Amc stock short squeeze software#
Amc stock short squeeze free#

Short interest in GameStop as a percentage of the company’s float declined to 12.3% in August, according to MarketBeat, drastically lower than a high level of 141% in January, according to S3 Partners. On social trading site Reddit, AMC stock-related forums have over 500,000 participants, report TheStreet – more followers than any other stock across the platform. The concern for short sellers is that, at these elevated levels, AMC stock could be at risk of featuring in another coordinated short squeeze.

Amc stock short squeeze software#

The capital raisings that the retail investor interest has facilitated highlights the unusual dynamic at play in AMC.According to S3 Partners, the top 10 short profit percentage ‘winners’ – those stocks calculated as the main stocks short-sellers may what to cash in on – are: AMC at 9.2%, followed by Blackstone with 7.5%, Apollo Global Management with 7.2%, Palantir Technologies with 7.1%, Unity Software with 6.8%, Pinduoduo with 6.7%, GameStop with 6.4%, Bilibili (6.41%), Nio with 6.4% and DraftKings with 5.8%, reports Simply Wall Street.ĪMC had 18.69% of its shares shorted on 31 August, according to MarketBeat, which is high. It’s also enabled board members and some senior executives to raise $US8 million for their personal accounts by selling shares at prices that were inconceivable six months ago. It isn’t surprising that the company has welcomed the new shape of its register because those retail investors, by driving up the share price, have helped the company raise equity that would not have otherwise been available to a company as indebted, as loss-making and haemorrhaging cash as heavily as AMC.

Amc stock short squeeze free#

It warned potential investors that its current share prices reflected “market and trading dynamics” unrelated to its underlying business or industry fundamentals and cautioned them against investing in its shares unless they were prepared to incur the risk of losing all, or a substantial proportion, of their investment.ĪMC has embraced its new shareholder base, communicating with them via the chatrooms and promising them free popcorn, exclusive screenings and “other benefits.” Mudrick immediately dumped the stock into the market and walked away with a profit, telling its own investors AMC shares were overvalued. Last Tuesday they placed $US230 million of stock with Mudrick Capital, a distressed debt and “event-driven” investor. Last month AMC’s controlling shareholder, China’s Dalian Wanda, claimed it had doubled its original investment when it sold almost all its AMC shareholding at $US14 a share, cashing out $US1.5 billion.ĪMC’s board and management have also recognised the unique opportunity presented by a horde of investors unconcerned about the company’s fundamentals and the uncertainty over the future of theatres in a post-pandemic, streaming world. AMC’s debt was reduced significantly by the transaction and Silver Lake made a tidy profit from an investment that looked doomed late last year. So has Wall Street.Īs the retail shareholder invasion of the register got underway, a private equity firm, Silver Lake Investment Partners, switched a $US600 million convertible bond position into equity and sold that stake for $US713 million. They’ve embraced them and taken advantage of them. The key factor that differentiates AMC from GameStop, however, isn’t to do with the short sellers (although it might impact them) but with the way AMC’s management has responded to the Reddit crowd’s invasion of their register. There’s also enormous liquidity in the market for AMC shares – last week nearly 800 million shares changed hands in a single day – which ought to enable short sellers to cover their positions if they want to close them out. They might have a tight squeeze on the short-sellers but, equally, they have to keep buying AMC shares and at least maintain, indefinitely, a price that even AMC believes is unsupported by any fundamentals to avoid a crash that would wipe them out. While there might some naked shorts, the disclosed short position appears to have hovered around 20 per cent of AMC’s capital, or just below. The short-sellers in AMC have nothing like the positions hedge funds held in GameStop.

It’s illegal in most jurisdictions, including the US, albeit difficult to police. In a “naked” short sale, the shares aren’t borrowed (to avoid the fee), which is akin to increasing the company’s capital base without the company or its shareholders knowing or approving the increase.