Tag: Meme Stocks (Page 3 of 41)

Ken Griffin Thanks Redditors for ‘Meme Stocks’

Ken Griffin Thanks Redditors for 'Meme Stocks'

“Redditors, thank you so much for helping create the best pipeline we’ve ever had”, said Ken Griffin on Business Insider.

Ken Griffin, on how the GameStop frenzy helped raise Citadel’s profile with potential hires.

Business Insider says the SEC found no truth to any of the conspiracy theories but how can the SEC really go against one of the most powerful hedge funds in the world?

Transcripts showed Citadel and Robinhood did in fact have “blunt negotiations” the night prior to the halts.

A Miami district court judge admitted the Citadel and Robinhood transcripts were suspicious.

However, the federal court has dismissed the case due to a ‘lack of evidence’.

Research shows Judge Cecilia Altonaga had a close connection to the defendant’s law firm, insinuating a conflict of interest in the case.

Ken Griffin on Meme Stock Rally

The GameStop affair, in an odd twist, actually helped boost Citadel’s clout with potential recruits, Griffin said.

“For a lot of people this was a wake-up call that this firm Citadel is actually one of the most important players in the world’s financial markets,” he told Business Insider.

“Redditors, thank you so much for helping create the best pipeline we’ve ever had.”

“We’ve lost sight of the opportunities people can enjoy in America in recent years,” Griffin said.

To help counteract that, Griffin said he plans to give away the vast majority of his fortune during his lifetime.

“I’m going to give my money away in a way that I think has a real impact for our country,” he said. “I hope that the gifts I make will have an impact on America and the world for many years to come.”

Source(s): Business Insider.

Retail Investors Weigh In

Ken Griffin has made his money off the backs of retail investors who are simply looking to start building wealth through their favorite company stocks.

Retail investors say Ken Griffin’s Citadel takes advantage of its payment for order flow (PFOF) and use of off-exchange trading.

Backdoors in the financial system allow institutions to essentially control the game even when the ball is in retail’s court.

Chairman Gensler has even admitted to dark pools having a strong suppression on a securities share price which goes to show how much power these institutions really have in the game.

Were Ken Griffin’s comments about ‘meme stocks’ and redditors arrogant?

Leave your thoughts below.

Market News Published Daily

Market News: Ken Griffin on 'meme stocks' and redditors.
Market News: Ken Griffin on ‘meme stocks’ and redditors.

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Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


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When Do Shorts Have to Close Their Positions in AMC?

When will shorts close their short positions in AMC? When will shorts cover AMC?
When will shorts close their positions in AMC? When will shorts cover AMC?

Every retail investor holding a position in AMC wants to know, when will shorts close their positions?

And I don’t blame you.

This one is a little tricky.

See, it’s like saying, “when will retail investors sell their positions?”

franknez.com

Welcome to Franknez.com – the blog that fights for you, the retail investor. Today I want to discuss shorts closing.

Let’s get started!

Retail investors have been waiting patiently for AMC Entertainment stock to rip.

You’ve been holding through the ups and downs and even buying the dips.

And although we did see AMC’s share price surge in 2021, the short sellers are still here in 2023.

So, why aren’t shorts closing their positions yet?

What do retail investors need to do to squeeze hedge funds out of their money?

Let’s discuss it.

Are shorts obligated to close their positions?

When do shorts have to close their positions in AMC?

Let’s start with the fundamental question.

Are shorts obligated to close their positions?

Now, there are currently no rules regarding how long a short can hold before closing out their position.

However, lenders do have the right to demand the seller closes their position with minimal notice.

This is rare and only occurs if the the seller isn’t paying the interest fee, or the interest fee is ridiculously high.

“A short position may be maintained as long as the investor is able to honor the margin requirements and pay the required interest and the broker lending the shares allows them to be borrowed.” – Investopedia

When an interest fee is extremely high, it makes a stock difficult to borrow which obligates the short seller to close their positions.

Short sellers are burning big money to keep these positions open in 2023 though.

You’ll want to keep an eye on this interest as it will determine just how much shorts are bleeding.

I update AMC’s short interest data (and others) here daily.

