Tag: Roaring Kitty

Is AMC Stock A Buy Or Is It Too Late?

February 2, 2023 / Frank Nez

is AMC a good stock to buy? Is it too late to buy AMC Entertainment stock? — Is AMC a good stock to buy? Is it too late to buy AMC Entertainment stock?

If you’ve been following the stock market news you’ve probably heard of all the hype surrounding AMC stock and GME (GameStop).

It wasn’t long before traders flocked over to AMC after the massive gains GameStop yielded due to the high percentage of shorting within the stocks.

Shorting a stock is the process by which sellers essentially bet on the stock price to drop.

They borrow stocks at higher cost, sell it, and buy back the stock low, profiting the difference.

Well, investors over at r/wallstreetbets found that by purchasing stocks at low price in heavy volumes it would drive a short squeeze.

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

Lots of it.

Welcome to Franknez.com – the blog where you can digest content on personal finance, stocks, crypto, and other trending investing news.

Let’s get started!

Will we see a squeeze with AMC?

There are numerous news that lead traders and investors alike to predict an upcoming short squeeze like we saw with GME (Gamestop).

CEO of AMC announces AMC is no longer going bankrupt (via. Los Angeles Times)
Vanguard, Wells Fargo, BMO Harris, BlackRock, Fidelity and many more institutions are buying AMC stock while it’s low (via. CNN Business)
AMC is heavily shorted, with more than 22% short interest.
AMC is also currently one of the most held stocks surpassing Apple (AAPL) and Tesla (TSLA) (via. Nasdaq)
More publicity and awareness has average people investing in AMC which is driving volume for a potential squeeze

Related: 93% of AMC Shareholders Say They're Holding This Year

Retail investors keep buying AMC stock

We’re seeing retail investors continue to invest in AMC stock while it’s affordable.

And because it’s affordable, we’re also seeing average people invest in this stock.

As long as the stock is being held, though lows and through highs, a squeeze like we saw with GME (GameStop) is certainly possible.

AMC stock closed at $6.08 on February 2nd.

The stock has been on discount.

However, the community sentiment remains bullish meaning retail investors keep buying and holding the stock to squeeze shorts from their positions.

Shorts continue to short ladder the stock causing the downtrend we’ve been seeing for over two years now.

But AMC wants to keep climbing.

As long as AMC shareholders continue to hold and buy the dip, short investors are at a disadvantage.

Great news for AMC Entertainment (Archive Data)

News from 2021 helped drive AMC stock prices up momentarily when AMC Entertainment announcement that most AMC theaters had begun to reopen.

AMC’s cost to borrow the stock today is 213%.

The fee is going up after being down for many months.

What is AMC cost to borrow?

The cost to borrow fee is the interest shorts pay for borrowing shares of AMC stock.

This means shorts are losing money every day by not closing their positions.

A surging short borrow fee rate could incentivize shorts to close their positions due to higher borrowing costs.

Why does the cost to borrow rate matter?

It costs shorts interest to hold while it costs the retail investor absolutely nothing to hold.

Shorts are losing money month they hold because of this interest fee for borrowing the stock.

For some reason shorts still think AMC Entertainment can go bankrupt, although they have enough money to continue doing business.. I know, I don’t understand this either.

As hedge funds like Citadel lose money, the short borrow fee only increases those losses.

AMC’s share price might be on discount right now, but hedge funds are experiencing losses on top of losses.

They’ll eventually have to close their short positions; will you miss it?

How high can AMC stock go up to?

Because we’ve seen a lot of suppression in the market, many traders are anticipating AMC stock can get as high if not higher than GME (GameStop).

This of course is just speculation as both stocks are heavily shorted and more people and institutions alike are buying and holding the stocks.

There’s a notion that all these suppressed gains may result in a massive short squeeze at any moment.

There are AMC short squeeze price predictions ranging from $100 to $1,000, and higher.

So, is it too late to purchase AMC stock?

The price after a short squeeze eventually fall back down and level out, but this will take time.

AMC seems to have bottomed out and begin to bounce back after its incredible climb to $72 per share more than a year ago.

Despite what corporate media is pushing, AMC’s growth tells us the stock is undervalued.

But most importantly, there are plenty of short sellers that have yet to close their positions.

Hedge funds continue to short AMC and the volume is increasing; it’s the perfect storm for a short squeeze.

Things to expect in the market with AMC

Volatility followed with an upward trend in price action
Short-ladder attacks
Headlines advising you to trade in something else
Hedge funds to lose a lot of money
More retail investors buying this stock right now
A series of gamma squeezes
And, a highly potential short squeeze that can happen at any time

Related: Are Institutions Preparing to Close Short Positions in AMC?

How many AMC shares should I buy?

If you’re planning on taking a position in AMC Entertainment set a budget for investing.

Since the market is volatile at the moment, purchase shares incrementally.

The best time to buy a stock is when the share price has dipped.

This will allow your investment to see gains when the stock price rises again.

Ladies and gentlemen, the last thing you want to do is to invest more than you can handle to lose.

This advisory must be made.

If you’re holding AMC stock leave a comment below and let me know what a short squeeze would mean for you.

Where can I invest in AMC? What’s a good platform?

If you have not opened a brokerage account to begin investing, read how to invest in the stock market (step by step).

While the US investors over at r/wallstreetbets use Robinhood, it’s not available if you live in Canada.

Instead, you can use WealthSimple Trade or InteractiveBrokers

In this post you will see a number of linked platforms that you can check out!

I personally use Vanguard.

Vanguard has proven to be useful, and it has never failed me before.

Important Advisory

It is important to note that I am not a licensed financial advisor.

Like many traders and self-taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.

On another note: It would be wise to not invest more than you can afford to lose. In other words, invest money you would be okay with losing for simpler terms.

Avoid bogus headlines from The Motley Fool and other sources

AMC and r/wallstreetbets have been given lots of negative press from the likes of The Motley Fool and other sources; shaming the purchase of the stock.

Fortunately, the AMC community has been backed up by Mark Cuban, Chance the Rapper, and other big names.

Influential outlets with powerful hedge fund partners (institutions who short the stock) have been attacking traders and investors by providing false information wherever they can.

What we’re seeing right now is that the big guys are losing money due to the price of shorted stocks going up.

They will say and do whatever they can to divert the public from trading this stock.

My personal suggestion to you is to not let these sources intimidate you.

Do your research to see how the stock price has been manipulated through bogus headlines and short-ladder attacks.

Not to mention, the complete halt of trading AMC stock by Robinhood.

Market News Published Daily

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When Do Shorts Have to Close Their Positions in AMC?

February 2, 2023 / Frank Nez

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?”

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.

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.

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?

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 Twitter, Instagram, Facebook, or LinkedIn for daily posts.

Latest Market News 📰

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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Get drawn at the end of the year for holiday giveaways.

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Will DRS Trigger a GameStop Stock Short Squeeze?

January 9, 2023 / Frank Nez

The topic of DRS’ing shares (direct registration system) to trigger a GameStop short squeeze has been heavily discussed amongst the retail community.

DRS enables investors to register their shares through a system such as ‘computershare’ in book form entry directly with the issuer.

