Tag: GME Short Squeeze

GameStop 4-1 Stock Split Makes Buying It More Affordable

GameStop 4-1 Stock Split
Market News: GameStop announces 4-1 stock split

GameStop just approved a 4-1 stock split.

The proposal was on the table for months, but Dow Jones Newswire has officially confirmed it.

Shareholders have been waiting for this fundamental catalyst in hopes of scaring short sellers and finally creating a proper GME short squeeze.

But this is more than just a short squeeze catalyst.

If you’re a true believer of the company and in the innovation and future of where it’s going in the NFT space, now is the perfect time to look into owning a piece of the company.

It’s about to get pretty damn affordable.

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GameStop announces 4-1 stock split

GME 4-1 stock split explained
GME 4-1 stock split explained

GameStop Corp. on Wednesday said its board approved and declared a four-for-one split.

It’s the first time GameStop has split the stock since 2007 making it the second time in history it happened.

GameStop had done a 2-1 stock split thirteen years ago.

So, what does a 4-1 stock split even mean?

It means that current GME shareholders will receive 4 shares of GME stock for every one share they currently hold.

If you’re holding 1 share of GameStop in your stock portfolio, you will receive 4 shares of GME stock.

Shareholders with 1,000 shares of GME stock will receive 4,000 shares.

However, this does not mean GameStop’s share price will quadruple in the process.

On the contrary, GameStop’s current share price will be divided by four.

The stock closed at $117.43 on Wednesday and has jumped more than 8% after hours.

What will GameStop shares be worth after the stock split?

Based on Wednesday’s number figure, GME stock will be worth approximately $29.35 after the split, making the stock much more affordable for the public to invest in.

GameStop stock split date

GameStop 4-1 Stock Split

Investors who purchase GME stock before July 18 will receive the additional shares in GameStop’s 4-1 stock split.

Some investors might wonder, why is GameStop splitting its stock?

Often times when a stock’s share price has reached high levels, a company will issue a stock split to make it more affordable for the public to purchase.

We’ve seen this happen with Tesla (TSLA) and Apple (AAPL) in the past.

Amazon recently had a 20-1 stock split, making it extremely affordable to add AMZN stock to your portfolio.

Stock splits are a common way to attract more investors towards a growing company.

Are you a GME shareholder?

How many shares of GME stock will you own after the stock split?

Or are you a curious investor who is thinking of buying GME after the stock splits at a much more affordable price?

And lastly, will GameStop’s 4-1 stock split be a catalyst to finally squeeze short sellers from their positions?

I’d love to hear your thoughts.

Leave a comment down below.

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These Two Signs Will Tell You a Short Squeeze is Over

These two signs will tell you a short squeeze is over
Keep an eye out on these two things.

How will we know when a short squeeze is over?

There’s going to be signs traders will want to keep an eye out for.

In this article, I’m going to be going over them in detail and will be using AMC and GameStop as examples.

Be sure to read to the end so you don’t miss a thing.

Let’s get started.

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#1. Short interest

short interest

The short interest of a stock shows us the percent of a company’s float that is being shorted.

The reason AMC and GameStop were able to see price surges last year is because a small percent of short sellers closed out their positions in these stocks.

AMC’s short interest dropped from 20% to 14% when it had skyrocketed to $72 per share last year.

Today, AMC’s short interest is: 22.05%

GameStop’s current short interest is: 24.99%

You will know a short squeeze is over when there is no more short interest in an underlying stock.

You cannot have a short squeeze play if there is no short interest.

For example, HYMC stock’s short interest had surged prior to AMC’s acquisition.

The stock’s price surged and days later we saw the short interest plummet, and it continues to plummet.

HYMC’s short interest today is: 2.85%

A short squeeze for HYMC seems unlikely at this low of a percentage – there are simply not enough short sellers to squeeze and create a big price runup.

SI goes up and goes down

If HYMC’s SI was to surge, then it increases the possibility to squeeze shorts at a high enough short interest percentage.

However, it’s important to look at how short interest moves.

I update AMC’s, GameStop’s, HYMC’s and many other stocks’ short interest daily here.

If HYMC’s short interest keeps going down, don’t expect a short squeeze from Hycroft any time soon.

Hypothetically speaking, if AMC or GameStop’s short interest drops by 5%, then you know there’s still ‘squeeze’ juice, leaving AMC and GME at 17% and 19%, respectively.

