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Why is AMC Entertainment Stock Going Up Again?

why is amc stock going up
Why is AMC stock going up?

AMC stock is going up and continues to leave hedge funds and publishers such as Yahoo Finance, The Fool, and other sources baffled.

Although hedge fund partners are sticking together to mislead the publics opinion when investing in AMC (and other “meme stocks”), we’re going to let you know why this particular stock is going up.

Please keep in mind that I am not a licensed financial advisor. All the information you are about to read is based on expert sources and will be presented in a manor that informs you why AMC stock is going up.

franknez.com AMC

Welcome to Franknez.com – the blog protecting retail investors against FUD from mainstream media. Today we’re discussing why AMC Entertainment continues to go up.

Lets get started.

Volatility is normal in the stock market

We’ve seen a lot of volatility in the market recently. If you’re a new investor chances are you might have been scared off to sell and then noticed the stock slightly go up again in the green tier.

Don’t feel bad, volatility in the stock market is normal. This doesn’t just apply to AMC stock. But if you haven’t sold, kudos to you. #diamondhands.

So, what’s causing the stock to go back up?

Well, there are numerous reasons why AMC is back in the green tier. Keep reading to find out whether this stock might be a good pick for you.

Reasons why AMC stock is going up

reasons why amc stock is going up
  1. Large institutions such as Wells Fargo, Vanguard, BMO Harris, Charles Schwab, Fidelity, & BlackRock have bought the stock all year(via. CNN Business)
  2. AMC CEO Adam Aron, announced bankruptcy is officially “off the table” and have raised $2.2 billion in cash this new year.
  3. Because AMC is currently the most shorted stock (via. MarketWatch), the stock price has gone up and will continue to go up as long as retail investors keep buying the stock. *Unfortunately MarketWatch has removed AMC from their list. Retail investors suspect foul play from this hedge fund partner.
  4. AMC is currently the most held stock surpassing Apple (AAPL) and Tesla (TSLA) – via Nasdaq.
  5. Movie titles are beating records (more on that below).
  6. The AMC community continues to grow.

AMC Entertainment is no longer on the brink of bankruptcy

There’s actually a lot of positive things going on for AMC Entertainment despite what The Fool, InvestorPlace and other shill mainstream media might try to convince you of.

The sentiment behind AMC stock keeps getting bigger and bigger and bigger by the day.

This is primarily because hedge funds have greatly underestimated the community.

Ultimately, the data speaks for itself.

Now, Adam Aron who is the President and CEO of AMC Entertainment has done an outstanding job with the media.

In this video we can hear his optimism for the movie theater chain before AMC theaters began to reopen.

Adam Aron clip as theaters were beginning to reopen

As of April 2021 all AMC movie theaters are now open with many even selling out.

This clip is from a while ago but it’s worth documenting!

AMC Q1 2021 Earnings

AMC just announced their Q1 earnings for 2021. Things are looking particularly bullish and optimistic to say the very least.

For the retail investor this means the upper hand is yours. AMC Entertainment has raised over $2 billion dollars to hold them off until the year 2022. And we still have to go through Q2 (below), Q3 (coming up), and Q4!

If you missed the conference you can check it out from Matt Kohrs imbedded here for your viewing pleasure.

AMC Q1 Earnings Call

AMC Q2 Earnings Call (2021)

I published an entire article on Q2 earnings call so be sure to read it here! AMC doubled their earnings and have a ton of exciting new things coming to movie theaters.

Key highlights include:

  • AMC accepting Bitcoin by the end of the year
  • Open to partnering up with GameStop!
  • Looking into licensing rights to show concerts and sports events on the big screen
  • And more

AMC Entertainment has a great vision when it comes to innovation. I’m excited to see our movie theaters evolve to provide an even greater theatrical experience.

AMC Q3 Earnings Call (2021)

AMC’s Q3 earnings call will take place today.

You can register here to listen to the webcast at 5pm EST, or bookmark this article for upcoming updates.

What can we expect from the Q3 earnings call?

I’m guessing AMC Entertainment beat revenue goals since new titles have continued to break records.

The company has also done an outstanding job at marketing themselves, something they had not done before.

I will be covering AMC Q3 earnings call today so be sure to check back.

Fundamentals are also causing AMC stock to go up

AMC Entertainment as a company has a lot of partners and friends they’ve gained throughout the 100 years they’ve been in business.

