Folks in today's video I need to explain to you why you need to pay attention to AMC stock right now. There's a lot more to this than meets the eye and the window for you to pay attention to. This is closing and will be closed real soon AMC Dumped in the after hours today after the conversion deal was approved, the CEO has officially gotten what he has wanted for quite a while and this will eventually lead to the combination of 8-bit AMC which then will lead to the massive end I'd argue needless dilution of AMC stock. Further, however, this process will take a bit of time and a lot of people are going to be overlooking this and I want to make the argument for why the next few weeks will be the last but one of the most powerful Windows of opportunity for AMC stock from a squeeze perspective regardless of what you think about the company, regardless of what you think about its management, regardless of what you think about the controversy over the last few years in regards to the stock I Implore you to watch this video to the very end because you're going to get a completely different perspective on it.

But a quick reminder: our sale on Zip Trader you for 55 off will be expiring Sunday night. This will give you access to our 10 plus hours of step-by-step video lessons, private chat, and daily morning briefings. One of our recent winners from the briefings was a contrarian trade idea on Wework WE Briefed on Wii yesterday at about 16 cents a share and it ran to 32 cents at highs, which was a double. Now, not all of our briefing ideas are going to be massive winners like this one.

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This threshold list on AMC stock tells a really, really unique and undeniable setup story and is what is largely making the stock worth paying attention to. You see: AMC Stock hit the threshold list about seven times before its ultimate massive massive Euphoria rallies in early 2021 and then what's more before the downtrend. Once AMC hit the original threshold list, it kept hitting it and it took about a year for markets to start noticing that something crazy, something peculiar is going on behind the scenes here this year. AMC Got on the threshold list in the beginning of February and it's pretty clear this is becoming a trend this year as well, with AMC being stuck on the threshold list since June 23rd this time around.

So what is a threshold list? Mr Charlie Charlie Tow are you going to explain that? Of course, we'll let Investopedia explain it. Actually, a threshold list is a list of Securities whose transactions failed to settle for five consecutive settlement days. Settlement failures May A be indicative of improper naked Short Selling So what is another thing that is indicative of naked? Short Selling Well, what do you call it when you have a doordash order and they go and they drive all around town? They see their neighbors, they see their family in Europe and then they go back up to your house and then they decide not to drop it off. Well, they call that a failure to deliver.

and it's the same thing when it comes down to stocks. Failures to deliver this year are at the highest levels we've ever seen them for AMC stock. Now, when someone naked short sells a stock, it creates the situation where you're essentially artificially diluting the stock and causing more shares to be dumped onto the market than were even created and allowed to be borrowed in the first place. Regular shorting is bad enough.

We can argue whether it's an appropriate function of markets, but at least with regular shorting, you have to find shares to borrow, right? There's an actual infrastructure there, but when you are naked shorting, you're playing with institutional advantages and dumping chairs on to retail holders that are not otherwise authorized to be dumped, which falsely pushes AMC stock down, if that is what is going on. allegedly. Supposedly, Now, if you're borrowing shares that you don't have, well, someone needs to settle those transactions. And the fact of the matter is that in a lot of the situations, you're not going to be able to find those shares if there's a bit of a liquidity crunch.

So what happens? Well, you fail to deliver on those shares, you fail to prove that you even had those shares to borrow in the first place, And then you start getting a lot of failures to deliver. And then you get put on that threshold list. And if you have a stock that has a ton of short interest and has a lot of naked shorting behind the scenes allegedly, Supposedly that means that if the stock starts really, really, really going up, what happens? Well, you get a massive, massive, massive rush to buy those shares to prevent more failures to deliver. To prevent a situation where these shorts get squeezed out, they have to buy back at really, really insane prices.

They'd rather buy back at just an elevated price than really, really insane prices. And those non-existent shares become very, very big liabilities. Now, when you are creating a position, and you are confident in that position it's because you've created a thesis. Short Sellers originally thought AMC was going to go bankrupt that's no longer in the cards anytime soon.

