Okay folks, I just couldn't help myself. despite saying that I was gonna take the weekend off. probably heard that we just got some news that Amc customers are going to be able to go mask free. That is whether you are fully vaccinated or even if you just identify as fully vaccinated because locations aren't going to be requiring proof of vaccination, which in effect is going to be a very strong catalyst to get people back into the theaters.

Now, of course, Amc doesn't trade based on the fundamentals, but a positive catalyst like this could certainly rile up the retail trading community, a community that is pretty much in charge of getting Amc to short squeeze. And let's just say they didn't even need that much more gas for this fire. But anyways, with all this in the forefront, the one thing that I really wanted to talk about is how high Amc can go Because you're starting to see people talk about this going to 50k or 100k. That's a hundred thousand.

I understand that part of the movement is to just keep buying and buying and buying and stick it to the hedge funds, but it only makes us stronger to understand the math behind everything. Unfortunately, a lot of people have been discouraged from this movement specifically because a lot of the people act like there's no reason to buy it. They're just like Amc, But when you say Mcape, you want to be a smart ape. You want to be an ape that understands what the heck is going on right? You don't want to just be an ape that read something on a Reddit forum where they said yolo ape time at the end of the day.

If this movement's going to work out, it's going to have to be based in facts. It's not going to be based on deception, because if it's based in deception, then all of a sudden you're going to get these massive sell-offs when people see foot. Let's be real. If retail doesn't show up this week and retail starts selling out after Friday's cool off, then this movement can be over real quick.

We can all be optimistic that retail will keep showing up, but whether they actually do or don't is based on whether they are fully educated on what's going on. So hopefully this video can help service some of that education. But you also have to do your own due diligence because again, this is this is an unprecedented movement. The only thing that I ask in return for all this is that you hit that ravishing like button and also don't forget to subscribe either.

Also, since it's Memorial Day, I want to go ahead and take a moment to reflect on all the brave men and women who died for this country. Honestly folks, I cannot comprehend the strength of character and sacrifice that it would take to put your life on the line for others. Yet our brave men and women have done that for years and have paid in many cases the ultimate price and so on this day, I hope that we can all reflect and be thankful for that sacrifice. Okay Amc, So if you're looking at a 100 000 price target, let's just start right from the extreme, you're likely first thinking, Okay, well, how would that factor in to the market cap? You know, if it was a hundred thousand per share, what would Amc's market cap be? Well, Amc right now is trading at 26 bucks, corresponding to a market cap of 11.76 billion.

Okay, so if Amc went from 26 bucks to 100 000 per share, that would be just a modest 384 515 increase in share price. And of course, market cap moves parallel to share price. So that means that the market cap has to move up the same percentage. 11.76 billion times 384 515 percent equals forty five thousand, two hundred and eighteen billion.

which is forty five trillion, two hundred and eighteen billion in market cap just for some relevance. In comparison, the entire Us Gdp in 2019 was 21.43 trillion. The entire global stock market is 95 trillion. So obviously you're thinking Charlie's trying to show me that there's no way that Mc's could be worth half the stock market.

But believe it or not, this is kind of where it gets interesting. You see, market caps are not based on how much money is in the company, it's rather a multiplication of the current share price times the number of shares outstanding. And since that's the formula, there's a huge mathematical loophole in terms of calculated market cap. Share prices can be manipulated based on limiting supply or overpowering demand.

It can also be illegally manipulated in many cases by putting out synthetic shares or putting fake bids and fake asks. Since the share price is based on where the buyers and sellers meet, you can screw with the equilibrium by putting a lot of artificial buyers or putting a lot of artificial sellers. But how does this relate to market cap? Let's go back a second. Well, let's say that you have a company whose share price is trading at one dollar and you have a hundred shares.

Well, the market cap of that company would be 100. Because one dollar per share times 100 shares available equals 100. Well, now let's restrict the supply. So you have those hundred shares and you now have 90 of those shares where people are just going to decide to huddle.

They're going to hold it no matter what the price is. The other 10 shares, The sellers. They don't want one dollar for their shares. They now want four, or five, six, seven dollars.

Let's just say they want an average of five dollars. What happens? The price rallies to five dollars. Buyers get their shares at an average of five dollars. and all of a sudden, the share price is at five dollars.

You've effectively limited the supply of shares to the point where hey, those ten shares are now averaging at five dollars. So it looks like all of the shares are averaging at five dollars. But here's the thing. now that the share price is five dollars, your market cap just five x even though only ten shares are being traded.

So now your company that was worth a hundred dollars when it was trading at one dollar per share is now worth five hundred dollars because it's trading at five dollars per share. But in reality, if the 90 other sellers decided to start selling at once, it would dramatically drop very quickly. However, if they decide to keep holding and there's a ton of short sellers who need to cover and they need to buy shares, well, they have to pay the infinite price of whatever the few shares that are in circulation are costing. If you limit supply at the same time, the demand is increasing, the price skyrockets.

Now going back to Amc. the whole idea of Amc's price target at 50 000 or 100 000 is that if apes can just hold and hold and hold Amc so that they're artificially restricting supply at the same time, or short sellers need more shares than ever because they're short this massively and eventually they have to cover. Well, all of a sudden, you get to the situation where when they start having to cover, there's not going to be shares available. So the shares that are available are going to go through the roof.

All of a sudden, the price per share goes up dramatically, and that's why the market cap can dramatically increase. Even though that's not necessarily the real value of the company, you're manipulating the variables to get the result that you want. The thing is that in a short squeeze, short sellers have to pay whatever price possible to get back shares to cover their positions. That's why you've had so many people that have been waiting for so long.

They're like, okay, wait a second. So Amc short sellers have to cover their positions at some time, and the longer the clock ticks, the closer that time comes and the higher Amc rallies, the more short sellers may just be like, you know what? Screw this. I'm going to go ahead and cover now. But going back to the question at hand: Is it possible that Amc for a moment gets to 50 000 or 100 000? It is possible, but I think that it's kind of missing the point.

The truth is that every dollar you go up, you incentivize some of the holders to sell. More and more holders become sellers. For example, Amy the Eight may be a holder at fifty dollars, but Amy the Eight may not wanna hold at two thousand because she's made so much money and she's like, okay, well, it makes sense to start going against the grain now and selling and locking in those profits. Or maybe Andy the Ape is like, okay, I wanna hold to the moon and then you know he sells out at 800 a share.

Well, if enough retail traders go against the grain, it creates a massive amount of selling pressure, which then allows short sellers to really pounce and really increase their positions and really accelerate the downtrend. And then all of a sudden you have a lot of the other people who are worried about this going down all the way back to maybe it's fair value at around five or six dollars and they're like, okay, I don't want to be left bag called and I'm just gonna sell. And then the whole thing trend reverses like we saw back in January with both Amc and Gm. It's also true that because of the way that share prices are calculated, it's a little bit misleading to think that everybody's going to be able to sell out at wherever the height is or anywhere near the height.

Let's say, five percent of shares left in circulation get you to a hundred thousand per share. Well, maybe you got to that hundred thousand dollar price target, But now that you're there, if all of a sudden, 80 or 90 percent of shares become available. When retail all wants to lock in profits, well, you're dumping tons of shares onto the market that weren't available. That's a massive, massive, unprecedented increase.

Everybody tries to sell it once or even over the span of a couple weeks. Well, prices are going to plummet very very quickly for every seller. You have to find a buyer, so if everything comes on at once, you're not going to find any buyers, especially if retail has all decided to sell. But of course, it is worth mentioning that at the end of the day, very very few people are going to be able to sell out at the height or anywhere near the height, just because once all the shares start dumping, it's going to create a problem.

And it also creates this weird issue where if people know that they're going to start trying to sell during the uptrend, which kind of decelerates the uptrend. That being said, even if people can't get out near the heights or anywhere near the heights, still, there's a lot of people that are doing it just to help the movement and stick it to the hedge funds. And even if it does go up that much to these insane price targets, well, odds are strong that most people would still be in the green anyways after a lot of other retail started exiting. So even if they were late to the game, there's still a lot of upside here.

But still, it's worth noting this because it is kind of the elephant in the room and it's a mistake not to be aware of the situation here because you want to make sure that you understand exactly what you're doing in this position and what the intention is. Now plan the evil Devil on your shoulder. One of the ways that retail can really, really get out of. this whole problem is to just never sell.

If retail just decided that the movement of screwing hedge funds over was more powerful than the idea of them making money, which I'm not suggesting is something that they do, but it's up to you, then they can just keep holding infinitely until hedge funds all go out of business. And when I say all hedge funds, of course, I mean the hedge funds that are short Amc. You drag short sellers until they can't possibly cover their shares because of the price. they have to get billed out, which creates a chain of other events and drags other parties in as well.

In which case, they'd probably get bailed out by the exchanges and it would cause a massive market failure. probably would actually benefit people who are holding Amc stock, but I think that at the end of the day, the idea that mathematically Amc could get to 50 000 or 100 000 in price target well, while unlikely for that to happen, it still says a lot about Amc's chances to go to 100 or 500 or a thousand. The situation strongly suggests that if retail can keep showing up, especially the way that they have been showing up, and then they stop selling shares on the market, restricting supply of shares at the same time, or short sellers are going to be forced to cover in the upcoming weeks and months. Well, this could go much, much, much higher.

And what we've seen so far in the market hasn't really been either of those two things we haven't seen. Shorts be squeezed. Very, very few shorts are covering their positions, and if they are, it's being met by more short sellers increasing their positions. Because short interest is going up, not down, and the data suggests that retail isn't really holding in mass volume of shares being traded is increasing dramatically.

In order for this massive short squeeze to really take off, people need to stop selling and people need to wait for shorts to be forced to cover. And if you want it to be accelerated, people need to keep buying. So at the end of the day. certainly a contentious situation, but this could be one of the most interesting stock market events in probably decades, But of course, just a daily reminder that this isn't a traditional trade.

I think at the end of the day, this is a stock that you just kind of buy and hold to make a point and mathematically perhaps make a profit. But of course, again, I don't know where this is gonna go. Retail has to show up. in order for this to work.

We already know all the dirty tricks that hedge funds can play on individual traders and how far down this can go if retail doesn't show up afterwards. Obviously, in no world is Amc worth the price it's trading at now, or even a quarter of the price it's trading at now. So it's not like I can call this a high conviction fundamental play and I can't really call it a regular trade either. so I have to leave it up to you to make up your mind on whether this is or isn't for you.

But I'm here to talk about what's going on, folks that caps off the video. If you have any questions, feel free to reach out to us below. Let me know what you think about Amc down below as well. Make sure to add me on Twitter at Zip Charlie.

If you'd like to learn how to trade, I'll put a link to Zip Trader you below. Battlefield 75 will get you 75 off. You can go and look on the website to see a breakdown of what we offer. In the course, we also have Weeble.

If you'd like to get some free stocks, I'll put a link to them below as well. Anyways, have a great day and I'll see you in the next video.