Why does the “Cost to Borrow” fee matter?

The cost to borrow fee is an interest that short sellers must pay for borrowing AMC shares to short the company stock.

These fees are currently at an all-time high.

AMC short borrow fee interest

Short sellers will hold in hopes to drive AMC’s share price right back down to the floor.

However, AMC is trending upwards now and has absolutely no intention of going back down.

Analysts data and AI predictions all point towards a high possibility of a short squeeze.

Even Fintel’s short squeeze score has been as high as 80-90% in recent weeks.

AMC Short squeeze Score Fintel

This short borrow fee is going to continue to go up as AMC stock becomes harder to borrow.

For short sellers, a low short borrow fee is in their favor.

Hedge funds much rather pay the fee and stubbornly continue to hold their positions against retail investors.

But, if the short borrow fee is high enough to hurt the borrower, they will be more inclined to close their positions before losing an excruciating amount of money.

Just In: Short Sellers Are Down $81 Billion This Year

How can retail investors help drive the short borrow fee up?

Retail investors have helped drive the short borrow fee up simply by holding their positions.

When AMC squeezes, not every short will close their positions immediately.

This means retail investors won’t ever be able to time the high.

There will be short sellers who will continue to short even as share prices rise.

If we begin to see AMC’s price action rise monumentally, it is important to have a plan on how to take profits.

Just like a day trade, investors may be profitable for some time until they see gains turn into losses, which usually occurs due to greed in the markets.

This is what you want to avoid.

Important advisory: I am not a licensed financial advisory. I simply have a passion for finance and writing.

What happens when a short close their position?

A short position will be profitable if it is closed at a lower price than the initial transaction; it is at a loss if it is closed at a higher price.

In AMC’s case, shorts who drove began to short around $5 but are still holding to-date are at a loss.

AMC is currently trading around $6.08 per share as of 2/2.

When there’s a ton of shorts closing (in a particular stock), it will result in a short squeeze.

What is a short squeeze?

What is a short squeeze?

A short squeeze occurs when a stock spikes in price action due to an increase of short-sellers closing out their positions.

We’ve seen a short squeeze happen with both GameStop and Volkswagen. GME topped almost $500 while Volkswagen spiked shy below $1,000 back in 2008.

Some short sellers closed in June of 2021 when AMC shares rose to $72 per share as well.

AMC’s price skyrockets to more than +3,000% that year!

Short squeezes are massively profitable for retail investors.

These phenomena are how people are able to accumulate wealth in such little time.

Read: 5 Big Signs Pointing to An AMC Short Squeeze

So, when will AMC shorts close?

When do shorts have to close their position?
When will shorts close their short positions in AMC? When will shorts cover AMC?

Instead of exiting, short sellers have been holding.

Just as retail investors have high conviction on massive price action, hedge funds still have conviction on shorting the company to delist it.

But AMC Entertainment isn’t going bankrupt and AMC shareholders aren’t leaving.

AMC said bankruptcy was no longer on the table years ago and some Wall Street analysts have said the industry is on a solid path to resurgence, via Hollywood Reporter.

In fact, the short thesis is beginning to change with many incredible developments happening in the movie theatre industry.

AMC Entertainment (NYSE:AMC) is up more than 54% this year-to-date and it looks like the stock has bottomed out.

As we continue to see a high utilization and the short borrow fee increase, we can only expect shorts may be incentivized to close sooner than later.

Will AMC’s price action continue to go up?

AMC stock has always had high demand from shareholders.

While many of these retail activists continue to hold losses from June’s drop, it’s possible this changes – granted that short sellers close out their positions this year.

Short sellers will have the option to hold their loses on paper for months to come (with fees) or close their position at the current share prices.

Short selling is a risky business and bulls have sent a message – “we’re not leaving”.

With new titles coming to AMC movie theaters as well as new developments, we’re only going to continue to see a surge in price action due to an increase in the company’s fundamental growth.

Even if shorts continue to hold, lenders will eventually run up the interest rate again, forcing them to throw in the towel.

Leave a comment below and let the community know what a short squeeze would mean for you.

Market News Published Daily

Market News Today - When do shorts have to close their positions in AMC?
Market News Today – When do shorts have to close their positions in AMC?