If you read their earnings report, they are profitable and they have tons of liquidity. So the new thesis that short sellers are depending on now is that AMC is going to do everything in their power to dilute this stock until it goes to the ground. Similar to what they did to ape, Short sellers are betting hand over fist and fist overhand. That management is going to try their hardest and they are trying their hardest to recombine dilutive ape and AMC as soon as possible, which if completed, will lead to an immediate price drop for those holding AMC.

And now again, it's official that AMC's conversion plan has been approved, so it's not a question of if but when and after that management is going to push for that combined entity to then go and issue more and more shares at what are historically low prices for AMC, which of course is going to create even more shares out there and that's going to drive the price down a lot more. which is going to be a big big boom for short sellers. That is the thesis they have right now and management is yelling at the top of their lungs. Yes, that's exactly what we're trying to do.

Just look at the press releases if you don't believe me from Adam Aaron He's saying there's a massive liquidity crisis. If you look at their recent earnings, there's no massive liquidity crisis. It's all Bs And the more that AMC dilutes, and the more that AMC is shorted, the more you're going to have that race to the bottom in terms of share price. All of a sudden, those failure others to deliver aren't too hard to deliver on because you can buy them back at dirt cheap prices.

So that means that the first reason that this is a key window of opportunity is because clearly you have a killer short squeeze setup as indicated by Massive failures to deliver while at the same time we are still in that process before the actual conversion takes place and before after that, the combined entity dilution gets forced through. Okay, second reason Relevance: Why is AMC relevant? Why is it relevant in terms of an overall Market picture? Why is it even worth talking about? Shout out to Tyler Roundtree for pointing this out on Twitter yesterday he tweeted quote AMC accounts for less than 0.00025 percent of the total market capitalization of all publicly traded companies in the United States while at the exact same time accounts for 10.4 percent of the entire industry's revenue from lending Securities So what does this mean? It means that the business the business of selling, borrows for AMC shares is insanely disproportionate compared to the rest of the market to a ridiculous degree. And that is the understatement of the century. Literally, accounting for 10.3 percent of the entire industry's Revenue This is the stock market equivalent to showing up to a fist fight with a nuclear bomb.

You're not trying to just fight the other person. you're trying to completely obliterate them from existence. There's a point where shorting crosses the line of oh I'm betting that a company is going to fail to I'm going to force the company to fail. So there's been a no BS argument from short sellers about the downside of AMC For years.

the argument goes: Oh, AMC stock is massively in debt, movie theater attendance has been downtrending for a decade plus, and AMC is burning cash quarter over quarter. But here's the problem. While that was true at the last report, that is no longer true at the current report and very very very very very very very very very much won't be true in the coming reports. In the last report that we just got for Q2 that we had a few days ago just released, they reported net income AKA They are now profitable.

They are no longer losing money quarter over quarter. They were able to do this while paying the servicing costs on the debt. So again, the debt is a non-starter unless you believe that people shouldn't take out 30-year mortgages on houses if they can't pay it back in one year. Makes no sense that AMC needs to pay back their debt right now either.

Yeah, I Know in 2026, they're going to have to do some refinancing on some of the debt, but still makes no sense for them to have to pay it off now because they can service it fine and still report a profit. If you look across the board at this earnings report, it shows a company that is growing quarter over quarter is profitable and and most importantly, is at least sustainable. And this was a quarter that did not include Barbie and Oppenheimer. They just reported this quote: AMC Theaters Post Its Best admissions Revenue week in the company's 103 year history July 21st to the 27th and the Barberheimer phenomenon continues for a second straight weekend.

Again, this is not factored into the earnings report. I'm not trying to say that AMC is the best company to buy and hold forever because of the fundamentals. I'm just trying to say that this argument that the company needs to dilute is ridiculous. The company is improving quarter over quarter, especially year over year, and is on a sustainable trajectory right now.

