Tag: Market News (Page 1 of 13)

Short Sellers Are Now Paying More to Short AMC Stock

Short AMC Stock
The cost to short AMC stock goes up

AMC’s short borrow fee is rising again and short sellers are now paying more to short AMC stock.

This is the fee short sellers pay to borrow and short the stock.

It fell as low as 0.30% earlier this year but has now risen to 5.0%.

Although the short borrow fee is still relatively low, the progression could lead to more impactful losses.

Last year hedge funds lost billions betting against the world’s largest movie theatre chain.

Overleveraged positions with high short borrow fee rates only multiplied losses.

Rising short borrow fees could incentivize short sellers to completely ditch the play and close their short positions as shorting becomes more expensive.

Let’s break it down together.

franknez.com

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

AMC’s short borrow fee increases

AMC’s short borrow fee rate has steadily been increasing as the markets have tanked.

It comes as no surprise that the fee to short AMC stock would increase during this liquidity crisis.

The SPY officially hit bear market territory last week, but the market bounced rather quickly, trading just above bear market levels.

AMC continues to be one of the heaviest shorted stocks in the market.

It wiped billions of dollars from hedge funds shorting it last year.

And with a high short interest of 22.44%, AMC has more than enough juice to squeeze shorts from their positions.

But AMC’s short borrow fee rate and short interest percentage aren’t the only metrics increasing.

Pressure is escalating as AMC’s shares on loan reach an all-time high.

Pressure escalates as AMC’s shares on loan skyrocket

AMC shares on loan

AMC’s current shares on loan have reached 170 million.

These shares on loan eventually have to be returned to the lender by buying back the stock in the lit market (NYSE).

The massive buying pressure is going to create a high demand for the stock.

As the demand for the security goes up, so does the cost to buy it (the value of the security).

When AMC surged to $72 per share in June, it had roughly just over 100 million shares on loan and a short interest of 24% before falling to 20%, then 14%.

Today, AMC’s shares on loan have hit 170.08 million with a high short interest of 22.44%.

AMC’s Short Interest Data Updated Daily Here

Short sellers owe their lenders more now than they did when AMC shot up to $72 last June.

No matter what the catalyst is, AMC is inevitably going to surge again.

Related: Pressure Escalates as AMC's Shares on Loan Skyrocket

Will AMC’s increasing borrow fee rate force shorts to close positions?

AMC short borrow fee rate

AMC’s increasing short borrow fee rate may certainly incentivize short sellers to close their short positions.

The stock is slowly becoming harder to short and the cost to borrow it might prove to not be worth risking significant losses as the market adjusts itself for a reversal.

At some point, it’s going to be time to start betting long.

As you can tell, short sellers have the biggest risk here.

One simple bull rally can eliminate short sellers’ portfolios.

And with the SPY showing significant strength in the $400 level, one can assume the markets have potentially found a bottom.

The SPY momentarily hit official bear market levels last week but has managed to trade just above it.

A significant break upwards could bring the entire markets back up, hurting short sellers.

How soon will AMC squeeze?

There are many things that can trigger AMC to squeeze but if you haven’t read about executive order 14032 yet, it’s worth checking out.

That order played a massive role during AMC’s rise to $20 and $72 per share.

I don’t think now is the smartest time to short AMC stock.

Be sure to connect with me on social media for daily updates.

Also, join the discussion in the comment section of the blog down below.

You can follow me on: Twitter | Facebook | LinkedIn or Instagram

Frank Nez is on YouTube – Subscribe for more updates
Related: These Two Signs Will Tell You a Short Squeeze is Over

Here’s Why It’s The Perfect Time to Buy AMC Stock Today

Buy AMC Stock Today
Should you buy AMC stock today?

Are you wondering whether to buy AMC stock today?

Deemed a popular ‘meme stock’ that shook Wall Street last year, it’s headed for another massive run this year.

See, the stock is still heavily shorted despite an incredible pandemic recovery.

The largest movie theatre chain in the world has innovated in ways many companies have yet to.

When AMC made headlines in January of 2021 when it reached $20 per share, retail investors jumped in.

Then it made headlines again in June when the stock reached $72 per share, squeezing only a few short sellers.

The data that predicted these runups shows a bigger wave is on the horizon.

Here is why it’s the perfect time to buy AMC stock today.

franknez.com

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

Here is why AMC stock is a strong buy today

#1. The stock is severely undervalued

AMC stock traded above $2 per share before it squeezed a few short sellers in January of 2021 and hit $20.

The movie theatre chain was in danger of going bankrupt until retail investors proved to be a lifeline when it armed the company with a billion dollars.

AMC has been working on a recovery plan ever since.

Later that summer, AMC squeezed a few more short sellers reaching an all-time high of $72 per share.

Today, AMC has innovated more than most traditional companies being one of the first to enter the cryptocurrency and NFT world.

The company has invested a quarter billion dollars in state-of-the-art laser projectors and acquired several new theatres.

Fundamentally, AMC is undervalued, according to retail.

#2. Retail investors own the float

When you own AMC stock, you legitimately own the largest movie theatre chain in the world.

More than 90% of AMC’s float is owned by retail investors.