The premise is to starve lenders from allowing shares to be lent to short sellers.

No shares to short = organic price increase from retail demand.

Today, it seems more and more GameStop shareholders are jumping in on the bandwagon to secure their shares.

Some retail investors argue that DRS has not proved to create a positive impact on the stock.

GME stock ended 2022 down nearly -50%, shares are currently trading around $16.23 per share, respectively.

According to GameStop, shareholders registered 71.8 million shares via the transfer agent.

The question is, if more shareholders DSR their GameStop stock, will it create a short squeeze?

Let’s discuss it below.

How Many GME Shares are DRS?

According to GameStop, approximately 30% of GME’s float is registered with the Direct Registration System (DRS).

This equates to 71.3 million retail shares.

How much of GME’s float is owned by retail investors?

Nearly 70% of the float is owned by individual shareholders according to Vickers Stock Research.

GameStop retail ownership — GameStop’s Ownership Structure – Vickers Stock Research.

This means nearly 40% of retail investors have not registered their GameStop shares through DRS.

It’s quite impressive to see the teamwork currently being demonstrated.

But will DRS trigger a GameStop stock short squeeze?

In the end, the goal shareholders are trying to achieve is to create massive price action here.

The debate also surfaced amongst AMC shareholders when CEO Adam announced during Q3 earnings that DRS will prevent the company stock from being shorted.

Majority of shareholders argued selling shares would be a slow process and that it hasn’t quite worked out for GameStop shareholders.

While DRS certainly prevents the company from being shorted, it’s only one piece of the puzzle for a GameStop short squeeze.

Shareholders will need to create massive buying pressure next.

GameStop Short Interest Today

Yahoo Finance is reporting 304.58m shares outstanding and a float of 258.65m shares, see the difference here.

GameStop’s short interest is currently being reported at 20.44% (float) and 17.96% of shares outstanding as of December.

GME’s short interest is considered high and is one of the key components to a successful short squeeze.

The short interest allows us to identify the percentage of investors betting against the stock.

A high short interest means any spike in price may trigger short sellers to close out their positions before accumulating losses.

When share prices rise and get out of hand in favor of the bulls, short sellers are incentivized to buy back their shares at a loss, breakeven, or potential profit (depending on when the position was opened).

This heavy buy-back of shares builds buying pressure which may result in a ‘short squeeze’.

Brief GameStop Short Squeeze History

On January 28th, 2021, GME shareholders were able to take GameStop’s share price to an all-time high of $483 per share before Robinhood halted further trading activity, particularly in buying the stock.

At the time, AMC surged from $2.50 to $22 per share and then five months later reached its all-time high of $72 per share.

However, GameStop’s short squeeze was well on its way to reach larger and unprecedented number figures prior to the halt.

This event sparked one of the most prominent events in the history of our financial markets.

It opened a door to a series of investigations.

Wall Street fraud, stock market manipulation, short and distort, and various conflicts of interest became the center of attention after the ‘meme stock’ frenzy.

Shareholders retaliated and spurred up a culture unlike anything that has ever been seen before.

Now, GME shareholders are doing whatever they can to keep their shares out of short sellers’ hands by direct registering their shares with Computershare.

GME Shareholders Are Onto Something

The registration of 71.3 million GameStop shares is impressive.

But GME shares keep dropping.

Ultimately, it will be heavy buying pressure from retail investors that will trigger massive price movement in the company stock.

How soon will we begin to feel that Roaring Kitty sense of relief again?

Only time will tell, but I’m curious to hear your thoughts.

How High Can AMC Stock Price Skyrocket Up To?

November 15, 2022 / Frank Nez

how high can AMC stock price go — How high can AMC stock price skyrocket up to? AMC News and updates

Bookmark this step-by-step guide on how to invest in the stock market

AMC continues to be one of retail investors favorite stocks.

And yet again sources such as The Fool and other hedge fund partners are trying to steer the public from investing in this specific stock.

Well, just how high can AMC stock price skyrocket up to?

AMC stock price closed at $7.95 on November 15th.

The share volume remains healthy despite having gone down during today’s bear market.

Most of the market has been on sale and AMC has been no exception.

Welcome to Franknez.com – the blog where you can digest content on stocks, crypto, and trending market news.

Lets get started.

As some of you know, I update this article frequently. I update it with the intraday price action as well as any information pertaining to the stocks performance.

A lot of the information on here will be left untouched as it is a means to archive a lot of the information from both this year and last year.

Here’s the latest on the channel.

Follow me on Twitter

What do we know about AMC stock price?

AMC’s stock price continues to be volatile although we’ve seen the stock is scared of single digit share price numbers.

The stock has been on a steep downtrend since it’s surge to its all-time high of $72 per share.

Key highlights

We’re seeing strong support at the $6 levels.
Big buyers include Vanguard, Charles Schwab, Wells Fargo, and BlackRock.
The stock price is still relatively low enough for majority of people to buy, but hurry before it’s too late.

Related: Are You Holding Significant Losses in AMC Stock?

Adam Aron, CEO of AMC Entertainment Interview

Adam Aron AMC interview
Franknez.com — Adam Aron, CEO & President of AMC Entertainment

*[2021] Archive

Adam Aron has done an outstanding job with the media in the past months and continues to show a positive and bullish sentiment towards AMC.

He is now praised among the retail investors community holding AMC. And for good reason too.

See what CEO and President of AMC entertainment has to say to CNBC news about AMC Entertainment reopening and the Reddit movement.

As of today, all AMC movie theaters are now open 4/14

AMC Entertainment has raised more than 2.2 billion dollars in cash
90% of AMC theaters in the United States are now open with New York and Los Angeles finally reopening
Vaccinations and policies are making movie theaters safe
New movie titles are guaranteed to increase sales revenues
CEO and President Adam Aron expresses an optimistic future for AMC Entertainment

In a more recent interview we get an exclusive behind the scenes moment with Trey’s Trades and Adam Aron.

If you haven’t watched the video you’re not gonna want to miss out.

In this personal interview from the CEOs home, Adam Aron talks about the 500 million share dilution, which by the way as of today has been taken off the table, as well as his experience and perspective behind the the Reddit phenomenon.

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Related: Are Institutions Preparing to Close Short Positions in AMC?

AMC’s Short Borrow Fee

AMC’s short borrow fee as of 10/21 is: 18.20% via. Stonk-O-Tracker, this is different from the short interest of 19% (last updated in August).

The longer shorts-sellers hold their positions means the higher the borrow fee may increase. This is great news for retail investors.

Shorts eventually have to cover their positions and when they do, AMC’s stock price action will continue to rise, inevitably creating a short squeeze.

Why AMC’s short borrow fee matters

While it costs the retail investor nothing to hold their position in AMC, it costs shorts interest.

Shorts are more willing to hold their positions if the short borrow fee is low so they’re losing money every day they hold.

Remember, shorts still think they can bankrupt a company that is no longer going bankrupt.. I know right?

As hedge funds like Melvin Capital lose money, the short borrow fee will go up to make up for some loses.

As the interest goes up, shorts will naturally cover.

If they don’t, they will bleed bad.

