Market News: Is AMC stock about to hit a new all-time high soon?
AMC stock’s last time all-time high reached $72 per share.
The stock had surged more than 3,000% last year when retail investors bought and held the stock, squeezing some shorts from their positions.
As a result, Citadel and others lost billions of dollars, and Robinhood lost all trust along the way.
Mainstream media continues to attack the retail community and stock in short and distort campaigns – where media and short sellers collude to drive the price of a stock even lower.
So, while AMC Entertainment has now paved a path to recovery, short sellers have not left.
And the data that stood out when AMC surged to $20 per share in January and $72 per share in June, points to another massive runup.
Is a new AMC stock all-time high underway?
Let’s discuss it.
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AMC’s share on loan reaches an all-time high
When AMC stock’s all-time high reached $72 per share, it had roughly 102 million shares out on loan.
These are the number of shares being loaned to short AMC stock.
But short sellers did not stop shorting the world’s largest movie theatre chain.
No – instead they kept shorting it.
Today, AMC’s shares on loan have reached an ATH of almost 180 million.
This means short sellers have more shares on loan that need to be returned than they did when AMC’s all-time high hit $72.
These shares on loan eventually have to be returned back to the lender, and the only way to return them back is by purchasing the stock no matter the share price.
Short sellers have sold all these shares high as AMC’s share price has dropped for months, with many new positions holding unrealized profits.
But they’ll eventually have to close their positions, returning the borrowed shares back to the lender.
And when they do, AMC will run like it did last year.
AMC to the moon
AMC to the moon – the concept of AMC reaching massive heights as closing short positions skyrocket the share price.
But just how high will AMC stock’s new all-time high go?
Speculation has always depicted AMC reaching thousands of dollars per share due to the incredible amount of synthetics conjured up to short the company stock.
Could this be an ongoing, but controlled short squeeze?
TA (technical analysis) shows AMC’s next all-time high can reach upwards of nearly $300 per share.
Is it possible that each year regulators are dismantling this time bomb in order to prevent massive market disruption?
It’s an interesting idea, yet a highly probable scenario given just how overleveraged financial institutions such as hedge funds are on these plays.
If AMC stock is to reach extremely high numbers per share, I can only expect it will happen in increments, rather than in one blow.
I’d love to know what you think.
How soon will AMC stock go up again?
The entire stock market has been on a freefall, and AMC Entertainment stock is no exception.
Despite its incredible negative beta, institutions have been able to suppress the stock from moving upwards.
I’ve stated in several articles and videos that the market situation is following the SPY and NASDAQ very closely.
It’s the way for those in control to keep the market together.
AMC began to move up in late March reaching more than $34 per share before it was regretfully halted along with GameStop.
The market has been keeping these ‘meme stocks’ in check during this incredulous bear market.
Despite the market manipulation, not all hope is lost.
Margin calls are looming.
And institutions are about to lose an incredible amount of collateral due to executive order 14032.
Lack of collateral will result in the same margin calls that triggered AMC to run in January and June of last year.
Only this year, the collateral haircut is much greater, consisting of 70+ companies rather than 30.
We will see how this plays out.
What is your prediction for AMC in the coming weeks?
Leave your thoughts in the comment section of the blog down below.
The number of shares on loan are at an all-time high meaning there are now more shares that have to be returned than there were during AMC’s run to $20 and $72 per share.
AMC has the perfect short squeeze setup.
And as the fee rises to short AMC stock, shorts will have to make the decision to either deal with it or close their short positions.
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Short sellers have dug a deeper hole
Why is AMC going up?
Short sellers have borrowed more shares to short the stock than they did back in January and June when the stock ran up to $20 and $72 per share.
These shares on loan eventually have to get returned back to the lender (by buying back the stock).
This buying pressure will create momentum, driving AMC’s share price up.
How high AMC’s next price runup goes will depend on how many shorts close their positions.
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 reached an all-time high of 173.61 million with a short interest of more than 23%.
As long as AMC has a high short interest, it’s a short squeeze play.
But there are just way too many factors to determine how high AMC’s next price runup will go.
The percent of shorts closing being one.
The more the short interest drops, the higher we can determine AMC’s share price will skyrocket.
AMC to $100? AMC to $1,000? AMC to $10,000?
AMC short squeeze price prediction
But what prices are realistic?
Theoretically AMC has incredible potential based on DD done by many intelligent retail investors.
Apes have created simulations allowing them to see a variety of price levels and possibilities, mainly calculating synthetic shares into the equation.
However, regulators have failed to address synthetics or hold institutions accountable to close these synthetics.
When a law is passed holding institutions accountable to close these synthetics, it will be EPIC.
AMC to $100 per share may only require some short closing.
We know this because of the ride to $72 per share.
Short interest dropped approximately 10 points from 24% to 14%.
14% is still a relatively high short interest, another 10 points from 14% would leave AMC with 4% short interest left – nearly done.
But doubling short covering doesn’t mean double the all-time high.
It could triple, quadruple or even 10X because of individual short positions in AMC.
There are just too many factors out there that limit us identifying exactly how high AMC’s next share price will go.
You may hold to any number you desire, but don’t burn yourself.
Keep an eye out on the data and have a strategy.
Creating a strategy
Every investor should have a strategy and have a plan to profit.
Your selling point will be different than another fellow apes’.
Don’t bag hold on the journey to $1MM per share – but rather accumulate the number of shares that will multiply your profit to a specific and desired goal.
In the end, bulls make money, bears make money, but pigs get slaughtered.
As AMC’s next price runup begins to take off, we’ll need to keep an eye out on the short interest (updated daily here) to identify whether it’s ‘the big one’, or merely small, short covering.
And as much as $1,000, $10,000, and $100,000 per share seems incredible, those things are out of your control.
My advice?
Don’t play the passive game.
Focus on what is in your control – increasing your multiplier and playing to win.
The community should throw out the question “how high will AMC squeeze?” and focus on profiting BIG and keeping an eye out on more price runup potential.
For example, AMC may have a big runup as executive order 14032 goes into effect next week, but the order may be amended (moved) shortly after.
If amended, this would mean AMC will have another price runup in the future where investors can profit from (again).
Everyone’s strategy will be different – just make sure you have one.
I’d love to hear your thoughts on the topic.
Leave your thoughts in the comment section of the blog below.
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Let’s begin.
AMC now has positive EBITDA
‘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
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.
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 – 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?
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.”
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.
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 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?
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..
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