Tag: Ape Community (Page 2 of 21)

Will Shorts Be Forced to Close Positions in APE?

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.

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.

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

What Happens to Shorted Stock During a Merge?

APE short squeeze news and updates.
APE short squeeze news and updates.

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?

APE short squeeze news and updates.
APE short squeeze news and updates.

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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Will AMC Stock Go Up? [2022 Deep Dive]

Will AMC stock go up?
Will AMC stock surge again?

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.

Can AMC’s share price still surge?

Can AMC's share price still go up?

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.

Subscribe for more content and updates.

Deflating the short interest

AMC 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

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?

Leave a comment below.

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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