They’ve been able to raise money to pay off debt and focus on ways to welcome people back to the movie theaters safely.

Revenue is a very positive factor playing into the fundamentals of AMC’s stock price action. AMC Entertainment is set to release a ton of awesome titles this year which has people excited for that movie theater experience.

AMC’s CEO is one great leader

With this being said, Adam Aron, CEO and President of AMC Entertainment is not backing down.

Adam has talked about his experience saving Norwegian Cruise Line and how he intends to to keep AMC alive for as long as he lives to run the company.

Why are large institutions buying AMC stock?

Vanguard AMC

Speculation would point out AMC is possibly a good investment, contrary to what Yahoo Finance, The Fool, and other resources are leading the public to believe, right?

It is important to note that these institutions are purchasing millions in AMC stock.

Just a side note here: if AMC isn’t a good investment like some sources are pumping out, then why have large institutions been buying AMC stock all year…

My educated guess? Large institutions aren’t going to be wanting to miss out on upcoming gains from a short squeeze.

Aside from a short squeeze however, AMC Entertainment seems to be a good buy even as a long-term stock.

Adam Aron, CEO and President of AMC has shared his optimistic views towards the direction of his company.

AMC is a good buy with or without a short squeeze.

What is a short squeeze?

AMC short squeeze

A short squeeze occurs when a stock jumps sharply higher, forcing short sellers to buy higher, causing them to lose money.

This in turn makes the retail investor (you and I) a LOT of money.

This notion of an upcoming short squeeze is drawing in a lot of attention.

This is why we’re seeing AMC stock go up as well. Its purchase share volume is going up.

And where there’s attention, there’s money to be made.

Volume is important for an AMC short squeeze

As more and more retail investors get in on AMC and continue to buy and hold, we’re going to keep experiencing the stock price rise.

Because volume is such an important factor, retail investors and institutions will need to not only buy the dips but the gains as well.

By buying the gains in increments, the market processes this as a demand in the stock; further driving up the share price.

This massive volume we’ve been seeing all year has allowed AMC to skyrocket past $70 per share back in June.

And it’s prepped for another massive runup.

The main reason why AMC stock will keep going up

AMC will go up

AMC is currently one of the most heavily shorted stocks in the market.

Short-sellers such as Melvin Capital who’ve bet against the century old movie theatre chain has lost millions in the process.

The same can be said about Citadel Securities who’s now under a massive investigation for it’s predatory practices.

These are the folk that don’t care about workers losing their jobs, or about the companies success.

This hits home to most retail investors which is why the conviction is so strong within the community.

The way these short-sellers make money is quite simple.

They short the stock.

Shorting a stock is the process by which sellers essentially bet on the stock price to drop. They borrow stocks at a higher cost, sell it, and buy the stock low, profiting the difference and driving the share price to the ground.

Since AMC’s share price has been soaring all year, hedge funds continue to amass losses.

Fortunately, retail investors like the stock and are against shorting it.

This is why AMC continues to go up.

Retail investors have all the time in the world to see this short squeeze through.

Shorts however, are paying the price every day.

And if you’re wondering, yes this is exactly what occurred with GameStop earlier this year.

Melvin Capital suffered 49% loss 1st quarter

Melvin Capital
AMC goes up and hedge funds lose money

Melvin Capital is a hedge fund that shorted both AMC and GameStop stock earlier this year.

Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider.

Another honorable mention is that of Archegos and Mudrick who also got burned.

There are still hard-head hedge funds such as Citadel Securities who continue to short the stock.

The question is how long will they last before they too go belly up?

Reddit likes AMC stock

r/wallstreet bets like AMC stock

The people, along with Reddit retail investors do not want the movie theaters closed.

They are purchasing AMC’s dips and holding the stock. This is where the terms diamond hands comes from; refraining from selling.

According to Robinhood, AMC is the most held stock beating both Apple (AAPL) and Tesla (TSLA), via Nasdaq.

This means AMC shareholders will eventually have leverage over the stock from short-sellers as the price goes up.

As long as retail investors continue to hold, we’ll begin to see a supply and demand situation.

Short-sellers will eventually have to buy from retail investors to cover their positions, inevitably driving AMC’s share price higher.

Positive AMC Theater News!

AMC movie theaters across the entire country are selling out! New releases are serving the movie theater industry very well.