With the short borrow fee being so high at the moment, it has retail investors speculating a short squeeze will start soon.

Melvin Capital suffered 49% loss 1st quarter

Melvin Capital AMC stock — Hedge Fund Melvin Capital – AMC Entertainment

Melvin Capital is a hedge fund that has been shorting both AMC and GameStop.

Well it turns out holding has paid off one way.

The company was down almost half percent their first quarter of 2021!

These are people who want to put your favorite businesses out of business. Ladies and gentlemen, the good guys always win.

If retail investors keep holding, institutions are going to raise the short borrow fee.

Unless hedge funds don’t start closing their short positions, they will cease to exist.

Or at least cease to run operations until they open a new firm from scratch.

But who will trust them? Their clients are losing money.

Breaking: Hedge Fund Melvin Capital Is Shutting Down in June(2022)

Hedge funds are a sinking ship

Hedge funds are losing money shorting AMC stock

Hedge funds have lost billions of dollars shorting both AMC and GameStop.

Shorts can either:

Take the loses and close their positions right now where the stock price is around $7.
Or, get squeezed out of their positions at a high interest rate above $7, resulting in even bigger losses.

With that being said, short sellers have lost more than a billion dollars this second quarter according to Ortex data.

Will retail investors be able to create another rally?

Read: Citadel loses billions: hedge funds are getting dragged down

How will this affect AMC stock price?

Wall Street is furious.

The little guy causing a disruption, what!?!

My personal take is retail investors are going to continue to see foul play.

You’re going to experience this from bogus headlines.

They’ll usually try to steer the public from buying AMC stock to keep the volume and hype down.

Not sure if hedge funds know this yet but you do know documentaries of what’s taking place are in the works right?

Independent filmmakers such as the Mulligan Brothers will be covering this story from the retail investors perspective and rumor has it Netflix will be writing as well.

Expect AMC stock price to rise and continue to be shorted.

We will see volatility with shorts attacking the price action.

They do this by trading synthetic shares at lower bids in off exchange markets.

Read: How do hedge funds manipulate the stock market.

AMC Gamma squeeze before short squeeze

*[2021 Archive]

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

Because AMC is an extremely high shorted stock, analysts continue to demonstrate their conviction towards an AMC short squeeze.

The key here is for retail investors to hold their positions as they see some momentum beginning to build. #diamondhands

AMC stock predictions (analyst)

AMC prediction from Fidelity TRADER PRO

*[2021 Archive]

Trey’s Trades walks us through the positive moves AMC has been making from an analysts perspective.

Trey presents his audience with transparent information and has been a key player in the analytics world for ticker symbol AMC.

Although this video is an earlier video, Trey’s videos are packed with relevant information that still apply to where the stock is today.

r/wallstreet bets and Discord

Members over at r/wallstreetbets and Discord anticipate AMC stock price can skyrocket as high as $1,000 with enough momentum.

The number of phantom shares hedge funds have to cover is astronomical which is why the community is calling this the mother of all short squeezes (MOASS).

By holding shares in AMC, retail investors are setting up a supply and demand scenario where short-sellers will eventually need to buy from them.

This in turn can drive the stock up as high as the retail investor chooses, theoretically speaking.

Large institutions such as Vanguard, Wells Fargo, BMO Harris, BlackRock, Fidelity and many more are buying AMC stock while it’s still low (via. CNN Business).

Take that for what it is.

Whether that number comes to fruition or not, retail investors will have to continue to hold and to add to their positions in order to skyrocket AMC’s share price.

We’re seeing more and more retail investors join the fight against short-sellers.

Short-sellers are the investors betting on AMC Entertainment to lose.

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

There’s been a lot of speculation that due to the possible number of outstanding synthetics could be in the billions, AMC may potentially squeeze past 6-figures.

I just recently found ReviewDork on YouTube.

Gabe talks about this possibility and walks us through some math.

Check him out.

But is it realistic?

Be sure to leave your thoughts in the comment section below.

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Is it too late to get in on AMC stock?

If you’re looking to take on a position in AMC you might want to get on the train before it takes off for good.

If you’re looking to get in for the short squeeze play, AMC stock is currently on bargain. This stock is still heavily shorted!

Retail investors are teaming up together to see their visions come to fruition.

And they’re not waiting on anyone.

What we do know is that the current share price is still affordable for most people.

Why hasn’t AMC squeezed yet?

AMC hasn’t squeezed for two primary reasons.

The volume isn’t all there yet. The volume needs to be quite high. Trey’s Trades referenced 500+ million being an outstanding number.
Shorts are holding – they need to close their positions if retail investors are to squeeze them.

It’s not illegal for shorts to hold long on their positions; however, hedge funds may lose money every day they hold due to the incurred short borrow fees.

Fortunately for retail investors it’s free to hold.

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

What will AMC’s stock price be when it squeezes?

AMC’s stock price can really be anywhere.

It really depends on when shorts close their positions.

It would have been wise considering the stock continues to correct itself in an upward trend and has now set itself up for the perfect squeeze.

If shorts continue to play the long game, AMC’s stock price could potentially be higher when it squeezes.

In this case, shorts would have lost a lot more money due to accumulating and rising short borrow fees.

Can AMC squeeze after hours?

A question some people might have is whether or not AMC could potentially squeeze after hours.

AMC can certainly squeeze after hours when the market closes.

In fact, it wouldn’t be surprising if it did this.

AMC’s stock price would continue to surge as retail investors watch immobile.

For one, shorts could decide to cover before the market closes in attempts to throw one final blow to retail investors.

This would give the price action to potentially come back down after hours.

Should you worry?

Although squeezes can last anywhere between minutes to hours, they can certainly last days too.

Volkswagen’s squeeze back in 2008 lasted approximately four days. GameStop’s lasted even longer.

Here’s how you can prepare for a short squeeze

A squeeze can technically happen at any time.

The short interest doesn’t necessarily have to be high.

Shorts could choose to close their positions with little loss opposed to massive losses.

If you’re in a position to keep an open tab on your browser that is updated AMC’s stock price in real-time then I would suggest doing so.
Own an Apple watch? Keep the stock in your background. This is a very convenient way to keeping tabs on the stocks performance.
Join discords where you can be notified when something massive is going on.

When a squeeze happens you’ll know. Just don’t get a short squeeze confused with gamma squeezes.

Gamma squeezes are usually small spikes resulting from extremely bullish actions coming together at once. Otherwise known as relatively healthy gains of built momentum.

A short squeeze will be something more sudden and disruptive.

What should I do when AMC squeezes?

This is completely up to you!

You can choose to sell your entire position and collect your profits, or you can continue to hold and find out whether the squeeze continues to go up.

Unfortunately, we can’t time the spike.

For all we know, the initial squeeze might not be the potential price action.

This makes it difficult to calculate the best time to sell.

You could sell a portion of position and wait to see how AMC’s stock price moves.

We created a thread for you to share how you will use the money when AMC squeezes as a means to spread positivity and share with the community.

You can check it out here.

What is a circuit breaker halt?

A circuit breaker is usually a rule in the market that essentially pauses or halts trading for 5-15 minutes.