This corporation has now become a company owned by the people.

Several innovations implemented by AMC Entertainment has been because of shareholder opinion.

The company believes its shareholders have the ideas and innovation to take the century old movie theatre chain to the next level.

The CEO of the company engages with AMC shareholders on Twitter and includes them in quarterly earnings calls.

Related: AMC Dominates with Powerful Q1 Results: Highlights

#3. AMC has the perfect short squeeze setup

AMC has the setup to reach a new all-time high.

If you missed the run to $20 or $72 per share last year, buying some AMC stock today could prove to be a fruitful trade down the road.

Not only does AMC have a high short interest, but executive order 14032 will be going into effect early June.

Last time it went into effect, AMC ran up to $20 and $72 per share.

Mainstream media has been trying to scare people from their money for over a year now to prevent the ‘meme stock’ from hurting their corporate bosses shorting the stock.

However, retail investors continue to buy AMC stock today to squeeze shorts from their positions.

Must Read: Executive Order 14032 Could Be a Big Deal for AMC Stock

#4. There’s no other community like it

AMC has an incredible community.

Referred to as ‘apes’, retail investors voice market injustices in efforts to create a better investing world for future generations.

What started as a simple short squeeze play turned to a movement for market fairness and transparency.

Yes, AMC stock is undervalued, and yes it has the perfect short squeeze setup.

But the community is the reason why even after you cash out big, you’ll want to stay.

#5. There is massive upside potential

But of course, one of the biggest reasons why it’s the perfect time to buy AMC stock today is because of its massive upside potential.

Last year, AMC saw gains upwards of +3000%.

But very few took profits because the data shows there is plenty more room for AMC stock to squeeze.

While the market in general might have dropped significantly, a reversal is imminent.

AMC will be no exception.

However, the difference with AMC stock is that short sellers eventually have to close their positions, resulting in a short squeeze.

Retail investors predict this third wave will surpass AMC’s all-time high of $72 per share.

Be sure to join the topic discussion in the comment section of the blog down below.

You can follow me on: Twitter | Facebook | LinkedIn or Instagram

Frank Nez is on YouTube – Subscribe for more updates
Related: These Two Signs Will Tell You a Short Squeeze is Over

Pressure Escalates as AMC’s Shares on Loan Skyrocket

AMC's shares on loan
Market News: AMC’s shares on loan skyrocket

AMC’s shares on loan continue to hit an all-time high.

Shareholders are patiently wait for the built-up pressure to send AMC’s share price to a new all-time high this year.

Last year the stock reached an incredible $72 per share, squeezing only a very small percentage of short sellers.

Today, there are more short sellers playing a risky bet than there were last year.

The data in this article is the same data that showed us AMC would surge when it did to $20 in January, and $72 in June.

Let’s discuss it.

franknez.com

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

History is about to repeat itself

AMC Short Squeeze 2022

What caused AMC Entertainment stock to surge to $20 per share on January of last year?

Better yet, what caused it to skyrocket to $72 per share last June?

It’s not so much a matter of what, but why?

Why did AMC have these runups last year?

The answer is because of AMC’s short interest.

Like GameStop, retail investors noticed AMC had a high short interest.

A high short interest meant retail had the chance to squeeze shorts from their positions by driving the stock price up through big buying pressure.

Shorts make their profit as stocks go down, so if the price of a stock was driven up, their profits would eventually turn into losses.

So, some short sellers began to close positions and leave the risky bet.

But many stayed behind, holding, waiting for AMC and GameStop to drop to pandemic levels and make their money back.

The market has experienced nothing buy bear rallies all year.

And I think short sellers are going to take advantage of the market by finally closing their positions.

But let’s go over the data first.

Why is AMC going to go up again?

AMC shares on loan

AMC stock is going to go up again because the shares on loan are at an all-time high.

These shares on loan eventually have to be returned to the lender by buying back the stock in the lit market (NYSE).

The massive buying pressure is going to create a high demand for the stock.

As the demand for the security goes up, so does the cost to buy it (the value of the security).

When AMC surged to $72 per share in June, it had roughly just over 100 million shares on loan and a short interest of 24% before falling to 20%, then 14%.

Today, AMC’s shares on loan have hit 170.08 million with a high short interest of 22.44%.

AMC’s Short Interest Data Updated Daily Here

Short sellers owe their lenders more now than they did when AMC shot up to $72 last June.

No matter what the catalyst is, AMC is inevitably going to surge again.

And you can bet it’s going to be a lot higher than its previous all-time high of $72 per share.

Here’s what’s happening in June this year

Executive order 14032

Something big is happening in June.

Like all news, we should take this with a grain of salt – but it’s exciting, nonetheless.

Executive order 14032 was responsible for prohibiting the use of Chinese securities as collateral last year during the times AMC ran up to $20 per share and $72 per share.

This propped up margin calls because of the large exposure our financial institutions have to Chinese securities.

When these securities were no longer accepted as collateral on January 27th, 2021, AMC stock surged.

The order was shortly amended (moved) to May 27th, 2021, where AMC stock had its second surge, reaching an all-time high of $72 per share only a few days after.

Executive order 14032 is to go into effect on June 2nd.