Godzilla vs. Kong secures $9.6 million in ticket sales

AMC theater - Godzilla vs Kong

Warner Bros. said Thursday that “Godzilla vs. Kong” secured $9.6 million in ticket sales on its opening night. This has been a record debut for the pandemic. As of April 26th it has done over $400 million global!

Leave me a comment below if you watched the film. I personally loved it.

Mortal Kombat & Demon Slayer outperform earnings

Mortal Kombat brought in 23.3 million its opening weekend. Critics expected Mortal Kombat to reach no more than 15 million. A huge victory for the cinema industry! Not only that but Demon Slayer drew in another whopping 19.5 million its opening weekend.

AMC theater Mortal Kombat

Mortal Kombat reps the biggest R-rated opening to-date during the pandemic. The beautiful thing is that we have other amazing titles coming to the movies that can continue to scale beyond these numbers.

The top 10 locations for Mortal Kombat were:

1. AMC Burbank Los Angeles, 2. Santikos Palladium San Antonio, 3. Cinemark Tinseltown El Paso, 4. Santikos Casa Blanca San Antonio, 5. AMC Orange Los Angeles, 6. Cinemark Pharr Town Center (Texas), 7. AMC Empire New York, 8. Cinemark Century 16 Corpus Christi, 9. AMC Gulf Pointe Houston, and 10. AMC Southlake Pavilion Atlanta.

Source, via. Deadline.

I have not watched Demon Slayer yet but Mortal Kombat was a fun film to watch.

I grew up on the video games (shoutout to GameStop) and the older films so seeing this today made my year.

If you have not gone out to your local AMC theater I recommend you do.

A Quiet Place Part II: $57 Million Pandemic Record

A Quiet Place Part 2 earnings
Movie theater earnings: A Quiet Place Part 2

A Quiet Place Part 2 debuted in theaters on Friday May 28 and broke pandemic records in the cinema industry.

Paramount’s A Quiet Place Part 2 topped Godzilla vs. Kong and Mortal Kombat combined on their opening night reaching $57 million over the Memorial Day Weekend. A huge congrats to the industry and AMC Entertainment.

As more Americans continue to get vaccinated, health concerns ease. AMC Entertainment is seeing a critical mass effect as the public feels safer. I’m personally happy for the century old company and its shareholders invested in the stock.

The Conjuring Earns $11.5 Million Opening Weekend in the U.S.

The Conjuring: The Devil Made Me Do It earned $11.5 million its opening weekend and grossing 57.1 million worldwide.

Congrats to James Wan and the movie theater industry. The Conjuring films are currently the top grossing horror franchise of all time with $1.9 billion at the global box office.

Wall Street analyst upgrades AMC Theatres

Wall street analyst says, ‘Godzilla vs. Kong’ “Destroys lingering concerns around theatrical window importance and demonstrates a solid path to resurgence”, via. Hollywood Reporter.

Eric Wold goes on to say, “Consumers want to leave the house and return to the theater.”

There seems to be a massiveness of positivity going around for the theater industry, especially AMC being the leader. As AMC continues to increase their sales revenue with hit titles, you can expect AMC’s stock price to continue surging. Massive victory for the AMC theaters!

Upcoming movie news and revenue will be updated here so be sure to follow me on Twitter to know when the post has been updated.

Is It Too Late To Get In On AMC Stock?

In short, no. With the price of AMC stock being affordable to majority of the public, it’s a steal right now.

Especially considering it has set a new floor in the mide $30 range and has touched $50 per share twice now; once in June and again in September.

The ape community plans on taking this stock above $100 fundamentally through buying pressure before squeezing shorts from their positions.

I strongly believe AMC will do great post pandemic, and apparently so do other institutions (with or without a short squeeze).

Are you holding AMC Stock? Let me know in the comments section below!

Where can I learn more about AMC’s short squeeze?

Trey’s Trades is an analyst who trades in the market and provides outstanding material on his YouTube channel. If you haven’t checked out Trey’s Trades make sure to do so, you’ll be happy you found this channel.

Trey’s Trades – Huge Institutional AMC buyers!

Another great analyst on YouTube is Roensch Capital. They provide more detailed analysis on the stock if you’re into deep chart digging. While Trey is more energetic and entertaining to watch, Roensch Capital is a little more serious and dives in straight to the research.

These are two channels I particularly enjoy which is why I’m sharing them with you today.