For more stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


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You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
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Occupy the SEC 2023 is Here: What’s Happening?

Occupy SEC 2023: Latest market news - Franknez.com.
Occupy SEC 2023: Latest market news – Franknez.com.

Retail investors are occupying the SEC headquarters in Washington D.C. on January 27th and January 28th from 10am-4pm.

The 28th marks the two-year anniversary of the ‘meme stock’ frenzy of 2021 when Robinhood and other brokerage firms prevented investors from buying more shares of GameStop, AMC, and other heavily shorted stock in order to prevent firms from collapsing.

Regulators interfered with the people’s money by suppressing shares from rising.

Majority of investors within these communities never left, but rather hoped for justice and change in the financial system.

Retail investors have raised the issues of dark pools, OTC trading, and a number of conflicts of interest that pin regular investors to the ground.

Discussions surfaced in 2022 of protesting several SEC locations in the U.S. but never came to fruition.

Some retail investors argued against these actions while many more said they are necessary to get their voices heard.

Here’s what’s happening in the retail community today.

What is Occupy SEC 2023?

protest
Market News: What is Occupy SEC 2023?

The objective of occupying the SEC is to demand changes in the financial markets and to protect retail investors and companies from naked short selling and short selling misconduct.

The nationwide protests will occur on January 27th and January 28th between 10am and 4PM at 12 SEC locations, including the SEC headquarters in Washington D.C.

Outrage filled the retail community when SEC Chairman Gary Gensler confirmed 90%-95% of retail orders are processed in off-exchange platforms where the true demand for retail orders is not being reflected on the lit New York Stock Exchange.

The Wall Street ‘watch dogs’ turned a blind eye to the Madoff events that occurred during the last decade and now they’ve turned a blind eye to naked short selling and several conflicts of interest happening today within the media, hedge funds, and even regulators.

Retail investors are saying ‘we know’ what’s happening and ‘we need you to take care of it now’.

Occupy the SEC 2023 are meant to be peaceful protests.

Communities are tired of their investments in their favorite companies plummeting all because they’ve become targets of aggressive short sellers and manipulative tactics from Wall Street.

Now they’re taking the word to the streets despite gaining much attention on social media.

The lack of market transparency since the events that occurred in January of 2021 have led to these protests.

Occupy SEC 2023 LIVE

You can watch Occupy the SEC 2023 LIVE here.

Retail investors chant “do your job” when referring to the inaction from the SEC.

What is Stopping the SEC from Taking Action?

SEC Chairman Gary Gensler told ‘We The Investors’ he understands retail’s frustrations.

But retail investors aren’t convinced.

The SEC Chairman says that short selling is a challenging area where the SEC is still working and pursuing focus on.

One of the biggest challenges according to Chairman Gensler is that Wall Street powers will send stacks of reports highlighting rebuttals on proposals aimed towards protecting retail investors.

This is primarily because certain proposals aimed to protect retail investors conflict with Wall Street money.

And because these firms are market participants, like retail investors, these documents must be legally reviewed.

The challenge only grows when Wall Street firms open lawsuits against the SEC when certain proposals become a direct hinderance to the way these companies perform.

Regulators are in a massive bind now, facing scrutiny from both Wall Street and the average investor.

FINRA, DTCC Under Retail Scrutiny

FINRA MMTLP

FINRA has received backlash after freezing the trading of MMTLP (Meta Materials) prior to its spinoff.

The self-regulated organization is also responsible for outsourcing ‘best execution’ with the best execution rule, according to SEC Chairman Gary Gensler.

This means FINRA has the power to execute orders in off-exchange and dark markets for ‘best execution’ and ‘price discovery’.

But Gary Gensler says that this rule is too important for it to not be in the SEC’s court.

The organization contains records of every trade made available intraday, including that of naked short sales.

FINRA requires firms to be able to meet their short sale requirements as well as have a process to close out fails to deliver within their required timeframes.

However, they’re the open window that allows these manipulative strategies to occur in the market.

FTDS (fails-to-deliver) are mounting up every month according to SEC data, and FINRA is unable to get firms to close out these obligations.