So, it’s very possible we could see something big happen the first week of June.

The difference this time is that over 70 Chinese securities are being affected, compared to last year’s 30.

A bigger collateral haircut means more liquidity will be needed to keep up with margin requirements.

This is why we’re seeing this massive selloff in the market today.

Institutions need liquidity to keep up with margin requirements.

And they’re in a tough situation because as share prices keep dropping, DTCC B16845-22 keeps raising margins.

Collateral haircut, no liquidity, margin calls

It’s a recipe for disaster.

What’s going to end up happening is financial institutions are eventually going to have to close their short positions in heavily shorted stock.

This could be their last resort for liquidity, if profitable.

Otherwise, it’s possible we begin to see hedge funds cut their losses and shut down as we’ve seen with Melvin Capital and Anchorage.

Hedge funds are in a whole other world of pain right now.

Ken Griffin said retail investors wiped out the pension plans of teachers after Gabe Plotkin announced Melvin Capital was shutting down.

I wonder what he will say next.

As always, take this information with a grain of salt.

A lot is happening in the market and only time will tell where AMC and GameStop go next.

If you found this article informative give it a social share and tag me so I can follow you back.

You can follow me on: Twitter | Facebook | LinkedIn

Frank Nez is on YouTube – Subscribe for more updates
Related: These Two Signs Will Tell You a Short Squeeze is Over

Will AMC Stock Go Up? [2022 Deep Dive]

Will AMC stock go up?
Will Ah9 stock surge again?

AMC has been trending downwards since its rise up to $72 per share and now retail investors are wondering, will AMC stock go up?

In a recent article I break down 3 BIG factors that have influenced AMC’s downward trajectory in the past few months.

Although AMC’s share price has been plummeting, the demand for the stock has not.

This key point is going to play a big role in what happens to AMC stock after this bear market is over.

franknez.com

Welcome to Franknez.com – today I want to lay a few key points you should take into consideration if you’re holding AMC stock or thinking of buying it.

Let’s get started!

AMC stock had an incredible year in 2021.

The stock reached an all-time high of $72 per share with only 21% short interest at the time.

Once the share price began to come down, AMC’s short interest had come down to 14%.

Well, AMC’s short interest is back up to 22% again meaning short sellers have not learned their lesson.

Another key point I’m going to discuss below.

Can AMC’s share price still surge?

Can AMC's share price still go up?

As we start the new year, AMC’s average daily volume is incredibly high.

AMC has an average volume of almost 43 million with many days surpassing this amount.

It’s more than 15 times that of GameStop’s current volume.

So why isn’t AMC’s massive demand reflecting in the share price?

That’s the question the ‘ape community’ has been asking regulators all year 2021.

Too many eyes are on regulators right now and at some point, some suppression inflicted by hedge funds will have to subside.

And aside from Omicron and Covid news affecting the entire market, AMC’s massive volume will eventually push the stock price up during a correction.

What does this mean for retail investors?

If you’re looking to get in on AMC for a short squeeze, know the risks, but understand that once this stock takes off you will not be able to buy it at these prices again.

Frank Nez is on YouTube – Subscribe for more content

Deflating the short interest

AMC Short Interest

Deflating AMC’s short interest like we saw back in January and June means AMC stock will go up significantly higher from its current share price.

Small short covering allowed AMC to reach $72 per share back in June of 2021.

So why can AMC stock still skyrocket?

Despite the heavy buying volume from retail, AMC still has more than enough short interest percentage to squeeze shorts from their positions.

2022 is only the sequel to 2021’s runup.

The reason mainstream media doesn’t want you to know this is because of their ties to hedge funds and private financial institutions.

These institutions are ‘short’ on AMC and GameStop, meaning they’re betting against them.

Pushing propaganda that will feed their narrative is the safest way for hedge funds to derail retail from further buying the stock that could cause them to default.

Hedge funds such as Melvin Capital, Anchorage Capital, Mudrick, & Archegos are out of the game.

Citadel Securities on the other hand continues to be short on AMC stock and seems to be having a hard time weathering this retail storm.

This is why mainstream media will not touch topic on the short interest data that could squeeze shorts from their positions.

Related: These Two Signs Will Tell You a Short Squeeze is Over

AMC Entertainment fundamentals

AMC Entertainment fundamentals

A short squeeze play has nothing to do with AMC Entertainment’s fundamentals.

The reason being is that retail goes based off of how much shorting there is in the company stock.

Buying the stock en masse (big volume) will cause AMC stock to go up, forcing shorts to close their positions and buy back their shares; triggering a short squeeze.

A short squeeze play does not depend on the performance of the company as a business.

AMC’s fundamentals are not the greatest, the company does have a lot of debt.

However, something mainstream media is not discussing is just how much their debt has gone down each quarter since 2021.

AMC Entertainment’s fundamentals are a discussion I will be touching topic on another blog post very soon so be sure to join the newsletter.

And although AMC still has quite aways to clear their debt, the company has become one of the first to lead crypto innovation and accept payment in cryptocurrencies.

Tesla has now followed by accepting cryptocurrency as a form of payment on their merchandise too.

Debt is the only thing holding AMC Entertainment from being a fundamental buy in the eyes of most in the industry.

