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  • Very possibly another dumb question, but here goes

     Shar13 updated 1 year, 1 month ago 5 Members · 8 Posts
    AMC
  • Shar13

    Member
    July 19, 2021 at 9:29 pm

    With all the news about the Covid variant and the possibility of another shut down. Will that effect AMC stock and a squeeze? I’m assuming no, since there are still so many people holding the stock and so much shorting. Am I right?

    (A small part of me is wondering if this is just FUD) 🤷‍♀️

  • CrayonMuncher

    Member
    July 20, 2021 at 1:45 am

    Good question and I’ve thought about that too. Just my 2 cents so take it for what it’s worth.

    • AMC has already issued a lot of shares this year and raised money. They now have the healthiest balance sheet they have ever had in their 100 year history.
    • it’s already been publicized that they could still operate successfully until the end of 2022 from the share issuance alone. Couple that with all the releases coming out this year and they will be fine financially.
    • other smaller theaters have already shut down, so that eliminates some competition
    • (my personal opinion) with as much money as they have now, and with the possibility of new waves of infections and shutdowns, it would be wise for management to focus on getting movie releases out asap, slim down spending & expenses, pause growing/acquiring new locations, and negotiate their debts. Hypothetically, if they needed to shut down tomorrow and there is no knowing when they can reopen, could their existing business plan hold up as it is without changes? I think they need to operate this year in survival mode, not growth mode. They had less money last year and through many good business moves and miracles, they managed to squeak by (plus all of the apes came in and boosted them). If they have tons more money this year compared to last year and can’t manage it through another shutdown, they have bigger problems.
    • at this point, I think the squeeze is still going to happen whether they operate or not (assuming the SEC doesn’t adversely affect it). The shorters have dug themselves into a hole and the only way out is either 1) through bankruptcy of AMC, 2) shake out nervous investors and cover at lower prices, or 3) ultimately cover and get squeezed or wait and get margin called when their risk/margin limits are exceeded. The theater is no longer a factor in this equation AS LONG AS THEY STAY SOLVENT, which we know they will. AMC is technically out of the picture. It is now just a battle between the shareholders and the shorters, and the first to give up loses.
    • Anonymous

      Deleted User
      July 20, 2021 at 2:35 pm

      I share your views.

      As for the original question, the squeeze will happen based on shares shorted and HF’s having to cover. The open question is when? When it does happen, you will know. It won’t sneak up and surprise anyone. It will also be a multi-day/week event.

      Best to all!

      • CrayonMuncher

        Member
        July 25, 2021 at 10:40 pm

        The hard part is nobody knows when this will happen.

        The SEC, the DTCC, and a lot of other important groups have been cranking out a lot of new rules in a hurry. It looks like they are setting up to handle the big fallout right now.

        I would assume that once they have all of their new rules in place to handle this play, they will stop allowing trading to happen in the dark pools and other ATS’s and redirect all of it back into the lit markets.

        Once that happens, it’s game on!

  • robodrill

    Member
    July 24, 2021 at 2:19 pm

    The “fundamentals”, as the Fudpackers try to call them, are immaterial. It doesn’t matter if the company suffers losses. As long as their true share price exists the actual price will be based on the number of actual shares vs the number of shares which must be purchaced by hedge funds.

    Side-note. It is amazing to me that these two-dimensional talking hedge do not consider the number of shares issued for a company to be a “fundamental”.

  • Ape_Chris

    Member
    July 29, 2021 at 6:27 pm

    There is only 1 thing that can kill the squeeze now and that is all of the apes selling off. I’ve seen no sign that is going to happen yet so I don’t think you have to worry about COVID.

    • Anonymous

      Deleted User
      July 30, 2021 at 11:44 am

      You are correct, Ape Chris. The challenge isn’t if, but when.

      Most people want/desire immediate gratification. When they don’t get it, they get bored and look elsewhere, pulling their money with them.

      The key to this play in parking it and going about your business. Set your notifications, mine are 30%. You will not miss the run as there are breaks (10-15min pauses) when things move too quickly up. We saw that when it was hitting the 70’s.

      If you have opportunity to make additional purchases during times of dips, make it happen. If you have what you have, simply allow it to sit, no different than your Savings Account.

      Don’t get caught up in the Youtubers promotion of “any day now,” that’s merely meant to keep people coming back to their channels so they make bank off the eyeballs of this community. They promote FOMO. You won’t miss out.

      Wishing everyone a great upcoming weekend. We’ve got this. Patience is yours to bring to the game. That’s what makes a Diamond Handed Ape.

  • Shar13

    Member
    July 30, 2021 at 12:50 pm

    Thanks for all the great input and information!! I invested what I’m willing to lose, so I’m in it for the long haul! But I have to admit, I didn’t think the haul was going to be this long! 😉

    Good things come to those that wait. (And wait, and wait, and wait!!)

    Best wishes to everyone!

    P.S. love this community!

    • This reply was modified 1 year, 1 month ago by  Shar13.
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