A common circuit breaker type is the Volatility Pause.

This helps smooth volatility in the market and prevent flash crashes.

It forces traders to take a 5 minute timeout, research the stock, news, etc.

Often times if a stock is spiking up and is halted, it will reopen higher.

Inversely, a stock selling off will often open lower.

Why this is worth mentioning

This is worth mentioning because it’s important for our readers and the ape community to be aware of possible halts as AMC’s stock price becomes more volatile.

If you happen to experience a circuit breaker halt do not panic.

It’s a policy to make sure trading goes as smooth as possible.

Important Advisory

It is important to note that I am not a licensed financial advisor.

Like many traders and self taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.

Where can I invest in AMC? What’s a good platform?

If you have not opened a brokerage account to begin investing, read this post on how to invest in the stock market (step by step) to get started.

In this post you will see a number of linked platforms that you can check out!

AMC stock price: quick overview

We’re currently seeing AMC trade at $7.95.

Although AMC’s stock chart has been relatively healthy in the past, the price has been influenced by the market’s overall downtrend.

Are you holding AMC stock?

Let me know what a short squeeze would mean for you in the comments section below.

If you found this post to be helpful or of value share it with an ape.

If you have not subscribed to the blog be sure to do so as I update you on this historic event taking place.

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Read: Anchorage Capital closes after betting against AMC stock

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Will GameStop See a Massive Short Squeeze in 2022?

August 17, 2022 / Frank Nez

GameStop Short Squeeze — GameStop GME stock – is GameStop Squeezable?

Just when we thought GameStop’s short squeeze was over we begin to see GME gain some momentum.

GameStop has been the heart of the wallstreetbets movement and continues to have a strong sentimental hold on retail investors and gamers alike.

The retail investors who missed GameStop’s first squeeze either bought AMC shares or bought GME while it was still high.

Today, the stock has undergone a 4-1 split.

So, will GameStop see a massive short squeeze again?

Here’s what we know.

Welcome to Franknez.com – the blog where you can digest content on stocks, crypto, entrepreneurship, and trending investing topics.

Lets get started!

And if you’re not investing in the stock market and would like to learn how to buy GameStop stock or know where to buy GameStop stock, read my beginners guide on how to start here.

GME stock

GameStop closed at $40.53 on Wednesday, August 17th.

Trading volume is currently sitting at 9.3 million with 12.6 million now being GameStop’s average volume.

Understanding the short-seller

GameStop has taken the entire internet and finance world by a storm. What is happening nowadays.

Retail investors over at r/wallstreetbets have opened Pandora’s Box on short-sellers and hedge fund institutions.

Short-sellers are investors who short the stock.

Shorting a stock is the process by which sellers essentially bet on the stock price to drop.

They borrow stocks at a higher cost and sell the stock low, profiting the difference.

Short Selling GameStop Stock — How short selling works

We’ve seen GameStop drop down and consolidate at $40 after its gamma squeeze peaked close to $500 per share back in January.

And it recently went through a 4-1 stock split.

As of August 17th, it is trading at $40.53.

The stock has made a massive climb after some serious consolidation. It looks like GameStop is prepping itself for another gamma squeeze.

Could we finally see that GME squeeze everyone’s been waiting for?! I think its time.

See, GameStop’s short interest is still rather high and not all short sellers closed their positions back in January.

This means the stock still has loads of room to go bonkers.

What is a short-ladder attack?

A short-ladder attack is a strategy performed by short-sellers where they bid on the stock at a significantly lower sell price and purchase it from one another.

Thus, driving the share price lower.

How do you spot a short-ladder attack?

When the stock knows nothing but gains, but something keeps pushing it down until over and over again, that’s when you’ll know.

Why GameStop has potential for a second short squeeze

Short-sellers didn’t learn their lesson from the first time. GameStop stock is still being heavily shorted.
With GameStop becoming a technology company, its value has not only significantly gone up but it now has even more potential to keep driving its momentum.
Retail investors have a strong conviction towards GameStop investment. This means they’re not willing to sell the stock which in turn creates a supply and demand scenario with short-sellers who have to close their positions.

GameStop NFT Marketplace News

You can see GameStop’s short share availability and short borrow fee rate using this link (via. Short interest data)

This number of course changes every day and can be expected to rise as hedge funds continue to short GameStop stock.

However, the short borrow fee rate isn’t a catalyst for GME to squeeze.

I’m excited for my subcommunity that holds both GME and AMC stock because both are about to skyrocket past Pluto.

GME Stock Analysis

Roensch Capital goes over the data for trending stocks.

The information is very easy to understand and gives you insight in the market from an analysts perspective.

Be sure to check out recent videos as they’re being uploaded to stay updated with any changes that occur in the market with GameStop.

Important Advisory

It is important to note that I am not a licensed financial advisor.

Like many traders and self taught investors, all speculation is based on educated estimations based on highly reliable analysis, patterns, and documented news charts.

Volume is key to a second GameStop short squeeze

Just like AMC, GameStop will need to see a continuous runup in share volume.

When retail investors continue to buy and hold GameStop stock, short-sellers shorting the stock eventually have to buy back the stock.

This demand and supply scenario results in various gamma squeezes.

The gains we’ve seen with GameStop have been a series of gamma squeezes, or incremental gains.

Usually what follows after gamma squeezes is a short squeeze if it has enough volume.

The volume of shares depends on how much retail investors are purchasing GameStop stock or selling it.

You can keep an eye on it via. Yahoo Finance.

How Soon Will A Second GameStop Short Squeeze Happen?

There is so much volatility occurring in the stock market at the moment.

Such volatility is usually a sign of an upcoming short squeeze as we saw back in January.

Not only are retail investors experiencing a lot of volatility, but GameStop stock seems to be in bullish territory which is great for volume.

FOMO (fear of missing out) continues to bring in new retail investors which is a great driving factor to the stocks volume.

GameStop announces fourth quarter earnings for 2020 (ARCHIVE)

is GameStop squeezable? – GameStop Short Squeeze

Saving GameStop

Retail investors now have the power to save any company they wish to save.

Now it’s only a matter of time for GameStop to step up and raise capital so that they can innovate and provide more value back.

GameStop is currently looking for ways to operate more efficiently.

While the Reddit community was able to keep them from going bankrupt, the company as a whole will need to continue kicking butt.

Here’s what’s been going on with GameStop recently.

Current GameStop news

GameStop wallstreetbets — is GameStop still squeezable? – GameStop Short Squeeze

GameStop introduces Matt Furlong as the new CEO of the company.
GME shares are still up nearly 1100% this year-to-date with the company’s valuation at $15 billion.
Bullish GameStop options are still currently being heavily traded

Prior to GameStop, Matt Furlong worked at Amazon in Australia overseeing the growth of operations.

He also worked in brand and marketing for Procter & Gamble years before.

The skills to grow operations and to properly brand and market will benefit GameStop immensely.

What can retail investors do to tackle shorting?

If retail investors want to counter GameStop’s stock price from plummeting, they’ll have to continue to hold and buy the stock.

This short squeeze play will require patience.

Important advisory

If you hold a position in GameStop, it’s important that you ask yourself what your reason for holding is.