AMC Entertainment partnerships

Partnerships

AMC partnered with Chance the Rapper last year for his concert movie release.

CEO Adam Aron announced that they would be working on partnering up with industry leaders for licensing agreements that would allow AMC to provide more of these experiences to their audiences around the world.

Another successful showing was the UFC fight they held in theatres.

The CEO also expressed his optimism surrounding showing highly anticipated sports events in theatres, granted licensing of course.

Retail investors have been specifically waiting for an AMC-GameStop partnership.

A topic Adam Aron teased could be in the works at some point.

AMC theatres released “GameStop: Rise of the Players” on January 28th, earlier this year.

One thing you cannot deny is the community strength and company relationship to its shareholders.

It’s never been seen before.

Do you own AMC stock?

Leave a comment below.

So, will AMC stock go up again?

franknez.com

Based on trader sentiment, community sentiment, and continuous innovation from the company, AMC stock will surge again.

This bear market won’t last forever.

And although the entire market is rather shaky at the moment, there will be a correction.

Hedge funds might have leverage to short the stock, but the people aren’t leaving.

AMC Entertainment will have to focus on growth and revenue if they are to get out of debt in the future.

You can read AMC’s Q1 highlights for 2022 here.

Frank Nez is on YouTube – Subscribe for more content like this

You can follow me on: Twitter | Facebook | YouTube | LinkedIn


Is AMC A Good Stock to Buy?

is AMC a good stock to buy?
AMC Entertianment Holdings, Inc. – is AMC a good stock to buy? AMCStock Reddit

You might have heard all the ruckus going on with AMC and are now wondering, is AMC a good stock to buy?

What was once a struggling movie theatre chain company is now a rising phoenix innovating in every direction the market demands.

AMC Entertainment Holdings, Inc. came near bankruptcy when the pandemic shut down movie theatres across the country.

Now that the world seems to be going back to normal, people are wondering how the movie theatre chain will stand against online streaming.

In this article I’m going to break down earnings, debt, short percentage, and various key factors that will help you make a decision.

franknez.com

Welcome to Franknez.com – today I’m going to help you answer the question everyone wants to know. Is AMC a good stock to buy?

Let’s dive right into it!

Join the newsletter so you don’t miss out on weekly market news plus new content that could make you money!

You can opt out at any time.

Let’s begin.

AMC now has positive EBITDA

AMC Positive EBITDA - is AMC a good stock to buy?
‘The Batman’ – AMCStock Reddit

AMC Entertainment announced during their Q4 earnings call that the company now has positive cash flow for the first time in two years.

EBITDA provides investors with a snapshot of a company’s overall financial performance.

AMC currently has a positive net cash flow of $160 million.

Why is this important?

The company almost went bankrupt during the lockdowns during the pandemic.

This is massive progress for any company to stand up after almost being defeated.

It demonstrates the will to succeed.

AMC box office grosses improved each and every quarter of 2020 and 2021 as the number of movie titles increased.

The company hosted approximately 60 million guests in the United States, Europe, and Middle East in Q4 of 2021 alone.

The recovery for AMC has been incredible in such a short period of time.

Now that the company has positive cash flow, AMC Entertainment will be able to provide more value to its guests and shareholders alike.

AMC futures

AMC Futures
AMCStock Reddit

AMC Entertainment saw more than $1.8 billion in liquidity its fourth quarter of 2021 and anticipates doubling its revenue this year 2022.

With more movie titles coming to the big screen this new year, CEO and President Adam Aron says the $1.8 billion will provide AMC with more security and flexibility to go on the offense.

AMC Entertainment doesn’t plan on sitting on this money, but rather on using it to play offense and innovate.

Adam Aron says he plans on obtaining licensing agreements to feature live movie concerts and live sports events in theatres.

If you’re betting on AMC long term you might want to become an owner of the company by purchasing the stock.

90% of retail investors now own the century old movie theatre chain according to the CEO.

The company has a strong and loyal shareholder base that even played a major role in resuscitating the company when it faced bankruptcy.

Adam Aron praises his shareholders as they are the majority owners of the company.

It’s a first in history where shareholders have a massive ownership of a company this big.

The CEO communicates with shareholders on Twitter where he takes ideas from the public to better structure certain areas of the company.

The number of AMC shareholder has increased from 3 million last year to now more than 4 million this new year 2022.

Innovation and revenue streams

AMC Perfectly Popcorn Brand - AMC Innovation and revenue streams
AMC Perfectly Popcorn Brand – AMCStock Reddit

AMC Entertainment has really transformed its business model and is now taking form of a modern-type business.

This leading movie industry chain is now accepting cryptocurrencies as a form of online payment for movie theatre tickets, gift cards, and other accessories.

Not only have they cultivated the crypto movement, but the company is also releasing NFTs when new movie titles are released.

With NFTs, AMC Entertainment will earn a royalty every time an NFT is sold or traded in the marketplace.

This opens opportunity in the marketplace for both AMC Entertainment the company and the asset owner.

AMC Perfectly Popcorn brand is on track to hit retail stores and supermarkets this year too.

They will be selling AMC Perfectly Popcorn brand microwavable popcorn at your favorite grocery stores and outlets.

