I’ve been fortunate enough to have seen the rise of retail investors for the better part of 2+ years against Wall Street.
Conflicts of interest amongst Wall Street, banks, and mainstream media were uncovered during the ‘meme stock’ frenzy in January of 2021.
But it didn’t stop there.
Throughout 2021 and 2022, the retail community has raised awareness of market injustices, claiming the SEC’s chairman Gary Gensler has only been complicit to the illicit activities that occur on Wall Street.
The disadvantage retail investors have over hedge funds has never been clearer.
Between naked shorting, FTDs, OTC trading, Dark Pool trading, PFOF, and short and distort campaigns, the cat has been out of the bag.
The question now is what is being done to tackle the problems retail investors are facing?
Wall Street has been able to take advantage of the little guy through the predatorial practices mentioned above with no repercussions from regulators.
Will retail investors continue to rise against Wall Street in 2023?
There are no doubt activists will continue to push reform until there is real change that levels the playing field for retail.
People Are Waking Up to Mainstream Media
Elon Musk has been calling out mainstream media on Twitter for misleading information or ridiculous hit pieces.
The impact Elon is having on Twitter is something that has not been seen.
He’s been able to raise awareness by simply ratioing mainstream media accounts, often times putting them in their place.
People have always voiced their opinions and concerns with mainstream media, but now the people have the biggest influencer in the world backing them up.
Citizen journalism has already been exponentially rising as blogs and independent media websites begin to report what mainstream media is failing to report.
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Volume rises by more than 5,500%
HKD stock’s volume rose by more than 5,500% its daily average volume of 377K when it reached 1.5 million on Wednesday.
AMTD Digital Inc. grew nearly $27 billion in market value.
The company has approximately 187.44 million shares outstanding, significantly less than that of GameStop’s (304m) and AMC Entertainment’s (516m).
Interestingly enough, pre-IPO shareholders, directors and executive officers are subject to a lockup agreement that prevents them from selling shares until January, according to the July 15 prospectus.
AMTD Digital’s shares were also among the most actively traded stocks on the Fidelity platform on Wednesday.
Will the stock keep rising?
I’d love to hear your thoughts down below.
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GameStop let go of Boston Consulting Group (BCG) and the firm is now suing the retailer for $30 million in ‘unpaid’ fees.
BCG is now part of a scandal in a conflict of interest due to its connection to hedge fund and short seller Citadel.
GameStop said: “We do not believe it is in our stockholders’ best interests to pay the tens of millions of dollars sought by BCG, especially given their seemingly meagre impact on the company’s bottom line. We will fight this suit and are proud that GameStop no longer utilizes the likes of BCG for any services.”
BCG declined to comment.
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Chairman Ryan Cohen takes a jab at BCG
Chewy Founder and GameStop Chairman said on Twitter “the overpriced consultants at BCG are picking a fight with the wrong company.”
He later tweeted the following: “The only ones more useless than overpriced consultants are the ones that hire them”, referring to Citadel’s ex-BCG employees.
That’s right, numerous consultants over at BCG were later hired by Citadel.
Retail investors are flooding @BCG on Twitter for infiltrating GameStop under the old board before Cohen came in.
BCG was hired to bring GameStop out of its ‘slump’ when it was struggling, according to the lawsuit.
The consulting group says it spent “tens of thousands of hours” on the project and “overachieved” by creating more profit improvement opportunities.
“It is confounding that the high-priced consultants at BCG claim to have delivered hundreds of millions in value for GameStop during a period when share price, sales and debt were at perilous levels,” GameStop said in an emailed statement.
GameStop said it’s “proud” it no longer uses the consulting group’s services.
Was GameStop infiltrated by BCG?
It’s incredible how these consultants seamlessly ended up at GameStop only to join Citadel afterwards.
For starters, GameStop’s Vice President and head of Corporate Strategy & Analytics Jackson Speakewas a consultant and project leader at BCG before joining the game retailer.
He also worked a Bain & Company, a company that would acquire failing businesses such as Toys R Us, and ‘bust them out’.