Does your DD provide you with the confidence to stick to it longer if need be?

If so, stick to your convictions and trust the process.

Unfortunately, I didn’t get in on GameStop before it gamma squeezed so I took a position in AMC instead.

Taking this position has been one of the best financial decisions I’ve ever made.

I would take a position in GameStop if it was more affordable.

Regardless, I like the stock and I love the community even more.

Will GameStop finally short squeeze?

I think GameStop is preparing itself to put short sellers out of their misery.

The stock has been havoc to hedge funds and we can tell they’re giving out primarily due to this massive breakthrough we’re seeing now.

And although I personally don’t hold GME stock, I have a lot of awesome memories at GameStop which I would actually like to share with you at the end of this article.

Now let’s talk about a little justice.

A major hedge fund that was attacking GameStop has now been reported to lose a significant amount of money.

Bookmark: List of momentum stocks: Interest and utilization

Melvin Capital suffered 49% loss 1st quarter

Melvin capital suffers 49% loss 1st quarter of 2021

Ladies and gentlemen this is massive. Melvin Capital is a hedge fund that has been shorting both GameStop and AMC stock.

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

Here’s why this matters:

Not only are shorts losing money every day but huge hedge funds are bleeding
This is a huge win for retail investors
Unless shorts close their positions, hedge funds will continue to suffer
Interest rates can skyrocket for short sellers enabling them to close their positions

Now the hedge fund is closing its doors this June 2022 after several losses.

We’ve see GameStop’s short borrow fee decrease but I wouldn’t be surprised if it begins moving back up very soon.

Hedge funds have been trying to obliterate our beloved GameStop from the face of the planet.

Something about them losing a lot of money feels like justice.

Believe me, I’m 100% for making money.

The ethical way.

You should be supporting beloved companies, not targeting them just because you see an opportunity to kick someone when they’re down.

Karma is about to get a lot worse for hedge funds betting against both GameStop and AMC.

Read: How do hedge funds manipulate the stock market?

Will GameStop stock go up again?

GameStop Stock News Today — GameStop Stock News.

As long as the stock continues to be shorted and held, GameStop can expect a series of gamma squeezes to continue pushing the stock up.

This will inevitably lead to the ultimate short squeeze.

Fundamentals can also drive GameStop’s stock price up.

The company will have to run efficiently by being able to meet projected goals.

Although this is not a fundamental play, mainstream media still has some influence over this.

Short sellers continue to face devastating losses from shorting GameStop.

Hedge funds are about to burn their second hand after playing with fire again.

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FAQs

Gamma squeeze vs Short squeeze

A gamma squeeze are momentum gains. These usually occur from call options closing in the pocket resulting in heavy buys or purchases in the market.

A short squeeze is vigorous and can spike with no warning. This is where you see 100% gains in a matter of seconds and minutes. A short squeeze can even reach 1000% and 10,000% gains.

What is your first GameStop memory?

Leave a comment below.

Do you remember your first GameStop memory?

I’m sure you have many.

I remember the first time my brother and I went inside a GameStop it was unreal.

It was my first time inside an actual video game store. T

he coolest thing was seeing how many different games and accessories they had for all the consoles at the time.

Some of the most awesome memories at GameStop was seeing that brand new game on display.

For me, it was Guitar Hero.

My god. Seeing all the marketing behind the game and the guitar in display was heaven.

I also remember the employees giving you close to nothing for a used game, lol.

What are some memories you have of GameStop?

I would love to hear from you.

Leave them in the comment below.

And lastly…

A lot of you have been sharing my posts on Facebook Groups, Reddit, Discord chats, and Twitter.

Words can’t explain how grateful I am for you sharing these articles.

Thank you,

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Read: GME stock: Why it can still skyrocket past $1,000 per share

How Soon Will Hedge Funds Get Margin Called? (AMC)

February 2, 2022 / Frank Nez

Citadel Margin Call, When will hedge funds get margin called — When will hedge funds get margin called? Citadel Margin Call

Retail investors all want to know. How soon will hedge funds get margin called?

I’m going to be updating this article with new information as it becomes available so be sure to bookmark it.

If you’re investing in AMC or GameStop, this article will prove to be of value to you.

You’ve done an outstanding job. You’ve bought the rips and dips but most importantly, you’ve held on.

Let’s go over the data that is currently available regarding margin calls and hedge funds.

There are some incredible things happening behind the scenes that you need to know.

Welcome to Franknez.com – the blog keeping retail investors informed in stocks, crypto, and market news.

Lets get started!

But first, I want to give a massive thank you to my readers.

A lot of you have just recently started following me and I’m very grateful for your support.

I love seeing the community sharing FrankNez content on social media. It brings me great pleasure to know I’m providing value in your daily lives.

What is a margin call?

I published a piece fully dedicated to what a margin call is in the stock market world some time ago.

In short, a margin call occurs when the value of an investor’s brokerage account falls below the broker’s required amount.

This is when a broker demands that an investor deposits additional money into their account so that it meets the minimum requirement.

A margin call is usually an indicator that a security (asset) held in the margin account has decreased in value.

When a margin call occurs, the investor must either add funds to their account or liquidate (sell) some of their assets in that account.

Why does a margin call occur?

It may occur when an account runs low on funds usually as a result of a losing trade
A margin call occurs when a demand for additional capital is required to meet the minimum margin requirement
Brokers may force traders to sell assets, no matter the current market price, in order to meet the margin requirement if the trader does not deposit the funds

If you’re a new retail investor and have recently joined the ape community then you’ve more than likely heard the term margin call before.

A margin call is basically a 50/50% chance a short squeeze may occur on the spot.

However, even if hedge funds are able to keep enough capital in their margin accounts to keep them afloat, at some point they’ll have to cave in.

Hedge funds have lost billions of dollars and this game is only costing them more money each day that passes.

Bloomberg News on Gary Gensler / Margin Calls

Margin call hedge funds

In this video, Bloomberg News discusses Gary Gensler, the new SEC chairman’s concerns of overleveraging and manipulation in the stock market.

This five minute video is important to log because it demonstrates and acknowledges the concerns in the market.

Perhaps the SEC was incompetent in the past to say the least. But it looks like we might be looking at some change here community.

And although this particular video was published on May 6th, below are some things Gary Gensler is already proposing in order to protect retail investors and the overall market in general.

SR-NCSS-2021-002

SR-NSCC-2021-002 AMC automatic margin calls

This proposal from the SEC is massive if it gets approved.

The SEC has heard you and they’ve been looking into hedge funds overleveraging their positions in AMC stock and other ‘meme stocks’.

This proposal would allow an automatic margin call system to margin call hedge funds with overleveraged accounts.

This margin call system will essentially target short sellers on a daily basis and identify whether they are required to raise margin minimums or liquidate their positions.

SR-NSCC-2021-002 APPROVED 6/21/2021

SR-NSCC-2021-002 APPROVED margin calls — SR-NSCC-2021-002 Approved

This proposal was delayed after its initial approval date.

However, as of today the proposal has gone through and should be in effect in the coming weeks.

However, as long as short sellers are able to keep up with their margin requirements then this regulation is rather neutral.