Adam Aron announced during the Q4 earnings call that AMC and UberEATS are working on making it possible to order pre-packaged popcorn for home-delivery services.

So even if you’re not going out to the movies, you can order AMC Perfectly Branded popcorn for that movie night at home.

This is just one way the company is hedging against online streaming.

Once the theatre chain has access to exclusively release live concerts and sports events, the theatrical experience is going to transform how we look at movie theatres today.

Although online streaming has blown up, the theatre experience is something you cannot replicate anywhere else.

And the data has spoken for it.

Does AMC have debt?

does AMC have debt?

AMC Entertainment, like many companies has debt.

However, unlike the previous year when they had debt and negative cash flow, the company has eliminated most of its debt and created positive EBITDA.

AMC paid $61 million of deferred (postponed) rent in Q4 of 2021, reducing their total deferred rent to $315 million.

It reduced a total of $155 million of deferred rent over the last 9 months of 2021.

They plan to reduce the deferred rent by $150-$200 million in 2022 leaving them with $160-$115 million left for 2023.

This amount could be paid in full that same year.

So, while they still owe money, the execution is being handled with vigorous accountability and success.

AMC Entertainment should have no problem paying this off while maintaining a positive EBITDA through its multiple revenue streams.

Last year the company sold a $950 million junk bond which they used to pay down debt and refinance certain interests to much lower rates.

This has given the company much more flexibility than needed.

I think it’s fair to say the company has proved that it can handle its use of money quite well.

CEO Adam Aron also donated $1 million dollars of his personal money to charity in both stocks and cash.

“I benefited greatly as retail investors have embraced AMC. That makes it time for me to step up and personally give back.”

CEo and president, adam aron
Related: AMC Dominates with Powerful Q1 Results: Highlights

Does AMC offer dividends?

does AMC offer dividends?
Spider-Man NFT – AMCstock Reddit

AMC currently does not offer dividends.

However, the company releases NFTs when new movie titles are released.

These NFTs can sell on NFT marketplaces for quite a large amount of money, depending on the rarity of course, but they’re out there.

The highest sold AMC NFT was a Spider-Man NFT that sold for $17,000 according to Adam Aron.

When Spider-Man No Way Home came out, the first movie ticket buyers received random Spider-Man NFTs.

This is another great incentive to encourage engagement and revenue for the company.

I mean, what other company is truly innovating like this?

Elon Musk announced in January Tesla would accept Dogecoin for its merchandise.

But even he hasn’t gotten involved in NFTs like Adam Aron has, with all respect to Mr. Musk.

AMC shareholders who signed up before December 31st of 2021 also received a series 1 “I Own AMC” NFT.

More than half a million of these NFTs were created and sent to shareholders for free.

I believe these series 1 NFTs will be worth a lot of money years down the road as the company releases a variety of series NFTs with series 1 being AMC’s ‘originals‘.

The concept is incredible but only time will tell.

Are you an NFT collector?

Leave a comment below.

Is AMC still being shorted?

AMC currently has a short interest of 22%.

It’s relatively high meaning short sellers continue to bet on AMC’s stock price to go down.

In fact, the Department of Justice is investigating short sellers and big-time hedge funds for illegally driving AMC and GameStop’s share prices down.

Elon Musk spoke out against short sellers with Adam Aron mocking them for the second time when the announcements were made public.

Short sellers have been long accused by the retail community of tampering with AMC’s share price as the demand for the stock has not been accurately reflecting on the price.

Once called conspiracy theorists, major publications and regulators have now confirmed every allegation.

Predatorial strategies in the market are real and AMC has been abused by them.

The retail community is fighting to lift the market manipulation imposed on so called ‘meme stocks’.

The lift would allow the stocks to naturally surge based on supply and demand.

Is AMC a good stock to short?

Absolutely not.

Hedge funds have lost billions of dollars betting against AMC Entertainment and now the Justice Department has gotten involved.

The SEC recently warned short sellers of ‘short squeeze’ risks in a market transparency report.

The number of activists in the retail community has multiplied over the months and year.

Can AMC still squeeze?

AMC’s current short interest is more than enough to send the share price to an all-time high.

The company’s stock reached $72 per share when the short interest was only at 20%.

The short interest came down to around 14% shortly after the price surge but has since gone up to now 21%.

When AMC climbed to $72 per share it was with only 6% short interest out of 20%.

Is it worth buying AMC for a short squeeze trade?

90% of retail investors holding the stock certainly think so.

For many, the reward outweighs the risk involved.

Though a wise man did once say, the only risk is not taking a risk at all.

Join my discord where many community members are discussing the data.

Is AMC a good stock to buy today?

is AMC a good stock to buy today
AMCStock Reddit – is AMC a good stock to buy?

What makes AMC so different from most stocks is the peculiar spot it’s in.

The company is working extremely hard to improve its fundamentals by innovating, paying off its debt, and increasing its revenue streams.

In the meantime, you have a loyal shareholder base looking to squeeze shorts from their positions while keep their ties to the company after successfully doing so.

Moody’s recently upgraded AMC to Caa2 rating saying the outlook on the company is positive amid the cinema industry’s recovery.