My mission is to provide you with valuable information.

While there’s a lot more people covering AMC on YouTube, these two channels are by far the best analysts on the platform in my opinion.

If you’ve never heard of them before, make sure you leave them a comment and let them know you found them through FrankNez.

And lastly…

A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter. Words can’t explain how grateful I am for you sharing positive and valuable information for new retail investors to look at. Thank you.

Subscribe to our newsletter to stay informed about the latest momentum stocks, long term stocks, and crypto and stock news.

If you found this article to be of value, be sure to give it a social share.

AMC with Franknez.com Discord

Join the AMC with FrankNez Discord here.

#AMCtothemoon #Diamondhands

Related: How soon will we see an AMC short squeeze?

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Is Now a Good Time to Buy AMC Stock?

Are you a new retail investor? Bookmark these investing tips from Frank Nez

Is now a good time to buy AMC stock?
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Is now a good time to buy AMC stock? Post by Franknez.com

AMC stock has had a crazy play in the market thus far. Redditors and even Fox Business are determined it’s going to squeeze. More AMC stock news has arise with 100/100 short squeeze data. So, is now a good time to buy AMC stock?

franknez.com is now a good time to buy AMC stock?

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!

AMC has been the talk in the finance and investing world. Institutions such as Citadel were betting on AMC going bankrupt. That means no more movie theaters for all of human civilization. As if, right?

AMC is no longer on the brink of bankruptcy and has raided more than $2 billion dollars to keep them afloat until the end of 2022. This is not including the revenue they will be bringing in from ticket sales and food and beverage.

AMC Entertainment has also just recently acquired both The Grove and The Americana Cinemas. This is massive news for the AMC community as the company takes on bigger roles through business fundamentals.

AMC’s community has grown immensely

If you’re looking to get into a community that’s against a corrupted financial system then the AMC community is the perfect place for you to gain an insane amount of knowledge.

This community has uncovered stock market manipulation, received the attention of the media, and have some of the biggest influencers of our time backing it up.

Apes continue to buy AMC stock till this day. This momentum trading is neither bullish nor bearish. It’s apeish.

AMC’s short squeeze data

You can find loads of information about AMC’s short squeeze data here on the blog, on AMC stock Reddit, or on YouTube.

After several analysts took notice that the stock was being heavily shorted they began posting this information on AMC stock Reddit where it grabbed the attention of everyone else who missed GameStop’s gamma squeeze.

AMC stock is currently in the $33 range, give or take. It is costing short seller 1.10% interest to hold their positions, via Fintel. And although the short borrow fee has recently gone down, it costs retail investors nothing to hold the stock.

Shorts betting against the stock are also facing major scrutiny from brokers such as JP Morgan and Charles Schwab. These two broker firms have begun to raise margin requirements on both AMC and GME stock.

If hedge funds continue to overleverage their positions then they will be forced to close out their positions, initiating the mother of all short squeezes.

Read: When do shorts have to cover their positions (AMC)?

The biggest transfer of wealth in history

Redditors on r/wallstreetbets found out AMC was the #1 shorted stock via MarketWatch. At least until the hedge fund affiliate removed it from their list.

New retail investors be warned, you’re in for a ride. Hedge funds are playing dirty.

AMC stock #1 shorted stock
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Why did they do this? Perhaps to divert retail investors from buying the dips. See, when AMC squeezes it’s going to leave these hedge funds negative billions of dollars. All meanwhile retail investors make some rather life-changing wins.

It’s no doubt that when this happens we will be witnessing one of the largest transfers of wealth in history.

AMC was around $30 in 2016

People don’t tend to look far back enough to see that AMC was a healthy $30+ back in the booming party economy of 2016.

AMC stock buy

The stock price went as high as $35 in 2017. Here’s the link where you can check the price prior to the pandemic –> Link. We are not hitting all-time highs based solely on fundamentals.

The stock was falling little by little after 2017 due to the amount of debt AMC amassed, however; AMC has raised enough capital to start off clean in 2021.

The previous price point is worth mentioning because it gives us a glimpse into the threshold where shorts are losing a lot of money. Any price above $35 and hedge funds are really feeling it!