FINRA’s justification towards FTDs say that firms face challenges related to miscalculations.

But Chairman Gensler says this is too important for it to not be handled directly by he and his team.

DTCC Conflicts of Interest

David Inggs Citadel DTCC

David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, and has a board seat at the DTCC.

The conflict of interest has raised big concerns amongst the retail investor community online as Citadel has been a leading and one of the biggest short sellers in the stock market.

On January 28th, 2021, The DTCC waived $9.7 billion of collateral deposit, limiting institutional losses and limiting retail profits during the ‘meme stock’ frenzy.

The organization allowed several naked shares to flood the market prior to the massive jump in share prices only to help financial institutions in the end.

SEC Chairman Gary Gensler has said one proposal they’re looking at this year involves tackling conflicts of interest in the financial markets.

How can investors support the cause?

Retail investors

Retail investors have been supporting the cause for years now by distributing news and information that sheds light on real issues.

Franknez.com is a media blog that supports retail investors and protects the retail community from mainstream media propaganda.

You can raise awareness in your community by sharing this article, and others, or by using hashtag #OccupySEC2023 on social media.

Advisory: This article is intended for educational and informational purposes only. This article is not advocating violence of any kind during these peaceful rallies.

Market News Published Daily

FrankNez News Today - Market News, Business News, + more.
FrankNez News Today – Market News, Business News, + more.

For more stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


Franknez.com

You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
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AMC Stock is Up +40% This Year: What it Means for Shorts

Daily Market News: AMC stock news, updates + more.
Daily Market News: AMC stock news, updates + more.

AMC Entertainment (NYSE:AMC) stock is up more than +40% this year-to-date.

New developments this year may send share prices rising throughout 2023.

Streaming giants have figured out that the theatrical experience is key to their long-term success.

AMC Entertainment CEO Adam Aron praised Disney for scheduling Stephen King’s ‘The Boogeyman’ to be released theatrically on June 2nd, 2023.

The film was originally planned to be released on the streaming service Hulu.

“Theatres beat streamers! We salute producer 21Laps and our friends at Disney for this decision. The Boogeyman, a Stephen King adaption, was made for Hulu. But it tested so well, Disney is releasing it theatrically instead. Thank you Bob Iger, Alan Bergman, Justin, Tony, and Ken,” said Adam Aron on Twitter.

On the other end, CNBC says Netflix left $200 million on the table for not leaving Daniel Craig’s ‘Glass Onion: A Knives Out Mystery’ in theatres longer.

So, what does this say about the Wall Street short thesis that movie theatres are dead?

Here’s the latest AMC Entertainment stock market news.

Online Streaming Might Not Be What Wall Street Hoped For

AMC online streaming news - Netflix falls short.
AMC online streaming news – Netflix falls short.

In October, AMC announced its first ever Netflix showing in 200 theatres.

Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.

CEO Adam Aron stated on Twitter that success here could lead to more Netflix (NASDAQ:NFLX) movies at AMC.

The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.

The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.

Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.

Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.

What Are Experts Saying?

CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue.

Related: AMC’s Cost to Borrow Has Hedge Funds Burning $20 Million Per Month

What Does This Mean for Short Sellers?

Daily Market News by FrankNez - Will AMC go up again?
Daily Market News by FrankNez – Will AMC go up again?

For short sellers betting against the movie theatre company, it could mean severe losses if share prices were to skyrocket again.

AMC Entertainment stock is still heavily shorted, currently weighing in at 21.92% short interest (updated daily).

All it takes is for a few short sellers to begin closing their positions for other short sellers to follow suit.

This chain reaction could trigger an AMC short squeeze in 2023.

Amazon insiders told Bloomberg the retail giant plans to invest billions in the movie theatre industry, aiming to release 12-15 movies annually for theatrical release.

That number of releases puts Amazon on par with major studios such as Paramount Pictures.

CNBC stated that ‘while a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business.”

Related: Will AMC Stock Keep Rising this Week? (Updates)

Market News Published Daily

FrankNez News Today - Stock Market News, Business News + more.
FrankNez News Today – Stock Market News, Business News + more.

For more stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


Franknez.com

You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.

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