Let me help you and break it down so you can make your own decision
This is what’s going on…
AMC was attacked (shorted) because it was easy prey when covid hit, lock down, no revenue, stock drops.
Hedge Funds (HFS) took out short positions to capture profit on this which in normal business is fine. BUT they got greedy and used a legitimate process of creating a share for a temporary process and instead extended it and exploiting it over and over again to attack the value of the stock.
See, if they were successful in bankrupting the company all the synthetic shares would have been 100% profit and they would not have gotten caught.
But the CEO knew they were under attack and on Jan 27th 1.2b shares traded when the float was <200m. This was the tell, it showed there were too many shares on the market.
So the CEO had a proxy vote to vote in 500m more shares which got everyone fired up to vote as they didn't want to dilute the price AND the people shorting it got extremely excited as they assumed AMC needed the money so the dug in again and shorted more!!! With fake shares.
The AMC CEO then comes out days before the vote and said he listened to the 3.2m share holders and because they have enough cash to last past 2022 they will take the shares off the table, no dilution (brilliant!)
This trapped the HF who were expecting to get away with their manipulation.
Now there is another vote coming up June 2nd where once again holders will take part in a proxy, and this time all voters info will be captured so there is no doubt to the corruption of the HF.
The SEC and other regulators have been hidden during the blatant price manipulation BUT they have been busy making new rules to control the collapse and also to prevent this from happening again.
Where does that leave us now? 3.2m people would have to own the float many many times over, I myself have over 5k so the HF need to buy back the shorted shares or keep paying interest until they go broke or Margin Called. This is why it is expected to have a huge spike in price. How much who knows?? GME hit $500, and this is much bigger… and brokers won’t intervene this time to stop the squeeze…
So, what happens if the HF goes bankrupt? New rules will control the asset sell of the offending company to stop a crash of the holdings/market, then there is an insurance policy for these circumstances that has been increased to I believe 70 trillion dollars.
Interesting days are ahead…. This is lined up to be a massive shift In Wealth like the world has never seen before.
APES TOGETHER STRONG
BUY and HOLD AMC!
Jump To The Original Source