Adam Aron, CEO & President of AMC shares positive news
  • More than 90% of AMC movie theaters are now open as of March, 31st
  • AMC Entertainment has raised more than 2.2 billion dollars in cash
  • Vaccines and movie theater policies are making movie theaters safe
  • New movie titles are guaranteed to increase sales revenue
  • CEO and President Adam Aron expresses an optimistic future for AMC Entertainment

AMC stock is currently treading the $40 mark but has traded as high as $70. We’ve saw AMC’s share price in the beginning go up from $2.50 all the way to $20. We’ve seen a little of a selloff but this is normal. Investors will sometimes take small profits but continue to hold majority of their stake in the company.

The AMC community aren’t the ones causing red days. Short sellers continue to borrow shares to bring the price action down. Once retail investors manage to bring the price above $80 it’s game over for hedge funds.

$80 will lead to $100, $200, and eventually trigger a short squeeze.

Read: AMC stock price to $100 per share soon?

Will AMC squeeze?

Fox Business AMC strong chance of a short squeeze

The probabilities of AMC squeezing are rather high. The stock is heavily shorted.

The #1 reason why AMC will see a short squeeze is because shorts have not closed their positions.

And unfortunately for them it’s a lose-lose situation. We suggest they close where AMC is consolidating before it begins to rise again and see new levels of resistance; where at this point there’s no going back.

Short-sellers, take your loses now before they’re greater down the road.

So, is now a good time to buy AMC stock?

Absolutely. AMC stock is a ticking rocket ship waiting to take-off.

With theaters reopening, more and more institutions loading up on shares, and vaccines out to the public, AMC is a great buy with our without a short squeeze.

Read: What the fool isn’t telling you about AMC stock could hurt you

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Why Hasn’t AMC Squeezed Yet? (The Truth)

Why hasn't AMC squeezed yet?
Keep hodling apes, your time is coming

Retail investors have been diamond-handing AMC stock for quite some time now. Massive props to those of you who have been holding since AMC’s gamma squeeze as of late January. You guys have seen it all by now. The gains, the short ladder attacks, the manipulation in the media and so on. So, why hasn’t AMC squeezed yet?

After all, we deserve an explanation. With so much DD out on YouTube and Reddit, some answers just aren’t being answered. Luckily, extensive research is done here to provide you with value you won’t find anywhere else.

Here’s what we know.

franknez.com why hasn't AMC squeezed yet?

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!

why hasn't AMC squeezed yet?

AMC Entertainment is after all one of the most heavily shorted companies in the market. So why hasn’t this stock shot up to the moon yet!?!

Shorts and hedge funds alike continue to lose money every day they hold. Shouldn’t they be covering by now?

More and more institutional buyers are bulking up on the stock, retail investors continue to hold and buy the dip, so what are we missing?

For one, let’s start with volume

Stock Volume needs to be high for a short squeeze

AMC’s market volume hasn’t been as high as we need it to be if we’re to see a short squeeze. Although, we’re finally beginning to see volume surpass 300 million. We’ve also seen it go as high as 700 million.

The market is going to need big volume to come in so we can see this price action really move. Well, how much volume do we need for AMC to squeeze?

The highest volume we’ve seen so (post gamma squeeze) was back in February where the volume reached over 400 million, until recently. In June we saw a surge of new retail investors buy AMC stock and volume reached around 700 million. The volume will need to be well over this amount.

Trey’s Trades has mentioned the perfect squeeze setup will require the volume to sit around 600 million plus. Some DD on Reddit has shown a squeeze will most likely occur in the billion volume mark.

Low volume = consolidation

low volume = consolidation

We’ve been seeing this with AMC until now. The stock has held up really well consolidating in the $40-$50. This level of support is indicating investors are mainly holding their positions. Retail investors will need to continue to add to their positions and project bullish sentiment if they want to see the price action continue to move up.

We saw AMC reach $70 when the volume surged back in June. It has since come down due to heavy short ladder attacks. Short sellers have been borrowing millions of shares to short AMC stock.

And while new retail investors are buying the stock during the dips, these ladder attacks on upticks have kept us consolidating.

Is consolidation in a stock bad?

Not at all. Consolidation is just a sign a particular stock has found a level of support and has developed strength.

Driving the price action up could force short-sellers to close their positions; however, a new pattern has risen.

According to Benzinga, “Volume in AMC’s stock has been declining, especially in terms of bearish volume, which indicates the stock is running out of sellers. This pattern is often seen before eventual large upward swings in a stock.”

Shorts still need to cover their positions

AMC money investing

Shorts haven’t covered their positions which means they’re holding just like retail investors are. The only difference is they’re paying an interest fee until they close their positions.

It costs nothing to hold AMC for the retail investor but it’s costing shorts and hedge funds money every single day.

Moral of the story? Hold until shorts can no longer afford to pay the interest. Yup, that’s really all there is to it. Keep living you day to day life. When AMC squeezes, you will hear about it.

The short borrow fee has been relatively low

Low borrow fee rate means no squeeze

Now, unfortunately the short borrow fee for shorts has been relatively low the past several weeks. At least according to Fintel.

This just means the fees aren’t hurting shorts too bad from the interest right now, although they continue to lose millions with every passing day.

AMC short borrow fee

Shorts continue to bet against AMC in efforts to bankrupt the company but the company is actually doing great right now.

Yup, although bankruptcy is officially no longer on the table.. And all movie theaters are now open.. and AMC Entertainment is bringing in huge revenue from new movie titles..

Yeah, I don’t understand their logic either.

This interest fee really doesn’t affect retail investors. Whether it’s low or high it’s costing hedge funds money. And at some point compound interest will really be hitting them hard.

It would be in shorts best interest to close their positions now while their fee is still low, and the stock price is around the mid $40 range. Because as soon as the stock price goes back up and so does the borrow fee rate, they’ll wish they had closed sooner.

Read: When do shorts have to cover their positions (AMC)

Wanda caused more shares to float into the market (ARCHIVE)

This information was what older apes experienced months back and will be included in this article for record purposes only.

One of the reasons why AMC didn’t squeeze months back was due to Wanda’s continues selloffs every time the stock would come near $14. This slowed the growth process significantly. Here’s how it happened.

With Wanda converting class B shares to class A shares, it essentially put more shares out into the market. This happened quite some time ago (early this year) but it’s worth mentioning because it goes back to volume. This is previous news though and Wanda no longer has a position in AMC due to foreign policies.

Key: Retail investors will need volume in order to squeeze shorts out of their positions.

Wanda Group had fueled red days (ARCHIVE)

Wanda is a group based in China who has been AMC Entertainment’s biggest shareholder for quite some time.

Unfortunately, Wanda had taken profits every time AMC’s stock rose to $14. This was usually seen as a major selloff in the market. CEO and President of AMC, Adam Aron explained in a recent interview with Trey’s Trades the cause for this. China’s government has a policy that requires international investors in China to focus their investments domestically to fuel their economy.

According to Adam Aron, Wanda is still a great partner and doesn’t believe the sell has anything to do with Wanda’s sentiment or believe in the company.

As of today, retail investors now hold majority of the float and Wanda no longer the large shareholder it was in AMC. This gives retail investors more control.

Stock market manipulation

Something incredible is unraveling here. Something very bad.

And although it’s bad, this means it’s also time for change. This entire journey with AMC and GameStop has allowed very intelligent people to uncover data that was never meant to be uncovered.

It’s only a matter of time before this data and DD get into the hands of writers looking to document this historic event occurring before our eyes.

One of AMC’s biggest reasons why it hasn’t squeezed is due to the heavy manipulation that’s been occurring for many months now. Nonetheless, AMC has moved up from $5 to the mid $40. Despite hedge funds cheating, retail investors keep winning.

It’s going to take continuous patience from retail investors in order to squeeze shorts out of their positions.

Read: How do hedge funds manipulate the stock market?

Hedge funds pay the price

stock market manipulation
Melvin Capital suffers 49% loss their first quarter of 2021

Melvin Capital, a hedge fund who shorts both AMC and GameStop stock has reportedly suffered a 49% loss its first quarter.

The reason being is they have not closed their short positions although in a recent statement they advised they had. This hedge fund along with short-sellers are losing money every day due to the short borrow fee continuously increasing.

Short sellers are sitting on billions of dollar loses, via REUTERS. If short positions were covered, both AMC and GME would have come into an immense amount of gains just from this one hedge fund buying back several millions of shares.

Related: AMC margin call: the squeeze is inevitable

Mudrick Capital

Mudrick Capital is another sleezy hedge fund that has been very well documented on FrankNez for its dishonest play. Laura Stine and I collaborated on publishing this piece from when Mudrick Capital met AMC and departed with AMC.

Laura captured the entire timeline perfectly and provides the community with insight as to how we are where we are today.

Read: Hedging against America: The Mudrick short report

Short-ladder attacks

Retail investors started digging into the manipulation as AMC’s share price continuously got ladder-attacked. Shorts use this strategy as a means to drive the price down as the stock moves up.

Redditors have discovered which platforms are owned or partners of Melvin Capital and Citadel. We’ve seen manipulation through bogus headlines trying to divert the public from buying a heavily shorted stock. MarketWatch, who is owned by Melvin Capital and Citadel, took to eliminating AMC from their #1 place on the most shorted stock list in the market back in February.

Citadel also owns The Fool which has been publishing lies for many months now.

This only urged more people do further dig in. We’ve found the unethical use of naked shares, which are essentially ‘fairy stocks’. They don’t exist but are traded and shorted otherwise. These are also known as ‘I owe you’s’.

In a world post squeeze, these financial platforms will no longer be trusted by the general public.

A house of cards, r/superstonks (Reddit post)

A Redditor just posted an insane amount of DD on Reddit. This long form post discuses the transition from paper filled orders to the use of computers going all the way back to the mid to late 80s.

The post reveals the beginning of issuing naked shares. We’re also learning that a lot of transaction are being held by the actual institutions that are shorting these stocks.

Robinhood routes more than half of it’s customers to Citadel. This information has now been disclosed via the Washington Post.

You can read the full Reddit post here.

Trey’s Trades does a quick breakdown on this DD as well. The video is embedded for your viewing pleasure.

With all this in mind, manipulation in the stock market has been able to keep AMC’s share price consolidating in the $40-$50 range thus far.

You can read more on how hedge funds manipulate the stock market to better understand why we haven’t seen an AMC short squeeze yet. Because this DD is so relevant, it will also be included in that post for new readers to see.

Final verdict

Regardless of the manipulation going on surrounding AMC’s squeeze, I strongly believe retail investors should stay the course if they are to see life changing results in the market. The price has moved up significantly! Once AMC’s stock price hits $80 we’ll begin to see $100 easily and beyond.

When a community rises and people stick together, real change is inevitable. With so much information coming to light, it’s only a matter of time that the tables are turned and justice is served.

Additionally, retail investors are winning right now. Shorts and hedge funds are losing money every day. More malpractice is being discovered and publicly shared. A lot of the analysis circulating AMC is pointing to a nasty nasty squeeze. Continue to stay positive and share positive and enlightening news.

AMC news and squeeze facts

  • AMC was on FOX Business ‘high squeeze potential list’
  • Movie theaters are now open everywhere
  • Godzilla vs. Kong secured $9.6 million in tickets on its opening night. New titles are breaking records
  • AMC Entertainment has raised over 2.2 billion dollars in cash as of early this year and continue to earn revenue
AMC Ticket Short Squeeze

Bankruptcy is officially off the table according to Adam Aron, and new titles are making their way to AMC movie theaters. I’m personally bullish on the stock and see lots of organic growth potential.

Growth is what’s going to inevitably squeeze shorts out of their position.


Join the Discord

Thousands of new retail investors have joined my Discord group in order to stay updated on this movement. I created this safe community for your voice to be heard and for your rights to be protected. Retail investors are learning something new here every day.

Here’s a personal invitation to the club.

franknez.com discord AMC

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Which Stock Should You Invest In? AMC or GME?

Which is the better buy? AMC or GME
AMC VS GME #diamondhands

Are you a new retail investor? Bookmark these investing tips from Frank Nez.

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.

franknez.com should you buy AMC or GME?

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.

  • AMC Short Share Volume: 500,000 (via. Fintel)
  • 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-investors or 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):

These change from time to time

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
Franknez.com
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.

Read: How high can AMC stock price skyrocket up to?

GME

GME Short Squeeze
Franknez.com
GME Short Squeeze

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.

Read: Will GameStop see a massive short squeeze again?

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
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
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.

Related: Why is AMC stock going up again?

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 Robinhood - invest in GME and AMC with another platform
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.

I recommend: Vanguard –> Link

I’ve also published a post on how to invest in the stock market step by step where I include a list of other platforms you can check out here.

Read: Why new retail investors investing in AMC should avoid Robinhood

So, which is the better buy? AMC or GME?

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.

Franknez.com

Related: Everything you need to know about Dogecoin crypto

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