Okay folks, so we've got a lot to talk about. First of all, we've seen some flatness with the overall market today. a little up, a little down, some concentrated sell-offs in growth and tech. although hey, you know what we're happy with? letting them breathe.

You look at the top 30 or so stocks that have the highest publicly available short interest and you saw almost all of them except for Agc down by midday. Today was simply a day where a lot of short sellers saw a lot of ground turn in their favor. That leads me to the point of this video. Amc.

You've seen oogabooga. Amc lose some ground over the last few days, actually reached its lowest point since early June. And obviously I'm talking about public price that we could go into how public price can be misleading, but I don't need to bring back the Santa Claus analogy or the mall Santa in this video. I actually just want to talk about some of the lies and some of the things that are probably going through a lot of our heads right now.

as Amc goes down. There's this new article that's gone trending suggesting that Amc is this large pump and dump scheme, but a lot of the allegations and a lot of the points mentioned in this article have been spread around since the beginning. Since this is the latest and most popular article that's spreading around right now, I want to go ahead and discuss some of these points. They say Amc has become a battleground pump and dump scheme, driven higher almost entirely by the misinformation and lies spread by its retail investors.

Oof, Like we were saying in Friday's Mi over Amc video, the goal of any real retail movement should be specifically to promote retail, coming together and doing research, uncovering Bs and debating and questioning the facts and sharing our opinions with one another. That way we can all make better, individualized decisions. and part of doing that is talking about what we don't want to talk about, some fun and actually discussing the fud and seeing what's true and what's not. So in this video, I'm going to be breaking down the points of this article and sharing my opinion.

Feel free to have your own opinion and the only thing I ask before we get into it is that you hit that ravishing like button And also don't forget to subscribe either. Also, quick reminder for folks who are looking to join us in zip Trader U Coupon code: Battlefield 75 will be expiring this week. This is a sale that we've had for a couple months and it's officially coming to an end this week. So if you'd like to learn more about Ziptraderu, our step-by-step lessons, our private chat, and of course, our daily morning briefings, Well, I'll go ahead and put a link to it below.

Battlefield 75 is that coupon code? Okay, so let's go ahead and start. so it says lie. Number one is hedge fund short selling bankrupt companies. The Whopper of all lies exchanged on message boards and via Youtube.

Oof Youtubers. Very nasty folks, by the way. Especially the ones that wear suits and drink tea in their videos. Terrible folks, don't watch them.

The Whopper of all Lies is the idea that Hedge Fund short Selling is somehow responsible for bankrupting businesses. And to paraphrase, he goes on to say that it's the operating performance of the company that determines whether it thrives, not the stock price. And the implication is that hey, if you have a stock, the stock price is going down or the stock prices going up. It has no impact on the day-to-day business operations of that company.

And thus, you can't bankrupt a company by forcing the stock price down or by manipulating the stock price to go down, or just otherwise massively dumping on the stock price. Well, it depends on the stocks that short sellers are targeting. Short sellers usually disproportionately target early stage companies or companies that are on their last legs that are struggling due to a pandemic or due to some other sort of financial issue. Why? Because obviously, if you're a short seller, you want to attack a company that's weak.

You don't want to short a company that's healthy and has tons of capital. It's probably not going to go bankrupt. You want a shorter company that's on its last legs and is likely to go bankrupt. And if it goes bankrupt, well, guess what, then you don't even have to buy back the shares that you short sold.

So best case scenario, it goes bankrupt. So let's go ahead and say you decide: you're going to go ahead and short a struggling company. And then you put out a bunch of press releases short and distorting. They call that press releases that exaggerate everything bad about the company that you shorted and then you make sure that it's disseminated all across media.

And then not so coincidentally, the price goes down. Well, what just happened in effect? Well, you not only hurt the company's reputation by putting out all that negative Pr, but you also suppress the stock price. When you suppress the stock price. what are you doing? Well, you're suppressing the company's ability to raise more capital at previous prices.

And you're suppressing the ability of the company to get more debt. You're hurting the standing of that company. And because short sellers disproportionately target companies that need to be able to save themselves or need to issue more capital in order to make their goals be met, well, essentially, short sellers are helping them go bankrupt. Let's say that you're walking on the beach and you see a man drowning in the ocean.

