Tag: What is a short squeeze?

Is It Too Late To Get In On AMC Stock?

Is it too late to get in on AMC stock?
Is it too late to buy AMC Entertainment stock?

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

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 and sell 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.

franknez.com
trending investing topics

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!

Will we see a squeeze with AMC?

AMC Entertainment short Squeeze

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 currently the most shorted stock (via. MarketWatch) Unfortunately MarketWatch has hidden AMC from their list. Retail investors suspect foul play.
  • 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

Big institutions keep buying AMC stock

We’re seeing huge institutions are investing in AMC stock while it’s affordable. 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 $55.18 on June 16th. The stock has been green for quite some days now and is more bullish than ever. However, shorts continue to short ladder the stock causing some consolidation. AMC wants to keep climbing.

Short-laddering occurs when short investors buy back their shares at a low price, driving down (or leveling the stock) gains. These are the attacks we’ve been seeing whenever AMC begins to see gains, all year.

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

Great news for AMC Entertainment

Other news that can further drive the share price of AMC stock is the announcement that most AMC theaters have now begun to open up.

BREAKING: AMC’s short borrow fee as of 6/16 is 1.68%, via. Fintel.

The fee is going up although it had recently come down.

What is a short borrow fee?

AMC short borrow fee
Franknez.com

The short 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. If we want to squeeze shorts from their positions we’ll need to see this short borrow fee gradually increase.

Why the short borrow fee rate matters

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

Shorts are losing money every day 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 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 continue to pay interest for borrowing.

How high can AMC stock go up to?

AMC to the moon

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

This is actually quite logical given that we’re seeing more and more people and institutions alike purchase AMC stock and hold their positions.

There’s a notion that all these suppressed gains will result in a massive short squeeze during the Summer. Again, this is all speculation but all signs are pointing towards big gains.

So, is it too late to purchase AMC stock?

Not at all. In fact, if you’re looking to get into the AMC train now is the perfect time to do so.

The price after a short squeeze eventually fall back down and level out, but this will take time. With AMC stock treading below $100, now could be the perfect time to buy. Just don’t wait too long because we hear it’s going to the moon.

AMC’s short borrow fee keeps going up, hedge funds continue to short it, 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

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. Retail investors can feel it, the tendies are coming.


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). 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. Here, I hold long-terms stocks as well as a position in AMC.

Brokerage account Vanguard
AMC

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.

More info on AMC from Trey’s Trades (Analyst)

Trey is an analyst in the stock marketing and trading world. His videos are super fun to watch as they are very informative and downright transparent. Furthermore, Trey’s personality just makes the videos all that much better.

Be sure to follow Trey as he engages his audience live when the market opens for real-life discussions.

Trey’s Trades – AMC Huge Institutional Buyers!

It’s important to keep yourself updated with the latest AMC news so you can invest with confidence.

This is not Trey’s Trades most recent video but it’s a very important one. Be sure to keep up with AMC analytics so that you’re aware of the play.

Another great Analyst covering AMC right now is Roensch Capital. They’re a little more analytical, but a trustworthy source nonetheless.


Everything is falling into place for AMC stock

Other YouTubers covering AMC in depth include Matt Kohrs, Max Maher, and Andrew Mo Money.

What’s cool about these YouTubers is that they all go on each others channels from time to time and do collaborations regarding DD. Trey and Roensch Capital are by far my favorite channels covering AMC.

I personally started following Trey’s Trades when he had about 10,000 subscribers. He’s nearing 300,000 now, and well deserved by the way.

But, if you want daily technical analysis on AMC, Roensch Capital is the channel for you.

Ignore the 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.

The fool vs AMC

Fortunately we’ve been backed up by the real Wolf of Wall Street as well as 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. That’ll be another post for you.

Trending: How High Can AMC Stock Price Skyrocket Up To?

And lastly…

Franknez.com

If you haven’t subscribed to our newsletter be sure to do so to stay informed when a new blog post is published. Blog posts will range from personal finance to business and even investing posts like this one.

Also, please give this post a social share as it helps provide curious investors like you and I with valuable information to help them come up with an investing decision.

#AMCtothemoon #Diamondhands

Support the blog on Patreon.

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

Twitter | Facebook | Instagram


How Soon Will We See An AMC Short Squeeze?

How soon will we see an AMC short squeeze?
Franknez.com
AMC Short Squeeze – #AMCtothemoon #AMC

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

What a storm. What a battle right? AMC keeps on keeping on, and although AMC has been on discount recently, the stock seems to have a very nasty and bullish attitude.

Yes, shorts have been able to drive the price down through naked short selling but more on that later. Retail investors are very excited about the data that’s been collected for months now. Will we see an AMC short squeeze while we continue to ride this bull? And if so, how soon?

franknez.com

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

Lets get started!

How soon will we see an AMC short squeeze? Retail investors all want to know. Is it this week? Will it be next week? Or, are we looking at a longer game here? Here’s what we know.

Key Highlights

  • AMC closed at $55.18 on June 16th. The stock has fundamentally surged despite short sellers attacking it. AMC Entertainment is set up for a short squeeze.
  • The perfect time to buy AMC stock is when the market is red, or what we refer to as on ‘discount’. AMC is looking bullish though, red days might just be over.
  • AMC entertainment continues to be the most heavily shorted stock in the market.
  • AMC’s short borrow fee continues to increase.

Some of you reading this article might have been holding since February now. Kuddos to you for holding the line. If you’re a new retail investor getting in on AMC be sure to thank the seasoned apes when you get a chance.

Below is a series of documented facts and positive news that all influence AMC’s potential towards a short squeeze. One thing is certain, it’s inevitable.

AMC stock news and highlights

FOX Business reported AMC to have a strong chance of a short squeeze. Coming from a big news platform it certainly brings the stock sentiment up for most retail investors.

This is the type of news retail investors need to keep an eye out for.

AMC Short Squeeze News Fox Business
Strong chance of a short squeeze – Fox Business AMC

AMC is still currently the most shorted stock in the market.

Unfortunately, MarketWatch has completely obliterated AMC from their list. Being a hedge fund affiliate, retail investors suspect foul play.

President and CEO of AMC Entertainment Adam Aron, announced AMC will reopen all 13 AMC theaters in New York City as of March 5th. As of today, all AMC movie theaters are now open across the United States with many selling out.

Check out what Adam Aron had to say (via. Investor Relations AMC)

“Since reopening our first theatres with AMC Safe & Clean in August, AMC has welcomed back nearly 10 million moviegoers nationwide without a single reported case of COVID-19 transmission among moviegoers at our theatres. We look forward to welcoming back our New York City guests to the big seats, big sounds and big screens that are only possible at a movie theatre.”

Adam aron, President and CEO of AMC Entertainment

For those who thought AMC was a dead company, think again. The company is now generating big revenue since it’s reopening.

Melvin Capital suffered 49% loss 1st quarter

Melvin Capital AMC Stock
Melvin Capital Hedge Fund – AMC

This is huge! Melvin Capital is a hedge fund that has been shorting both AMC and GME stock.

Melvin Capital suffered a 49% loss it’s 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
  • An AMC short squeeze might be closer than we think

Here’s what retail investors can do:

  1. Continue to hold your positions, it’s free
  2. Buy the dips to counter any short attacks
  3. Share articles on social platforms that can provide value to the community
  4. Keep a close eye on the stock to not miss the squeeze

I’m going to discuss a little more on the short borrow fee that continues to increase for these hedge funds shorting the stock. This is going to be a massive component to a short squeeze.

Positive news for AMC Entertainment

Adam Aron gives positive news on AMC Entertainment
  • 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
  • AMC Entertainment has implemented a Safe & Clean program under the advisement from Harvard University’s prestigious School of Public health as well as well as the No. 1 U.S. cleaning brand, The Clorox Company. This means movie goers can now return at ease knowing a proper sanitation program has been put in place.

Hedge fund affiliate partners such as MarketWatch, The Fool, and other finance website have been trying to redirect the public from investing in this stock. That’s primarily because hedge funds are losing millions by the day.

A short squeeze could even put them out of business. This is why it’s important for me to spread the positive news surrounding AMC. I don’t believe in the manipulation of the media and I will continue to update these articles as more great news unfolds.

There will not be a 500 million AMC share dilution!

In recent news, Adam Aron has announced that AMC Entertainment no longer plans on proceeding with the plans of adding 500 million more AMC shares to the arsenal in a tweet on Tuesday, April 27th.

Adam Aron AMC Entertainment CEO Twitter
Adam Aron – President & CEO of AMC Entertainment

You can read AMC Entertainment’s official announcement on their press release page here.

Short sellers fell for an AMC dilution

As of 6/16, we’re seeing 2.3 million short shares have been made available to borrow, via Fintel.

AMC short shares available Fintel

Was Adam Aron’s approval request of a 500 million share dilution to his shareholders a strategy to trick shorts into borrowing more shares? I personally think so and it’s absolutely genius. Shorts continue to borrow shares.

While shorts might have the capability to short AMC stock, this is only temporary. They will run out of borrowed shares and eventually have to cover. There are finally investigations going around regarding naked shorting.

Yeah.. I sense a grand mother of all short squeezes. #GMOASS

What does this mean for the AMC shareholder?

Expect to see gains after shorts have run out of borrowed shares to use. Hedge funds and short sellers alike have dug a deeper hole for themselves. What this means for the AMC shareholder is a squeeze bigger than anything the market has ever seen before. I am personally doubling down.

Not only is bankruptcy off the table (via. Los Angeles Times), but AMC movie theaters are now about to begin reopening in larger parts of the United States. Which of course now introduces revenue.

AMC Q1 earnings for 2021

AMC announced their Q1 earnings for 2021 on Thursday, May 6th. Things are looking particularly bullish and optimistic to say the very least.

For the retail investor this means the upper hand is yours. AMC Entertainment has raised over $2 billion dollars to hold them off until the year 2022. And we still have to go through Q2, Q3, and Q4!

Unfortunately for hedge funds shorting the stock, it’s over. If you missed the conference call you can view it here for your viewing pleasure.

AMC Q1 2021 highlights

  • The AMC community is recognized
  • Q1 earnings are higher than last years 4th quarter
  • Expectations for Q2 – Q4 are much higher
  • Food and beverage sales are up by 45%
  • Sales revenue will continue to rise as new titles are being released

When will an AMC short squeeze happen?

When will an AMC short squeeze happen?

It’s really hard to tell. Even experts can’t identify an exact date and time. However, the possibility of an AMC short squeeze is certainly possible given that it is still the most shorted stock in the market and the stocks volume continues to rise. We also now have more data then ever before that indicate a massive short squeeze is almost certain to happen. Especially now that the SEC has announced some crackdown on shorting.

With Melvin Capital and other hedge funds losing money, it’s only a matter of time before the short borrow fee continues to skyrocket and shorts have to close their positions.

It’s tendie time!

Analyst AMC predictions

With that being said, Trey’s Trades predicts a short squeeze is now certainly guaranteed. Trey has been a leader in the AMC community and deserves a spot on this page.

More data points towards the stock reaching $1000+ per share.

See what stock analyst Trey has to say.

AMC short squeeze

The real questions is how can retail investors make this AMC short squeeze happen?

We know that short-sellers eventually have to cover their spots. This means that they will eventually have to buy AMC stock at the current share price.

  1. If retail investors continue to drive the share price up by buying the dip and holding their positions, short-sellers will have no other option than to buy from the retail investor at a higher share price.

NOTE: Retail investors do have to sell a bit as the price goes up in order to keep that momentum. Look at it as giving rats crumbs. Not only will they want more but they’ll need more.

2. Retail investors will also need to buy the climbs in order to show a demand for the stock. This doesn’t have to be huge buys, rather incremental to validate the current share price.

This play essentially creates a supply and demand scenario between retail investors and short-sellers. The results? A short squeeze.

Hedge funds are doing everything they can to prevent an AMC short squeeze from happening

How are they doing this?

  • By promoting false information online (we’re certain you’ve seen it)
  • Through strategies such as short-ladder attacks in the market
  • And, by restricting certain brokerage accounts from allowing its retail investors to purchase or buy shorted stocks (Robing hood)
AMC Gorilla

This is what retail investors can do to fight corruption

  • Share content that presents facts (blog posts, analysis videos, etc.)
  • Continue to educate yourself and make investment decisions based on your personal analysis
  • Protect the community and one another
  • Follow your instincts

Read: How Hedge Funds Manipulate The Stock Market

What will an AMC short squeeze look like?

We’ll begin to see a trend similar to that of GME (Gamestop). AMC will enter a bullish territory before hitting an ‘abnormal’ peak in which AMC would have ‘squoze’.

What will an AMC short squeeze look like?

According to Trey’s Trades we’ve already hit the bottom. AMC is now extremely bullish. We’ve seen resistant levels around $14-$16 recently which is a great push from $5. We’re now sitting at $55.18 per share.

Recent performance and news is leaving retail investors with positive speculations. An AMC short squeeze will certainly make headlines. Expect to see various gains prior to any sort of major peak as well as volatility.

Retail investors will have to hold their positions through upcoming gains if they want to see AMC short squeeze.

But most importantly, they’ll have to refrain from selling at the first sight of gains if they are to see bigger and more massive gains.

Gamma squeeze vs Short squeeze

Don’t confuse gains and momentum with a short squeeze.

Here’s the difference between a gamma squeeze and a 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.

AMC Short Squeeze Stock Prediction

New retail investors are wondering whether $1k, $10k, or even $100k per share is even possible.

Gabe from ReviewDork does some math that’s going to leave you with an open mind.

AMC stock price predictions range from $1,000 to $100k+.

Will AMC reach peaks like GME?

AMC has been fortunate enough to receive more publicity and hype than GME did, at least recently. The volume will speak for itself and retail investors will just have to wait to find out.

We’ve seen that abnormal gains are naturally part of a short squeeze. Volkswagen rose up to nearly $1,000 when it squeezed back in 2008 due to a similar strategy produced by car manufacturer Porsche.

Analysts are predicting AMC can even go above the $1K mark if retail investors and institutions alike continue to buy and hold their positions. Wouldn’t this be something. If you’re holding 1,000 shares and AMC spikes to $1K per share, you my friend have made 1 million dollars!

Trending: Is It Too Late To Get In On AMC Stock?

Is it too late to get in on AMC stock?

Absolutely not, at least not yet. AMC Entertainment is still heavily shorted. You will have to decide whether its current share price is worth it if trades at $100, $500, or even $1,000+. AMC Entertainment stock has not even started squeezing yet.

Redditors have touched base on this topic and advise anything below $100 is a buy. I’ve been personally buying the stock when it dips. This allows me to pick up more shares at a discount.

If you’re a beginner, I recommend buying 5-10 shares of AMC stock. This amount will give you a feel of the market. Not only is it affordable, but if the market is red you won’t see much loss on paper.

Where was AMC trading at before the pandemic?

AMC was actually trading between $30-$35 back in the booming party economy of 16′! AMC stock started to decline as their debt increased and hedge funds began to heavily short it.

What if a short squeeze doesn’t happen?

If an AMC short squeeze doesn’t occur, AMC stock price will still go up allowing shareholders to make at least some sort of profit.

With AMC theaters now open, it’s inevitable that the company will begin to see bigger sales revenue every time a new title is released. I update this post when new titles make the headlines regarding earnings.

Keep in mind that AMC’s share price during the booming party economy of 16′ was roughly around $30 per share. If a short squeeze doesn’t happen, fundamentals will continue to bring the stock up as more investors are buying the stock.

However, a short squeeze not happening is very unlikely as AMC is currently the most shorted stock in the market and most held stock, beating both Apple (AAPL) and Tesla (TSLA), via. NASDAQ. Majority of the float is also held by retail investors and short sellers are going to be forced to close their positions very soon, more on that coming up.

As Mark Cuban bluntly put it, keep holding.

Why hasn’t AMC squeezed yet?

AMC hasn’t squeezed yet primarily to two main reasons.

  1. We need more volume to drive the stock price action up
  2. Shorts need to close their positions

Volume really just comes to more and more retail investors as well as institutions getting in on AMC stock.

Regarding shorts covering, retail investors need to squeeze them out of their positions by holding their positions and helping increase AMC’s short borrow fee. You can keep tabs on AMC’s short borrow fee as it changes every day via. Ortex, or Fintel.

AMC short borrow fee (Fintel)

As of 6/16 AMC’s short borrow fee rate is 1.68%.

Unfortunately for shorts, an AMC short squeeze is inevitable. Retail investors are not giving up.

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

Aside from this, Wanda Group had caused a little bit of disruption for retail investors by profiting on the first sight of gains.

This turmoil was only short-term but is a reason why we’ve seen some selloff in the market a few weeks ago.

However, Adam Aron has recently brought awareness in an interview with Trey’s Trades that this selloff from Wanda is simply policy from China. Retail investors should not be concerned.

We’re bullish on AMC stock

All the numbers point towards the right direction for a massive short squeeze. Shorts and hedge funds continue to lose money every day. The interest is growing at an alarming rate and AMC’s current utilization is at 100%.

The lives of these retail investors are about to completely change. Say goodbye to your old world.

Related: AMC margin call: the squeeze is inevitable

And lastly…

A quick message from Frank Nez

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 positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.

Franknez.com

If you haven’t subscribed to our newsletter be sure to do so to stay informed when a new blog post is published. Blog posts will range from personal finance to business and even investing posts like this one.

Also, don’t forget to connect with me on Twitter, Instagram, and Facebook.

AMC with Franknez.com Discord

Join the AMC with Franknez.com Discord here.

You can support the blog on Patreon.

What will an AMC short squeeze mean for you?

Let us know in the comments section below what an AMC short squeeze would mean for you! If you’re an AMC shareholder let us know in the comment section below.

#AMCtothemoon #Diamondhands #AMC1000 #SaveAMC

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


Why is AMC Entertainment Stock Going Up Again?

Why is AMC Stock Going Up Again?
#AMCtothemoon #diamondhands

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

AMC stock is going up and continues to leave hedge funds and publishers such as Yahoo Finance, The Fool, and other sources baffled.

Although hedge fund partners are sticking together to mislead the publics opinion when investing in AMC (and other “meme stocks”), we’re going to let you know why this particular stock is going up.

Please keep in mind that I am not a licensed financial advisor. All the information you are about to read is based on expert sources and will be presented in a manor that informs you why AMC stock is going up.

Franknez.com
Why is AMC stock going up

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

Lets get started.

Volatility is normal in the stock market

We’ve seen a lot of volatility in the market recently. If you’re a new investor chances are you might have been scared off to sell and then noticed the stock slightly go up again in the green tier.

Don’t feel bad, volatility in the stock market is normal. This doesn’t just apply to AMC stock. But if you haven’t sold, kudos to you. #diamondhands.

So, what’s causing the stock to go back up? Well, there are numerous reasons why AMC is back in the green tier. Keep reading to find out whether this stock might be a good pick for you.

Reasons why AMC stock is going up

reasons why amc stock is going up
  1. Large institutions such as Wells Fargo, Vanguard, BMO Harris, Charles Schwab, Fidelity, & BlackRock are buying the stock right now (via. CNN Business)
  2. AMC CEO Adam Aron, announced bankruptcy is officially “off the table” and have raised $2.2 billion in cash this new year.
  3. Because AMC is currently the most shorted stock (via. MarketWatch), the stock price has gone up and will continue to go up as long as retail investors keep buying the stock. *Unfortunately MarketWatch has removed AMC from their list. Retail investors suspect foul play from this hedge fund partner.
  4. AMC is currently the most held stock surpassing Apple (AAPL) and Tesla (TSLA) – via Nasdaq.
  5. Godzilla vs. Kong secures $9.6 million in ticket sales on it’s opening night! Keep reading below for the numbers on NEW titles increasing AMC Entertainment’s revenue.
  6. SEC is starting to crackdown on short sellers.

AMC Entertainment is no longer on the brink of bankruptcy

There’s actually a lot of positive things going on for AMC Entertainment despite what The Fool, InvestorPlace and other shill news might try to convince you of.

The sentiment behind AMC stock keeps getting bigger and bigger and bigger by the day. This is primarily because people are smarter than these hedge funds think. Ultimately, the data speaks for itself.

Now, Adam Aron who is the President and CEO of AMC Entertainment has done an outstanding job with the media. In this video we can hear his optimism for the movie theater chain before AMC theaters began to reopen.

As of April 2021 all AMC movie theaters are now open with many even selling out.

If you’re familiar with Trey’s Trades you’ve more than likely seen his interview with Adam. I wrote a piece on this to highlight key moments of the interview.

You can check it out here.

AMC Q1 2021 Earnings

AMC just announced their Q1 earnings for 2021. Things are looking particularly bullish and optimistic to say the very least.

For the retail investor this means the upper hand is yours. AMC Entertainment has raised over $2 billion dollars to hold them off until the year 2022. And we still have to go through Q2, Q3, and Q4!

If you missed the conference you can check it out from Matt Kohrs imbedded here for your viewing pleasure.

Fundamentals are also causing AMC stock to go up

AMC Entertainment as a company has a lot of partners and friends they’ve gained throughout the 100 years they’ve been in business.

They’ve been able to raise money to pay off debt and focus on ways to welcome people back to the movie theaters safely.

Revenue is a very positive factor playing into the fundamentals of AMC’s stock price action. AMC Entertainment is set to release a ton of awesome titles this year which has people excited for that movie theater experience.

AMC’s CEO is one great leader

With this being said, Adam Aron, CEO and President of AMC Entertainment is not backing down. Adam has talked about his experience saving Norwegian Cruise Line and how he intends to to keep AMC alive for as long as he lives to run the company.

If you haven’t seen his interview with Trey’s Trades you can watch the video embedded here for a more in depth perspective of what AMC Entertainment means to him.

Why are large institutions buying AMC stock?

Vanguard AMC

Speculation would point out AMC is possibly a good investment, contrary to what Yahoo Finance, The Fool, and other resources are leading the public to believe, right?

It is important to note that these institutions are purchasing millions in AMC stock. Just a side note here: if AMC isn’t a good investment like some sources are pumping out, then why are large institutions buying while the stock is low in price? Hmm..

My educated guess? Large institutions aren’t going to be wanting to miss out on upcoming gains from a short squeeze.

Aside from a short squeeze however, AMC Entertainment seems to be a good buy even as a long-term stock. Adam Aron, CEO and President of AMC has shared his optimistic views towards the direction of his company.

AMC is a good buy with or without a short squeeze.

What is a short squeeze?

A short squeeze occurs when a stock jumps sharply higher, forcing short sellers to buy higher, causing them to lose money. This in turn makes the retail investor (you and I) a LOT of money.

This notion of an upcoming short squeeze is drawing in a lot of attention. This is why we’re seeing AMC stock go up as well. Its purchase share volume is going up.

And where there’s attention, there’s money to be made.

Volume is important for an AMC short squeeze

As more and more retail investors get in on AMC and continue to buy and hold, we’re going to keep experiencing the stock price rise.

