Retail investors have been diamond-handing AMC stock for quite some time now. Massive props to those of you who have been holding since AMC’s gamma squeeze as of late January. You guys have seen it all by now. The gains, the short ladder attacks, the manipulation in the media and so on. So, why hasn’t AMC squeezed yet?
After all, we deserve an explanation. With so much DD out on YouTube and Reddit, some answers just aren’t being answered. Luckily, extensive research is done here to provide you with value you won’t find anywhere else.
Here’s what we know.
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AMC Entertainment is after all one of the most heavily shorted companies in the market. So why hasn’t this stock shot up to the moon yet!?!
Shorts and hedge funds alike continue to lose money every day they hold. Shouldn’t they be covering by now?
More and more institutional buyers are bulking up on the stock, retail investors continue to hold and buy the dip, so what are we missing?
For one, let’s start with volume
AMC’s market volume hasn’t been as high as we need it to be if we’re to see a short squeeze. Although, we’re finally beginning to see volume surpass 300 million. We’ve also seen it go as high as 700 million.
The market is going to need big volume to come in so we can see this price action really move. Well, how much volume do we need for AMC to squeeze?
The highest volume we’ve seen so (post gamma squeeze) was back in February where the volume reached over 400 million, until recently. In June we saw a surge of new retail investors buy AMC stock and volume reached around 700 million. The volume will need to be well over this amount.
Trey’s Trades has mentioned the perfect squeeze setup will require the volume to sit around 600 million plus. Some DD on Reddit has shown a squeeze will most likely occur in the billion volume mark.
Low volume = consolidation
We’ve been seeing this with AMC until now. The stock has held up really well consolidating in the $40-$50. This level of support is indicating investors are mainly holding their positions. Retail investors will need to continue to add to their positions and project bullish sentiment if they want to see the price action continue to move up.
We saw AMC reach $70 when the volume surged back in June. It has since come down due to heavy short ladder attacks. Short sellers have been borrowing millions of shares to short AMC stock.
And while new retail investors are buying the stock during the dips, these ladder attacks on upticks have kept us consolidating.
Is consolidation in a stock bad?
Not at all. Consolidation is just a sign a particular stock has found a level of support and has developed strength.
Driving the price action up could force short-sellers to close their positions; however, a new pattern has risen.
According to Benzinga, “Volume in AMC’s stock has been declining, especially in terms of bearish volume, which indicates the stock is running out of sellers. This pattern is often seen before eventual large upward swings in a stock.”
Shorts still need to cover their positions
Shorts haven’t covered their positions which means they’re holding just like retail investors are. The only difference is they’re paying an interest fee until they close their positions.
It costs nothing to hold AMC for the retail investor but it’s costing shorts and hedge funds money every single day.
Moral of the story? Hold until shorts can no longer afford to pay the interest. Yup, that’s really all there is to it. Keep living you day to day life. When AMC squeezes, you will hear about it.
The short borrow fee has been relatively low
Now, unfortunately the short borrow fee for shorts has been relatively low the past several weeks. At least according to Fintel.
This just means the fees aren’t hurting shorts too bad from the interest right now, although they continue to lose millions with every passing day.
Shorts continue to bet against AMC in efforts to bankrupt the company but the company is actually doing great right now.
Yup, although bankruptcy is officially no longer on the table.. And all movie theaters are now open.. and AMC Entertainment is bringing in huge revenue from new movie titles..
Yeah, I don’t understand their logic either.
This interest fee really doesn’t affect retail investors. Whether it’s low or high it’s costing hedge funds money. And at some point compound interest will really be hitting them hard.
It would be in shorts best interest to close their positions now while their fee is still low, and the stock price is around the mid $40 range. Because as soon as the stock price goes back up and so does the borrow fee rate, they’ll wish they had closed sooner.
Read: When do shorts have to cover their positions (AMC)
Wanda caused more shares to float into the market (ARCHIVE)
This information was what older apes experienced months back and will be included in this article for record purposes only.
One of the reasons why AMC didn’t squeeze months back was due to Wanda’s continues selloffs every time the stock would come near $14. This slowed the growth process significantly. Here’s how it happened.
With Wanda converting class B shares to class A shares, it essentially put more shares out into the market. This happened quite some time ago (early this year) but it’s worth mentioning because it goes back to volume. This is previous news though and Wanda no longer has a position in AMC due to foreign policies.
Key: Retail investors will need volume in order to squeeze shorts out of their positions.
Wanda Group had fueled red days (ARCHIVE)
Wanda is a group based in China who has been AMC Entertainment’s biggest shareholder for quite some time.
Unfortunately, Wanda had taken profits every time AMC’s stock rose to $14. This was usually seen as a major selloff in the market. CEO and President of AMC, Adam Aron explained in a recent interview with Trey’s Trades the cause for this. China’s government has a policy that requires international investors in China to focus their investments domestically to fuel their economy.
According to Adam Aron, Wanda is still a great partner and doesn’t believe the sell has anything to do with Wanda’s sentiment or believe in the company.
As of today, retail investors now hold majority of the float and Wanda no longer the large shareholder it was in AMC. This gives retail investors more control.
Stock market manipulation
Something incredible is unraveling here. Something very bad.
And although it’s bad, this means it’s also time for change. This entire journey with AMC and GameStop has allowed very intelligent people to uncover data that was never meant to be uncovered.
It’s only a matter of time before this data and DD get into the hands of writers looking to document this historic event occurring before our eyes.
One of AMC’s biggest reasons why it hasn’t squeezed is due to the heavy manipulation that’s been occurring for many months now. Nonetheless, AMC has moved up from $5 to the mid $40. Despite hedge funds cheating, retail investors keep winning.
It’s going to take continuous patience from retail investors in order to squeeze shorts out of their positions.
Read: How do hedge funds manipulate the stock market?
Hedge funds pay the price
Melvin Capital, a hedge fund who shorts both AMC and GameStop stock has reportedly suffered a 49% loss its first quarter.
The reason being is they have not closed their short positions although in a recent statement they advised they had. This hedge fund along with short-sellers are losing money every day due to the short borrow fee continuously increasing.
Short sellers are sitting on billions of dollar loses, via REUTERS. If short positions were covered, both AMC and GME would have come into an immense amount of gains just from this one hedge fund buying back several millions of shares.
Related: AMC margin call: the squeeze is inevitable
Mudrick Capital
Mudrick Capital is another sleezy hedge fund that has been very well documented on FrankNez for its dishonest play. Laura Stine and I collaborated on publishing this piece from when Mudrick Capital met AMC and departed with AMC.
Laura captured the entire timeline perfectly and provides the community with insight as to how we are where we are today.
Read: Hedging against America: The Mudrick short report
Short-ladder attacks
Retail investors started digging into the manipulation as AMC’s share price continuously got ladder-attacked. Shorts use this strategy as a means to drive the price down as the stock moves up.
Redditors have discovered which platforms are owned or partners of Melvin Capital and Citadel. We’ve seen manipulation through bogus headlines trying to divert the public from buying a heavily shorted stock. MarketWatch, who is owned by Melvin Capital and Citadel, took to eliminating AMC from their #1 place on the most shorted stock list in the market back in February.
Citadel also owns The Fool which has been publishing lies for many months now.
This only urged more people do further dig in. We’ve found the unethical use of naked shares, which are essentially ‘fairy stocks’. They don’t exist but are traded and shorted otherwise. These are also known as ‘I owe you’s’.
In a world post squeeze, these financial platforms will no longer be trusted by the general public.
A house of cards, r/superstonks (Reddit post)
A Redditor just posted an insane amount of DD on Reddit. This long form post discuses the transition from paper filled orders to the use of computers going all the way back to the mid to late 80s.
The post reveals the beginning of issuing naked shares. We’re also learning that a lot of transaction are being held by the actual institutions that are shorting these stocks.
Robinhood routes more than half of it’s customers to Citadel. This information has now been disclosed via the Washington Post.
You can read the full Reddit post here.
Trey’s Trades does a quick breakdown on this DD as well. The video is embedded for your viewing pleasure.
With all this in mind, manipulation in the stock market has been able to keep AMC’s share price consolidating in the $40-$50 range thus far.
You can read more on how hedge funds manipulate the stock market to better understand why we haven’t seen an AMC short squeeze yet. Because this DD is so relevant, it will also be included in that post for new readers to see.
Final verdict
Regardless of the manipulation going on surrounding AMC’s squeeze, I strongly believe retail investors should stay the course if they are to see life changing results in the market. The price has moved up significantly! Once AMC’s stock price hits $80 we’ll begin to see $100 easily and beyond.
When a community rises and people stick together, real change is inevitable. With so much information coming to light, it’s only a matter of time that the tables are turned and justice is served.
Additionally, retail investors are winning right now. Shorts and hedge funds are losing money every day. More malpractice is being discovered and publicly shared. A lot of the analysis circulating AMC is pointing to a nasty nasty squeeze. Continue to stay positive and share positive and enlightening news.
AMC news and squeeze facts
- AMC was on FOX Business ‘high squeeze potential list’
- Movie theaters are now open everywhere
- Godzilla vs. Kong secured $9.6 million in tickets on its opening night. New titles are breaking records
- AMC Entertainment has raised over 2.2 billion dollars in cash as of early this year and continue to earn revenue
Bankruptcy is officially off the table according to Adam Aron, and new titles are making their way to AMC movie theaters. I’m personally bullish on the stock and see lots of organic growth potential.
Growth is what’s going to inevitably squeeze shorts out of their position.
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Frank, thank you. I have read every article you have posted since I’ve joined. I have a question. I’m an ape with a smooth brain. I have not sold one share since February.
I don’t understand Beta. But I recently read that AMC has a negative beta. In that article it stated if there is a market crash that all stock with a negative beta you go up in price. Should us ape fear a market crach/correction? Or will this not affect us HODLing for the big squeeze? Thank you again…you are something special.
Hi Jerry – I appreciate your comment brother. I personally don’t fear a market crash. Negative beta stocks such as AMC and GME by nature should outperform stocks going down. I’m HODLING till’ we moon 🚀