Community, I’m going to be updating this list of momentum stocks and their short interest and utilization daily.
Be sure to bookmark this page for daily updates. This information is being taken straight from Ortex. I understand not everyone has insight to this information so I will be making it all public for you.
If there are other stocks you’d like me to include, please comment them in the comment section below.
#1. AMC
Short Interest: 17.42% | Utilization: 87.61 | Cost To Borrow: 1.39 | Shares On Loan: 113.43 Million
(Updated Daily)
#2. GME
Short Interest: 12.28% | Utilization: 36.24 | Cost To Borrow: 1.02 | Shares On Loan: 8.79 Million
(Updated Daily)
#3. BBIG
Short Interest: 25.09% | Utilization: 99.98 | Cost To Borrow: 29.36 | Shares On Loan: 34.19 Million
(Updated Daily)
#4. SNDL
Short Interest: 16.91% | Utilization: 98.31 | Cost To Borrow: 2.84 | Shares On Loan: 404.88 Million
(Updated Daily)
#5. SENS
Short Interest: 26.69% | Utilization: 88.91 | Cost To Borrow: 2.28 | Shares On Loan: 95.79 Million
(Updated Daily)
#6. CLOV
Short Interest: 13.63% | Utilization: 80.14 | Cost To Borrow: 1.46 | Shares On Loan: 52.30 Million
(Updated Daily)
#7. ATER
Short Interest: 29.35% | Utilization: 99.07 | Cost To Borrow: 102.76 | Shares On Loan: 14.35 Million
#KenGriffinLied is trending number 1 on Twitter right now. A document was just released showing messages between Vlad and Robinhood COO, Gretchen Howard, in regards to Citadel making demands on limiting PFOF (Payment For Order Flow) back in January.
The conversation then shows Vlad stating, “maybe this could be a good time for me to chat with Ken Griffin”.
Ken Griffin lied under oath by stating Citadel had no communication with Robinhood in regards to the halts on AMC and GameStop back in January.
Hedge funds have since been overleveraging their short positions while manipulating AMC and GameStop’s stock price through the illicit use of naked shorting and dark pool trading.
Retail investors are now looking at regulators to take serious action.
Welcome to Franknez.com – I’ve said it before and I’ll say it again. You are creating change this very moment. Lets discuss what we need to do to end this market manipulation once and for all.
Lets get started!
Will The SEC Protect Retail Investors From Market Manipulation?
But before I do, if you don’t know who Ken Griffin is, he’s the CEO to the Citadel Securities. This is the hedge fund who’s been betting against AMC and GameStop for months now.
Citadel is what you get if our government’s power was not divided into three branches. See, the problem here is Citadel LLC is a hedge fund, Citadel Securities is a market maker, and Citadel Connect is a dark pool.
You essentially have a tyrant making all the rules for themselves.
Now, many of you have been tagging the SEC, Gary Gensler, and even Potus on Twitter. Now it’s time for the community to see what measures are taken by our government leaders to protect its people.
In the transcript above, you can see the initial conversation between Gretchen (Robinhood COO), and Vlad Tenev (Robinhood CEO). Shortly after we see another transcript confirming the communication between Robinhood and Citadel..
Jim Swartwout is the President and CEO of Robinhood Securities. In the transcript above he states, “you wouldn’t believe the convo we had with Citadel, total mess.”
And get this, after 9 months of silence on Twitter, Citadel has gone on to lie again stating this is conspiracy theory. Although the transcripts show evidence in plain ol’ English.
The community is fighting for change. Citadel has yet to address their abuse of power through naked shorting and the usage of dark pools to mask bullish moves in the market.
Here is the footage of Ken Griffin lying about his team having any communication with Robinhood during the halts back in January.
The cat is out of the bag! Community, we must continue to fight for our rights for a fair market. The SEC has the power to liquidate these overleveraged hedge funds from their positions.
We must demand it. Only then will AMC and GME squeeze. This play, it’s your birthright.
Fox Business On Ken Griffin
In a recent interview with Trey’s Trades, Charles Payne and Trey discuss the matter.
Charles pull up some information confirming about 60% of AMC was traded through dark pools to which he asks Trey if it’s possible AMC’s share price potential could be higher if it did not trade through dark pools.
And of course the answer is that both AMC and GameStop could reach higher potentials if the market was being run based on supply and demand without any dark pool manipulation.