Except they wouldn’t bust them out, they would buy the companies using the struggling companies own credit.
This scheme is known as a Leveraged Buy Out (LBO).
Once Bain had control of the businesses, they would bring on their own board members and executives.
These executives would then pay themselves large bonuses prior to defaulting the business.
Hedge funds such as Citadel would then drive the company down to zero and keep all the money they made from short selling the stock.
Was this ring of manipulators attempting to take GameStop down?
Let’s dive deeper.
Citadel employees with BCG backgrounds
A few years ago, BCG was retained by the SEC due to concerns relating to organizational chain of command, the effect of high frequency trading, hiring and personnel practices, and oversight and reliance on self-regulatory organizations.
AMC stock is up more than 2000% year-to-date. People continue to wonder why AMC talks continue to pop up everywhere.
The AMC community has grown immensely since the start of this year. Retail investors discovered data that would allow them to make massive gains from simply buying the stock and holding it.
The SEC just released a report confirming what has driven GameStop’s share price up and how we’ll know when shorts begin to cover; more on that later.
The first wave of retail investors are up significant amount of money from getting in early, a few from the second wave are beginning to break even, with another percent finally seeing profits.
With AMC currently trading in the low $40s, third wave investors that get in now could experience significant gains on AMC’s next major runup.
Welcome to Franknez.com – I’ve been discussing AMC’s data since early February. If you missed the runup twice already it’s not too late and I’m going to discuss why.
Let’s get started!
Some of you have told me you saw my AMC articles early this year, dismissed them, but luckily got in right before the push to $70 per share.
Others had the same experience but got in a lot higher.
If you’re holding losses at the moment I think it’s fair to say, for some of you, that it was due to negligence. Negligence of information, correct?
But it doesn’t matter because some of you second wave investors are finally breaking even, with a few even profiting again.
You see, AMC stock has the perfect setup for another runup and a lot of people are going to miss it, for the third time!
But not you.
And I believe this third wave could cause the big one to come to fruition.
We’re going to take a look at where AMC is now, and what we can learn from the SEC’s new report regarding GameStop’s runup back in January.
AMC’s Momentum Just Only Started
The momentum we’ve seen with AMC stock has merely been a statement. A statement that said, “hey look over here, check out this data before it’s too late”.
The runups AMC has had, brought attention to the data. This data tells us massive change is going to occur in the lives of those who hold these golden tickets.
A lot of what’s occurring in the markets is quite complicated, but in short, retail investors are taking this opportunity to squeeze hedge funds betting against the movie theater chain from their short positions.
Squeezing these players out of their short positions would create what’s known as a “short squeeze”.
A short squeeze would create so much momentum that AMC’s stock price would skyrocket to unprecedented numbers.
The Stock Is Not That Far From Its New Bottom
The AMC community created a new bottom for AMC stock. After several price moves, it seems AMC has found a new bottom in the mid to high level $30 range.
If you added to your position when the price was around $36 last week, then you’re already seeing gains the start of this new week.
AMC is not that far from its new bottom which means it has a lot of upside potential from buying pressure alone.
As momentum buyers continue to apply pressure against short sellers, AMC’s stock price will continue to move up past $50, $60, $70, and beyond.
As AMC establishes higher highs and higher lows, we also raise AMC’s bottom.
So where the current bottom is in the mid to high $30s, a new bottom could easily establish itself in the $70s-$80s after the next major runup for example.
How high this new bottom gets raised would depend on how high the next runup goes.
We’ve seen this type of price move with Tesla as it continued to set higher highs and higher lows.
But with that being said, at the rate the AMC community is growing, the momentum and buying pressure is (without a doubt) there to grow AMC’s market cap.
It’s very possible a third runup forces big shorts to close their positions to refrain from losing even more money.
In this instance, the short interest would plummet and AMC’s share price would skyrocket.
This of course would depend on how big the momentum carried out by retail is.
The SEC confirmed in a report how important buying pressure was to squeeze GameStop short sellers earlier this year. More on that below.