Keep an eye on the short interest, it’s important to identify how many shorts are still in the game as AMC and GME begin to move up again.

#2. Utilization falls

AMC’s and GameStop’s current utilization are both at 100.

The utilization is the number of all outstanding loans available for lending.

You will know a short squeeze is over when AMC’s or GameStop’s utilization falls extremely low, when there are almost no shares available to loan.

For example, Ford (F) has a utilization of 1.14.

Apple (AAPL) has a utilization of 0.06 and Tesla (TSLA) has a utilization of 3.76.

The utilization tells us how much lending is happening in a security to short it.

And as long as AMC and GameStop are being heavily shorted, both are a short squeeze play.

Keep an eye out on the utilization, updated every trading-day here.

I hope this article was easy to digest and the information was straight to the point.

Have any questions, thoughts, or opinions?

Leave a comment below.

If you found this article to be educational or you learned something new give this post a social share.

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Related: AMC's Shares on Loan Are at An All-Time High

SEC News: New Proposals Threaten MOASS and Market Justice

SEC News
SEC News – NSCC 2022 003 – NSCC 2022 801

Today I’m going to touch topic on some SEC news.

Be sure to bookmark this page as it will be continuously updated for your convenience.

The SEC recently released two new rules that essentially go hand-in-hand with one another.

They are NSCC-2022-003 and NSCC-2022-801.

I’ll be breaking these down in simple terms below.

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NSCC-2022-003 and NSCC-2022-801

SEC

NSCC-2022-003 and NSCC-2022-801 essentially have to do with allocating securities into other pockets of leverage through the use of SFTs.

I’ve seen a few mixed thoughts on this SEC news on Twitter and on Reddit.

However, I’m going to break it down in the simplest form possible, so you have a better understanding of what these new SEC proposals are stating.

If you have any comments, thoughts, or opinions you’d like to make public to the community, be sure to leave a comment below at the end of the article.

What is an SFT?

An SFT is basically a leverage tool that will allow parties to simultaneously exchange the same securities between one another, in exchange for collateral.

For example, the purpose of NSCC-2022-801 is to establish new ‘membership categories’ and requirements for ‘sponsoring members’ and sponsored members where they can access this leverage tool.

It’s a safety net for institutions with overleveraged positions to hold owed securities, but ensures sales are delivered in the market, preventing FTDs and naked shorting.

SFTs involve the owner of securities transferring those securities temporarily to a borrower, typically a hedge fund.

The middleman in this scenario tends to be either a bank or a financial firm.

In return for the lent securities, the borrower of those securities transfers collateral to a party with an interest rate attached to that collateral.

SFTs in a nutshell are meant to provide liquidity to markets to make delivery on short-sales, and avoid FTDs, naked shorts, and similar situations, according to the report.

Will these rules benefit retail investors or hedge funds?

SFTs can also be seen as a program that will allow the NSCC to liquidate a defaulter’s net position in an orderly way to prevent massive market disruption.

NSCC-2022-003 limits the positions that need to be liquidated to reduce the volume of required sales activity in the market.

What regulators have essentially created is a ‘legal’ backdoor for overleveraged hedge funds to launder illegal naked short sells and FTDs.

NSCC-2022-003 and NSCC-2022-801 are essentially the same proposals only with slight updates.

Keep in mind these are only proposals.

So, while these new rules could be beneficial to retail investors as far as eliminating naked short selling in the future, it washes away the damage already created by overleveraged hedge funds today.

I strongly believe short sellers should be held accountable to closing their overleveraged positions first.

If the SEC wants to protect the integrity of the market and prevent massive disruption worldwide, they will hold short sellers accountable, relieving all pressure imposed on heavily shorted stock.

Failure to do so will mark the event as the greatest financial theft in stock market history.

We are on the brink of massive change.

History is being written; one of two decisions will be made, and the outcome will last forever.

SEC Email: rule-comments@sec.gov

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GME Stock: Why It Can Still Skyrocket Past $1,000 Per Share

GME Stock - Can GME hit $1,000?
GameStop Stock – Can GME hit $1000 – How high will GME go?

A while back I wrote an article debating which stock you should invest in, AMC or GME stock? The premise of that article was to identify which stock was more convenient for the new retail investor.

See, both are great momentum stocks to hodl, but GME stock is a lot more expensive for the newcomer to buy.

And although AMC has now become the more popular stock, I have a good feeling those hodling GME stock can still see massive gains.