And while corporate (mainstream) media might tell you otherwise, it’s important to note that these companies are often times influenced and bought by hedge funds.

There’s no narrative here, only data.

Is AMC a good stock to buy?

The stock could be a great buy whether you’re looking at a long-term fundamental investment or whether you’re diving into a short squeeze trade.

Just remember, this is not financial advice, and my suggestion as always is to never put more money in the market than you can afford to lose.

Always do your due diligence and stick true to your conviction.

Don’t forget..

If you enjoyed this article, be sure to join the newsletter to get email notifications on weekly market news and updates.

You can follow me on: Twitter | Facebook | YouTube | LinkedIn

Your contributions go towards every plugin, program, and subscription to keep the website running in top shape.

Thank you!

Don’t forget to browse the site for new market news.

Here’s the latest topic discussion on the YouTube channel.

Frank Nez is now on YouTube – Subscribe for more updates

SEC Charges TradeZero America for Halting ‘Meme Stocks’

SEC Charges TradeZero America
Market manipulation: SEC charges firm for deceiving customers in ‘meme stock’ halt.

BREAKING: The SEC is charging TradeZero America and co-founder with deceiving customers about ‘meme stock’ trading halts.

“The Securities Exchange Commission today charged broker-dealer TradeZero America Inc., and its co-founder Daniel Pipitone, with falsely stating to the firm’s customers that they didn’t restrict the customers’ purchases of meme stocks when in fact they did.”

The SEC does not mention in the press release which three ‘meme stocks’ customers were not allowed to buy.

I’ll link the official source below.

Let’s discuss it.

franknez.com

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

TradeZero America deceives customers about meme stock halting

TradeZero America Meme stocks

In late January of 2021, many broker firms halted the purchase of ‘meme stocks’.

You might have heard of the Citadel and Robinhood scandal, where the two colluded to remove the ‘buy button’.

While the scandal became headlines, the transcripts available weren’t enough to charge the institutions.

The SEC released a press release today stating that TradeZero America is being charged for deceiving its customers.

The firm told its customers they did not halt the purchase of meme stocks when in fact they did.

After the halt, TradeZero and Pipitone made misleading public statements via interviews, social media, and in a press release in an effort to distinguish their company from brokers that restricted trading during that period. 

In a Reddit “Ask Me Anything,” Pipitone said, “That some trading firms are blocking these symbols is disgusting, unprecedented… Our clearing firm tried to make us block you and we refused.”

Side note: THIS STATEMENT is disgusting.

TradeZero America received a $100,000 penalty, and co-founder Pipitone received a $25,000 penalty.

Although the SEC did not mention which ‘meme stocks’ were prohibited from being purchased, GameStop and AMC have been the two biggest ‘meme stocks’.

I assume the third was Bed Bath & Beyond.

Source: SEC Press Release

Where are ‘meme stocks’ headed in 2022?

Meme stocks

AMC and GameStop continue to be heavily shorted.

While both companies have survived the pandemic and have shown a dramatic fundamental improvement, short sellers have not left.

Both these stocks have an extremely high short interest and shares on loan.

More and more retail investors are piling in these two stocks for a short squeeze play that was merely suppressed last year.

Trading was halted in both AMC and GameStop in late March of 2022.

AMC rose to $34 per share while GME stock rose to $199 per share.

This form of market manipulation continues today.

You can stay in the loop by joining the newsletter or connecting with me on social media.

Frank Nez is on YouTube – Subscribe for more stock market updates

You can follow me on: Twitter | Facebook | LinkedIn

Related: Ken Griffin Speaks Out on Retail Investors and Meme Stocks

Bear Market Becomes Official: How Long Will It Last?

Bear Market Official
The stock market officially enters a bear market, but how long will it last?

We momentarily entered an official bear market when the S&P 500 fell 20% for the third time.

The stock market rallied today with the SPY and NASDAQ up almost 2%.

Media seems to be in denial, but bear rallies turned into a bear market a while ago, without the official title.

And although today seems to be a green day – the question is, how long will this bear market last for?

Let’s discuss it below.

franknez.com

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

Stocks have tumbled all year

Taking a look at the SPY (S&P 500), and we’ll find that the index is down 17% year-to-date.

bear market SPY stock

The top 500 companies in this index have also been down trending all year.

Tech companies have taken a heavy hit this year.

And the NASDAQ shows it.

The NADAQ is down more than 27% this year-to-date.

Netflix (NFLX) is down almost 69%, Tesla (TSLA) is down 44%, and Apple (AAPL) stock 22%.

bear market NASDAQ

Hedge funds deeply invested in tech companies have suffered big losses this year already.

The Tiger Cubs are a group of hedge fund managers who are currently treading in dangerous waters.

These asset managers are ditching many positions creating massive selloffs, according to SEC filings.

Stocks rebounded today – how long will these bear rallies last?

The stock market bounces back

The stock market has momentarily bounced back staying clear from bear market territory.

SPY stock seems to be making its way back to the $400 per share level.

I’ve mentioned in previous articles and videos that the SPY seems to be respecting the $400 per share level relatively well.

Although stocks officially entered bear market territory, it’s very possible the SPY and market in general are bottoming out.