One thing is certain. Early third wave investors along with long term holders will be up significantly in gains as the buying pressure increases.
Late third wave investors could very well partake in the short squeeze event as short sellers rush to close their positions during the next AMC runup.
This third wave of momentum is not necessarily coming from new FOMO buyers but mainly from the AMC community who’ve been buying and holding the stock for months now.
Additional momentum from FOMO buyers will only add fuel to the rocket.
In the recent SEC report, they back up how intense momentum can increase the price of a particular security, I’ll go over that in just a moment.
Should You Buy AMC Stock Today?
We’ve discovered the secret hedge funds feared we’d discover. And it’s the power of community.
AMC has a massive community made up of millions of retail investors who are buying and holding the stock until a massive short squeeze is triggered.
This means the community is periodically buying the stock but also holding it, as momentum continues to push the stock price upwards.
Whether you decide to buy and hold AMC stock for a short squeeze play or for profits, be sure to do your research first because patience eventually ends up paying off.
How Will We Know When AMC Squeezes?
The SEC just released a report detailing the events that occurred in January regarding GameStop’s massive runup.
They mentioned that one thing they noted, was that GameStop’s short interest decreased during the time the share price had increased drastically as it began to squeeze shorts from their positions.
This confirms to us just how important the short interest is in this short squeeze play.
In that same excerpt, the SEC confirms that volume was a significant factor that triggered shorts to cover their positions in GME.
What differentiates AMC from GME is that GameStop’s short interest continued to go down after it’s runup, while AMC’s short interest actually increased.
This means that these AMC price moves have been solely from retail momentum.
Shorts have not covered AMC and it’s for this reason that AMC will continue to climb up until shorts tap out like they did with GameStop earlier this year.
Now, GameStop still has juice left to keep running up. It’s current short interest is at 11% where AMC’s is at 17%.
But it’s all in the hands of retail investors at the moment. And as long as retail investors continue to buy and hold the stock, the price will continue to surge based on demand alone.
Here’s Why AMC Will Keep Surging
What triggered GameStop’s massive price increase was a combination of retail buying pressure that led up to many shorts covering their short positions.
We saw this as GameStop’s short interest fell from 100% to where it’s currently at today.
AMC’s short interest has only increased which means now is the perfect time for retail to conjure up a buying storm if a short squeeze is to be triggered now.
Although AMC does not have the short interest GameStop did back in January before it squeezed, AMC’s short interest is leaning closer to 20% which is still categorized as “extremely high” short interest.
You can view the short interest as being the juice to the squeeze.
AMC’s amazing runups have all been merely from proud AMC shareholders fighting against short sellers.
And we’re not going anywhere until they’re squeezed.
How To Trade A Short Squeeze
A short squeeze requires short squeezers to go long, which majority of the AMC community has done.
A candidate with more than 10% short interest has enough short sellers to create a short squeeze.
AMC’s short interest is coming up to 18%.
The only thing stopping AMC from squeezing at the moment is massive buying pressure.
The people who miss out on this short squeeze play will be those who do not get in on this historical play right now.
Because as soon as short sellers are triggered to close in masses, it would have been too late to participate in this short squeeze play.
Will You Miss AMC’s Short Squeeze?
AMC stock is up more than 2000% year-to-date. Mind you this is without a short squeeze and with the short interest increasing all year.
GME is up more than 900% year-to-date although it used up majority of its 100% short interest earlier this year.
An AMC short squeeze is inevitable and the gains will be immense. The question is, will you be a part of it or will you miss it for the third time?
AMC Entertainment stock is respecting that $35-$38 level of resistance very well. Retail investors are wondering when AMC will rebound.
Some of you are HODLing gains, some of you losses.
However, something extraordinary has been happening while AMC stock has been slowly creeping down to its current price range.
The short interest has hit an all-time high. And although new shorts might be profiting on paper from AMC’s $70 decline, hedge funds who have been shorting AMC since January face apocalyptical conditions.
I mean, have you seen Kenny recently?