Here’s why.

franknez.com

Welcome to Franknez.com – today I want to talk about GameStop stock, ticker symbol GME. Lets look at the data that states this stock is not done climbing up.

Lets get started!

If you’re like me, you probably didn’t get a chance to get in on GameStop before it began to create a ruckus in the financial world.

Or perhaps you were lucky enough to get a few shares.

I’m a strong AMC shareholder and will not buy GME stock only because I rather increase my position in AMC.

AMC’s short interest is higher, utilization is higher, and so are the shares on loan.

It’s also more affordable.

But don’t get me wrong, the reason I’m publishing this post today is because GME stock has enough data that proves it has more juice to squeeze.

So, if you’re holding GME stock, this article should help you armor up your conviction towards your stock.

GameStop Short Interest

GameStop’s short interest is still rather high. GME’s current short interest is sitting at 20.05% via. Ortex data.

Just to compare, AMC’s is at 20.59% which a short interest of 20% or higher is considered extremely high.

GME’s short interest data is updated daily here for free.

Why Does Short Interest Matter?

Short interest the number or percentage of short shares that have yet to be covered. For stocks with high short interest this means it is possible to squeeze shorts out of their positions.

GameStop stock is considered to have high short interest therefore it has slack to keep moving up. Not all shorts have covered their positions!

If you hold GameStop stock, keep holding it. The longer you hold it, the more money short sellers lose on paper. Once they can’t afford to hold GME stock they’ll be forced to cover.

Remember, it costs you nothing to hold.

GME Utilization Rate

GME stock utilization rate is currently 100%. This means the entire available shares in the market are currently being loaned to short the stock.

APPL for example, may have less than 1% because there’s not a large demand for shorting the stock.

A high demand for shorting GME stock means there’s a play to squeeze shorts out of their positions.

GME shareholders still have a chance to make a ton of money.

Short sellers have not backed off from shorting GameStop and continue to play with fire.

Will Utilization Stay Up?

If more short sellers open short positions then GameStop’s utilization will certainly go up.

At the moment, it seems that there’s 100% of the stock that’s being borrowed.

This number fluctuates from time to time.

Those that are still shorting it have been holding on for quite some time.

However, it’s only a matter of time before they too close their positions and GME stock surges again.

GME Stock: Shares on Loan

Can GME hit $1000
Game Stop Shares on loan: Can GME hit $1000

GME’s shares on loan refers to the number of shares that are being borrowed.

GME stock has approximately 18.67 million shares on loan.

We essentially convert the utilization percentage into the actual number of shares that are being borrowed.

That’s a lot of shares that still need to be covered by short sellers borrowing the stock.

GME stockholders could take advantage of the fact that the stock has been on discount recently.

Especially if you’re still looking to increase your positions in GameStop stock.

Otherwise, GME stock is a hold play right now where patience will bear some sweet fruit very soon.

Charles Schwab Raises Margin Requirements

Charles Schwab just raised margin requirements for short sellers shorting both AMC and GME stock.

This puts short sellers under tough conditions since they’ll need to keep more cash at hand to continue borrowing AMC and GME stock.

And although we’ve seen a little bit of institutional selloff, Charles Schwab continues to hold GME stock.

An institution that has not sold GameStop is Vanguard.

Vanguard is one of AMC’s biggest institutional holder who continues to buy the stock to-date.

So if there’s something GameStop shareholders can take from this is that institutions are still holding GME stock, and there are still enough short sellers to squeeze out of their positions.

How High Will GME Stock Go?

how high will gme go? Can GME hit $1,000?
how high will gme go? Can GME hit $1000 –

So, can GME stock reach $1,000 per share. It’s certainly a possibility given that GameStop’s dark pool trading percentage is rather high, according to Stonk-O-Tracker data.

Dark pool trading in GameStop has ranged between 30%-50%. This means 30%-50% of short selling has occurred behind closed doors.

Short sellers are able to keep their short borrow fee down with this loophole as well as conjure up naked shares to swap with one another.

However, they’ll eventually have to close every synthetic share they’ve ‘borrowed’ to short the stock.

This is massive for GameStop just as it is for AMC.

Is It Too Late To Buy GME Stock?

Is it too late to buy GME stock? Can GME hit $1000 -
Is it too late to buy GME stock? Can GME hit $1000

I would say that you will no longer be able to buy GME stock below 3-figures.

If this figure is too expensive for you to build your portfolio then it absolutely is too late.

However, if you’re looking to diversify your momentum stock portfolio, GME stock could be a good stock to hold.

Otherwise, you’re better off buying the heavier shorted stock that is significantly more affordable at the moment, AMC.

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Read: List of momentum stocks: short interest data


AMC Closes Trading Week Up 13%, GameStop 8.57%

Trading Week - AMC and GameStop
March Trading Week – AMC and GameStop end month in gains

AMC and GameStop both had very successful trading weeks finishing March up 13% and 8.57%, respectively.

Both stocks saw an incredible bullish runup before the stocks were halted on Tuesday.

The theatre chain announced this month its gold mining company Hycroft had raised more than $195 million in only two weeks.

GameStop followed weeks later with news on a stock split in the form of a dividend.

Let’s break it all down together.

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AMC’s Hycroft raises $195 million

AMC HYMC Hycroft
AMC Trading Week + Announcements

AMC announced last week Hyrcroft raised an astonishing $195 million in only a span of two weeks.

Both AMC and billionaire businessman Eric Sprott took a large stake in Hyrcoft (HYMC).

Eric Sprott is known for specializing in precious metals and real assets investing.

He is considered one of the world’s leading gold and silver investors.

Combined, AMC and Mr. Sprott invested $56 million in Hycroft (HYMC), or approximately $28 million each.

CEO and president of AMC Entertainment Adam Aron announced on Friday in a tweet a total of $139 million had been raised in additional equity.

Both AMC and HYMC stock surged in prices the following week after the announcements.

AMC short sellers suffered more than $750 million during this runup.

The movie theatre chain is down 5.44% on Friday but is up more than 13% on the 5-day trading week.

GameStop announces massive news

GameStop announcement
GameStop Trading Week Announcements

Shortly after GameStop fired a firm connected to Citadel (BCG), news comes out of Ryan Cohen’s stake in BBBY.

The GameStop Chairman now owns a stake of 9.8%.

Both GameStop and BBBY shares rose.

Ryan had announced a week prior he had also increased his position in GameStop increasing his stake to 11.9%.

The news caused short sellers a heavy loss of almost $500 million in just one day alone.

But the biggest news came Thursday when the company announced GameStop would be issuing a stock split in the form of a dividend.

I published a detailed article of what this could mean for both shareholders and short sellers alike.

The stock soared afterhours, but retail investors were disappointed with GameStop’s performance on Friday.

GameStop closed Friday down 0.95%; the stock continued to dip after hours.

However, GME stock is up 8.57% on the 5-day weekly chart and investors will take that win any day.

Short interest data

Ortex Short Interest

Let’s go over AMC and GameStop’s short interest data from this week.

AMC’s current SI: 20.58% | Utilization: 100 | CTB: 1.65 | DTC: 2.44

GME’s current SI: 22.19% | Utilization: 100 | CTB: 9.49 | DTC: 4.49

Both AMC and GameStop have enough short interest to squeeze shorts from their positions.

Screenshots have been floating around on Twitter showing short squeeze scores of 90 to 95+ for both these stocks via. Fintel.

AMC also had 3 short squeeze signals via Ortex in March.

These should be taken with a grain of salt but signal the high probabilities.

I update AMC, GameStop’s, and other shorted stock’s short interest here.

What is next week looking like?

I expect next week we’re going to see something very similar to March’s last trading week.

Weekly gains consisting of bullish runs and then f’u*ery in ‘short and distort‘ campaigns.

The NASDAQ was up during the last week of march while DOW underperformed, and the SPY saw very little gain.

In general, the market as a whole tends to follow the performance of these indexes.

So, there’s influence from just about every corner in the financial sector despite companies having positive news and red days.

As indexes adjust, small and midcap companies will too.

I’d love to hear your thoughts.

What are you expecting from the market next week?

Leave a comment below.

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GameStop Announces Stock Split in Form of Dividend

GameStop Dividend
GME Stock Dividend – GME Stock Split – GameStop announces dividend and stock split

GameStop is planning a stock split in the form of a dividend, but shareholders will have to approve this plan at the upcoming 2022 annual meeting.

The game retailer filed a form 8-K with the SEC laying out the plans for this stock split and dividend.

The news has the retail community cheering on the plan but leaves curious investors with a few questions.

Be sure to bookmark this page for updates.

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How will a GameStop Dividend work?

GameStop Dividend
Source

GameStop plans to increase the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000 in order to implement a stock split of the Company’s Class A common stock in the form of a stock dividend.

