Now we’re seeing the equity surge more than 180% in the past few days based on volume.
APE shares rose 75% before the Christmas holiday with volume reaching more than 177 million, up 158 million in trading volume from its average of 19.6 million.
On Tuesday, we’re seeing big trading volume come in with more than 55 million in the first hour and a half.
AMC APE Share Price Today | APE shares surge.
Will APE shares continue to rise?
There seems to be a discrepancy where we’re seeing AMC and APE’s charts mirror each other, but the complete opposite way.
While APE shares rise, AMC shares fall, especially when looking at the past 5-day trading charts.
AMC VS APE | APE shares surge.
It’s hard to say whether what we’re seeing with APE is shorts closing when we look at AMC’s chart directly next to APE.
It’s almost as if value is being extracted from AMC into APE.
And according to a Nasdaq report, only 0.18% of institutions are currently holding APE shares, so where is this volume coming from?
Have you purchased APE shares in the past 5 days?
Leave a comment down below.
What do you think of these two discrepancies between AMC and APE shares?
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It’s the biggest news in the AMC community thus far.
So, why did APE shares rise so much today?
And where did so much trading volume come from?
Retail investors are speculating insider buying triggered the massive price surge and heavy volume.
Others are alleging it’s the company’s way of injecting value back into the equity before APE re-merges with AMC common stock.
The truth is, it’s hard to say.
APE was never intended to be a valuable asset for investors, but more so a valuable asset for AMC Entertainment as a company.
Will APE Shares Keep Rising?
If insiders are injecting the equity with value before shareholders vote for the merge of APE and AMC, then it’s very possible the equity may continue to rise.
As of right now, where the immense amount of volume came from is undetermined.
What’s certain is many shareholders weren’t too happy about the creation of APE in the first place as it created unnecessary loss for shareholders.
Here are the CEO’s comments published on Twitter:
“Also, APEs worked exactly as intended to let us raise needed cash, buy back debt, explore M&A. But a huge discount in APE market price vs common stock must be addressed. We’ll hold a shareholder vote. It’s time to convert APE preferred into AMC common to eliminate that discount.”
APE shares have been massively shorted to cents, AMC stock is now trading below $5, a solution has to be addressed.
And so it has.
Adam Aron is proposing a 1-for-10 reversal stock split where shareholders will get left with 1 share of AMC for every 10 shares they hold in exchange for a higher share price.
The idea is to give shareholders the illusion of a higher share price by reducing the number of shares they hold.
The value of an individual’s portfolio would remain the same amount.
However, if an investor holds 10 shares of AMC, they will convert to 1 share.
If an investor holds 100 shares of AMC, after a 1-for-10 reverse split they will hold 10 shares.
All for the sake of making the value of AMC shares appear much higher.
With AMC currently trading around $4.50, a 1-for-10 reverse stock split would mean the stock will then trade at $45 per share.
Leave your thoughts below
I’m curious to hear your thoughts on what’s currently occurring with AMC Entertainment and its APE shares.
How do you feel about the entire situation at hand?
Leave your thoughts below for the community to see.
Market News: Here’s the latest on AMC’s Preferred Equity, APE.
Retail investors are angry at regulators for allowing Wall Street to decimate APE stock.
While AMC’s Preferred Equity (APE) was intended for the company to capitalize on, banks, institutions, and short sellers have abused shares to the ground.
The equity was meant to provide AMC Entertainment with liquidity in order to pay down their debt.
While AMC was able to reduce their debt by $106 million due to APE, shares have been shorted from $7 all the way down to $0.81.
Shareholders questioned how shorting APE was possible in the first place, failing to recognize that APE is a tradable security just like any other stock.
Faceless influencers within the AMC community led many retail investors to believe that shorting AMC’s Preferred Equity was impossible.
And unfortunately, this perception clouded many people from creating a proper investment strategy or embracing for what was to come.
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Retail Investors Seek to CEO for Answers
AMC and APE shareholders all have one common goal in mind, an AMC short squeeze and an APE short squeeze.
And although many shareholders have been transformed into paying customers, others are looking at AMC CEO Adam Aron for answers.
Loyalists don’t question the CEO and will condemn you for doing so, but if shareholders are still invested in the company, they have every right to yearn for answers.
Adam Aron has successfully maneuvered AMC out of bankruptcy, primarily thanks to its shareholders of course.
He’s utilized Twitter magnificently in a way that no other CEO has ever done so before.
And you can’t help but to admire the business personality in him that can raise cash out of thin air.
Addressing shareholder concerns is important, whether you agree or not.
Does It Even Matter?
Some of you care about your money, your finances, your investments, and some of you simply don’t.
To some, being part of an embracing community, being known in a community, and embracing the movie theatre industry, but more specifically AMC Entertainment, is more important than monetary gains or financial abundance at this point.
And is that even a bad thing?
You just want to be heard; you want to fight evil in the markets without a care about money.
Or maybe you’re simply in the middle.
👀@CEOAdam Thanks! I can say we all enjoyed! German apes: he will be in Germany around january or februari and probably in Berlin…. My favorite city…. will try to be there! pic.twitter.com/xysVCeyJIR
According to Fintel, APE had 5.4 million shares going to dark pools today with approximately more than 50.6 million shares having been shorted, via NYSE.
APE volume traded above average closing Wednesday’s rally around 23 million shares.
I think it’s fair to assume insiders won’t be buying APE anytime soon as it’s primarily a tool to capitalize from its shareholders, rather than a long-term investment.
Is An APE Short Squeeze Possible?
Some AMC shareholders are convinced that APE’s high short interest mixed with large buying pressure will trigger an APE short squeeze or trigger major price action like we saw with AMC in June of 2021.
And hypothetically speaking, they’re not wrong.
But APE would need to get backed up by institutions with strong enough buying power to scare short sellers out of their positions.
Because despite retail’s efforts, capital is just being eaten up by dark pools, selloffs, and heavy shorting.
And unfortunately, Gary Gensler is nowhere in sight to level the playing field.
The stock has had an insane amount of demand in the market from retail investors, but overleveraged shorting has suppressed the stock’s price from rising.
The equity closed at $0.98 per share and fell as low as $0.90 on Wednesday.
Majority of the market pumped during JPow’s announcement but both AMC and APE finished red on the day despite above average trading volume.
APE had an exceptional amount of buying power reaching 62.8 million, it’s average trading volume is 16.2 million.
The manipulation of APE in the market has shareholders looking at the CEO.
Citigroup’s Ties with APE and AMC Entertainment
Citigroup APE ties. AMC Entertainment news + more.
AMC Entertainment announced that it would hire Citigroup to help it sell 425 million APE shares.
This comes from the movie theatre chain’s strategy to capitalize from its shareholders to pay down debt.
Shareholders have argued in the past that the issuance of APE should have been voted for.
AMC Entertainment was able to successfully and legally claim a fraction of shareholder’s hard-earned capital in order to keep raise cash.
While there are shareholders who are willing to give their entire paycheck to the company, others weren’t too happy with the move.
Now it’s been disclosed that Citigroup has been shorting AMC Entertainment for the better part of over two years now.
Citigroup’s 13F-HR filing shows the company has been selling shares while trading put options in the derivatives market.
Meanwhile, the bank has also been downgrading AMC’s share price and promoting it in the media.
That’s right, the partner that is helping AMC sell APE shares has also been capitalizing from shorting the company.
Shareholders Look to Adam Aron for Answers
While there are shareholders that have total trust in AMC’s CEO Adam Aron, there are others who simply want answers.
Shareholders are invested in AMC Entertainment in order to capitalize from the company, but it currently seems to be the other way around.
AMC Entertainment just launched their online merchandise store, which is incredibly bullish for the company as it allows them to venture into other income streams.
This however does not prevent certain shareholders from wanting answers on APE’s dilution and massive suppression in share price.
Still, majority of shareholders seem to hold on to the CEO’s statement when he said to not confuse his silence with inaction.
But I’m curious to know what you think.
Leave your thoughts in the comment section down below.
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.
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?
Will 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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