Also, their debt is now at a level that it was at about pre-pandemic and their liquidity is at 600 million plus dollars, which is a massive, massive margin for error. Save a swing into unprofitability. They swing back into losses for a quarter or two, no problem. It is also true that AMC being the biggest movie theater chain in the world, will likely benefit from a lot of that consolidation of smaller chains that went out of business.

and you're likely going to see that as the movie theater industry continues to recover and it hasn't recovered completely yet. Number four Window of Opportunity and this is going to be the most controversial part of this video. I Said almost a year ago on August 22nd, 2022 that I wouldn't talk about AMC anymore I Said very dramatically and in usual zip, create or clickbait fashion. this is my final video, but it really was my final video for quite a long time.

I think I didn't make another video for nine months. but why did I make that decision not to make any more AMC videos Why did I stop talking about it for so long? Well, the reason was very, very clear after the introduction at Ape: I Felt that the management at AMC was just too focused on dilution and needlessly and recklessly destroying shareholder value. Now at that time, honestly, it made more sense for them to raise Capital based on the earnings reports that they were putting out at that time. I Still felt it was a disaster for the stock, but at least it made more sense from a business standpoint.

I Said that their decision to dilute and their decision with Ape was basically a war against the short squeeze setup. Not an intentional War maybe, but definitely a war when you have a short squeeze setup, you're banking on very, very low availability of shares. When you shh I don't want to say the s word when you shoot out shares like candy. All of a sudden what happens? Well, Shorts are very, very happy and honestly, I was pretty pissed off that they named this Ape in the first place because it encourages a lot of the loyal shareholders of AMC that basically bailed out the company.

Not basically, but 100 percent bailed out the company and it basically encouraged them to hold it while at the same time trying to have them ignore that this was the diluted vehicle that management was just gonna dump on massively. And the facts of this stock show that yeah, you have a great short squeeze setup and also yeah, the management. for whatever reason, maybe they're overly offensive. Maybe there's something else going on here while the management seemingly try to do everything in their power to make sure that every time the stock is about to break out and squeeze, that some sort of press release comes out that says oh, we're gonna push.

We're gonna fight tooth and nail to have dilution. We're gonna push through any court hearing any judge that blocks us. We're going to just Ram through them and make sure that we can dilute like Mofos. If you really care about shareholder value, why not offer shares after after a few more quarters of profitability? when the stock could go back up? Why not do it when you actually need money? They don't need money right now.

They got 600 million dollars. They're not burning cash, quarter over quarter their debt. doesn't need to be even touched for another two years for the most part. So again, I get it.

A lot of people want you to tell the line and I'm going to lose those people with this video. They want me to tell the line and say that Big Daddy Adam Aaron can do no wrong. We must just look at Big Daddy and say oh thank you so much for dumping on us. Thank you so much And that is what a lot of people have done since day one of AMC stock.

You know what you do you. But back in a way for my grievances with Adam Aaron and the management over at AMC The truth is that right now you have a unique opportunity because there is a delay. There is a delay right now between when all this can happen. structurally.

from Bloomberg law quote, the company must give the New York Stock Exchange roughly two weeks notice before a stock split that's part of the Ape conversion proposal and the period to Market and issue new AMC shares to raise. Capital Also will likely take further time. The shareholder said the longer the company remains cash flow negative without the ability to sell stock, the smaller the margin for error. Now again, this was before earnings, so read this last line again quote: the longer the company remains cash flow negative without the ability to sell stock, the smaller the margin for error.

Now again, the company does not have negative cash flow anymore. They are now positive 8 million. It's not an insane amount of positivity, but they're not evaporating cash quarter over quarter. so this is really a moot point.

The CEO then goes and brags on Twitter all the time about how great AMC is doing and then stresses that somehow they're heading for bankruptcy at any point and they have to be able to dilute massively So again, this is a moot point. I've said my piece on why AMC does not need to issue shares now or anytime soon and I don't need to say it anymore. But the fact of the matter is that for whatever reason Adam Aaron the management at AMC feel very strongly that AMC needs to be in a position to dilute their shareholder base massively. Despite the fact that the dilution the last few years has been insane, the whole ape situation in the first place was a workaround of shareholders of AMC common stock that did not want any more dilution and looked at the numbers and said yeah, we don't actually need any more dilution at that time And at that time honestly, AMC kind of did need dilution, but now they definitely don't need it.

They've been bailed out by the retail shareholder, but it's not enough. Because it's never enough. It won't be enough until they've taken every single dollar and the short sellers have become very very very rich off the backs of the folks who loyally held this company and bailed it out. What I'm looking at right now with AMC stock is: this is one of the last opportunities for AMC stock to have that gossip squeeze that people have been expecting for years.

If the company goes through and dilutes, I Don't think you're ever going to see anything that resembles a squeeze that anybody ever ever would have wanted. Why though? Charlie Well just look at what AMC did in the past AMC Used Ape shares to raise hundreds and hundreds of millions of dollars of capital. They would have raised a lot more, but the price fell too fast for them to do that. Mark my words: If AMC and Ape get combined, obviously it's going to cause a big dump in terms of the overall AMC price.

But mark my words, once they're able to, that combined stock is going to be dumped on so aggressively your head is going to spin off, there's going to be so many shares out shorts are going to be like wow, It's just. it's like raining Chairs management and AMC has signaled over and over again that they have no care in the world for what price they raise AMC shares at a lot of companies that do offerings at historically low prices or embarrassed embarrassed to sell their shares at steep discounts, let alone companies that are rebounding aggressively and are now profitable and don't even need to raise capital for AMC they're signaling they need to raise it imminently. So that's why I think this might be the last opportunity if Adam Aaron and management decide to dilute and they get their way, which they probably will get their way sooner or later, then the short sellers are going to be laughing to the bank. Now before you write an angry comment, you're welcome to do it if you want.

But before you write an angry comment, just remember I said the same thing about Ape a year ago. We had probably the most hate and most disgusting comments pointed at us that I've ever seen and again, I'm a big boy I understand if I don't to the line I'm going to get a lot of hate. Totally get it. But all I'm saying before you write that, just think for a second.

Why Why does AMC with these numbers need the ability to raise oodles and oodles of capital and dump oodles and poodles of shares on to retail traders that have already been dumped on massively At a point where their company is in very good shape is improving, has no urgency to pay any extra on the debt for years than they can already pay while operating at a profit. and while at the same time being at prices that offering more shares that would look just desperate again. shareholders already bailed out the company in 2020 and 2021. The question that I'm asking you is when is enough.

Now let's play Devil's Advocate for a second. Let's say that you're the CEO and you really, really care about this company. Well, I'm going to go ahead and just say maybe there's a chance that Adam Aaron is in that situation. He's just really, really, really, really, really, really defensive to the extent that he needs to destroy shareholder value over anything else just because he wants no debt in the company.

Okay, fine. Well, the way that you could do this reasonably well the way that you could still use Shareholder Capital while also keeping shareholder value is to wait maybe 12 to 18 to 24 months and watch as the business continues to rebound incrementally. And what's going to happen when you do that? Well, the price is going to rebound incrementally. And what happens when the price is rebounded incrementally Well, You can do incremental share offerings at much higher prices than you're doing.

Now, you can even raise much more Capital net. And then you could start paying off your debt. Why do you have to have the ability to dump massively? Now you just simply do not. This is all a farce.

So anyways, folks Again, just to summarize: AMC Very, very unique short squeeze setup. The management is not on the side of the short squeeze setup. We could argue why or why not just the way that I see it. They're not on the side of the short squeeze setup because they're trying to push through as many shares as possible.

And if you're somebody that believes oh, they just want the ability to issue shares. but they won't do it. Okay, we'll just look at what happened with Ape. Just look what happened with AMC common stock when they diluted back in 2021 during some of the hottest periods.

for AMC Just look at all those periods and ask if they have the ability to dump half the market cap. For example of AMC stock tomorrow, Would they not do that? Come on, don't be stupid. So right now I think while Management's hands are tied behind their backs, this might be the last opportunity for AMC stock to really have a squeezeapalooza and you can let me know what you think down below. but this is my thought process.

Have a great weekend and we'll see in the next video. Remember to get that coupon code squeeze55. Use that coupon code before Sunday night if you do want to join us.