Stocks have seen all-time lows during these bear rallies but have since come up from these surprising lows.

Robinhood (HOOD) hit a low around $8 and change, now it’s trading above $10 again.

AMC Entertainment reached $9 and change, went back up to $13, and is currently trading close to $12.

GME stock on the other hand seems to have a hard time getting below $90.

The stock rose to $100 per share last week and is currently trading at $96 per share after it announced the launch of its new crypto and NFT wallet.

Related: These Two Signs Will Tell You a Short Squeeze is Over

Honestly, it’s a 50/50

I stated in a recent video that because we have seen mainly bear rallies all year long, it’s possible the SPY breaks downwards below $400 per share and we continue to see this downtrend.

Well, that happened last week, and we were officially, but momentarily, in a bear market.

Today we saw a small bounce back staying clear from that title.

But it’s still unclear whether the market has bottomed out yet or if there’s still room for stocks to fall.

Have the markets cooled off?

Is the market ready for a reversal?

What do you think?

Leave your thoughts in the comment section of the blog below.

You can follow me on: Twitter | Facebook | LinkedIn

Frank Nez is on YouTube – Subscribe for more content
Related: Are Institutions Preparing to Close Short Positions in AMC?

Confirmed: AMC Received Free Shares of National CineMedia

Market news and updates: CEO confirms AMC received 6 million shares from National CineMedia for free.
Market news and updates: CEO confirms AMC received 6 million shares from National CineMedia for free.

Adam Aron announced on Twitter AMC had received free shares of National CineMedia.

Barrons, a news site owned by News Corp. falsely claimed AMC purchased the stock of a failing company.

Shares rose for both AMC and NCMI stock on Wednesday.

The CEO stated the shares came to AMC because they’ve grown their circuit by continuously adding theatres last year.

AMC owns approximately 6 million shares of National CineMedia now.

National CineMedia is an American cinema advertising company.

NCM displays ads to U.S. consumers in movie theaters, online and through mobile technology.

The advertising industry is a huge industry.

Perhaps AMC begins to create a new revenue stream through the use of ads in their cinemas.

Other recent AMC news and updates

The movie theatre chain had incredible Q1 earnings results this year and also beat every quarter in 2021.

The company also acquired a 22% stake in Hycroft Mining (HYMC) in March as well as several movie theatres not only last year but this year too.

AMC Perfectly Popcorn brand is on schedule to sell across grocery stores, malls, and other retail stores by the end of 2022.

Adam Aron teased shareholders could see a stock dividend by the end of 2023.

AMC stock is currently on a downtrend as the SPY pulls the entire market with it despite positive news and fundamental improvements.

Shareholders continue to buy and hold the stock as they look to squeeze shorts from their positions this year.

The battle in the market continues.

Join the newsletter for more updates on AMC or read the latest market news and updates below.

Related: Ken Griffin Attacks: "Pension Plans Destroyed by Retail Investors"

You can follow me on: Twitter | Facebook | LinkedIn | Instagram


The Tiger Cubs Are on The Brink of Collapsing

Tiger Cubs Hedge Fund
Market News: Tiger Cubs face disturbing losses as tech stocks fall

(Bloomberg) Hedge fund managers known as Tiger Cubs are facing serious carnage in the market.

The alliance consists of Tiger Global Management, Lone Pine Capital, Coatue Management, Maverick Capital, Viking Global Investors and D1 Capital 

Billions were made in tech stocks, but gains have now evaporated.

Tech stocks have fallen the first quarter of 2022 and have bled into the second quarter this year.

Is it possible the Tiger Cubs are the next hedge fund managers to join Melvin Capital’s grand exit?

Let’s discuss it.

franknez.com

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

NASDAQ plummets in 2022

The tech-heavy NASDAQ 100 has fallen more than 29% this year.

It’s down more than 11% from the S&P 500 (down 18.47% YTD).

According to Bloomberg, majority of the Tiger Cubs stock picks are in tech stocks.

Tiger Global exited 83 positions depicted in the chart below and entered only 2 new positions.

The hedge fund sank 34% the first quarter of 2022.

Tiger Cubs positions

Coatue Management is another hedge fund who has been struggling to keep its doors open this year.

Last year investors demanded to pull out $250 million from the hedge fund but Coatue was unable to meet demands.

Coatue said the money they could not deliver to their clients was being held in private companies, making it difficult to liquidate.

Today we see Coatue Management exited 35 stocks and only entered 12 so far.

The rest of the cubs aren’t doing so well with everyone exiting more positions than entering them.

Tiger Cubs cut their losses

Below you’ll find a chart showing the worst-performing stocks widely held by the Tiger Cubs.

Big name companies include Carvana, DoorDash, Netflix, and Shopify to name a few.

Tiger Cubs Losses
Source – Bloomberg

The Tiger Cubs have been known for piling into the same or similar stocks since they all had the same mentor.

These hedge funds are facing significant losses despite being in it together.

Melvin Capital saw a 50% loss in 2021 and another 20.6% during the first quarter of 2022 before throwing in the towel.

The hedge fund was destroyed by retail investors when it decided to bet against game retailer GameStop and other ‘meme stocks’.