Ken Griffin Lied FOX BUSINESS
My favorite line is when Charles says, “diamonds are created over a long period of time though a whole lot of heat and a whole lot of pressure, are the apes up for it”.
This is why I’ve grown to really like Charles Payne. He’s using his platform to fight corruption in the markets.
Charles Payne has given apes the mainstream platform we need and I’m glad Trey is the ape in our community to pass the message.
Time To Get Loud
This is the moment we’ve all been waiting for. Will you fight for what’s yours? Share this article with the community, tag our government leaders. It’s time for the MOASS.
Community, it brings me great pleasure to provide you with some more high short interest data. Some of you wanted to know my personal thoughts on BBIG stock.
Right away, I can tell this is a great play and see why many of you were holding this particular stock. Lets talk about it.
Welcome to Franknez.com – you already know what’s going on, haha! I’m going to be publishing a new YouTube video every Monday and Friday so be sure to subscribe at the end of this article. I’ll be leaving the link below.
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Vinco Ventures, stock ticker symbol BBIG, is a company that acquires brands and grows them using their Honey Badger and Social Pulse Media platforms.
This company is fairly new to the market. Its IPO price started around $5-$6 per share back in 2018. The stock is currently trading around $6 per share.
BBIG stock has been trading double its average volume which shows a massive interest in this acquisition company. I could go over earnings reports and other fundamentals but we’re not here to talk about fundamentals.
BBIG stock is currently heavily shorted.
BBIG Stock Short Interest Data
Lets go over the latest Ortex short interest data to see just how heavily shorted this stock is. BBIG’s short interest is considered to be extremely high at 23.61%.
The amount of shares being loan is a whopping 26.91 million and the utilization is currently at 98.80!
The demand for borrowed shares to short the stock is insane! Our community has identified that stocks with these high short interest numbers means its possible to squeeze shorts from their positions.
We’ve also noticed that gamma squeezes and quick runups actually take months of buying and holding to manifest. BBIG stock was trading $1.25 back in January of this year.
If you bought the stock then, that means you you 10X’d your initial investment. 1,000 shares of BBIG stock would have earned you $10,000.
Despite the f’ery in the markets, you have to admit the stock market is an amazing tool to multiply your money.
Will BBIG Stock Keep Going Up?
BBIG stock certainly has the potential to continue surging. Retail investors will have to keep a bullish sentiment and attitude towards the stock in order to see higher gains come to fruition.
BBIG is at an all-time high right now and it’s possible retail investors begin to selloff and begin taking profits. This where short sellers can double down on their positions and further bring the stock price down.
BBIG shareholders will have to refrain from selling if they are to set new levels of resistance and support. See, the crazy thing is that shorts have not covered their positions in this stock and you can tell due to the massive short borrow fee rate and short interest.
Short sellers are paying a 146.02% to borrow the stock! If you’re already paying 24%-32% on your credit card, imagine their fees!
With proper momentum, retail investors can certainly experience a BBIG short squeeze, where short sellers are forced to close their positions driving the stock price up.
How High Can BBIG Stock Go?
I cannot make a prediction on the stock price ceiling since BBIG has recently passed its initial IPO stock price. However, what I can tell you is that the stock has much more room for growth than it’s current trading price of $6 per share.
Should You Buy BBIG Stock?
I’m going to be one hundred with you guys because your success is extremely important to me. I don’t hold BBIG stock but have it on my list to buy. If you’re looking to diversify your momentum plays, this could be a stock with lots of potential.
Of course, it’s the community that holds the sentiment behind these massively shorted stocks. And I think that as more retail investors begin to diversify, these stocks will continue to soar in the long run as long the stock is being bought and held.
If you’ve been reading FrankNez for quite some time then you know AMC is my main play, no questions asked. This article isn’t to convince you to buy BBIG stock, but to merely present to you the short interest data so you can make a financial decision for yourself.
I’m personally bullish on this stock and can see it gaining more traction as more retail investors buy into it. Something to keep in mind is that after significant gains a stock is usually quick to drop. And this is primarily due to some investors taking profit combined with short sellers doubling their positions or new short sellers getting in.
If you’re thinking about buying the stock, I would personally wait for a dip; especially after seeing these all-time highs. Because the short interest is so high and the utilization is so high, BBIG stock could prove to provide significant gains down the road as it already has for early investors.
And lastly…
I’d love to know your BBIG stock story. Are you an early investor or are you looking to get in? And, what other momentum stocks are you holding? Would you like me to publish an article on other stocks? Let me know in the comment section below.
But before you do, subscribe to the newsletter to get notified when a new blog article is published; or you can also connect with me on social media. I’ll be leaving the links below.
With that being said, thank you for taking the time for reading the blog and for being here right now. It means more than you could ever know.
Meme stocks have been causing a disruption all of 2021. You might have heard of the infamous GameStop and AMC rallies that originated from the Reddit group, r/wallstreetbets.
Here’s a list of meme stocks causing a disruption in the stock market.
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If you’re new to the blog, be sure to browse the incredible library of financial knowledge when you’re done reading this post!
And if you’re not investing in stocks yet, bookmark this article where I walk my readers step by step on how to start.
What’s A Meme Stock?
A meme stock is a heavily shorted stock discovered by retail investors, usually on forums such as Reddit or other sub communities.
Retail investors will then hype these so called ‘meme stocks’ and immensely increase the buying pressure of a particular stock to drive the share price up.
How Long Does It Take For A Meme Stock To Go Up?
We’ve seen that these stocks may take a month to several months to see some serious upswings in the market. Retail investors pump the price by buying the dips and holding the stock until their mission is a success.
While not all meme stocks are pump and dumps, the concept is to pump a stock and hold it to further elevate the floor.
The end goal is to squeeze shorts from their positions to drive the stock price ‘to the moon’. Here’s the most current list of meme stocks seen in the community.
#1. GameStop, GME Stock
Number one on my list is GameStop. GameStop notoriously put many short sellers and hedge funds under stress, starting this incredible retail movement.
GME stock began squeezing just below $500 per share before Robinhood halted buying pressure from retail investors, ultimately limiting its growth potential back in January.
This meme stock is currently up more than 1000% year-to-date. Retail investors continue to hold the stock in order to squeeze the remaining shorts from their positions.
And by far the most popular meme stock at the moment, AMC Entertainment stock. Retail investors who missed getting in early on GME stock saw AMC stock was heavily shorted and decided to bulk up on this meme stock.
The stock sharply rose up to $20 per share in late January before ultimately coming back down to $5 per share. After several months of ‘apes’ buying and holding the stock, AMC Entertainment stock rose to $72 per share and found a new bottom around $32 per share.
The meme stock has been trading in the low $50 range and is currently set up for a short squeeze.
Before its merger with the blockchain compamy Greenidge, SPRT stock had reached a high of $35 per share before ultimately plummeting back to $11. It has now merged with Greenidge and its ticker symbol is now GREE.
This meme stock perhaps lost its status as it still had potential to squeeze higher prior to the merge. However, this stock still caused quite a disruption for short sellers shorting the stock.
This stock has now become a long-term stock depending on your conviction towards blockchain technology.
BBIG stock is a meme stock that surged from $1.25 to close to $11 per share. The stock’s retail momentum has it up more than 500% this year-to-date.
In order for you to have made massive moves with these stocks you would have had to opened a position in them earlier this year.
While investors who bought these stocks early this Summer still profited, investors who bought after could be breaking even or under significant gains.
These Meme Stocks Still Have Room To Squeeze
What’s mind boggling is that these meme stocks are still heavily shorted by hedge funds and short sellers.
GME has been in the high $100s but has now reached $200 again. AMC finally broke its floor of $30 per share and is trading in the low $50s again. The other meme stocks show an increase of short interest data which means they still have room for growth.
Want To Stay Updated On These Momentum Plays?
If you’re thinking about investing in one of these momentum stocks, be sure to do your due diligence first before putting some serious cash first.
Once you have the data at hand, make an honest assessment for yourself and decide whether it is the right financial decision for you to make.
The AMC community has proven to be one of the most open, accepting, and positive communities so I definitely recommend checking it out even if it’s to see what the discussions are about.
Luckily, I update the community with trending stocks and keep an eye out on the data so you’re up-to-date on the next stocks to buy before they blow up. My readers who found out about AMC early this year are now up tens to hundreds of thousands of dollars!
And lastly…
Consider subscribing to the newsletter for more content like this, straight to your inbox! Do you have a position in any of these meme stocks? Or as I like to refer as momentum stocks. Let me know in the comment section below.
You can connect with me everywhere you go by following me on:
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.
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.
Just to compare, AMC’s is at 18.38% which a short interest of 20% or higher is considered extremely high.
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.
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 Go Up Again?
If more short sellers open short positions then GameStop’s utilization will certainly go up. At the moment, it seems that there’s only 34% of the stock that’s being borrowed.
I personally don’t think shorts will try to go up against GameStop again. 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
GME’s shares on loan refers to the number of shares that are being borrowed. GME stock has approximately 6.80 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.
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?
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?
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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Are you holding GME stock? Let me know in the comment section below how high you think the stock can go.
My fellow ape community, today I want to share with you 21 powerful affirmations for this squeeze play. I believe in energy and I strongly believe in affirmation energy.
Feel free to leave a comment below with you own affirmation(s). And if you find these to elevate you, be sure to share this article with another ape.
Dark pools are somewhat of a mystery to new retail investors. We hear about them a lot within the AMC community, especially through Trey’s Trades. We know that they allow hedge funds to make undocumented trades behind doors.
So what exactly are dark pools? And, is something being done about them? I want to expose this subject today.
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What is a dark pool?
A dark pool is basically a financial forum or platform for trading stocks or other securities. Dark pools are privately organized and are known to be an alternative trading system. These ATS’s are seldomly regulated.
The concerns regarding dark pools and AMC Entertainment has been that we simply don’t know what these communities are hiding from the SEC. This slimy strategy is what’s known as backdoor buying and selling.
Why are dark pools used?
Dark pools give hedge funds an advantage in the sense that they are able to conceal their moves. We can only speculate what type of information is being hid from the public here. Details within these dark pools are not accessible by the trading public.
This lack of transparency may allow dark pools to conceal information such as:
Any discussion regarding malpractice in the market
Inaccurate filings and reports
Dark pools can very well be the place where short sellers get together to discuss strategies and the ruining of companies.
It could be the reason why we don’t know how many short sellers are shorting ‘meme stocks’ and other information that would otherwise prove a fair market for both institutions and retail investors.
Is the SEC looking into dark pools?
In a recent article regarding the high possibilities of automated margin calls, I point out some research I found on Gary Gensler, Chairman of the SEC.
He publicly announces that the SEC has been observing hedge fund activities since January and are taking action to regulate these entities shorting AMC and other ‘meme stocks’.
One of Gary’s proposals states that hedge funds could face 13-F filings. These filings would provide the SEC with insight on equity as well as dark pool disclosure.
I trust we will begin to see this new chairman make the right calls. It’s time for change and our generation will be the ones to make it happen.
Dark pools could explain the low short borrow fee
Could dark pools be the explanation as to why the short borrow fee is so low for hedge funds shorting AMC and GameStop? Now, because so much information is in the shadows, this of course is only speculation.
According to Investopedia, dark pools can charge lower fees than exchanges because they are often housed within a large firm and not necessarily a bank.
via. Investopedia
Why do these large firms (hedge funds) have this much power in the first place? This advantage is completely deceitful and unruly. It really does make you look at the SEC and think why in the world has no one taken action sooner.
Are dark pools illegal?
Dark pools are not illegal but they are certainly unethical. Per the SEC, we can expect real regulation to surround these exchanges relatively soon.
Bloomberg Tradebook
The Bloomberg Tradebook is a dark pool that is owned by Bloomberg LP. Bloomberg is a financial media company that has been trashing AMC Entertainment for quite some time now.
Bloomberg has published FUD (fear, uncertainty, and doubt) articles in efforts to scare people out of their money. This raises questions regarding the ethics of these manipulators who gather behind close doors in order to stray the public from squeezing shorts out of their positions.
Other dark pool exchanges
Institutions such as Morgan Stanley and Goldman Sachs also offer private trading to their clients through the use of dark pools.
The main concern here is that the information that is made public to the SEC can easily be manipulated. Mainly to conceal foul play and inaccurate information.
The information that is available on Stonk-O-Tracker regarding AMC and dark pools is the percentage of trading within these forums/exchanges; which is usually relatively high.
How does this affect AMC stock?
These private exchanges may be illegally trading naked shares behind close doors refraining AMC’s stock price from further climbing. Although AMC is up nearly 3000% year-to-date, hedge funds continue to attack it through sell walls and short ladder attacks.
And since these private forums could potentially have been getting away with inaccurate reports, the possibility of foul play in the market is certainly there.
AMC Dark Pool Trading
Andrew Hiesinger, CEO of Quant Data took to Twitter to expose AMC’s current dark pool trading volume.
Quant Data provides retail investors with real-time options order flow, alerts, dark pool prints & levels, and news. There has been approximately 34 million shares exchanged in dark pools just in today’s trading day (8/18).
This equates to $1,268,475,800.46 in notional value, says Andrew.
64.21% of trading in dark pools won’t allow AMC’s stock price to reflect the actual price action. This primarily because this amount of trading is done behind closed doors where buy orders aren’t being reported.
This form of manipulation is clouding AMC’s real share price. #DarkPoolAbuse has been trending on Twitter.
Bookmark this article for updated news on dark pool abuse in AMC.
How can retail investors fight these predatory trading practices?
Retail investors have several advantages over hedge funds shorting AMC and other ‘meme stocks’. The community must stay the course if they are to squeeze these short sellers out of their positions.
Not only are hedge funds losing billions, but the SEC has finally begun to implement new regulations that could automate margin calls in overleveraged accounts. I’m personally not worried. These house of cards are falling at the times they should.
New retail investors might not be too familiar with handling market manipulation. Investors buying and holding momentum stocks on the other hand, know just what to do.
If you’ve recently purchased AMC or GME stock you might have noticed there’s a financial war between retail investors and short sellers. It’s all psychological warfare at this point. And retail is winning.
Welcome to Franknez.com – the blog where you can digest content on personal finance and trending investing news and topics.
Lets get started!
I began purchasing shares of AMC stock back in early February when most of us thought the short squeeze was going to be quick. Little did we know that our investing community would face immense pushback from hedge funds and short sellers alike.
Yahoo Finance, InvestorPlace, and MarketWatch were attacking the community and the data at hand. That’s when I decided to step in and publish the data that mainstream media was trying to hide.
In other words, I had to stop the bullying that was taking place. Today, I fight these shill platforms for the community. Here’s how we can fight back market manipulation together.
#1. Defend The Data
Ortex has revealed to technical analysts the data behind an AMC and GameStop short squeeze setup. The short interest is high, utilization is almost at 100%, and the shares on loan are a whopping 100+ million!
These numbers have remained high all year. The data has not changed. If AMC and GameStop were dead, you’d see these number collapse throughout the year. However, short sellers keep borrowing stock to drive the price down.
This means shorts have not been squeezed from their positions.
Dark Pools And Naked Shorting Are Very Real
The AMC community has made enough noise to get the message heard. Hedge funds are overleveraged. CNBC, FOX Business, and the SEC have finally gone public about these very real problems in the market.
Proposal NSCC-2021-021 will also take effect end of August to protect retail investors from naked shorting and failure-to-delivers.
So, what can retail investors do? Remember, present, and protect the data when FUD (fear, uncertainty, doubt) challenges you. Be patient with new retail investors as they do not have all the data at hand. Which brings me to the second point.
#2. Forward The Data
If you’re invested in AMC or GME stock, it’s more than likely because someone forwarded you some sort of data, correct? Someone said, “you have to look at this!”.
While the ultimate play here is a short squeeze, some new retail investors do not understand why there is pushback. They don’t understand why AMC stock or GME stock is being driven down despite the volume and bullish sentiment.
As a community, we should be helping one another out. Share a tweet of important data, an updated article, a YouTube video, just share something that’s going to armor up the community.
You Are The Change
If you’re a seasoned ape in the momentum stock community, tell me I’m wrong. You got someone to invest in AMC stock and now they’re up significant amount of money on paper. They’ve more than likely never had that much money in their lives.
I know this first hand because I have family who are in the same shoes. They’re holding for MOASS (mother of all short squeezes), although they can simply take several tens of thousands in profit at the moment.
When you share a piece of content with valuable information, you can change the life of another person. That’s what Trey did for most of us. He showed us technical information and we were prepared to make change happen in our own lives.
Now it’s time for us to continue sharing the data until we squeeze shorts out of their positions. Because after this play, there’s going to be several other plays.
#3. Remain Positive And Be Patient
Detach your emotions from the stock when it is being heavily shorted, but celebrate the small wins. You will not attract abundance into your life if you have a worried mindset.
Negativity will attract negativity and you will lose this trade. Remain positive and give thanks for the opportunity at hand. Your patience will be a test. How bad do you want it? Do you want it bad enough to hodl longer? To hodl through the uncovering of the manipulation?
Nothing great ever comes easy. If it did, seasoned apes would be rich already and new retail investors would have never gotten the chance to get in. Everything that is happening right now is part of the process and has to happen exactly this way.
The questions is, will you let negativity rid you of the possibilities? Or will a positive mind space contribute to the successful trade you’re about to make?
Setbacks Are Part of Life
Don’t focus on the things that are out of your control but rather on the things that are in your control. Give regulation the benefit of the doubt, it won’t hurt you. These news either help retail investors or they are neutral.
But share the news instead of dismissing it. By dismissing it, you dismiss your probability of attracting this trade. Instead of focusing on what could go wrong, focus on everything that can go right.
Are you suffering from FOMO (fear of missing out). While we’re not financial advisors, we are certainly pro opportunity. So, which meme stock should you invest in? AMC or GME? And, is it too late to invest in either of them?
Let me walk you through the facts so you can decide which is the better buy between the two.
Welcome to Franknez.com – The blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
Before we get started it is very important to mention that both these stocks are currently very volatile.
It is suggested that all financial decision is made based upon your own due diligence. GME stock has seen incredible gains in the past two months and analysts are determined AMC is going to have a similar run, if not bigger.
AMC & GME Short Share Volume
Here are the short share volume numbers as of June 7th, 2021.
GME Short Share Volume: 350,000 shares (via. Fintel)
Now, this is only Fintel so take it with a grain of salt.
Why is this important?
The number of short shares available represents the number of shares that have yet to be covered by short-investorsor hedge funds.
Short-investors and hedge funds alike are betting on both AMC and GME to completely fail. This means they don’t believe AMC or GME (GameStop) can innovate as businesses to thrive in the marketplace.
The r/wallstreetbets community and millions of people would beg to differ. This is why AMC and GME have take the stock market by a storm.
What happens when shorts close/cover their positions?
Both AMC and GME are going up in share price. When short-sellers cover their positions at a higher share price than they borrowed the share, they lose money.
Because they bought a share at a higher price, the stock price continues to go up as long as retail investors hold their positions. This essentially creates a supply and demand scenario between short sellers and retail investors.
What happens if shorts keep holding and don’t cover their positions?
Short-sellers can only hold for so long. See, they eventually have to pay an interest on the shares they borrowed.
Here are the current short interest for both AMC and GME stock (June 3rd, 2021):
As you can see, AMC has a bigger interest rate than GME at the moment. This means short-sellers are paying a much larger fee to short AMC stock.
This borrow rate fee increases as the demand for the stock rises.
Why is this important to the retail investor?
The borrow fee interest pressures short sellers to close their positions before they pay bigger and bigger fees for borrowing AMC and GME shares.
When a short-seller closes their position higher than they borrowed the share for, they lose money. The retail investor then continues to see a rise in share price. This ladies and gentlemen is where retail investors begin to experience a series of gamma squeezes before a short squeeze.
What’s the difference between a gamma squeeze and a short squeeze?
A gamma squeeze usually occurs when retail investors bet on the price of a stock such as AMC or GME to go up. Share price will then increase due to specified call options or contracts.
A short squeeze essentially occurs when a heavily shorted stock increases in value and short-sellers must cover their positions.
AMC and GME short squeeze
AMC
AMC Short Squeeze
We saw a gamma squeeze from AMC when the stock price shot up to about $20 per share. This was mainly due to retail investors buying call options.
We have not seen a short squeeze from AMC just yet. This is why AMC stock is a very popular choice for people who missed out on GameStop the first run.
AMC’s share price is also significantly lower and more affordable to the average retail investor than that of GameStop. With more investors getting in on AMC, another gamma squeeze is on the horizon. If retail investors continue to hold their positions, a short squeeze is inevitable.
GME experienced its gamma squeeze right before we saw it short squeeze all the way up to $500. Its gamma squeeze consisted of perpetual gains beginning around the $20 mark all the way up to $100 before it squeezed and saw sharp gains.
After GME squeezed, it hovered around $40. We recently saw another GME gamma squeeze sending it back up to the $100 range.
GME’s mastermind, Keith Gill AKA Roarking Kitty (deepf******value), has also mentioned doubling down on GameStop investment. You can find sources everywhere online.
More institutions are buying and holding AMC than GME stock
We’re seeing more and more institutions such as Vanguard, BlackRock, and Charles Schwab continue to add and hold to their AMC positions (via. Nasdaq). As of May 21st, the top whales continue to add to their long positions.
AMC Institutional Buyers (as of 5/21)
GME on the other hand has seen quite some selloff from institutions. Which by the way is okay. Investors are simply closing profits with the gains they’ve seen from GME via. Nasdaq.
GME Institutional Buyers (as of 5/21)
Innovation: AMC VS GME
While it’s hard to see how GME can innovate their retail stores, AMC doesn’t seem to have that problem.
I personally believe innovation has a strong influence in the decision-making process when investing in either AMC or GME.
GameStop can continue to sell to gamers online. We won’t see much change to their retail stores. AMC on the other hand can innovate with virtual reality but ultimately doesn’t have to since people are going to the movie theaters again.
AMC stock is the most popular choice for new retail investors
If you’re a new retail investor looking to get into one of these stocks, AMC is more than likely your best bet.
The stock has a lot of upside potential.
AMC stock is currently affordable
The stock has not hit a short squeeze yet
It is one of the most shorted stocks in the market
The stocks market cap, volume, and short borrow fee keep increasing
GME stock is a good pick for current GME holders
If you’re currently holding GME it looks like you will continue to see volatility. You can take advantage by buying the dips and holding your positions.
If you didn’t cash out when GME peaked, there’s a probability you will get another chance if GME continues to stay in bullish territory. This of course is heavy speculation.
I want to ditch Robinhood – what other platform can I use?
Ditch Robing-Hood: Invest in GME and AMC using another platform
If you’re looking to ditch Robinhood, we strongly suggest switching to a real broker account.
Robinhood tarnished GameStop momentum by preventing retail investors from buying more stock.
If you’re looking to get into an affordable stock that has a high potential of squeezing, then AMC will be your best bet. It’s fundamentals also determine this stock is a good long-term buy.
Although GME’s hype can still cause a potential squeeze in the future, it’s still much lower than AMC’s probability. If you have a position in GME then I recommend holding and taking any gains you can. Otherwise, keep holding if you love the company.
Whether you go for AMC or GME stock, you should always invest in a company you truly love and believe in. Think long-term for the most part. If you can make some money short-term, even more power to you.
Curious of how much money you’ll have to fork up to the IRS in capital gains tax when you cash in your profits? If so, you’re in the right place. This post was tailored just for you.
This topic was requested by Sonia from the discord group. If you aren’t a member yet be sure to join to get your voice heard. People like you are joining our safe community every day.
Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.
Lets get started.
What are capital gains?
Capital gains are the profits from the sale of an asset such as the shares of a particular stock, property, or business.
The community who requested this article surround the AMC and GameStop phenomenon – yup, the awesome apes and rebels fighting the corporate financial system. So, in honor to this growing community, this discussion will be on the capital gains tax of a stock.
Capital gains tax
Capital gains taxes are the taxes you will owe after taking profits from a particular stock.
A lot of you are wondering how much your actual cut will be once you begin to take profits as a shareholder.
What will be my tax rate?
Now this will vary for each and every one of you retail investors. There are 3 main variables that will determine this:
How long you’ve held the stock for before selling
How much you profit
Your tax bracket (if you filed single, married, etc.)
Here’s how this works.
Short-term capital gains
Short-term capital gains tax is a tax on profits from the sales of a stock held less than a year.
What is the tax rate on short-term capital gains?
10%, 12%, 22%, 24% 32%, 35%, or 37%.
This capital gains tax is going to apply to most AMC and GME shareholders.
Long-term capital gains
Long-term capital gains tax is a tax on profits from the sale of a stock held for over one year.
What is the tax rate on long-term capital gains?
0%, 15%, or 20%.
Long-term capital gains will allow retail investors to keep more of their profit.
Profit and Income Tax Bracket
The two tax brackets charts below should provide you with a definitive answer as to what tax rate you will have on your profits.
The taxable income sections refer to your profits$. This will depend on 1) the capital gains and 2) whether you’re filing singe, married filing jointly, married but filing separately, or claiming head of household.
This tax bracket is if you’re filing married and filing separately, or are head of household.
“I hope this information will allow you to make a great financial commitment to maximize your profits when filing taxes next year. My mission in life is to help you make the best financial decisions possible and set you on the path towards your financial freedom. “
If you found this article to be of value or of help please share it with another ape in the community. Remember, you are the change. You are the revolution. You are, amazing.
