By taking away this “hope-ium”, AMC does not do any favors for itself and shareholders. The lack of transparency is what feeds the speculation of potential squeezes and outcomes. In fact, GameStop has a new CEO coming from Amazon (NASDAQ: AMZN). GameStop, on the other hand, has a mere 58.5 million share float with 69.4 million shares outstanding as a 17% short interest (as of May 28, 2021) and a cryptic management that doesn’t cater to the retail investors (not as much as AMC CEO Aron). The biggest problems is the dilution factor, the hype ready CEO and pandering too much to be transparent. He is a bit too transparent and the pandering to the retail investors/traders is a dangerous path.
#AMC SQUEEZE FREE#
Many reddit-ers were convinced this was a message against the “shorts” but in reality, it shows just how shallow his respect for the little guy truly is, despite offering free popcorn for shareholders. He “accidentally” knocked over his webcam, only to reveal he wasn’t wearing pants (while wearing a dress shift and tie) for the interview. The CEO of AMC, Adam Aron, has paid attention to the retail investor/traders and has made himself available almost to a ridiculous pandering level where he had a webcam one-on-one zoom call with a YouTuber trying to convince him that the “tool” for AMC was… well, more dilution with at-the-market offerings. Average volume has risen to nearly 150 million shares a day. The float has arisen nearly 500% year-over-year (YoY) to nearly 500 million shares with a possible 20% short interest. Additionally, the Company has finally utilized the heavy liquidity to raise cash in at-the-market offerings to the tune of $1.2 billion in May and June 2021, alone. Instead, it has taken a life of its own after having raised its average trading volumes in excess of 100 million shares a day with some days hitting over half a billion shares.
Here’s why AMC can’t squeeze like GME and potential opportunistic pullback levels for nimble traders and high-risk tolerant speculators can monitor for.ĭ contributor/ via MarketBeatĪMC is the world’s largest cinema operator but has been completely decoupled with peer stocks like Cinemark (NYSE: CNK) and IMAX (NYSE: IMAX). While GameStop’s recent rebound has created a new template for meme stocks being more than a one-shot wonder, the notion that AMC will short-squeeze as GameStop did in January 2021 is very likely not mechanically feasible. While GameStop continues to bleed and attempts to find a bottom after it’s less than impressive Q1 2021 earnings results, AMC continues to maintain elevated levels of volume despite the monstrous dilution taking place. It also appears that AMC and GameStop have decoupled in the near term as Reddit traders are favoring AMC. The world’s largest cinema operator AMC Entertainment (NYSE: AMC) stock has been on a tear as the resurgence of “meme” stock squeezes continues, but it’s no GameStop (NYSE: GME).
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