A lot of these rules being put into place play in our favor the more money short sellers lose.

Total Return Swap AMC

The SEC and FINRA have gotten together to review the activity of ongoing overleveraging in the stock market.

Hedge funds could soon face total return swaps per Gary Gensler, SEC chairman.

In a total return swap, the payer (hedge fund) must pay the interest on the underlying assets, plus any appreciation in the market value of the asset.

This sounds a lot like shorts paying all short borrow fee owed on top of the market value of naked shares they’ve traded.

13-F filings and short selling disclosures

Citadel Margin Call - SEC cracks down on hedge funds — Citadel margin call – SEC cracks down on hedge funds

There’s a strong possibility that hedge funds also face 13-F filings. This filing will provide the SEC with insight on equity and dark pool disclosure.

Everything now seems to be falling right into place despite the continuous short laddering.

The SEC voted 3-1 and approved the hedge fund disclosure proposal on January 26, 2022.

When will hedge funds get margin called?

Charles Schwab has recently raised margin requirements for both AMC and GME stock.

This means that if they are unable to keep the minimum cash required in their margin accounts, they’ll be required to liquidate some or all of their positions!

This would create massive price action to trend in an upwards position.

We know that short sellers are losing millions of dollars every day.

Ladies and gentlemen, this is simply a waiting game.

The point is going to come where they can no longer afford to be negative each day.

This movement is about to get on a whole other level of excitement.

The fundamentals to this AMC short squeeze have not changed.

All retail investors will have to do is hold until short sellers cave in and close their positions willingly, or brokers margin call them.

Charles Schwab raises margin requirements

The broker is adjusting 100% margin requirements for AMC on all long positions, and 200% on short term positions.

As for GameStop, the margin requirement is 100% on all long positions and a whopping 300% on short term positions.

All this essentially means is that short sellers will be required to have more cash at hand as collateral.

So, not only are hedge funds losing a lot of money every day but are now being required to put enough cash into their accounts to cover their entire positions if need be!

You know what happens if they can’t cover right?

That’s right, margin call.

Instant liquidation of their accounts resulting in the MOASS we’ve all been waiting for.

Margin calls will result in a short squeeze

At first we might experience what’s known as consecutive gamma squeezes.

These are usually triggered by high volume in the market due to expiring call options in the money or very high purchasing days.

As more short sellers and hedge funds with larger short positions in AMC stock begin to cover, we will begin to experience the beginning of a short squeeze.

A short squeeze could last several days to several weeks.

During this timeframe, the stocks price will continue to skyrocket as more short positions are closed.

It really does feel like we’re coming to an end here.

This new beginning is going to change millions of people’s lives.

NSCC-2021-010

Proposition NSCC-2021-010 allows the NSCC to act as a third party lender to oversee every transaction between lenders.

It prevents short sellers from using naked shorting strategies and from creating FTDs.

This is one of the biggest AMC news yet regarding the stock.

It’s been delayed but should go into effect this new year.

The NSCC is also requiring that short sellers have more cash at hand to limit overleveraging their positions.

When should I exit my position in AMC?

I wrote an AMC exit strategy guide to help the community make a strategized decision on how to sell when AMC squeezes.

I do want to relay that this is only my take on it.

Many of you already have your own exit strategies, I understand this.

Regardless, it’s there if you need it and would like insight from a different perspective.

And lastly . . .

If you gained value from this article be sure to share it with the rest of the community.

Thank you to everyone publishing this information on Facebook, Twitter, Reddit, and on Discord groups.

If you would like to support the functionality of the blog, you can do so on Patreon where you will also gain access to exclusive Frank Nez content such as my stock and crypto purchases.

Read: Here’s why people are buying AMC stock: Investors guide

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Is Now a Good Time to Buy AMC Stock?

August 15, 2021 / Frank Nez

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

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

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

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

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

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

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

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

AMC’s community has grown immensely

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

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

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

AMC’s short squeeze data

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

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

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

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

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

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

The biggest transfer of wealth in history

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

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

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!

Adam Aron, CEO & President of AMC shares positive news

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

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

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

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

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

Will AMC squeeze?

Fox Business AMC strong chance of a short squeeze

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

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

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

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

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

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

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

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

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Which Stock Should You Invest In? AMC or GME?

June 7, 2021 / Frank Nez

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

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

Are you suffering from FOMO (fear of missing out). While we’re not financial advisors, we are certainly pro opportunity. So, which meme stock should you invest in? AMC or GME? And, is it too late to invest in either of them?

Let me walk you through the facts so you can decide which is the better buy between the two.

Welcome to Franknez.com – The blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Before we get started it is very important to mention that both these stocks are currently very volatile.

It is suggested that all financial decision is made based upon your own due diligence. GME stock has seen incredible gains in the past two months and analysts are determined AMC is going to have a similar run, if not bigger.

Here are the short share volume numbers as of June 7th, 2021.

AMC Short Share Volume: 500,000 (via. Fintel)
GME Short Share Volume: 350,000 shares (via. Fintel)

Now, this is only Fintel so take it with a grain of salt.

Why is this important?

The number of short shares available represents the number of shares that have yet to be covered by short-investors or hedge funds.

Short-investors and hedge funds alike are betting on both AMC and GME to completely fail. This means they don’t believe AMC or GME (GameStop) can innovate as businesses to thrive in the marketplace.

The r/wallstreetbets community and millions of people would beg to differ. This is why AMC and GME have take the stock market by a storm.

What happens when shorts close/cover their positions?

Both AMC and GME are going up in share price. When short-sellers cover their positions at a higher share price than they borrowed the share, they lose money.

Because they bought a share at a higher price, the stock price continues to go up as long as retail investors hold their positions. This essentially creates a supply and demand scenario between short sellers and retail investors.

What happens if shorts keep holding and don’t cover their positions?

Short-sellers can only hold for so long. See, they eventually have to pay an interest on the shares they borrowed.

Here are the current short interest for both AMC and GME stock (June 3rd, 2021):

AMC: 6.25% (via. Fintel)
GME: 0.96% (via. Fintel)

These change from time to time

As you can see, AMC has a bigger interest rate than GME at the moment. This means short-sellers are paying a much larger fee to short AMC stock.

This borrow rate fee increases as the demand for the stock rises.

Why is this important to the retail investor?

The borrow fee interest pressures short sellers to close their positions before they pay bigger and bigger fees for borrowing AMC and GME shares.

When a short-seller closes their position higher than they borrowed the share for, they lose money. The retail investor then continues to see a rise in share price. This ladies and gentlemen is where retail investors begin to experience a series of gamma squeezes before a short squeeze.

What’s the difference between a gamma squeeze and a short squeeze?

A gamma squeeze usually occurs when retail investors bet on the price of a stock such as AMC or GME to go up. Share price will then increase due to specified call options or contracts.

A short squeeze essentially occurs when a heavily shorted stock increases in value and short-sellers must cover their positions.

AMC and GME short squeeze

AMC

AMC Short Squeeze
Franknez.com — AMC Short Squeeze

We saw a gamma squeeze from AMC when the stock price shot up to about $20 per share. This was mainly due to retail investors buying call options.

We have not seen a short squeeze from AMC just yet. This is why AMC stock is a very popular choice for people who missed out on GameStop the first run.

AMC’s share price is also significantly lower and more affordable to the average retail investor than that of GameStop. With more investors getting in on AMC, another gamma squeeze is on the horizon. If retail investors continue to hold their positions, a short squeeze is inevitable.

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

GME

GME Short Squeeze
Franknez.com — GME Short Squeeze

GME experienced its gamma squeeze right before we saw it short squeeze all the way up to $500. Its gamma squeeze consisted of perpetual gains beginning around the $20 mark all the way up to $100 before it squeezed and saw sharp gains.

After GME squeezed, it hovered around $40. We recently saw another GME gamma squeeze sending it back up to the $100 range.

GME’s mastermind, Keith Gill AKA Roarking Kitty (deepf******value), has also mentioned doubling down on GameStop investment. You can find sources everywhere online.

Read: Will GameStop see a massive short squeeze again?

More institutions are buying and holding AMC than GME stock

We’re seeing more and more institutions such as Vanguard, BlackRock, and Charles Schwab continue to add and hold to their AMC positions (via. Nasdaq). As of May 21st, the top whales continue to add to their long positions.

AMC institutional buyers — AMC Institutional Buyers (as of 5/21)

GME on the other hand has seen quite some selloff from institutions. Which by the way is okay. Investors are simply closing profits with the gains they’ve seen from GME via. Nasdaq.

GME Institutional buyers — GME Institutional Buyers (as of 5/21)

Innovation: AMC VS GME

While it’s hard to see how GME can innovate their retail stores, AMC doesn’t seem to have that problem.

I personally believe innovation has a strong influence in the decision-making process when investing in either AMC or GME.

GameStop can continue to sell to gamers online. We won’t see much change to their retail stores. AMC on the other hand can innovate with virtual reality but ultimately doesn’t have to since people are going to the movie theaters again.

AMC stock is the most popular choice for new retail investors

If you’re a new retail investor looking to get into one of these stocks, AMC is more than likely your best bet.

The stock has a lot of upside potential.

AMC stock is currently affordable
The stock has not hit a short squeeze yet
It is one of the most shorted stocks in the market
The stocks market cap, volume, and short borrow fee keep increasing

GME stock is a good pick for current GME holders

If you’re currently holding GME it looks like you will continue to see volatility. You can take advantage by buying the dips and holding your positions.

If you didn’t cash out when GME peaked, there’s a probability you will get another chance if GME continues to stay in bullish territory. This of course is heavy speculation.

I want to ditch Robinhood – what other platform can I use?

Ditch Robinhood - invest in GME and AMC with another platform — Ditch Robing-Hood: Invest in GME and AMC using another platform

If you’re looking to ditch Robinhood, we strongly suggest switching to a real broker account.

Robinhood tarnished GameStop momentum by preventing retail investors from buying more stock.

I recommend: Vanguard –> Link

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

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

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

If you’re looking to get into an affordable stock that has a high potential of squeezing, then AMC will be your best bet. It’s fundamentals also determine this stock is a good long-term buy.

Although GME’s hype can still cause a potential squeeze in the future, it’s still much lower than AMC’s probability. If you have a position in GME then I recommend holding and taking any gains you can. Otherwise, keep holding if you love the company.

Whether you go for AMC or GME stock, you should always invest in a company you truly love and believe in. Think long-term for the most part. If you can make some money short-term, even more power to you.

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Why is AMC Share Price Going Down?

April 20, 2021 / Frank Nez

AMC Entertainment stock has seen more than 373% gains since January and its market cap is currently hovering slightly below $4.1 billion. We’re seeing the stock slide today after seeing some gains. Retail investors might be asking, “why is AMC share price going down”?

Good news is retail investors don’t have to panic. Here are a few reasons why AMC Entertainment has been on sale.

Welcome to Franknez.com – the blog where we write about personal finance, side hustle ideas, entrepreneurship, and keep you posted on trending investing news.

#1. AMC’s CEO seeks approval to potentially issue more stock

Adam Aron on CNBC

AMC’s CEO and President Adam Aron is asking its shareholders for approval on issuing 500 million more AMC shares.

This caused AMC’s stock price to slide because the dilution would mean short-term turmoil for the stock.

Why does AMC want to issue more shares?

Approving the issue of 500 million shares will allow AMC Entertainment to payoff what debt they have left much quicker.

If approved, it wouldn’t mean they issue all 500 million shares at once. It would grant them with the flexibility to grant them when needed.

What if we don’t approve the issue of 500 million more shares?

This isn’t a make or break for AMC. AMC Entertainment simply wants a backup plan should another catastrophic event occur again that would affect the business.

If shareholders don’t approve this, AMC will simply have to pay it’s dues as they profit instead of all at once. In other words, issuing 500 million shares provides the business with leverage.

What will happen if this is approved?

If the issue of 500 million additional shares is approved then AMC’s share price could potentially go down.

AMC entertainment will have money to payoff any small debt they have leftover quickly, and it will benefit the business long-term.

What does an AMC dilution mean for a short squeeze?

At the moment retail investors are holding real AMC shares. Shorts need to buy back these shares. By keeping the supply low, retail investors can demand the price of a share.

A dilution of AMC stock would not work in the retail investors favor, short-term.
If more shares are issued, AMC stock becomes more of a long-term investment but has lots of positive potential.

A dilution would increase the number of shares and lower the share price when granted. With more shares available in the market, institutions who traded naked shares could cover their butts instead of buying from the retail investor.

As you can tell, there are both PROS and CONS to a dilution.

So, can AMC still squeeze with a dilution?

If a dilution occurs, shorts could take this opportunity to cover their positions at a lower price which would still cause a short squeeze.

Shorts can no longer drive AMC Entertainment to the ground. They’ll have to cover with or without a dilution.

Regardless of what Adam Aron said on an interview with Trey’s Trades, some people are still iffy about it.

#2. AMC has had a small selloff

Another reason why AMC shares have slid is because AMC is having a small selloff, but this is completely normal. Internal shareholders will usually sell a small portion of their shares to cash in profits on the way up.

Small retail investors waiting on a short squeeze should continue to hold their positions. Selloffs on the way up is something mainly individuals with a lot of access are able to do but should not scare retail investors.

Godzilla vs. Kong secures $9.6 million in ticket sales

Warner Bros. said Thursday that “Godzilla vs. Kong” secured $9.6 million in ticket sales on its opening night. This has been a record debut for the pandemic.

Adam Aron noted that the attendance for the opening in North America was 10 times what it has been so far in 2021.

Very positive news for AMC Entertainment.

#3. Short-ladder attacks

With the short borrow fee going up for short sellers, it’s no surprise to see them trying to drive AMC’s share price lower.

You can tell a short attack is occurring by the patterns on a stock chart. Usually when the stock moves up you’ll see it come down vigorously until you see the pattern of a ladder going downwards.

This sort of attack is caused by shorts in efforts to prevent the stock from going higher.

So, should retail investors be worried?

Not at all. AMC Entertainment as a business is very bullish. They’re taking action to scale the company in the right direction.

Whether the market is red or green, AMC’s revenue is growing and a lot of positivity is flowing their way.

We’re personally excited for new titles coming out soon.

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

Breaking Down Trey’s Trades Video w/ Wolf of Wall Street

April 8, 2021 / Frank Nez

The Wolf of Wall Street Interview Trey's Trades

Trey’s Trades just released an honest video interviewing Jordan Belfort, AKA The real Wolf of Wall Street.

The ape community holding AMC stock was actually looking forward to this video but found themselves perplexed and rather disappointed.

I’m going to breakdown key points from the video to provide some clarification. I’ve watched ‘listened’ to the video a few times to gain a different perspective on the interview.

Massive thanks to Trey’s Trades for the intention. I think we can all agree Trey held himself very well during the interview with Jordan Belfort. You’re the real goat brother.

Trey’s Trades vs. Wolf of Wall Street – Intro

This interview begins with Trey humbly expressing his gratitude, concern for Jordan’s health, and respect for the wolf’s time.

Trey sets the mood with by saying, “I think there’s a huge opportunity for some education”. He also mentions there’s been a lot of cool stuff going on in The Wolf of Wall Street’s Twitter as he expresses his excitement.

As most of you know, Jordan Belfort has been supporting the AMC movement via Twitter.

The AMC & GameStop situation

The Wolf of Wall Street goes on to discuss the dilution of shares in general. Jordan Belfort further explains that a dilution would mean short-term discomfort in the stock but could benefit a company immensely long-term.

I actually said this back on April 1st when AMC share price started to drop due to Adam Aron’s announcement seeking approval from its shareholders to issue 500 million more shares. You can check out the post here.

Jordan Belfort thinks an issue of shares will pass

Trey asks The Wolf if he thinks it’s likely that an issue of shares can pass where Jordan then responds with certainty that it will pass.

Apes, you have to take this with a grain of salt. This is only Jordan Belfort’s opinion. Remember, you the shareholder get to vote whether this passes or not.

If you hold AMC stock then you should have received an email from your brokerage account with the form to vote. Be sure to search it in your mailbox if you’re uncertain.

What happens if 500 million shares are approved?

If it passes:

AMC becomes more of a long-term investment with a lot of upside for the company. As a shareholder, you will still be profitable.
Will a squeeze still happen? More than likely. A dilution would bring the stock price down which would be a favorable position for shorts to cover.
Approving this does not mean all shares will be issued at once. This is only a ‘backup’ in case of another disaster that can be a detriment to AMC as a company.

If we vote no:

AMC will simply have to pay it’s dues as they continue to see profits
The share price will not dilute
AMC won’t have a backup in case a second pandemic occurred hypothetically speaking

Verdict?

All in all, The Wolf of Wall Street had nothing negative to say about AMC here. These are straight facts that really don’t affect AMC negatively in any way.

“Wildly Overvalued”

Jordan Belfort then begins to advise that both AMC and GameStop are wildly overvalued.

I personally think he’s mainly referring to GameStop here. GameStop is wildly overvalued and it’s certainly no surprise to hear so. Again, there’s no negative talk about the stock(s). The Wolf of Wall Street is presenting an opinion that is widely accepted through fundamentals.

GameStop was hyped to squeeze despite the drop in value and revenue in the company, so there’s no argument there. However, AMC is currently undervalued if you look at pre-pandemic records.

The Wolf is already thinking ahead. AMC is not overvalued yet, but it will be.

And as he mentions in the interview, once these stocks take off they are bound to come back down. Fundamentals will eventually correct the stock and trade on ‘normal’ levels.

At least they should.

“Whoever Buys The Stock Is Kinda Nutty”

The Wolf of Wall Street goes on to say that as a shareholder, it is our responsibility to take advantage of the inflated price.

Jordan Belfort is trying to get a lot out during this part of the interview. He mentions if people are going to buy the stock at 10 times the price that it’s trading at ‘fundamentally’ it’s not worth buying.

Again, I believe he’s referring to GameStop where it’s currently sitting at. What I get from this message is that it doesn’t make sense to buy at the top of a stock that can potentially correct itself back to fundamentals.

He then goes to say whoever buys the stock (at the inflated price) is ‘kinda nutty’.

“This doesn’t mean you can’t make a lot of money trading at these higher prices”. This quote is why I believe he’s referring to GameStop. AMC isn’t there yet.

This is how I’m perceiving this part of the video. Let me know in the comments section below your personal opinion.

Trey agrees with this

Trey agrees that GME is overvalued and that a dilution would help AMC in the long-term with cash should they ever need it.

Most people didn’t catch the Bitcoin bit

Most apes didn’t catch this but the reason The Wolf mentioned Bitcoin is because he was using it as an example to compare it vs. how stocks work.

He basically states that Bitcoin unlike stocks can go up and stay up for a while, come back relatively low, and continue this cycle. Jordan states that stocks don’t move this way and he wanted to clarify this for the viewers, mainly new retail investors.

GameStop second squeeze?

Trey asks The Wolf of Wall Street if he thinks GameStop will have a second squeeze. Jordan responds saying he predicted the second squeeze meaning it’s already happened and that a third one isn’t likely. Although, he does make a reference that it was most likely a ‘gamma squeeze’ the second time around.

Again, this is only Jordan Belfort’s opinion and solely based on GameStop, not AMC.

“I love the average person is making money”

The Wolf of Wall Street expresses he thinks it’s great the average person is making money and doesn’t want us to think he’s against what’s going on. Jordan then goes to say he just doesn’t think any high price action will be sustainable.

Which makes sense apes. When GameStop’s squeeze peaked at $500 it did not sustain. It became volatile and dropped all the way back down to $40 before gamma squeezing up to $200.

The bear market discussion

The Wolf of Wall Street explains that a rising tide lifts ships and a falling tide sinks all ships.

He’s referring to a bear market vs. a bull market. Jordan further explains that during a bear market all stocks tend to go down no matter what hype surrounds it.

We’ve seen a little bit of this occur with AMC mainly on the days that the S&P 500 has been down. It’s simply how the market works.

Here, The Wolf is simply having a discussion with a younger investor as he portrays Trey after asking him his age.

You see this sentiment carry over when discussing how his former colleagues lost a lot of money day-trading. This conversation can be looked as personal insight from The Wolf’s experience and possible ‘advice’ to new retail investors.

We get off track a bit

A lot of the interview from here on out is simply a conversation between Jordan and Trey.

The Wolf seems to get off track from the AMC phenomena and starts talking about other investments and fundamentals. The rest of the video from here on out is a rant from Jordan that Trey entertains out of respect.

The video is concluded with The Wolf of Wall Street advising to make as much of money as you can while the times are good, and to play it more conservatively when they’re not.

Conclusion

Trey did an amazing job at respecting Jordan Belfort’s time which is why we didn’t see much deeper conversations regarding manipulation in the market, etc.

I hope you guys enjoyed this breakdown from the video. I too was a little puzzled after watching it the first time. With a lot of uncertainty going on, I figured I’d listen to it a few times over and provide some perspective to provide some form of value to the community.

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