The stock soared more than 14% after hours moments after the announcement.

Several call options within $170-$190 are in the pocket to fuel massive gamma squeeze for Friday’s rally.

To say GME shareholders are excited is an understatement.

But GameStop shareholders aren’t the only ones who are excited.

The entire ‘meme stock’ crowd is happy to hear the news as most upswings have been in synchronicity with both GameStop and AMC.

GME stock is up more than 16% after hours while AMC which also closed red today is up more than 5%.

What type of dividend GameStop unveils is yet unknown, but a dividend usually comes in the form of monthly, quarterly, or annual compensation.

Investors are even speculating an NFT dividend could be underway.

However, this is a developing story so be sure to join the newsletter for immediate updates.

How does a stock dividend work?

GameStop dividend

Stock dividends pay shareholders a percentage from a company’s profits every month, every quarter, or annually, depending on the terms.

Shareholder will have two options when receiving stock dividends.

  1. Cash out the dividend during every payment cycle
  2. Reinvest the dividend back into the stock to accumulate more shares over time

If GameStop offers shareholders a traditional dividend (non-NFT), then shareholders will be able to use one of these two options.

How much investors earn every month, or every quarter will depend on how many shares an investor holds and on GameStop’s dividend yield.

The more shares of a company an investor holds means the more dividend yield is accumulated over a period of time.

A GameStop dividend could provide shareholders with a stream of passive income like most dividend stocks do.

Long terms stockholders tend to reinvest that dividend so that the number of shares they own compound over time, creating a snowball effect of increased value assets.

This is what Warren Buffett refers to as value investing.

So, how does a stock split work?

GameStop Stock Split

A stock split takes a share and splits it into two or more shares, dividing the share price by the number of splits.

For example, Amazon just announced a 20-1 stock split.

This means for every share you own of AMZN stock you will receive 20 more shares when the stock splits.

AMZN stock is worth roughly $3,200 today.

If the stock split today and you only owned 1 share of stock, you will now have 20 shares each worth $160.

Owning 2 shares of AMZN stock would give you 40 shares valued at $160.

Tesla and Apple had stock splits earlier last year too.

GameStop’s stock split ratio is still unknown, but I will cover it as more information from the company is released.

What is the purpose of a stock split?

A stock split allows investors to purchase a company’s stock at much more affordable price.

Especially after a stock’s share price has surged to relatively high numbers.

Going back to Amazon as an example, while $3,200 per share is not feasible for most small investors, $160 per share incentivizes retail investors to buy the stock at a much lower entry point.

A GameStop stock split too could allow retail investors to buy the stock at a much lower price.

GameStop stock split explained

The company wants to increase the number of common stocks in the market from 300,000,000 to 1,000,000,000 to provide that capital to its shareholders in the form of a dividend.

So, it’s possible we don’t even see a traditional stock split (unless announced by GameStop).

The information we have available at the moment points towards this ‘dilution’ so-to-speak as a form of payment to GameStop’s shareholders in the form of a GameStop dividend.

GameStop’s board of directors has approved both stockholder proposals, but the stock dividend will be contingent (subject to change) on the final Board approval.

What does a GME stock dividend mean for short sellers?

The news of a GME stock dividend means retail investors will flood the market to buy GameStop, causing short sellers not only lose a lot of money, but to close their positions.

What happens to a short seller when a company announces a stock dividend?

If the stock is short on the record date, they will owe the dividend to their broker.

At this point a GameStop short squeeze is inevitable.

Shorts will be forced to buy back their shares to pay their brokers the dividend they’re entitled to once this proposal is executed, or they have the chance to close their short positions now before accumulating greater losses in the future.

Either way this plays out, short sellers are not in a good position right now.

Is GameStop a buy right now?

franknez.com

GameStop might be a little pricey at the moment, but investors buying in for a short squeeze have a chance at making a lot of money in the near-term future.

Are you a GME shareholder?

Leave a comment below and don’t forget to join the newsletter for updates.

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AMC and GME Stock Get Halted During Trading Surge

AMC and GameStop Halts
Halts are happening again as ‘meme stocks’ soar in volume and price

AMC and GameStop were halted shortly after the market opened this morning.

AMC stock reached a high of $34.09 and GameStop reached a high $199.24 before plunging.

The halts seized the ‘meme stocks’ from soaring, momentarily freezing momentum.

Shareholders might recall halts occurred last year as well before ‘meme stocks’ reached all-time highs.

Let’s discuss it.

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Let’s dive right into it!

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Momentum triggers gamma halts in AMC and GameStop

Both AMC and GameStop have more than 3 times their average trading volume today.

Could these early gamma squeezes have triggered a short squeeze in both AMC and GameStop had the stocks not been halted?

It’s certainly possible.

Although, it’s no secret these halts play in financial institutions’ favor.

Perpetual momentum could cause significant damage to institutions short on these plays.

The halts are not there for retail to regain composure, it’s for short sellers to regain their composure.

It gives financial institutions time to access the situation as it is no longer in their control.

The only control market makers have during these volatile swings are when to pause the game for themselves.

The thing is, when they resume retail investors will still be there.

So, while market makers might be able to slow down the process, they cannot prevent the inevitable.

Is history about to repeat itself?

AMC and GameStop along with other ‘meme stocks’ were halted in January of 2021.

Not only did these halts prevent these stocks from surging but Robinhood also froze the ability to purchase them.

AMC experienced halts again in May before its price ran up to more than $72 per share.

Retail investors were temporarily prohibited from purchasing the stock like they were in January.

Retail investors should view these halts as confirmation massive gains are coming in the near future.

While minor setbacks such halts might discourage bullish investors, it’s important to zoom out and look at the broader picture.

AMC stock is up more than 57% in the last five trading days.

And GameStop is up more than 36% in the last five trading days.

More than 56% of retail investors own GameStop and more than 90% of retail owns AMC Entertainment.

No one in the community is going to quit the crusade against crime in the markets due to halts.

What to look out for this week

AMC stock halted
AMC Stock Halted | GME Halt | GameStop Halt | AMC and GME Halt

Here’s what we can expect this week for AMC and GameStop.

  1. Surge in trading volume
  2. Short and distort campaigns

We can expect the same surges in volume throughout the week for both AMC and GameStop.

Retail investors are not letting off the gas pedal and short sellers know this.

For this reason, we can expect short and distort campaigns to take full flight again.

Corporate media has taken shots at AMC and GameStop for over a year, what’s to stop them now?

Despite the adversity, shorts have not closed their positions which means these two stocks have a lot of room for growth.

AMC currently has a short interest of 20.99% and GameStop has a short interest of 24.62%.

I update a list of heavily shorted stocks here daily so be sure to bookmark the page.

The short interest shows us the percentage of a stock’s float that is shorted.

10% is typically considered to be high while anything above 20% is out of the norm and deemed as ‘extremely high’ short interest.

We can spot some short covering as the short interest begins to decrease.

Are short squeezes on the horizon?

An AMC or GME short squeeze may happen at any moment.

This is why it’s imperative that shareholders hold the stock.

Investors are creating pressure through buying momentum, which increases the probability of runups and short covering.

AMC short sellers have suffered more than $750 million in the past two weeks.

Last week GME short sellers lost almost $500 million in one day alone.

The odds are definitely in retail’s favor.

Shorting AMC and GME stock will prove to be one of the riskiest bets in stock market history.

The pressure is certainly on and I’m excited to see retail come out at the end of this victorious.

I’d love to hear your thoughts.

Do you own AMC and GME stock?

Leave a comment below.

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Here’s Why Citadel’s Customers Are About to Lose Everything

Citadel Customers, Citadel News

Citadel’s customers are in for a massive shakeup entering 2022.

The hedge fund just updated their liquidity terms for all investors and the institution continues to lose money on bets they’re not willing to close.

They are limiting quarterly withdrawals to 6.25%, meaning it would take 16 quarters, or four years to fully pull out unless the client is willing to pay a fee.

Unless Citadel Securities closes their heavily shorted positions in both AMC and GME, clients are in for more losses leading into 2022.

Should clients pull out?

It’s definitely worth considering.

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Welcome to Franknez.com – hedge fund Citadel Securities has just made a desperate attempt to keep their clients’ money. Desperate times call for desperate measures.

Let’s get started!

Community, this is massive.

Aside from setting tighter restrictions on withdrawals, Citadel Securities is also giving their clients an ultimatum.

Citadel Gives Desperate Ultimatum to Customers

Citadel’s funds are currently closed to new investors, so if someone quits, they might not be allowed back in the future.

The hedge fund has given this desperate ultimatum to its customers in efforts to hedge against losing bets.

Citadel Securities has lost billions of dollars all year betting against AMC and GameStop.

Retail investors have been fighting this adversary from trying to bankrupt two of America’s favorite companies.

The hedge fund has been notoriously shorting AMC stock despite all talks of bankruptcy officially off the table since early 2021.

Citadel is not stopping despite billions in losses.

And it’s costing their clients a lot of money.

Now, Citadel Securities is making it tougher for their clients to withdrawal their investments.

Citadel will eat every single one of its clients’ dollars to fight retail investors.

Will Citadel Keep Losing Money?

The entire stock market has been volatile in general.

However, Citadel Securities has amounted billions of dollars in losses due to overleveraging short positions in AMC stock.

Retail investors continue to buy and hold the stock until this hedge fund closes the millions of borrowed shares they have open.

And until they do, customers will continue to face significant losses entering 2022.

Clients can expect to see the same pattern from 2021 if Citadel Securities does not cut their losses.

AMC is not the only stock incurring losses to the hedge fund.

Citadel Securities’ business model is built on shorting stock to earn money on the downside.

And that’s the problem, they’re betting on losers instead of winners.

Should Clients Pull Their Money Out?

should I pull my money out from Citadel

Citadel Securities is one of the largest hedge funds in the world.

They’ve created massive systemic risk for the entire U.S. economy.

Hedge funds such as Millennium, Susquehanna, and 638 are also at risk.

This list of hedge funds shorting AMC stock are playing with their customers money.

Clients have a better chance at yielding returns by opening a brokerage account and investing in an index fund every month.

More of the general public is learning how to invest in stocks.

They’re not looking for hedge funds to play with their money.

They are taking accountability and researching where their money can grow both short-term and long-term.

Analyst Says ‘Buy GME and AMC’ Before Evergrande Crash

evergrande amc citadel

A veteran credit analyst is encouraging buying GME and AMC shares to hedge against a market crash.

In this article I discuss why the possibility of AMC and GME experiencing a MOASS is very likely due to an Evergrande crash.

Now, Dr. Marco Metzler, an advisory board member of the German Market Screen Agency says crypto and ‘meme stocks’ can yield a massive opportunity for investors.

Retail investors in the AMC and GME community have been right all year.

Overleveraged positions, dark pool trading, naked shorting, negative beta, all of it.

AMC and GME stock are going to experience massive short squeezes and hedge funds betting against these two stocks are about to cause severe losses for their clients.

Read: 10 myths about the AMC apes the media has wrong

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GameStop Price Jump: NFT Marketplace or FTDs?

GameStop NFT Marketplace

GameStop saw a massive price jump after hours following the news of the company starting an NFT marketplace.

Community members suspect the price jump was due to FTDs that are finally being exercised.

So, what caused GameStop to have these price fluctuations after hours?

Be sure to leave a comment at the end of the article.

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Welcome to Franknez.com – GameStop’s bullish news on its new NFT marketplace doesn’t have shareholders content. Retail investors expect larger upswings in the coming weeks.

Let’s get started!

GameStop is investing tens of millions of dollars in crypto-related companies that will allow them to develop games with blockchain technology, via ARS Technica.

This is extremely similar to what SHIB is doing with Shiba Inu Games.

Related: Here’s why you shouldn’t sleep on Shiba Inu Coin

It seems GameStop is joining AMC Entertainment getting involved in the crypto space, which in my opinion is a great way to take these two companies to the next level.

As the crypto space continues to puzzle traditional investors, GameStop, along with AMC Entertainment, have a chance at becoming extremely valuable in the long-term process of their growth.

GameStop NFT Marketplace

GameStop NFT Marketplace
GameStop NFT Marketplace

The news of GameStop’s NFT marketplace is not new, in fact it’s been mentioned since May of 2021.

However, it was only a teaser per say as the company was looking for engineers at the time to make this project a reality.

GameStop has now brought on 20 new hires to develop the NFT marketplace, where people can sell and trade NFTs and virtual in-game items, via Kotaku.

When will GameStop launch its NFT Marketplace?

GameStop is launching its NFT marketplace in late 2022.

One of GameStop’s direct competitors will be OpenSea, the NFT marketplace that now has a $13.3 billion valuation.

The companies’ approach towards the NFT and crypto space seems to be rather fitting.

What are your thoughts?

Leave a comment at the bottom of the article.

Could we see a collaboration between AMC and GameStop?

AMC and GameStop collaboration

AMC Entertainment is currently using WAX, or the Worldwide Asset Exchange to distribute its NFTs.

WAX is an energy-efficient, ultra-low carbon footprint blockchain and the first certified carbon neutral, meaning it’s eco-friendly.

WAX is also the world’s leading blockchain, processing 15 million transactions daily.

AMC CEO, Adam Aron has thrown hints of reaching out to GameStop to see how they could collaborate in the future.

No official news of a collaboration has been published yet but with both companies going into the crypto space, this could be exactly what shareholders have been waiting for.

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And if you can’t tell from my excitement in this video, the news of such collaboration would be bullish for both AMC and GameStop.

What do you think?

“Millions of Dollars Were Stuck in Limbo” (FTDs)

GameStop FTDs

According to Business Insider, Bloomberg reported that $359 million worth of GME stock were stuck in limbo earlier last year.

More than 1 million GameStop shares were publicly deemed ‘failure-to-deliver’.

FTDs have been a massive problem for retail investors holding both AMC and GameStop shares.

Failure-to-delivers occur when sellers don’t have the shares to settle trades.

So, if there aren’t enough shares to settle, where are short sellers borrowing so many shares from to short GME stock?

The answer may lie in naked shorting and OTC trading.

Shareholders suspect GameStop’s price moves after hours were based on some FTDs settling from December’s batch.

What are your thoughts?

Was GameStop’s price moves based on FTDs settling, or on the bullish news confirming more movement in the NFT Marketplace?

Leave a comment below.

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Year May End in Short Squeeze Cyclical Rallies Says Analyst

Short Squeeze News Marko Kolanovic
Short Squeeze News – Marko Kolanovic

JP Morgan Chief Global Analyst, Marko Kolanovic, is predicting we will transition into the new year with short squeeze cyclical rallies.

He indicates that short sellers will get squeezed soon due to aggressive shorting and resilient retail investors.

“Large short positions will likely need to be closed before January”, via Business Insider.

This news comes after the retail investor community in AMC and GameStop have been advising about overleveraged hedge funds all year.

GameStop is up 800% and AMC is up more than 1300% year-to-date.

While both stocks have recently come down, they are still heavily shorted with lots of room for growth with a short squeeze.

The ape community has been speaking of a ‘third phase’ where the next runup of both these stocks will reach new ATHs.

But some apes are skeptic.

Will this be a proper short squeeze?

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Welcome to Franknez.com – if you’ve been reading the blog since early 2021 then you’ve probably made a ton of money. And if you’ve diamond handed AMC stock all year, it’s about to get a whole lot better.

Let’s get started!

Massive Moves Are on the Horizon

rocket ship

Mainstream media claimed the runup to $72 per share was AMC’s short squeeze.

Only it wasn’t a proper runup.

AMC has always had more potential due to how overleveraged short sellers are on the company.

The Ape community has held through losses and gains and bought every dip.

This resilience is why AMC stock is setup for another massive runup.

Only this runup will be much larger than the first and second.

TA (Technical Analysis) charts have shown AMC’s next runup could very well reach hundreds of dollars per share.

I’ve predicted AMC’s third runup will easily reach $200-$300 while other analysts in the community are predicting $400-$600 per share.

How high AMC’s price will go will depend on how much short covering actually occurs.

Even then, with millions of synthetics circulating the markets, there’s no question why retail investors are deeming the next runup a ‘fake short squeeze’.

What we do know however is that massive moves are coming up regardless of the label.

Can This Next Runup Trigger MOASS?

While it’s certainly possible the next runup could trigger MOASS, the feds are still investigating hedge funds.

And what’s a proper MOASS if synthetics aren’t fully taken accountability for and covered?

In this video I discuss my thoughts on the topic.

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The next runup will mean that every ape invested in AMC will be profitable.

That I’m certain of.

MOASS will occur when these phantom, synthetic shares have been closed.

While the community can put the information out there, it will ultimately be up to regulators to force financial institutions to cover these too.

Retail investors will have to continue fighting for proper market structure if a MOASS is to occur.

In the meantime, the community should keep an eye out on the short interest data.

While Ortex data is self-reported and could very well be higher, it’s the only tool retail investors currently have to measure some ‘squeeze potential’.

Get Excited for Big Moves

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Regardless of if the media refers to these coming moves as a short squeeze, the community is going to be very profitable on paper.

What lies after these price runups will become clearer as this play continues to unfold.

Massive moves seem to be up ahead, know what you hold.

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Read: Anchorage Capital closes after betting against AMC stock

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