AMC — A Very Basic Explanation
The past few days have been a wild ride for me and my friends. AMC stock is providing a future that i’d previously only dreamed of…
Pre-warning: None of this is financial advice, I am not a financial advisor, these are simply my opinions and my experience.
My Experience
The group WhatsApp chat has been blowing up more than a Fast & Furious movie recently. Every second my friends and I are making an extra £1000 there, a cheeky £2000 over here, a £20k everywhere. We’re baws deep in the AMC machine and it’s proving to be fruitful.
To give context, my friend KM has been doing his research on the AMC stock for a couple of months now. Like a true friend, he let our entire friend group know about the opportunity when the stock was sitting at around $8.
It’s currently at $62.55.
This has undoubtedly put all of us in the green, but we’re not done yet. Market predictors, who have been entirely accurate thus far, expect the stock to go to 200+ in the next week or so.
This is due to a myriad of reasons which i’ll explain in-depth in a second but here’s the bottom line of it — massive scumbag hedgefunds lose billions everyday that retail investors buy and hold AMC stock. Hedgefunds that manipulate the market and reduce the very livelihoods of thousands of AMC employees to mere numbers on their balance sheet are bleeding.
Not just a little scratch or a tear; they’re bleeding profusely.
For example, ORTEX — A Globally accredited financial analytics platform — continue to publish statistics on the losses of hedgefunds that are short-selling the stock:
Remember, $2.75 billion is just one day, it’s been and will be much more as the stock continues to rise.
The most beautiful thing about the whole situation is the transfer of wealth from massive multi-billion dollar companies to the everyday person. Me and my friends are regular people who stand to make thousands, if not hundreds of thousands from this. I strongly believe the money’s much better situated in our hands than theirs.
From here we can grow small, ethical businesses that bring value to our countries and the planet. We can support other local businesses and contribute to our economy. We can pursue our passions and dreams with a penultimate focus on educating others on financial freedom.
As with anything, there’s no guarantee.
The stock could absolutely plummet to sub $10 as of tomorrow. All retail investors could pull out and we’d be left holding the bag. It could and still can be a real shitemare for the average investor if the hedge-funds pull some black-magic market manipulation wizardry that the SEC unlawfully ignore.
For valid reasons, i believe otherwise. Below is a summary of what’s happening thus far and why i believe the stock will continue to rise for the next week or so.
AMC situation explained
Basically, when the pandemic started, hedge-funds assumed that the price of AMC stock would go down due to theatres being shut. Trying to profit upon the demise of others, they shorted the stock.
Shorting a stock basically means you predict the price of the stock will go down. You borrow a stock, sell it at the current price and then have to return the stock later to the lender at the new price. The difference between the buy and sell price is the profit you’ll take.
For example, in AMC’s case, hedgefunds bought millions of stock at $8, assuming the stock would eventually reach $0, pocketing them millions, if not billions in profit.
What they didn’t predict was the everyday investor catching a whiff of their scumbaggery. A bunch of redditors from r/wallstreetbets caught a hold of what they were doing and decided to buy the stock to make the price rise.
As the price rises, the hedge-funds have to buy the stock back at a higher price and return it to the lender for a loss.
What’s happening now is a war between the retail investor and the hedge-funds; it’s the aforementioned explanation on steroids.
As the AMC stock continues to rise, hedgefunds are borrowing more and more stock to try and cover their positions. They’ll sell more at a higher price, try initiate mass sell-offs and then buy at a lower price to try and cover their earlier positions and losses. This only works if retail investors follow suit and panic when the stock drops.
Evidently, the hedge-funds have learned nothing as the retail investor is now wise to their tricks. As we continue our education in finance and the stock market, we learn about the these tricks and thus are ready for them when they come.
Instead of panicking when the price drops, retail investors are HODLING (another meme word for holding and not selling the stock). As retail investor continue to HODL and even buy more stock, the hedgefunds lose even more billions.
In the next few days, to coming weeks, there’s expected to be a gamma-squeeze and then a short-squeeze.
Rather than explain these myself and do a butchered injustice to their definitions, i’ve provided relevant links above and at the end of the article.
Basically, the stock is expected to spiral upwards.
Additionally, hedgefunds have created synthetic shares in an attempt to dillute the market. These are fake shares made be hedgefunds that they will have to buy back at a price set by the market. The share count to identify the number of real shares in AMC started on June 2nd and is expected to take until the end of June/July to complete. At that point, the stock is expected to skyrocket.
Closing Thoughts
This has been an extremely simplistic explanation of what’s going on with AMC right now. There’s a greater technicality to the entire situation which is better explained by industry professionals to which i’ll link below.
Basically, i see this stock inevitably rising plus the 200 mark and beyond in the coming week or so. Maybe i’ll be right, maybe i’ll be wrong. This is simply meant to inform others of my experience and my opinion — it’s not financial advice.
If you want to be part of the biggest wealth redistribution in our history, then get involved. If not, that’s understandable. There’s no way of truly knowing the future of any stock, i just strongly believe in this one.
Let me know your thoughts, what have i missed out? What would you like more of an explanation on? How do you feel about the stock?
As Always,
Yours Honestly,
Commodore Pipas.
