What is going on moon gang? I hope that you're, having an absolutely phenomenal day in this video i'll, be going over three main topics i'll be highlighting the most up-to-date short interest numbers for both amc and gme i'll, be talking about some of the main takeaways from amc's. Most recent earnings call and potentially, most importantly i'll, be sharing one of my own theories about a potential upcoming catalyst for amc stock. Before we hop into all that, though, just so you know, i am filming this video on sunday may 9th and amc managed to close out the most recent week of training at 9 51. While gme was at 161 11 just trying to set the foundation for all of you oops, you should also know that on friday, when the market closed the overall market, the s p 500 also managed it a brand new, never seen before all-time high, which is pretty Awesome all right, so, let's start this off with amc, so amc had its earnings, call and released its earnings number after the market closed on thursday may 6th and, yes, it was a wider than expected loss, but let's be fair.

This really is of limited relevance, mainly because low attendance for the theaters was a forced upon them. So personally, it just doesn't really matter much to me and i don't think it really matters much to other people, but i do want to get some very important numbers and metrics out there. As of now, amc has 1 billion dollars in liquidity that is billion with a b. It's actually the most liquidity the company has ever had in its entire 100 plus year history.

Over 800 million of that is in cash, and then 200 million is in revolving credit. So if you look at all those numbers that actually means that they have a runway till the end of 2022, that's noteworthy just because any of this fun about amc crashing and movies not coming back and the company going under. They literally have so much money. They can operate all the way till the end of 2022, so i don't think we have to worry about that in the slightest with amc.

Also, what came out of the earnings call? I just thought this was pretty important. The company is actually gaining market share against its other movie theater competitors. It went from 27 market share up to 33, so right there within its own domain. It is actually doing pretty well and just the verbiage and some of the things said in it.

It was very clear that amc's recovery is like just starting now. Things are very much on the up and up for amc. In fact, in 2021 they're looking for a box office of 5 billion, which i think is very possible, i mean there's some like ridiculous movies. Coming out, remember, uh fast and furious nine is coming out in june.

We have a whole slew of marvel movies. I'm talking black widow, legend of the ten rings, eternals spider-man. We also have top gun 2 coming out. There are some big blockbuster movies coming out that i think it will be very easy for amc to hit that 5 billion box office in 2021 and then to make it even better in 2022, they're, actually looking for an 8 billion box office and honestly, even if You look at the list of marvel movies alone.

I think it's very very possible in terms of the quarter we're in right now. This quarter we're currently in q2, that's going to end in june, so that will include probably the debut of f9 and then for next quarter, they're very much expecting q3 to be considerably better than q2. So in q3 we're gon na have black widow a couple of the other marvel movies and then in fact, there's going to be that big jump from q3 q2 and then they think q4 will even slightly be better than q3. So really over the next three quarters.

It's just clear skies ahead for amc in terms of the movies, the box office and all that stuff. It really you have to listen to the earnings call. The sentiment was very much bullish. Amc is starting its recovery.

Now i think it's going to be almost a hockey growth curve back amazing movies coming out. They have a ton of money. Things are very much from a fundamental perspective on the up and up for amc, and this kind of brings me up to more of like what is a potentially soon upcoming catalyst. Well, yes, we do have two important movies.

Remember june is f9 and then july will be black widow. Both of those are expected to be highly popular movies. A little bit earlier on june, 2nd we're going to have the record date for all of the votes. We're going to have that new shareholder meeting that got pushed off until the end of july, so a lot new, a lot of new investors involved in amc that will be casting their vote on top of that june.

Second is important because it's gon na they're gon na be doing that entire share recount. So we should have a better indication of how many individual investors are there, how many do they own and potentially a better idea of? What's really going on with the naked short situation as it relates to amc? This brings me to something that might happen even earlier and it was alluded to on the earnings call. So if we check this out on april 27th, amc filed this form 8k and basically it was just saying that we all know the 500 million share. Delusions not happening no one's voting on it, but from almost a decade ago they still had 43 million shares that they could offer to the market just to help with the company's overall liquidity.

And then, here on april 27th, amc entered into an equity distribution agreement with goldman sachs b, riley and citigroup to sell up to 43 million shares of stock from time to time through an at the market offering program. So we knew that these shares were registered with the sec and they were going to use these three companies. But we really didn't have much of an insight of if they were going to hit the market and how things were going to play out. And just so, you know i do want to bring this up.

The overall purpose, for this is general corporate purposes, which may include working capital, the repayment refinancing redemption or repurchases of existing indebtedness, capital expenditures and other investments. So, basically, right here they said it themselves, they're not doing the 500 million share dilution. They did have 43 from almost a decade ago and they're using the money to fundamentally improve the company as a whole, which is very, very good because, as the foundation of this company improves, it does bring more people into this of saying hey before, like i was A little worried about their debt, the long-term success of the company right here they are fundamentally improving the company. So this is important overall because they did follow file this 8k uh.

It looked like they were going to get going with it, but we didn't really know anything of like when they were selling how much they were selling or like. Were they going to use all the 43 million? We just didn't know much and then, if we come to the earnings announcement, we did get more information. So here's what came out on the call you can listen to it. Basically of the 43.

They already had sold 17.5 million shares at an average price of 9.77, which means that they raised 172 million dollars. So if you do that math out, basically, there are 25.5 million more shares that they could sell to the market, but they don't have to. We don't know if they're going to do it all. I would assume that, yes, they do want all of that money, but they don't necessarily have to.

I just want to put that out there. They did also give us the idea. Basically, they started selling on april 29th and at that point they had sold for six days straight, which also does align with these six down six down days these red days right here, that's when they got rid of the 17.5 million shares and if you do it Out it's about 2.9 million shares a day, so this is just one of my going theories. Remember it doesn't have to happen.

I'm not a financial advisor. Please, please do your own due diligence, but i'm just saying if they continue at this rate, they will have all those 43 million shares sold to the market around may 19th kind of closer to the end of this date, and remember: that's only if they keep up The same rate, if they're going to sell them all we're not really sure, but i do think that they want to sell them all. Personally, i think it's smart to sell some now and then save some for later in the event of the squeeze, they'll make even more money in it, but obviously i'm not on the board. I don't get to call those shots, so let's just assume that they're doing this rate of 2.9 million shares a day, they will be done by the end of the month, specifically around wednesday may 19th, i'm very very interested in this being a catalyst for the company, Because we just saw this as a catalyst for our other favorite stock gamestop right here.

So, on april 26th gamestop had announced that they had completed their at the market equity, offering program which was announced in early april, and i just want to show you some of these very, very important. I guess patterns that we're seeing in those two and in fact, here's the actual initial reaction when it was done. This is what happened in gamestop. It had closed the day out around 168-ish and in post-market.

It ran all the way up to 200 and this is the day where they were completed. Basically, the announcement that the at the market offering was done was a gigantic bullish signal for gamesup and in all reality i don't see why it would be any different at all for amc. So i'm waiting sometime in the like later third of may for there to be that big announcement look for the announcement. The headlines amc completes at the market offering and i'm willing to bet now when that is said, that the stock will have a nice bullish.

Push to it right here, just to give you a little bit more of an overlap. So if we go to early april right here, this is exactly where gamestop announced that they were going to do their at the market, offering we saw some red days. It was kind of flat and then when they were done, we saw a nice push upward. So if we kind of look that over with amc, they've been selling some of the shares, i'm expecting a little bit of flat and then on that announcement, i'm definitely expecting it to be push and i'm hoping that this can actually be enough of a push that Maybe we have another form of a technical breakout around this white trend line that can lead to like that first domino in a bigger overall catalyst and then remember, if that's at the end of may.

That then leads into early june with the share recount the record date for all the voting. There are a couple things aligning and then also in june, we have f9 at the end of the month start of july. We have black widow. So basically, we have a couple things all lining up.

That could be very, very good for amc and in my opinion, it could all start with the at the market offering that's what i'll personally be looking for towards the end of may, and then things get pretty exciting in june and july and remember fundamentally. Overall, things are expected to get very, very good for amc as a business in q3, with just the world opening back up and a lot of big blockbuster movies. So that's what's going on with amc and i'm excited to see if all this plays out and now with that being said, let's actually go over some of all these numbers, so to close the week out, amc had a short interest of 24.1 percent. The borrow change was massive: there was a net bar of 4.55 million shares to start the day off.

On friday, the utilization was already 100, so i'm willing to bet that the utilization is still 100 in terms of days to cover, based on the two-week trading average. We're at 4.33 days and the cost to borrow on friday for the new shares being loaned was about 14.5 percent, which is actually still sky high amc's, the definition of hard. To borrow, i mean it makes sense. The utilization is 100.

Let's talk a little bit about gamestop, the current estimated short interest is 21.88. There was a net return of almost half a million shares. The utilization is 60.67 percent because of this return, i'm expecting when all vortex updates. Tomorrow morning, this number will come down a little bit the days to cover on the two week.

Average is just over three days and a good reference point from amc to gamestop, just to kind of illustrate how the price is impacted on being hard to borrow with that high utilization, the cost to borrow on gme right now is 1.47. Remember the cost of borrow these percentages are based on like a yearly rate. What they would pay to hold. This borrow for an entire year is not what they're paying per day.

Now, just for a little bit of technicals, this blue line, we have two different wedges going. The bottom line is white, and then we had this one wedge. If you connect that high from late january to this one in mid march, i have that blue line there. Recently was a breakout.

We continue to hold this. This is very, very solid support, even outside of the world of a short squeeze from a purely technical analysis standpoint. This is a great risk to reward setup. Your risk is very close while your potential reward is kind of far away, which is an awesome ratio.

If we get this breakout, i'm then watching for 12 22 up past that and where i think things will get really really painful for shorts will be around that 14.50 mark. Just so, you know right now. Amc is trading at 9.51. Over the past week, it's down 5 over the past month, it's down 2.86 percent, but from the start of 2021.

Until this very moment it's up almost 350. Now, let's talk a bit about gamestop, very, very similar pattern. It has recently broke out of this first wedge. If you connect these two top wicks, but now we have this other wedge uh, it is holding this bottom trendline.

This is actually what the one two three four fifth test of it very very strong support once again, a great risk to reward ratio. If gamestop can successfully bounce off of this, i'm looking for that test in the one the high 180s and then from there, we have more resistance at 200 from there. I am looking for the breakout of this trendline overall, both amc and jimmy classic expansion followed by consolidation expansion again. So we're looking for that next phase of expansion to start and just knock on wood.

We want it to clearly be in our favor as in to pretty much rip the faces off of some of these shorts gme, currently trading at 161 past week, it's down seven percent past month, it's down 5.4 percent and from the start of the year until this Very moment it is up 755, so that's pretty much all of it. I just wanted to let you know what was going on. Some of those mean main takeaways from amc's earnings, call what i perceived to be a very important upcoming catalyst for amc and then at the end there just some of those short insurance numbers for amc and jamie. I am pretty excited to see what this upcoming week brings for all of us.

I would love to get your thoughts on both of these stocks in a comment below beyond that. If you enjoyed this video, it would be awesome if you could drop a like leave. A comment hit that subscribe button. All that type of engagement really helps me out with the youtube algorithm, and it gets this video in front of other people who may be interested as a quick side.

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