AMC retail investors have always been confident in their meme stock positions, they know that the stock is being heavily shorted by hedgies and institutional investors and at some point the shorts will have to be covered. What’s even more promising is when we retail investors have people on their side like Charles Payne who has recently been a voice for the AMC community as well as the founder of Interactive Brokers, Thomas Peterffy, who last June called out shorts sellers of meme stocks, stating,
“ It is extremely tempting to short these stocks, but unless you have huge liquid resources, please try to resist the temptations because these prices can go to unimaginable heights before they settle down to a reasonable valuation, and you may have to cover on the high point”.
Peterffy acknowledges that while meme stocks such as AMC, GME and Blackberry may be tempting to short, as their prices are expected to fall, can still be a dangerous gamble, especially if the opposite transpires. We’ve already witnessed AMC stock price surge last June to $72 and as of late it’s been speculated that another surge may be just around the corner with executive order 14032 titled “Addressing the Threat from Securities Investments that Finance Certain Companies of the People’s Republic of China. As the co-founder fo a huge financial firm, Thomas Peterffy knows what he’s doing. So if he believes in AMC’s ability to go to unimaginable highs, then we all can.
With validity of the AMC’s stock price ability to surge from the co-founder and chairman of Interactive Brokers, Thomas Peterffy, AMC investors feel even more secure in their AMC holdings. Retail investors continue to buy and hold and remain confident that the AMC will soar in price, it’s just a matter of time. In addition to Thomas Peterffy, recently Charles Payne, from “Making Money with Charles Payne” on Fox Business has also given validity and a voice to the AMC community. Which is important for the AMC movement. The closer that we seem to get to the massive AMC short squeeze the more we need all hands-on deck. Retail investors are expecting that at some point AMC short positions held by large institutions will need to be closed. If the share price of the popular meme stock AMC continues to drop, the more collateral will be required of institutions, making it less accessible for institutions and hedge funds to open short positions.