Near the man is a rope that attaches to a dock. He's trying to swim over to the rope to save himself. Well, what are your options as a bystander on the beach? Well, you can look at the drowning man and say, oh poor guy, I hope he gets to that rope. I'm going to go ahead and try to help him get to that rope.

Even Or alternatively, you could look at him and say L-o-l He's going to drown. Stupid idiot. Put himself in a bad position. Hey, why don't I go over and cut the rope.

Bet my friend that he's going to die and then go back to the beach. And then when he drowns and people start pointing fingers on who drowned him, you could say L-o-l I didn't drown him. I just stopped him from saving himself from drowning. That's a different thing.

That trash heap should not have put himself in that situation in the first place. It's his fault for being in that situation. He should have gotten an Mba in swimming like I did. And likewise, by shorting and distorting a company, what are you really doing? Well, you're hurting a company's ability to save itself to stop itself from drowning.

And with an early stage company, if you're shorting and distorting an early stage company, what are you really doing? Well, You're basically trying to choke a baby, trying to make sure that that baby doesn't get any food from its mama. Lol. That baby needs food. What a loser.

Let's short it. baby should be able to survive on its own. Should have had an Mba in Gugu Gaga. And of course you could say well Charlie, hey, you're kind of looping all the short sellers together in a free market.

Isn't it fair for risky companies to be discounted? It's one thing for short sellers to go within regulations and short sale based on actual risk. It's another thing to spread fear and misinformation and disseminate that throughout social media and the mainstream media. And also go and synthetically short sell stock, which is illegal. Lie Number two: Shorts have to cover.

Apes are implying that there's some level of urgency here, and that the disorder from excessive covering will lead to the mother of all short squeezes. The truth is that short sellers have to cover as much as apes have to sell their position. No buying and shorting are the same thing. When you buy something, you don't have to pay everyday margin fees.

When you short something, you have to pay margin fees every single day, and if it rises dramatically, you're going to get marching cult. Of course, I guess if you use leverage to buy your long positions, then you do have to pay margin fees. But still, you get my point. Quite frankly, there is significantly more urgency for short sellers to cover than for buyers to sell.

So this is completely yes. It then goes on to say that hedge fund assets are so high that the chance of a margin call wave forcing short covering is virtually non-existent. They say that most hedge funds are well diversified and not open to that level of risk. but by nature of diversifying short positions, you have to have a built-in risk management strategy or else it leads you open to losing all of your assets under management like some other hedge funds like this one and this one did.

So, even if you're not open to margin calls, you're certainly open to protocols in terms of managing risk. Line Number three, the short squeeze is coming slash around the corner. Apes are constantly hyping the idea that a short squeeze is imminent or at worst, right around the corner. Apes need fresh capital to keep this puppet dump scheme going, so this one's a bit more mixed.

A big problem with the Amc Ape situation is that everybody wants it to be imminent and in order for it to actually be imminent, you have to have a ton of momentum coming in. which does kind of resemble some of the allegations that he's putting on here, but of course the math is still the same whether new capital comes in or not. Shorts do have to cover eventually, and of course, at the same time, the eventually is a very, very important word to highlight: They have to cover eventually. They don't have to cover immediately.

Hedge funds don't have to cover immediately. Hedge funds don't have to cover right around the corner, but they do have to cover eventually, which should have been highlighted here. My number four fundamentals don't matter, so this is an easy one to dispute when you're talking about investing. Long-term returns do match long-term value for a company.

In the short term, stocks are based on the emotions of the masses and the cycling in and out, but in the long run, long-term value converges. The stock might go up three four hundred percent in a day, but its true value is going to show more consistent over many days or even many years versus just that one day where the catalyst came out. But if you're talking about taking short-term bets based on the fluctuations and psychology of the markets, well, fundamentals really don't matter. Did fundamentals matter last year during the market crash when everything went down 50 was Apple and Tesla.

Were all those down 50 because the companies were 50 worse? No, they were down 50 because market psychology is to panic and assume the worst and then they went dramatically higher. Some would argue even overvalued towards other parts of the year. Fundamentals are there to provide a fair value range to figure out where you should buy in below, and where you should sell out above, But fundamentals only matter in terms of giving you a bearing and a map to see where that stock is going to be going and following along the trend. Of that way, if you're buying a moment to play, you could say hey, well, this company is due for a ton of momentum, but it's also overvalued so I don't want to overstay my welcome.

I want to play the momentum. Then I want to get out. Or you can buy something that's undervalued and just buy it and wait. So fundamentals do matter.

That's true, but with Amc, the bet is not on the fundamentals. The bet is on shorts. Covering the positions lie. Number five.

Hedge funds control the mainstream media. Just because you're biased, doesn't mean that you're owned by a hedge fund, or you're controlled by a hedge fund. Most contributors have worked on Wall Street, work on Wall Street, or invested in the metrics that are used to analyze these companies, or are literally invested in some of these funds. And in some cases, they are paid off.

In some cases, there's a massive conflict of interest that's direct, but in a lot of cases it's not even direct. It's just the overall bias, the general trend of rolling your eye at retail money and trying to get them to buy your instruments instead of buy stuff on their own. This is true in pretty much everything. Think about it in terms of politics: If you're a republican or a democrat, and you own a media outlet, well, you're probably going to hire people for that media outlet that match with your own political preference.

You're going to have an overwhelming majority of conversations on that outlet talk about topics that represent your group's viewpoint. It doesn't necessarily mean, although it probably does mean in some situations there too, that people are necessarily paying you off. but it does mean that there's inherent bias. It just so happens that in the financial space you don't really have two sides.

You have like 99 Wall Street side and then one percent retail trader side. And it's really easy to cast down on the retail trader side because most of the retail trader side is just disseminated on social media. and a lot of people on social media are just trolls. So you have a lot of people are like, okay, well oh man, this generation of retail traders are morons.

They just buy things because it's a Wall Street bet. They just try to yolo it line number six. So the author goes on to rant about how people accuse him of being short and losing money because he's against the Amc movement. certainly I've seen on social media.

If you say something bad about Amc, people like you're a hedge fund chill, or you're losing money in Emc or you're short Amc, just admit it. But come on, it's the Internet. Grow up on number seven. Blackrock and Vanguard.

Buying Amc is bullish. I don't know where the hell this point came from. I haven't seen anybody being like you know. I bought Amc specifically because Blackrock and Vanguard bought it.

That's why I I ape and hodl because Ooga booga. Vanguard and Ooga Booga. Blackrock. Ooga Black booga rock.

Obviously it's just a simple fact that the Amc 8 movement is really composed of two different sets of people. You have the ugga booga folks and then you have the ugga nobuga folks. Okay, lastly, line Number Eight Apes saved Amc the eighth and final mammoth. Live at Amc's retail investors rely on to coerce community compliance and bring in fresh capital is the idea that Apes saved Amc.

These folks genuinely believe that by purchasing shares of Amc, they've somehow saved the company from going bankrupt. As I discussed with the first lie on the list, buying and selling stock has absolutely no influence on how well or poorly a company performs. It's forgetting again that the public perception of a company is its stock price and allows it to issue more stock and allows it to get debt. But interestingly enough, later in this paragraph, it says what really saves companies from bankruptcy is their operating performance and the actions of management and Amc's case.

And listening closely to this. selling hundreds of millions of shares of stock and issuing high interest debt last year and in early January gave it the financial lifeline needed to survive the worst of the pandemic. Wait a second. Wtf? What gives Amc the option to raise capital at high prices? What gives Amc the option to raise debt? The damn share price.

If short sellers got Amc down to where they wanted it to be, Amc would have had no lifeline yet. He goes on to say, if anything apes are purposely harming Amc, harming Amc by tying the hands of Ceo Adam Aaron and shooting down any additional opportunities for the company to raise capital and shore up its balance sheet. What the hell are you talking about? Do you understand numbers? Guy doesn't understand numbers and he's writing about companies. Amc went from a yearly low at 191 to 77.3 because of retail trading apes.

And throughout this whole period, Amc has taken opportunities to raise capital at 20 to 30 x previous prices and get more of these quote lifelines. Yet somehow because apes don't want to approve Infinite more shares. That all of a sudden, apes are the problem. What, if anything, Amc got far more help from Amc apes than Amc apes got from Amc.

So anyways, folks, go ahead and let me know in the comment section below about what you think about These points: Am I wrong. Are Amc apes actually bankrupting Amc instead of helping them, Is the mainstream media actually supporting Amc helping it go up? They want it to squeeze so that they lose money just because money is the root of all evil, so they want to make sure they have less of it. Anyways, folks that caps off the video. If you have any questions, feel free to reach out to us below or join us on Zip, Trader Circle and of course Quick Plug if you'd like to learn how to trade.

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