Despite what the mainstream media claims about the AMC Stock play, the retail investors think that AMC Stock still has the chance to short squeeze sometime very soon.
The previous run-up of $72 per share last year might have seemed like the mother of all short squeezes, but in all reality when AMC Stock hit $72 per share (the all-time high) last year, only a small amount of the overall short sellers covered the positions which means there is still a lot of meat on the bone for this play and for this stock.
Here’s a full list of reasons AMC Stock should short squeeze this year
- Retail investors are still holding more than ever (even during massive, short ladder attacks which drive the stock down in price)
- #1 stock held by retail investors
- Short interest still around 22% (Which still puts the stock at risk of short squeezing)
- The OBV (On balance volume) data shows that the float is mostly locked up
- AMC theater revenues are through the roof so far this year, and records have even been broken
- regulators are looking into new rules around PFOF and short selling schemes.
- The popcorn business
- $100M for new businesses to acquire
- CTB (Cost to borrow) has skyrocketed in recent weeks which makes it more expensive for short sellers to keep their positions open.
Cost to Borrow skyrocketing
Last year hedge funds that shorted AMC and GME Stock lost billions of dollars due to the fact that retail investors caught wind of their activities and went head-to-head with the smartest money in the game.
The cost to borrow shares of a stock in order to short it can vary.
Here’s more information when it comes to shorting and borrowing stocks from Ortex.com
The change in borrowing today, borrowed shares – returned shares.
The lowest cost to borrow agreed on any loan today.
The average cost to borrow agreed on all loans today.
Rising borrow fees up to around 20% mean that the short sellers have to pay a lot more money in order to keep their short positions opened at this time. This in theory could cause some of them to want to buy back shares soon to close out the short position which in turn could start a massive way of buying for AMC Stock followed by a massive, short squeeze.