Welcome to Franknez.com – the blog that provides you with unfiltered information about your favorite stocks. Today we’re talking AMC and why I personally think we’re heading towards a rebound.
Let’s get started!
Last time AMC’s short interest was at 20% it jumped past $70 per share back in June. The current short interest is hovering extremely close to 21% now.
If this doesn’t have you excited it should. If history repeats itself, which usually does, this could be big.
Here’s what we can learn from the past.
Patterns Often Times Repeat Themselves
Before we moved past $50 again last month, patterns suggested that breaking specific levels of resistance would lead us there.
Breaking $32, $38, $40, etc, proved to be right.
Well now AMC has been doing incredible at respecting the mid to high $30s again like it did last month.
Community, don’t be fooled – this shows strength in the stock. Not just the stock; but in the community as well.
See, no one is getting left behind. We’ve come too far to let off the gas pedal.
The fact that we have been seeing a strong resistant level in the $30s again signals that apes continue to hold. It will be a rare instance if AMC’s share price goes below this price range.
And although we might have seen it drop a little below (maybe once or twice) last month, AMC has proven to be extremely uncomfortable below the $30 range.
This leads me to believe that we indeed have a new bottom. And compared to where it was at $5, I’d say it’s a pretty great bottom.
What Does AMC’s Short Interest Data Tell Us?
The short interest is the number or percentage of a stocks float that has yet to be covered by shorts.
This is what I like to refer as the rocket fuel. 10% short interest is considered to be high where 20% is considered to be ‘extremely high‘.
For perspective, Apple stock has less than 1% short interest.
Here’s Why This Matters
AMC topped almost 9% back in January during its first runup to $20. Then, it peaked at 20% in June when the stock price surged past $70+.
AMC’s short interest fell as low (or I should still say as high) as 14.76% in July before beginning to move up again in August and September.
October could be the month we get another massive rebound. AMC actually hit 21% short interest a few days ago and is extremely close to reaching this percentage again.
The increase in short interest percentage tells us that more short sellers have gotten in on the stock since the runup back in June.
And as long as retail investors continue to buy and hold the stock, the community can set new bottoms and run the price up again, squeezing new short sellers from their current positions.
This extremely high short interest can ignite an AMC rebound specifically because the ‘market‘ is there. The short sellers are there and the demand for AMC stock continues to increase.
So what happened is that instead of all short sellers closing their positions back in June, the few that did were replaced by new ones. This short squeeze play is nowhere close to being over and I’m excited!
Here’s What The Trading Volume Tells Us
AMC’s trading volume reached 1.2B the day it rose to $20 per share. It’s previous trading day volume was around 456M.
In June, when AMC’s share price hit $70+ dollars the volume peaked at 766M. AMC opened at $37.52 that same day on Wednesday June 2nd. Incredible right?
The trading volume before the runup ranged between 400M-700M its previous trading days.
Ladies and gentlemen, volume matters. An AMC rebound is just around the corner; however, retail would need to play more offense than defense.
AMC has the perfect setup for another massive upswing. And if you sold, sorry to break it to you but this ain’t done running up.
Theoretically speaking, retail would have to refrain from selling in order to hold new levels of resistance to further runup AMC’s share price.
Upcoming AMC Price Prediction (October-November)
AMC has peaked at $20, and it’s peaked at $70; that’s 3.5X from it’s first run. If this pattern continues, we could very well see AMC peak closer to $250 per share with some serious volume from retail.
If you’re part of the Patreon, you’ve seen me adding AMC throughout the months and know I’m making another purchase very soon. The stock is currently at a bargain for momentum traders and my conviction has only gotten stronger.
This is why buying and holding has been all the DD the community every truly needed. The volume from retail is the sleeping giant. It’s what hedge funds didn’t want you to know.
As always, thank you for reading the article. Be sure to share it with another ape.
How Long Have You Been HODLing AMC For?
Leave a comment below. How long have you been holding AMC stock for? Were you in the battle of $8.01? Or are you a new ape? Share your story with the community below 👊.
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?
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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.
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.
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.
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.
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!
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.
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.