 prior to the ‘meme stock’ frenzy.

Will shareholders be successful at creating a short squeeze for APE?

Afterall, APE is currently one of the most shorted stocks in the market.

I’m curious to know your thoughts.

Will AMC Stock Go Up? [2022 Deep Dive]

November 5, 2022 / Frank Nez

AMC has been trending downwards since its rise up to $72 per share and now retail investors are wondering, will AMC stock go up?

In a recent article I break down 3 BIG factors that have influenced AMC’s downward trajectory in the past few months.

Although AMC’s share price has been plummeting, the demand for the stock has not.

This key point is going to play a big role in what happens to AMC stock after this bear market is over.

Welcome to Franknez.com – today I want to lay a few key points you should take into consideration if you’re holding AMC stock or thinking of buying it.

Let’s get started!

AMC stock had an incredible year in 2021.

The stock reached an all-time high of $72 per share with only 21% short interest at the time.

Once the share price began to come down, AMC’s short interest had come down to 14%.

Well, AMC’s short interest is back up to 18% again meaning short sellers have not learned their lesson (last updated in August).

Another key point I’m going to discuss below.

As we start the new year, AMC’s average daily volume is incredibly high.

AMC has an average volume of 38.2 million with many days surpassing this amount.

So why isn’t AMC’s massive demand reflecting in the share price?

That’s the question the ‘ape community’ has been asking regulators all year 2021.

Too many eyes are on regulators right now and at some point, some suppression inflicted by hedge funds will have to subside.

And aside from Omicron and Covid news affecting the entire market, AMC’s massive volume will eventually push the stock price up during a correction.

What does this mean for retail investors?

If you’re looking to get in on AMC for a short squeeze, know the risks, but understand that once this stock takes off you will not be able to buy it at these prices again.

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Deflating the short interest

Deflating AMC’s short interest like we saw back in January and June means AMC stock will go up significantly higher from its current share price.

Small short covering allowed AMC to reach $72 per share back in June of 2021.

So why can AMC stock still skyrocket?

Despite the heavy buying volume from retail, AMC still has more than enough short interest percentage to squeeze shorts from their positions.

2022 is only the sequel to 2021’s runup.

The reason mainstream media doesn’t want you to know this is because of their ties to hedge funds and private financial institutions.

These institutions are ‘short’ on AMC and GameStop, meaning they’re betting against them.

Pushing propaganda that will feed their narrative is the safest way for hedge funds to derail retail from further buying the stock that could cause them to default.

Hedge funds such as Melvin Capital, Anchorage Capital, Mudrick, & Archegos are out of the game.

Citadel Securities on the other hand continues to be short on AMC stock and seems to be having a hard time weathering this retail storm.

This is why mainstream media will not touch topic on the short interest data that could squeeze shorts from their positions.

Related: These Two Signs Will Tell You a Short Squeeze is Over

AMC Entertainment fundamentals

A short squeeze play has nothing to do with AMC Entertainment’s fundamentals.

The reason being is that retail goes based off of how much shorting there is in the company stock.

Buying the stock en masse (big volume) will cause AMC stock to go up, forcing shorts to close their positions and buy back their shares; triggering a short squeeze.

A short squeeze play does not depend on the performance of the company as a business.

AMC’s fundamentals are not the greatest, the company does have a lot of debt.

However, something mainstream media is not discussing is just how much their debt has gone down each quarter since 2021.

AMC Entertainment’s fundamentals are a discussion I will be touching topic on another blog post very soon so be sure to join the newsletter.

And although AMC still has quite aways to clear their debt, the company has become one of the first to lead crypto innovation and accept payment in cryptocurrencies.

Tesla has now followed by accepting cryptocurrency as a form of payment on their merchandise too.

Debt is the only thing holding AMC Entertainment from being a fundamental buy in the eyes of most in the industry.

AMC Entertainment partnerships

AMC partnered with Chance the Rapper last year for his concert movie release.

CEO Adam Aron announced that they would be working on partnering up with industry leaders for licensing agreements that would allow AMC to provide more of these experiences to their audiences around the world.

Another successful showing was the UFC fight they held in theatres.

The CEO also expressed his optimism surrounding showing highly anticipated sports events in theatres, granted licensing of course.

Retail investors have been specifically waiting for an AMC-GameStop partnership.

A topic Adam Aron teased could be in the works at some point.

AMC theatres released “GameStop: Rise of the Players” on January 28th, earlier this year.

One thing you cannot deny is the community strength and company relationship to its shareholders.

It’s never been seen before.

Do you own AMC stock?

So, will AMC stock go up again?

Based on trader sentiment, community sentiment, and continuous innovation from the company, AMC stock will surge again.

This bear market won’t last forever.

And although the entire market is rather shaky at the moment, there will be a correction.

Hedge funds might have leverage to short the stock, but the people aren’t leaving.

AMC Entertainment will have to focus on growth and revenue if they are to get out of debt in the future.

You can read AMC’s Q1 highlights for 2022 here.

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How High Can APE Stock Go?

October 10, 2022 / Frank Nez

AMC’s Preferred Equity (APE stock) has made it available for the company to raise cash instantaneously.

The company announced in September it would sell up to 425 million APE shares to pay down their debt.

AMC Entertainment has steadily improved fundamentally since 2021 when retail investors injected the company with liquidity to squeeze short sellers.

The movie theatre chain has acquired several new theaters, entered the crypto and NFT space, and has beat every quarter for two years in a row now.

Despite what mainstream media has portrayed, retail investors have not ditched the pursuit of squeezing Wall Street again.

The massive retail community who participated in the trading activity which caused AMC and GameStop to rise are now looking to squeeze AMC’s Preferred Equity, APE stock.

How high can APE stock go?

Let’s discuss it.

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

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What is APE Stock?

APE stands for ‘AMC Preferred Equity’ and is a tradable security in the stock market deriving from an AMC stock split.

Retail investors who held or purchased AMC shares before the stock split would be granted with 1 APE share for every AMC share they held.

The stock split was marketed as a dividend which confused many shareholders at first.

Some retail investors weren’t too pleased to hear AMC’s share price would be divided evenly between AMC and APE stock, but others viewed the split as an opportunity.

The main purpose of APE stock was to allow the company to capitalize from its shareholders during a time of need.

AMC Entertainment would need approval from shareholders to dilute the stock and raise cash, but not with APE.

APE would act as a pool of liquidity for the company to pull money from.

How is APE’s Value Determined?

At first, APE’s value was divided in half from the close of AMC’s trading price prior to the stock split.

Both securities’ value has been determined by market conditions since.

This means how high APE stock goes will highly depend on how much buying power the security receives from retail and institutional investors.

But the market in general has been tough for most investors.

Today’s bear market has only set lower prices for both AMC Entertainment and APE stock.

It’s fair to predict that APE’s value will see more downside before a reversal.

AMC Entertainment made a statement warning short sellers of severe losses that may occur in a ‘short squeeze’ scenario.

An APE short squeeze triggered by coordinated trading activity would result in huge gains for retail investors going long.

But the debate whether APE can squeeze in the first place or not has become a subject few within the retail community half touched topic on.

What do you think?

Leave your thoughts in the comment section below.

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Related: APE Topped $304 Million in FTDs in August

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APE Trades At $2 Despite Strong Shareholder Sentiment

October 8, 2022 / Frank Nez

Stock Market News: APE stock price continues to fall.

APE shares have fallen from $7 to the current $2 price.

AMC’s Preferred Equity reached 20.1 million in average volume but has been dropping by nearly half during this market downturn.

Shareholders remain bullish despite the company announcing the sell of up to 425 million shares of APE to pay down its debt.

But is APE merely a fundamental tool to push AMC in the right direction?

Or is it more than that?

Let’s discuss it below!

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

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APE and Synthetic AMC Shares

APE shares were distributed to AMC shareholder in August.

AMC shareholders received 1 APE share for every 1 AMC share they held.

The theory was that the issuance of APE would unveil synthetic shares in the market, and for a while, some shareholders actually didn’t receive their APE shares on time.

Come to find out, majority of these shareholders were using brokers outside the U.S. which delayed the delivery of the equity.

Adam Aron stated that although he didn’t have any knowledge of synthetic AMC shares, the issuance of these units should at best put the theory to rest.

But AMC’s Preferred Equity has not proven to be the catalyst retail investors hoped for, at least not for a short squeeze that is.

The markets are quite trickier than that, especially what occurs behind the scenes where much information is masked or hidden from the public and even the SEC.

Shareholder sentiment is strong, but many shareholders aren’t happy with the promised ‘pounce’ the CEO announced on Twitter.

A Tool for Retail Investors or AMC Entertainment?

Shareholders holding AMC’s Preferred Equity have suffered losses greater than what AMC stock alone could have.

While AMC stock is owned and decisions are primarily made by shareholders, APE is not.

APE grants AMC Entertainment with access to a large fraction of shareholder’s capital to use at any given moment whether it’s to pay down debt or other fundamental innovations.

For shareholders, purchasing APE shares would mean providing the company with liquidity, charity if you will.

But investing in a company can go two ways:

You either invest in a company to make money (trade, cash dividends, etc.)
Or you invest in a company you believe in, betting the value of the company will increase over time and cash out later

It’s important to identify these two types of investments when buying APE shares from AMC Entertainment.

AMC Entertainment has a gameplan and retail investor should too.

Will APE stock go up?

APE stock has the potential to go up, but it also has the potential to get delisted from the market, should it go to zero of course.

AMC released the following statement on APE stock:

It’s fair to assess that APE is a tool from which AMC Entertainment can take full advantage of to give them the edge to rise up fundamentally.

The company just announced it is collaborating with Netflix to show its first ever Netflix movie in 200 AMC movie theatres.

While AMC shareholder might not be benefiting so much at the moment, the movie theatre chain sure is.

And as the markets begin to reverse, so will shareholders’ luck.

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Short Sellers Target AMC’s Preferred Equity (APE)

August 26, 2022 / Frank Nez

AMC Preferred Equity APE — Market News: Short sellers aim at AMC’s newly acquired foundation, APE

Short sellers are targeting AMC’s Preferred Equity (APE), shorting both the companies’ emergency fund, and shareholders’ equity.

APE’s short interest has officially surpassed AMC’s short interest, now reportedly 30.10% via Ortex Data.

During the run to $27 we saw AMC’s SI tumble to 17% signifying released short seller pressure.

However, today we see short sellers have opened new positions, raising AMC’s short interest to 21.17% and creating bearish momentum for the stock’s share price.

Well, the same thing is happening to APE.

Short sellers have targeted AMC’s Preferred Equity hoping to make some cash during a potential meltdown.

But will it be that easy?

After all, there is a big demand for both these stocks – and with enough momentum; well, it could just create two short squeezes.

Let’s discuss it below.

Volume cools leading to the weekend

AMC and APE had big volume at the beginning of the week when AMC’s Preferred Equity debuted on Monday.

In fact, APE has now set a higher average volume than AMC sitting at 71.5 million.

That’s 22.5 million more in average volume than AMC’s.

The excitement over the new ticker has retail investors invested heavily.

But others are quickly trying to kill off any momentum created by the retail scene.

This morning ticker symbol APE rose to 100 in utilization indicating short sellers have now gone into a full blown out short selling spree.

But AMC and APE aren’t the only tickers whose volume or share price cooled down leading towards the weekend.

Call your mother. pic.twitter.com/f8IYq2SloD
— unusual_whales (@unusual_whales) August 26, 2022

The entire market played in bears’ favor this Friday.

The SPY fell -2.81%, while NASDAQ fell -2.74%.

SPY has a level of support around $400 and if the market continues to downtrend and breaks this level, it’s very likely we see its next major level of support at $390.

But the market was heavily oversold which means it’s possible we begin to see a nice bounce up to $417-$420.

AMC and APE closed with 35.7 million and 13.6 million in volume respectively on Friday.

Will AMC’s Preferred Equity (APE) go up?

AMC and APE currently have approximately the same market cap of 4.7 billion each – due to the split.

The company was able to join the Russell 1,000 in June of 2022 when it managed to meet the $7.3 billion criteria after reaching $7.5 billion before the cutoff time in May.

When AMC reached its all-time high of $72 per share in June of 2021, the world’s largest movie theatre chain grew its market cap to an astonishing $28.44 billion.

AMC’s market cap increased as the value of its share price increased.

How did this happen?

Well, millions of investors began purchasing the stock like crazy – volume was reaching +500 million, +700 million, and +900 million during single trading days.

Once institutions saw there was heavy momentum happening on retail’s end, they began to jump in as well.

In order for AMC or APE to reach all-time high levels, the market cap will have to increase.

Because as soon as momentum picks up again, institutions combined with short sellers buying back their shares will further fuel AMC or APE’s market cap.

Will AMC and APE skyrocket?

This will depend on how valuable the company can become, no matter how fast or how slow it achieves this process.

Why is APE being shorted more than AMC?

According to the reported short interest data provided by Ortex, APE is currently being shorted more than AMC stock.

AMC Entertainment designed APE as a means to raise capital for a rainy day.

The company has access to a fraction of shareholders’ equity should they need to pay off debt or make a worthy investment in another business venture.

APE is a tool that allows AMC Entertainment to not only stay afloat in case of another catastrophic event, but it provides the theatre chain with opportunity to grow and progress.

Short sellers are targeting this massive foundation in hopes of crippling the century old company.

Things didn’t quite work out in short sellers’ favor last year when big bets were being placed against AMC during their bankruptcy announcements.

But retail investors were able to arm the CEO with billions to resuscitate the company, burning those who prophesized the doom of the cinema experience.

Now it seems short sellers are pursuing a vendetta against retail investors and the company.

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Reasons why AMC wont squeeze in 2023..

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What is APE Stock?

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APE and Synthetic AMC Shares

A Tool for Retail Investors or AMC Entertainment?

Will APE stock go up?

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Volume cools leading to the weekend

Will AMC’s Preferred Equity (APE) go up?

Why is APE being shorted more than AMC?

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