![]() It would not be surprising to see them pull back in the short term, similar to what happened in early February. When it gets above 70, and it is currently at 86.81, they are overbought. ![]() In the top section of the chart below is the stock’s Relative Strength Index or RSI. They will partially hedge against the threat by increasing the borrow fee to discourage short selling additional shares of AMC. With the huge spike in AMC’s shares they are definitely in overbought territory. The reason why AMC's cost to borrow is rising, is because lenders are seeing the risk that shorting AMC is posing, these lenders are worried whether or not short sellers will re-pay their shares in the event of a squeeze. The stock market is crashing, the Nasdaq is taking out support lines and is in free fall, it just fell more than 1 every single day this week which it hasn't done since 2000, and fell more than 7.5 total this week, the largest drop since March of 2020. Mark-to-market losses are the primary impetus for a Short Squeeze to occur, and AMC’s recent rally has pushed it into potential Short Squeeze territory.” AMC Will Squeeze Soon This a follow up to my earlier video. No trader will be forced to exit a position that continues to be profitable. He continued, “A short position, no matter how crowded, that continues to be profitable cannot be squeezed. An additional variable, which is necessary for a short squeeze to occur, are substantial net-of-financing mark-to-market losses.” Which the shorts have definitely seen this week. As per the tabulation by Ortex, Workhorse currently has a short interest (SI) of over 27 percent of its entire float. He added, “While a stock can be “crowded” it might not necessarily be a short squeeze candidate. The value of AMC Networks (ticker symbol: AMCX) also increased significantly, which was believed to have happened because of the stock's name being similar to AMC's. However, even when these criteria are met it does not necessarily mean the stock is a short squeeze candidate. On January 27, r/wallstreetbets triggered a short squeeze on AMC Theatres (ticker symbol: AMC), a company in a similar position to GameStop. There is limited daily trading volume (high days to cover).Apes dont sell we hold Squeeze those shorts and put the hedge funds out of business. There is scarcity of stock loan supply (high stock borrow fees) Apes, Hold your stocks for the incoming mother of all short squeezes.There is a large proportion of a security’s tradable float shorted (high S3 SI % Float).There is a large amount of dollars at risk on the short side (high short interest).He wrote, “A security is considered “crowded” on the short side if some or all of the following occur:” Dusaniwsky has developed a Short Squeeze score and ranks AMC’s metric a 10 out of 10 for a short squeeze. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The AMC stock short squeeze generated huge profits for. Still, AMC carries $5.5 billion of debt that was acquired during the pandemic to escape a potential bankruptcy. In a short squeeze, bearish investors scramble to cover their short positions, boosting demand for the shorted stock and driving up its price. During Q1, debt was lowered by $135 million. As a result, AMC’s annual interest expense was lowered by $7.25 million. On the other hand, the company announced in July that it had repurchased $72.5 million of debt for roughly $50 million. This will likely affect earnings through increased expenses. AMC currently carries an average price target of $9.09 among seven firms with coverage of the stock.ĪMC is currently in the process of enacting “comprehensive health and sanitation programs.” These programs include improved air filtration and cleaning procedures. For the full year, analysts are expecting an EPS loss of $1.14 and revenue of $4.36 billion. Over the past three months, EPS estimates have experienced two upwards revisions and three downwards revisions.įor the company’s third-quarter guidance, analysts are expecting an EPS loss of 21 cents on top of revenue of $1.09 billion. Throughout the past two years, AMC has beaten EPS estimates 63% of the time. The low EPS estimate is a loss of 33 cents, while the high is a loss of nine cents. Meanwhile, earnings per share is expected to come in at a loss of 19 cents. Over the past two years, AMC has beaten revenue estimates 88% of the time. The consensus analyst estimate for Q2 revenue is $1.18 billion, with the low and high estimates at $1.08 billion and $1.28 billion. AMC Stock: AMC to Report Earnings After the Bell
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