Market news and updates: CEO confirms AMC received 6 million shares from National CineMedia for free.
Adam Aron announced on Twitter AMC had received free shares of National CineMedia.
Barrons, a news site owned by News Corp. falsely claimed AMC purchased the stock of a failing company.
Shares rose for both AMC and NCMI stock on Wednesday.
Some of you have noticed that AMC now owns about 6 million shares in National CineMedia, the theatrical advertising company. What you may have missed is that we got those shares for free. They came to AMC because we grew our circuit by adding theatres in 2021. Playing on offense!
Ken Griffin accused the retail community of destroying teacher’s pension plans by taking down Gabe Plotkin’s Melvin Capital.
Melvin Capital is a hedge fund that was short on ‘meme stocks’ holding a large position in GameStop.
The company is scheduled to shut down in June after it had suffered a 50% loss in 2021, and an additional 20.6% in the first quarter of 2022.
Sources say Melvin Capital has already begun to liquidate its positions to pay back investors in cash.
In this Bloomberg exclusive, Ken Griffin plays a role of the victim, defending Mr. Plotkin and the hedge fund whose mission it was to bankrupt GameStop.
Ken Griffin’s Citadel is also short on AMC Entertainment – the hedge fund lost billions last year betting against retail.
Let’s discuss it.
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CNBC mourns the loss of Melvin Capital
CNBC says Melvin was one of the biggest victims from the meme stock frenzy last year due to its large short position in GameStop.
They say Citadel and Point72 had to provide Melvin Capital with a lifeline to stay above the water.
The hedge funds combined provided Gabe Plotkin with $2.75 billion in capital last year.
However, as things went south quick for Melvin, both hedge funds demanded the capital back.
Something Ken Griffin and his affiliates fail to mention.
Mainstream media has also danced around the fact that hedge funds planned to wipe American companies by overleveraging their short positions during the pandemic.
Success in doing so would delist AMC, GameStop, and other meme stocks from the stock market.
Betting against companies with intention to bankrupt them to the ground is no charity work.
It’s un-American and a nefarious practice that has dragged out for too long.
Ken Griffin blames retail investors
In the video below, Ken Griffin gives his thoughts on retail investors and the entire ‘meme stock’ phenomena.
Ken Griffin take on Retail Investors, today on Bloomberg TV
Ken Griffin takes a jab at the retail community saying retail investors who aimed to bankrupt Melvin Capital also wiped-out pension funds from teachers.
But Ken, retail investors don’t get up in the morning and think to themselves, “let’s wipe out a multi-billion-dollar hedge fund.”
Melvin Capital lost because he went against retail – the first time in history the people fight back corruption in the stock market, and win.
AMC shareholders continue to buy and hold the stock until short sellers exit their positions, which will result in a short squeeze.
Today’s retail investors are armed with education, they understand what they hold and what it’s doing to hedge funds.
While Ken Griffin and affiliates might be pumping a narrative as victims, high profiles such as Elon Musk, Jon Stewart, and Ryan Cohen have stood up against short sellers.
For the first time in history, Wall Street is getting their a** kicked, and these hedge fund managers certainly do not like that.
Hedge funds should prepare for bigger losses
Institutions are about to lose a massive amount of collateral due to executive order 14032 in early June.
This presidential order is prohibiting Chinese securities to be used as collateral starting June 2nd, 2022.
It was responsible for initiating margin calls when AMC Entertainment stock rose to $20 per share in January, and $72 per share in June of last year.
With liquidity drying up in global markets, it’s going to be quite difficult for hedge funds to keep up with margin requirements on heavily shorted ‘meme stocks’.
Massive selloffs in the market have proved just how distressed financial institutions are.
We’re seeing for the first-time hedge funds begin to shut down as they take the lead in liquidity burn.
Retail investors have been the majority of buyers in today’s markets according to Bank of America.
Hedge funds are headed towards a larger train-wreck of disaster they cannot get off of.
As they continue to tank the markets, margin requirements go up thanks to DTCC B16845-22.
Hedge funds have lost control.
But I’m curious to know what you think.
Leave your thoughts in the comment section of the blog below.
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Forward a month later and now the hedge fund is announcing it is closing this summer.
Earlier in March we saw another notorious hedge fund known for shorting GameStop pull $2 billion from Gabe Plotkin’s Melvin Capital.
That hedge fund was Citadel.
Citadel also lost billions last year shorting so called ‘meme stocks’, so it comes as no surprise as to why they pulled out from Gabe Plotkin’s Melvin Capital.
Ken Griffin’s Citadel also imposed tight restrictions on its clients leading into the new year.
Customers were given an ultimatum to either stay with the firm otherwise coming back would prove to be difficult.
Steve Cohen’s Point72 redeemed $750 million from Melvin Capital around the same time.
Ken Griffin received a $1.2 billion lifeline from partners Sequoia and Paradigm in January of this year.
This was the first time Citadel had ever received private funding.
Don’t bet against the apes
Mainstream media doesn’t give retail investors enough credit for shedding light on market injustices.
The ‘ape’ community has grown since last year as retail investors discover the short interest data that points towards a bigger AMC runup than that of January and May of last year.
In this video I go over patterns that are similar to those from last year’s runup and what we should keep a close eye out on.
The apes were right about naked shorting, dark pools, and the dangers of betting against retail.
Now hedge funds are dealing with the consequences of betting against the people.
Majority of the community continues to buy and hold ‘meme stocks’ such as AMC and GameStop in efforts to create a massive short squeeze.
Retail has said it many times, a short squeeze is inevitable.
While the SEC might be proposing rules that could wash naked short selling, yet avoid them in the future, it would take years to enforce if passed.
Will hedge funds survive?
Hedge funds are currently facing deep scrutiny from both retail investors and regulators.
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AMC’ shares on loan reach 157.87 million
AMC shares on loan – AMC short interest
The shares on loan of a stock are the number of shares that have been borrowed and have yet to be returned.
We see this data when looking the short interest data of a ticker symbol to determine how much of the float is being shorted.
So, what does this mean?
AMC’s shares on loan essentially looks like debt to short sellers because they eventually have to return these shares back to the lender.
These shares amount to approximately 21.88% short interest (updated daily on the blog).
This is a very high short interest percentage – something mainstream media will not talk to investors about.
AMC’s short high short interest is what allowed it to reach $20 per share in January and $72 per share in June of last year.
Hedge funds lost billions, which is why mainstream media has focused on scaring retail investors out of their money by pumping out ‘DO NOT BUY AMC’ content.
Nothing has changed this year except AMC’s shares on loan and short interest keeps climbing.
AMC’s short interest was only at 20% when it surged to $72 – it’s now close to 22%.
BREAKING: Ray Dalio’s Bridgewater buys AMC stock for the first time; sells Tesla
Another institution has bought AMC stock and sold another high-profile stock.
Ray Dalio’s Bridgewater fund just bought AMC and GameStop and sold Tesla shares.
I was watching the multi-billionaire talk about the economy just yesterday with Tom Bilyeu.
Bridgewater wasn’t the only institution that increased their stake in AMC stock this first quarter.
The largest pension fund in America (CALPERS) purchased an additional 155,992 shares by the end of Q1 this year, totaling the number of AMC shares owned to 775,392 shares.
It seems institutions are bulking up on AMC shares right before executive order 14032 goes into effect.
Things are getting very interesting.
Let’s discuss it.
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Bridgewater buys AMC stock for the first time
Ray Dalio’s Bridgewater buys AMC stock for the first time
Bridgewater disclosed an AMC stake for the first time in its latest portfolio update.
Dalio and his team bought about 27,100 shares of the cinema chain, which were worth $667,000 at the end of March.
The fund disclosed around 4,100 GameStop shares worth $689,000 as of March 31.
The last time it listed GME stock in its portfolio was more than three years ago, at the end of 2018, according to Market Insiders.
Bridgewater owned about 25,500 Tesla shares worth $27 million at the end of December, and held the stock in all four quarters of 2021 but cashed out its Tesla stock the first quarter this year.
Ray Dalio is an incredibly smart person.
Why an institution like Bridgewater is bulking up on AMC and GameStop shares has to mean something.
The ‘ape’ community predicted the big price runups that happened in AMC last January and May/June and are expecting a bigger runup this year.
Are financial institutions catching up?
Executive order 14302 goes into effect soon
Executive order 14302 is going to prohibit financial institutions from using Chinese securities as collateral on June 2nd, 2022.
The last time Chinese collateral was prohibited on January 27th, and May 27th of 2021, AMC stock surged.
Is this why institutions such as CALPERS and Bridgewater are buying AMC stock?
And while CALPERS did not buy GME stock this first quarter, it did buy 70,600 shares of GameStop during the last quarter of 2021.
I wonder what Wall Street analysts have to say about this.
After all, they made it their life’s mission to derail investors from buying these ‘meme stocks’.
Something tells me ‘dumb money’ might not have been so dumb after all.
But I’m curious to know what you think.
Are institutions on board with the data that says AMC and GameStop have massive potential for a short squeeze?
Leave your thoughts in the comment section of the blog below.
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AMC has been trending downwards since its rise up to $72 per share and now retail investors are wondering, will AMC stock go up?
In a recent article I break down 3 BIG factors that have influenced AMC’s downward trajectory in the past few months.
Although AMC’s share price has been plummeting, the demand for the stock has not.
This key point is going to play a big role in what happens to AMC stock after this bear market is over.
Welcome to Franknez.com – today I want to lay a few key points you should take into consideration if you’re holding AMC stock or thinking of buying it.
Let’s get started!
AMC stock had an incredible year in 2021.
The stock reached an all-time high of $72 per share with only 21% short interest at the time.
Once the share price began to come down, AMC’s short interest had come down to 14%.
As we start the new year, AMC’s average daily volume is incredibly high.
AMC has an average volume of almost 43 million with many days surpassing this amount.
It’s more than 15 times that of GameStop’s current volume.
So why isn’t AMC’s massive demand reflecting in the share price?
That’s the question the ‘ape community’ has been asking regulators all year 2021.
Too many eyes are on regulators right now and at some point, some suppression inflicted by hedge funds will have to subside.
And aside from Omicron and Covid news affecting the entire market, AMC’s massive volume will eventually push the stock price up during a correction.
What does this mean for retail investors?
If you’re looking to get in on AMC for a short squeeze, know the risks, but understand that once this stock takes off you will not be able to buy it at these prices again.
Deflating the short interest
Deflating AMC’s short interest like we saw back in January and June means AMC stock will go up significantly higher from its current share price.
Small short covering allowed AMC to reach $72 per share back in June of 2021.
So why can AMC stock still skyrocket?
Despite the heavy buying volume from retail, AMC still has more than enough short interest percentage to squeeze shorts from their positions.
2022 is only the sequel to 2021’s runup.
The reason mainstream media doesn’t want you to know this is because of their ties to hedge funds and private financial institutions.
These institutions are ‘short’ on AMC and GameStop, meaning they’re betting against them.
Pushing propaganda that will feed their narrative is the safest way for hedge funds to derail retail from further buying the stock that could cause them to default.
Hedge funds such as Melvin Capital, Anchorage Capital, Mudrick, & Archegos are out of the game.
This is why mainstream media will not touch topic on the short interest data that could squeeze shorts from their positions.
AMC Entertainment fundamentals
A short squeeze play has nothing to do with AMC Entertainment’s fundamentals.
The reason being is that retail goes based off of how much shorting there is in the company stock.
Buying the stock en masse (big volume) will cause AMC stock to go up, forcing shorts to close their positions and buy back their shares; triggering a short squeeze.
A short squeeze play does not depend on the performance of the company as a business.
AMC’s fundamentals are not the greatest, the company does have a lot of debt.
However, something mainstream media is not discussing is just how much their debt has gone down each quarter since 2021.
AMC Entertainment’s fundamentals are a discussion I will be touching topic on another blog post very soon so be sure to join the newsletter.
Tesla has now followed by accepting cryptocurrency as a form of payment on their merchandise too.
Debt is the only thing holding AMC Entertainment from being a fundamental buy in the eyes of most in the industry.
AMC Entertainment partnerships
AMC partnered with Chance the Rapper last year for his concert movie release.
CEO Adam Aron announced that they would be working on partnering up with industry leaders for licensing agreements that would allow AMC to provide more of these experiences to their audiences around the world.
Another successful showing was the UFC fight they held in theatres.
The CEO also expressed his optimism surrounding showing highly anticipated sports events in theatres, granted licensing of course.
Retail investors have been specifically waiting for an AMC-GameStop partnership.
A topic Adam Aron teased could be in the works at some point.
AMC theatres released “GameStop: Rise of the Players” on January 28th, earlier this year.
One thing you cannot deny is the community strength and company relationship to its shareholders.
It’s never been seen before.
Do you own AMC stock?
Leave a comment below.
So, will AMC stock go up again?
Based on trader sentiment, community sentiment, and continuous innovation from the company, AMC stock will surge again.
This bear market won’t last forever.
And although the entire market is rather shaky at the moment, there will be a correction.
Hedge funds might have leverage to short the stock, but the people aren’t leaving.
AMC Entertainment will have to focus on growth and revenue if they are to get out of debt in the future.
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Largest pension in America sells 605,501 shares of Netflix (NFLX)
Largest pension fund in America buys AMC, sells Netflix
CALPERS sold a whopping 605,501 shares of Netflix stock (NFLX).
It ended the first quarter with a total of 1.2 million shares in the streaming platform giant.
Netflix stock is down almost 69% this year-to-date.
It dropped 38% the first quarter of 2022 alone.
Netflix received backlash in April after announcing the company plans to advertise on the platform with commercials.
Viewers argued that the company had already built too strong of a foundation to make such a change to its business model and that going that route would hurt its memberships.
Things did not get better after Netflix announced the crackdown of password sharing.
Netflix lost 200,000 customers in the first quarter of 2022.
Now America’s largest pension fund is dumping its Netflix stock and buying AMC Entertainment stock instead.
CALPERS keeps buying and holding AMC stock
Largest pension in America buys AMC, sells Netflix
CALPERS increased their stake in AMC and GameStop throughout the 2021.
AMC and GameStop were two of the highest profile stocks in the market for 2021.
AMC saw gains upwards of +3,000% while GameStop saw gains half of AMC’s.
This year, AMC and GameStop continue to be high profile stocks as their short interest continues to be extremely high, sitting above 21% each.
Last year CALPERS quadrupled their stake in AMC during the 4th quarter where they accumulated a total of 619,400 shares of the largest movie theatre chain in the world.
The pension fund now owns a total of 775,392 shares according to Barrons.
Analysts and corporate media reporters have been saying for over a year now the movie theatre industry was dead due to the rise of online streaming.
While the narrative might support a short sellers view, it’s definitely far from the truth.
People aren’t willing to let go of the movie theatre experience for the convenience of online streaming; lockdowns are over.
There is a massive demand for AMC stock
AMC stock is not done running.
The ‘ape’ community that saved the movie theatre from bankruptcy saw something no one else saw.
AMC has always had a massive short squeeze potential that has yet to be fulfilled.
Mainstream media might have spun the narrative killing the hopes and dreams of newcomers of the possibility some time ago.
But AMC’s short interest data says a third runup will be larger than what the world witnessed in May/June of last year when the stock ran up to $72 per share.
Institutions know hedge funds are overleveraged and the closing of short positions is inevitable.
Buying the stock now as the markets are at an all-time low could bear fruit very soon.
I’m curious to learn what you think.
Leave a comment at the bottom of the blog below.
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If you haven’t read about executive order 14032 yet, you have to take time to read about it soon.
This order is going to affect the markets in an incredible way.
We recently saw small uptick in AMC after hours when it released positive earnings for Q1 of 2022, but it wasn’t able to maintain it due to the pull of the market.
AMC finished green on Friday, up 5.45%.
What is next week looking like?
SPY stock has hit $400 per share quite a few times, which leads me to believe it’s possible this area could be a strong level of support.
For an entire week straight, this level played a very important role, so we’ll have to keep an eye out on where things go from here.
A lot of the market follows the trajectory of the SPY (S&P 500), so we could very well see AMC consolidate for a while, mirroring the rest of the market.
If the SPY begins to make a break and move upwards, we could very well see AMC start a similar pattern, and vice versa.
But regardless of what happens, early June seems like it will be a very important time for AMC due to executive order 14032.
I’m curious to learn what you think.
Leave your thoughts in the comment section of the blog below.
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Biden’s executive order 14032 replaced Trump’s executive order 13959 last year.
Executive order 13959 prohibited financial institutions to use Chinese securities as collateral, momentarily.
This propped up margin calls because of the large exposure our financial institutions have to Chinese securities.
When these securities were no longer accepted as collateral on January 27th, 2021, AMC stock surged.
The order was shortly amended (moved) to May 27th, 2021, where AMC stock had its second surge, reaching an all-time high of $72 per share only a few days after.
Biden then shortly passed executive order 14032 which gave institutions their collateral back for 365 days on June 2nd, 2021.
Well, those 365 days are coming to an end, and it seems June of 2022 could be a big month for AMC stock.
Let’s discuss it.
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No dates, only info
I’d like to make clear that the information provided in this article is merely only information backed by real government documents and data.
This excerpt is not to confirm a specific date where we can anticipate AMC stock to move up in price action, but rather acknowledge what’s happened in the past that could very well occur today.
Executive order 13959
Redditors were wondering whether there was a document that confirmed the replacement of executive order 13959.
And here it is – the order was replaced by executive order 14032.
One of the biggest differences between these two orders is that the previous executive order affected a total of 30 securities.
Executive order 14032 will affect more than 70 securities.
Executive order 14032 is to go into effect on Friday June 3rd, 2022.
Will executive order 14032 trigger a short squeeze?
Given the nature of the rule, executive order 14032 will prohibit institutions to use Chinese securities as collateral, which will result in large margin calls.
When executive order 13959 disarmed institutions with this collateral in January of 2021, AMC surged to $20+ per share.
The order was amended as stocks surged resulting in sharp declines, giving institutions this collateral back.
The amended date moved to late May, where we saw AMC reach an all-time high of $72 per share.
Institutions were then given their collateral back on June 2nd for a period of 365 calendar days.
This collateral will no longer serve institutions on June 3rd until the order is amended again.
The expiration date in early June leads us to conclude we will see major short covering in heavily shorted securities such as AMC stock.
And because the list of Chinese securities being affected has increased, this means the amount of collateral that will be removed has also drastically increased.
If history repeats itself, this next surge will be massive.
That’s not even taking into consideration the next amended date.
Will this executive order lead to MOASS?
I’ve mentioned in previous articles I don’t think institutions will be held accountable for synthetics, but I hope I’m wrong.
One thing I do know is retail investors will need to keep an eye out on AMC’s short interest data to identify whether short sellers are calling it quits or sticking around longer.
No matter how high AMC’s price surges, the short interest data essentially provides investors with insight on how much fuel is left in a short squeeze play.
When AMC rose to $72 per share, the short interest had dropped to 16% from 20%.