Ken Griffin defended Gabe Plotkin’s Melvin Capital in a Bloomberg exclusive attacking retail investors.

The Citadel founders said retail investors wiped out teacher’s pension plans by bankrupting Melvin Capital.

And the retail community is biting back, speaking the truth.

CALPERS, the largest pension fund in America loaded up on AMC and GameStop and sold Netflix, though.

Ray Dalio’s Bridgewater sold Tesla this Q1 and bought AMC stock for the first time and increased their stake in GameStop.

These are two examples where conventional wisdom doesn’t always make sense (i.e., investing in fundamental tech stocks).

And we can see hedge funds who do follow this ‘conventional wisdom’ are suffering because of it.

Which hedge fund will be next to fall?

Some of you said on Twitter Tiger Global could be the next hedge fund to fall.

Coatue Management has been in deep waters too.

I’m curious to know what you think about where hedge funds are currently headed.

Leave your thoughts in the comment section of the blog below.

Frank Nez is on YouTube – Subscribe for additional content

You can follow me on: Twitter | Facebook | LinkedIn

Related: Ken Griffin Attacks: "Pension Plans Destroyed by Retail Investors"

Ken Griffin Attacks: “Pension Plans Destroyed by Retail Investors”

Ken Griffin on Retail Investors
Market News: Ken Griffin on retail investors

Ken Griffin accused the retail community of destroying teacher’s pension plans by taking down Gabe Plotkin’s Melvin Capital.

Melvin Capital is a hedge fund that was short on ‘meme stocks’ holding a large position in GameStop.

The company is scheduled to shut down in June after it had suffered a 50% loss in 2021, and an additional 20.6% in the first quarter of 2022.

Sources say Melvin Capital has already begun to liquidate its positions to pay back investors in cash.

In this Bloomberg exclusive, Ken Griffin plays a role of the victim, defending Mr. Plotkin and the hedge fund whose mission it was to bankrupt GameStop.

Ken Griffin’s Citadel is also short on AMC Entertainment – the hedge fund lost billions last year betting against retail.

Let’s discuss it.

franknez.com

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

CNBC mourns the loss of Melvin Capital

CNBC says Melvin was one of the biggest victims from the meme stock frenzy last year due to its large short position in GameStop.

They say Citadel and Point72 had to provide Melvin Capital with a lifeline to stay above the water.

The hedge funds combined provided Gabe Plotkin with $2.75 billion in capital last year.

However, as things went south quick for Melvin, both hedge funds demanded the capital back.

Something Ken Griffin and his affiliates fail to mention.

Mainstream media has also danced around the fact that hedge funds planned to wipe American companies by overleveraging their short positions during the pandemic.

Success in doing so would delist AMC, GameStop, and other meme stocks from the stock market.

Betting against companies with intention to bankrupt them to the ground is no charity work.

It’s un-American and a nefarious practice that has dragged out for too long.

Ken Griffin blames retail investors

In the video below, Ken Griffin gives his thoughts on retail investors and the entire ‘meme stock’ phenomena.

Ken Griffin takes a jab at the retail community saying retail investors who aimed to bankrupt Melvin Capital also wiped-out pension funds from teachers.

But Ken, retail investors don’t get up in the morning and think to themselves, “let’s wipe out a multi-billion-dollar hedge fund.”

Melvin Capital lost because he went against retail – the first time in history the people fight back corruption in the stock market, and win.

Ken Griffin lost billions shorting AMC stock, the retail community is currently his biggest adversary.

AMC shareholders continue to buy and hold the stock until short sellers exit their positions, which will result in a short squeeze.

Today’s retail investors are armed with education, they understand what they hold and what it’s doing to hedge funds.

While Ken Griffin and affiliates might be pumping a narrative as victims, high profiles such as Elon Musk, Jon Stewart, and Ryan Cohen have stood up against short sellers.

For the first time in history, Wall Street is getting their a** kicked, and these hedge fund managers certainly do not like that.

Hedge funds should prepare for bigger losses

Institutions are about to lose a massive amount of collateral due to executive order 14032 in early June.

This presidential order is prohibiting Chinese securities to be used as collateral starting June 2nd, 2022.

It was responsible for initiating margin calls when AMC Entertainment stock rose to $20 per share in January, and $72 per share in June of last year.

With liquidity drying up in global markets, it’s going to be quite difficult for hedge funds to keep up with margin requirements on heavily shorted ‘meme stocks’.

Massive selloffs in the market have proved just how distressed financial institutions are.

We’re seeing for the first-time hedge funds begin to shut down as they take the lead in liquidity burn.

Retail investors have been the majority of buyers in today’s markets according to Bank of America.

Hedge funds are headed towards a larger train-wreck of disaster they cannot get off of.

As they continue to tank the markets, margin requirements go up thanks to DTCC B16845-22.

Hedge funds have lost control.

But I’m curious to know what you think.

Leave your thoughts in the comment section of the blog below.

Frank Nez is on YouTube – Subscribe for more content

You can follow me on: Twitter | Facebook | LinkedIn


« Older posts

© 2022 Franknez.com

Theme by Anders NorenUp ↑

%d bloggers like this: