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AMC
AMC - What is happening & future?
DD
Let’s break this down for everyone who is worried or wants to know what to expect in the coming week:
AMC current status (30JAN2021) : AMC has 44.6 million shorted shares and a grand total of 52 million shares. That means 86% of shares are shorted (by hedge funds) and 14% are being longed (all of us)
Now what everyone is waiting for is when it’s time to close the positions of shorted shares and they (hedge funds) have to cover what they bet on. Keep in mind not EVERY share will expire on Monday. So we MUST hold beyond that.
Today’s target (1/29) was to beat $8.63 (what hedge funds were betting it would be come Monday) and we did that closing at $13.29! AWESOME. This short position will have to close in 0.5 trading days (Monday)
So Monday when they’re forced to cover ($8.63) they will have to buy it at its current price to cover their bet. Raising the price up even higher.
But this isn’t even the best part. All of their other shorts are SIGNIFICANTLY lower. There are 9 different short stocks between $1.98-$5.96. Some of those shorts are 1.9 days away (Tue) 2.5 days (wed) 3.2 days (Thur) so the longer you hold, the higher the price gets and the more they have to cover.
Over the next few trading days it is going to be a vIolent squeeze. We are at the starting line of what GME did. Hold your ground. Gains Monday are inevitable. But the gains on Tuesday-Thursday will be much higher.
Short squeezes are historic: and to give you an example Volkswagen had a 46% short at $6 share price which squeezed to $110 a share back in 2008. And, who can forget our grandson GME?
AMC is at 84% short at $13 The percentage is significantly higher and there’s a lot more room to grow. On the high end we’re talking the possibility of hitting $150-200 a share if everyone is smart and holding until Thursday.
HOLD
Buy more on Monday if you can afford it because it’s going to violently rise
Enjoy the ride until AT LEAST Thursday evening when shorts have to close their positions and as a result of that they themselves take the price higher.
More by u/Common-Buy-2379 in comment section:
AMC is also 49.85% owned by a Chinese holding company. This company controls over 75% of voting shares indirectly, through controlling interest in subsidiaries that also own shares.
They will NOT be bailing out the hedge funds, which would dilute their ownership in the company. They will not be floating their shares for sale during the squeeze.
In all likelihood, the upcoming stock issuance will be sold to larger firms with little interest in assisting the hedges, and will probably remain within Chinese control.
Not financial advice, I just read the 10-k, 8-k, and 10-q, because I like this stock. Also tendies. I love tendies.
To illustrate, If the Chinese owned shares aren't available to fill the shorts, then there's only 13M shares to fill the 44M shorts.
It's WAY shorter than people think.
Positions:
1700 AMC shares balls deep @ 18$ average (~30K)
6c AMC 19/3 (10 contracts)
Edit: Earlier I had “shorts expire” in this post which seemingly drew some people crazy ignoring other important aspects. I meant to say when shorts will have to cover their positions. Edited in post.
Edit: Rockets added. 🚀🚀🚀 Also adding some 💎💎💎 for your hands. |
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