Because volume is such an important factor, retail investors and institutions will need to not only buy the dips but the gains as well.

By buying the gains in increments, the market processes this as a demand in the stock; further driving up the share price.

The main reason why AMC stock will keep going up

A short squeeze needs volume

AMC is currently the most shorted stock in the market.

Short-sellers such as Melvin Capital bet on the businesses like AMC to lose. These are the folk that don’t care about workers losing their jobs, or about the companies success. This hits home to most retail investors which means convictions towards AMC stock is strong.

The way these short-sellers make money is quite simple. They short the stock. However, they’re not making any money right now. In face, they’re upside down by billions of dollars.

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 and driving the share price to the ground.

Fortunately, retail investors like the stock and are against shorting it. This is why AMC continues to go up. Retail investors have all the time in the world to see this short squeeze through. Shorts however, are paying the price every day.

And if you’re wondering, yes this is exactly what occurred with GameStop. Except AMC might just be the MOASS (mother of all short squeezes).

Melvin Capital suffered 49% loss 1st quarter

Melvin Capital

This is huge for retail investors. Melvin Capital is a hedge fund that has been shorting both AMC and GME stock for quite some time now.

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

The importance of this is very significant. AMC is not a dead cat. Hedge funds continue to short the stock in hopes that they can reverse what’s been done. Unfortunately for them it’s only a matter of time before shorts are squeezed out of their positions due to the increase in short borrow fee and utilization of the stock.

AMC Entertainment has been heavily short laddered in the recent weeks. However, the stock seems to continuously correct itself which is why we’re seeing AMC go up again.

For some reason AMC does not like single digit numbers. This stock is going to continue to test high levels of support as fundamentals push the stock in an upwards trend. Fundamentals such as earnings will play a major role in this organic push up.

r/wallstreetbets like AMC stock

r/wallstreet bets like AMC stock

The people, along with r/wallstreetbets do not want the movie theaters closed. They are purchasing AMC at the dip and holding. This is where the terms diamond hands comes from.

According to Robinhood, AMC is the most held stock beating both Apple (AAPL) and Tesla (TSLA)! Source: via Nasdaq.

This means AMC shareholders will eventually have leverage over the stock from short-sellers as the price goes up.

As long as retail investors continue to hold, we’ll begin to see a supply and demand situation.

Short-sellers will eventually have to buy from retail investors to cover their spots, inevitably driving AMC share price higher.

Positive AMC Theater news!

AMC movie theaters across the entire country are selling out! New releases are serving the movie theater industry very well.

Godzilla vs. Kong secures $9.6 million in ticket sales

AMC theater - Godzilla vs Kong

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. As of April 26th it has done over $400 million global!

Leave me a comment below if you watched the film. I personally loved everything about it.

Mortal Kombat & Demon Slayer outperform earnings

Mortal Kombat brought in 23.3 million its opening weekend. Critics expected Mortal Kombat to reach no more than 15 million. A huge victory for the cinema industry! Not only that but Demon Slayer drew in another whopping 19.5 million its opening weekend.

AMC theater Mortal Kombat

Mortal Kombat reps the biggest R-rated opening to-date during the pandemic. The beautiful thing is that we have other amazing titles coming to the movies that can continue to scale beyond these numbers.

The top 10 locations for Mortal Kombat were:

1. AMC Burbank Los Angeles, 2. Santikos Palladium San Antonio, 3. Cinemark Tinseltown El Paso, 4. Santikos Casa Blanca San Antonio, 5. AMC Orange Los Angeles, 6. Cinemark Pharr Town Center (Texas), 7. AMC Empire New York, 8. Cinemark Century 16 Corpus Christi, 9. AMC Gulf Pointe Houston, and 10. AMC Southlake Pavilion Atlanta.

Source, via. Deadline.

I have not watched Demon Slayer yet but Mortal Kombat was a fun film to watch. I grew up on the video games (shoutout to GameStop) and the older films so seeing this today made my year. If you have not gone out to your local AMC theater I recommend you do.

A Quiet Place Part II: $57 Million Pandemic Record

A Quiet Place Part 2 earnings
Movie theater earnings: A Quiet Place Part 2

A Quiet Place Part 2 debuted in theaters on Friday May 28 and broke pandemic records in the cinema industry.

Paramount’s A Quiet Place Part 2 topped Godzilla vs. Kong and Mortal Kombat combined on their opening night reaching $57 million over the Memorial Day Weekend. A huge congrats to the industry and AMC Entertainment.

As more Americans continue to get vaccinated, health concerns ease. AMC Entertainment is seeing a critical mass effect as the public feels safer. I’m personally happy for the century old company and its shareholders invested in the stock.

The Conjuring Earns $11.5 Million Opening Weekend in the U.S.

The Conjuring: The Devil Made Me Do It earned $11.5 million its opening weekend and grossing 57.1 million worldwide. Congrats to James Wan and the movie theater industry. The Conjuring films are currently the top grossing horror franchise of all time with $1.9 billion at the global box office.

Wall Street analyst upgrades AMC Theatres

Wall street analyst says, ‘Godzilla vs. Kong’ “Destroys lingering concerns around theatrical window importance and demonstrates a solid path to resurgence”, via. Hollywood Reporter.

Eric Wold goes on to say, “Consumers want to leave the house and return to the theater.”

There seems to be a massiveness of positivity going around for the theater industry, especially AMC being the leader. As AMC continues to increase their sales revenue with hit titles, you can expect AMC’s stock price to continue surging. Massive victory for the AMC theaters!

Upcoming movie news and revenue will be updated here so be sure to follow me on Twitter to know when the post has been updated.

Is it too late to get in on AMC stock?

In short, no. With the price of AMC stock being affordable to majority of the public, it’s a steal right now. Especially considering it was much higher prior to the pandemic. The share price was around $30 back in the booming party economy year of 16′!

I strongly believe AMC will do well post pandemic, and apparently so do other institutions (with or without a short squeeze).

Read: Is it too late to get in on AMC stock?

Are you holding AMC Stock? Let me know in the comments section below!

Where can I learn more about AMC’s short squeeze?

Trey’s Trades is currently blowing up. He’s an analyst who trades in the market and provides outstanding material on his YouTube channel. If you haven’t checked out Trey’s Trades make sure to do so, you’ll be happy you found this channel.

Trey’s Trades – Huge Institutional AMC buyers!

Another great analyst on YouTube is Roensch Capital. They provide more detailed analysis on the stock if you’re into deep chart digging. While Trey is more energetic and entertaining to watch, Roensch Capital is a little more serious and dives in straight to the research.

These are two channels I particularly enjoy which is why I’m sharing them with you today. My mission is to provide you with valuable information. While there’s a lot more people covering AMC on YouTube, these two channels are by far the best analysts on the platform in my opinion. If you’ve never heard of them before, make sure you leave them a comment and let them know you found them through FrankNez.

And lastly…

A quick message from Frank Nez

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 positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.

FrankNez has a message for you
franknez.com

If you haven’t subscribed to our newsletter please be sure to do so to stay informed when a new blog post is published. Blog posts will range from personal finance to business, side hustle ideas, and more trending investing posts like this one.

Also, please give this post a social share as it helps provide curious investors like you and I with valuable information to help them come up with an investing decision.

AMC with Franknez.com Discord

Join the AMC with Franknez.com Discord here.

You can support the blog on Patreon.

Are you hodling AMC? Leave a comment below what a short squeeze would mean for you or your loved ones.

#AMCtothemoon #Diamondhands

Related: How soon will we see an AMC short squeeze?

Twitter | Facebook | Instagram


When Do Shorts Have to Cover Their Positions? (AMC)

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

When do shorts have to cover their position?

Every retail investor holding a position in AMC wants to know, when will shorts cover their positions? And I don’t blame you.

This one is a little tricky. See, it’s like saying, “when will retail investors sell their positions”?

franknez.com - when do shorts have to cover their positions AMC

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

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.

So, why aren’t shorts covering their positions yet? What do retail investors need to do to squeeze hedge funds out of their money?

Are shorts obligated to close their positions?

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.

AMC’s short borrow fee rate as of 6/10 is: 2.95%.

Keep an eye on this interest as it will determine just how much shorts are bleeding. Hedge funds currently shorting the stock are losing money every day. And regrettably for them it’s getting worse the longer they hold. I can feel a short squeeze coming.

Why does the short borrow fee matter?

The short borrow fee is an interest that shorts must pay for borrowing AMC shares. And although the interest continues to rise for them, shorts aren’t going down without a fight.

AMC short borrow fee interest

They will hold in hopes to drive AMC’s share price right back down to the floor. However, AMC is trending upwards now and has absolutely no intention of going back down.

Analysts data and AI predictions all point towards a high possibility of a short squeeze. Even Fintel’s short squeeze score has been as high as 80-90% in recent weeks.

AMC Short squeeze Score Fintel

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

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

The short sellers conviction is strong, even though they’ve already lost. It’s only a matter of time before they have no other option than to forfeit.

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

Retail investors can help drive the short borrow fee up simply by holding their positions.

When AMC squeezes, retail investors will have to continue to hold their position on the way up. Not every short will close their positions immediately.

If we begin to see AMC’s price action rise monumentally, it is important to understand that there’s more potential because not every short seller has closed their position.

We might see AMC drop a little after it peaks. However, if retail investors continue to hold, it’s only going to continue squeezing more and more shorts resulting an further perpetual gains.

Melvin Capital suffered 49% loss 1st quarter

Community, this is massive. Melvin Capital is a hedge fund that has been shorting both AMC and GME stock. These are the people trying to drive the stock to the ground.

Melvin Capital suffered a 49% loss it’s first quarter of 2021, via. Markets Insider. Unfortunately for them, this is only going to get worse.

Retail investors are hodling to the moon. They are not waiting for $100 price action anymore, and some are certainly not waiting for $500+ share price anymore. The Reddit community is set new standards for the AMC’s stock price.

Here’s why this matters:

  • Not only are shorts losing money every day but huge hedge funds are bleeding billions of dollars due to retail investors holding
  • This is a huge win for retail investors – our favorite companies have been saved
  • Unless shorts close their positions, hedge funds will continue to suffer
  • Interest rates will continue to skyrocket for short sellers, enabling them to close their positions sooner than later
  • An AMC short squeeze might be closer than we think

Here’s what retail investors can do:

  1. Continue to hold your positions, it’s free
  2. Buy the dips to counter any short attacks
  3. Share articles on social platforms that can provide value to the community and keep everyone informed
  4. Keep a close eye on the stocks performance so you do not miss the squeeze

Hedge funds are not going to be able to recover from this. Yes they can possible receive help from huge banks but this too will be at a cost.

Furthermore, borrowing money from banks won’t change the fact that shorts still have to cover their positions. Retail investors are buying AMC stock every day. Shorts are fighting a war they cannot win.

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

What happens when a short covers their position?

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

In AMC’s case, shorts who drove the price down to $5 but are still holding to-date are at a loss. AMC is currently trading close to $42.81 give or take, as of June 10th.

When there’s a ton of short covering happening in a particular stock, it will result in a short squeeze.

What is a short squeeze?

What is a short squeeze?

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

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

Short squeezes are massively profitable for retail investors. These one-time phenomena are how people are able to accumulate wealth in such little time.

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

So, when will AMC shorts cover?

Instead of exiting, short sellers are holding. Some shorts might be waiting for a more favorable price to close their positions.

Another way shorts will be forced to close their positions in AMC is through a margin call. This is when their accounts don’t have the sufficient funds to meet the accounts minimum amount of dollar required. At this point they are forced to liquidate.

Now, because there’s no rule to how long they can hold their positions, they’re in the long game like most retail investors waiting on a short squeeze to happen are.

The good news is that AMC bankruptcy is no longer on the table and Wall Street analysts are even saying the industry is on a solid path to resurgence, via Hollywood Reporter.

As we continue to see a high utilization and the short borrow fee increase, we can only expect shorts will cover sooner than later.

Related: AMC Margin Call: The Squeeze is Inevitable

What percent does the short borrow fee have to be?

When GameStop squeezed the first time, the short borrow fee was somewhere around 80%.

AMC’s short borrow fee is currently at 2.95%, via. Fintel on 6/10 and reached up to 90% a few weeks back. AMC stock is getting harder and harder to borrow. There seems to be some sort of manipulation here. The interest should be much higher.

Short sellers have been borrowing millions of shares to short. It seems they thought AMC’s 500 million share dilution was going to go through. Funny enough Adam Aron, the CEO and President of AMC Entertainment actually scrapped that idea leaving short sellers in a deeper hole.

I personally think retail investors are going to experience the short squeeze of a lifetime. Strap in.

AMC’s price action will continue to go up

Journalists and analysts alike are now claiming AMC to be a big buy. Shorts can continue to hold their loses on paper for months to come, or close their positions while it’s at the current price action.

Closing now is recommended due to an overwhelming amount of attention AMC Entertainment has received.

With new titles coming to AMC movie theaters soon, we’re only going to continue to see a surge in price action due to an increase in the company’s sales revenue.

Even if shorts continue to hold, lenders will eventually run up the interest rate again and force them to cover. If you’re a retail investor reading this article, I’m already celebrating your success. Leave a comment below and let the community know what a short squeeze would mean for you.

AMC is on the ‘Potential Short Squeeze’ list via. Fox Business

fox business amc short squeeze list

In case you missed it, a squeeze is very possible, via FOX Business. All the data at hand point towards the inevitable for both shorts and retail investors.

Retail investors holding AMC stock are going to experience a once in a lifetime opportunity.

And lastly…

A quick message from Frank Nez

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 positive and valuable information for new retail investors to look at. So, I published this video to tell you just that. Thank you.

You can support the blog on Patreon.

Twitter | Instagram | Facebook

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


© 2021 Franknez.com

Theme by Anders NorenUp ↑

%d bloggers like this: