Welcome back to the channel everyone good news, the tree work is finished and there should be no more weird noises today. I want to talk about how robin hood are literally desperate for new customers, so desperate in fact, they're literally giving away free money so stay tuned and let's make some money. But before i dive into the video, i just want to give a massive shout out to everyone. That's part of the team on the private discord there.

We talk about amc, crypto and other stocks as well, sharing due diligence, news stories and other updates and they're all done with the chance of winning 600, which i'm drawing the winner from everyone in the discord on the 28th of august. So if you want to have the chance of winning 600, all you've got to do is join the private discord linked in the description below and now i want to dive straight in with the key information. So robin hood is giving away a hundred thousand dollars to recruit new investors, robin hood, which reported a 501.7 million dollar loss or two dollars and 16 cents loss per share on wednesday, for the second quarter is giving away 500 to 200 users who join or refer Friends to the side, those who join by monday must be approved by the company and link their bank account to the site by august 27th, the company said it will notify the 200 winners by september 16th by email. The prize cannot be claimed for 30 days.

The company has previously enticed new traders to join by giving away a share of stock of various other publicly traded companies. Critics contend robin hood and say that the site engages in gamification using bright colours and congratulatory messages that can encourage impulsive and emotional investing behavior. Robin hood, which became a publicly traded company on july 29th, has altered some of its prior practices that drew criticism and it does not allow miners to trade, as all of its investors must be 18 years old. The company this summer was fined 70 million dollars over outages and misleading and exposing customers to risky trading tools.

The firm approved thousands of customers for options trading, but those customers did not satisfy the firm's eligibility criteria. According to federal regulators, robin hood in an sec filing prior to its initial public, offering said it had settled a wrongful death suit after alex kearns a 20 year old customer died by this word. After believing he lost a significant amount of money by trading in options on the investing platform, so why does this article mean that robin hood is desperate for new users? Well, obviously, robin hood raked in a massive loss in the last quarter of 501 million dollars, but they did actually report an increase in revenue that increase in revenue effectively stemmed from all the new customers that joined their platform in quarter one and quarter two as meme Stocks and crypto were booming. However, in quarter three, everybody has now realized how shady payment fraud afloat is and how shady robin hood is as a broker and has pulled their money out of robin hood and no longer uses that platform and uses fidelity instead.

This is actually something i've been recommending that you do for weeks and months now to withdraw your money out of platforms like robin hood or weeble that do use payment for order flow and to put your money in firms like fidelity that don't effectively, firms that accept Payment for order flow like robinhood, sell their order flow to market makers like citadel, who just put those orders through the dark pool and therefore those orders don't impact on the lit exchange, price of amc and now with tons and tons of customers pulling their money out Of robin hood, it means the robin hood's revenue is going to go down. They aren't going to be able to sell as much order flow and therefore aren't going to receive as much revenue considering their general expenses is probably going to remain the same, if not increase. As they've probably taken on new people like hired new people to deal with the increased traffic and upgraded their systems to deal with that increased traffic, it means they're going to be spending more on costs, but receiving less revenue. Therefore, next quarter in quarter three, i wouldn't be surprised to see this loss of 501 million dollars get even bigger and then have an even worse result.

Therefore, robin hood are literally having to resort to giving away free money just to get some new customers on their platform and get some new deposits and therefore generate some more revenue. I do think this is very bottom of the barrel stuff. They already give away free shares when you sign up and deposit and now they're trying to increase the amount of sign ups and make it even more appealing by doing a large, giveaway and literally giving away free money. However, even though you're in with the chance of winning 500, i don't really recommend signing up for robin hood if you haven't already just because it's a very shady platform and they do sell that order flow it'd be much better to stay with fidelity, because that way, There's an increased chance of the moass happening if everybody suddenly left fidelity all at the same time, all over again and went back to robin hood.

That means that all of our orders would be going straight through the dark pool and they could use so many more shares to continue crushing the amc price, which would not be good for the squeeze, speaking of which i briefly wanted to touch on how the squeeze Actually works and why some people don't believe amc can go to 800k and why this poster here is going to explain why it can supply and demand moves stocks as people buy, the price goes up or, if there's more buyers than sellers, the price goes up as People sell or short the price goes down, or if there's more shorters or more sellers, then there are buyers. The price goes down, that's a fairly simple supply and demand equation as more people want something and are prepared to pay more for it. The price goes up, but as more people are selling something and are prepared to receive less money, the price goes down in a short squeeze scenario. The shorts are demanding a lot of shares in one go because they're being forced to cover as they're being liquidated and therefore are buying up all the shares, and therefore the buying pressure is massive.

The issue for them is if there isn't a lot of supply, as in people selling, if there's not many sellers but lots of buyers. Obviously the price is going to go up. The price just keeps on rising until the demand can be matched with enough sellers. As a possibility, we know we own more than the entire float of shares because of all the synthetics.

This means they may only be able to close out their short positions if we sell think about that, they literally should not be able to buy without us selling. They will have to buy our shares at whatever price we give them, and not only that, but they'll have to buy back all of the synthetic shares first and cancel those synthetic shares and then buy back the real shares as well to cover their short positions as They can't cover synthetic shorts or they can't cover real shorts with synthetic shares. They can only cover synthetic shorts with synthetic shares, so if no one sells at 10k, it will therefore rip past 10k until a lot of people sell. If things went perfectly, this scenario would play out, margin call happens, amc stock rises, rapidly, people don't sell.

The price goes past 10k, 100k, 200, 300, 400, 500, 600, 700 and to 800k, and then at what point and then at which point at 800k people start selling. Then it will go in the opposite direction, as there's more sellers than there will be buyers and therefore the stock will then fall rapidly after hitting 800k, it will go 800k, 700k, 600k and so on. Now, on top of this, there should also be volatility hawks unless they change the rules in a squeeze scenario, and maybe it squeezes pre-market, for example, so the price will stop moving for 10 minutes before ripping or before tanking again now, something you have to remember is That not every single shareholder is going to sell at 800 care share. There are going to be many people that pay per hand before that, let's say 300 or a thousand dollars or 5 000 or maybe higher or maybe lower.

It's just inevitable. I can't speak for all 4.1 million plus apes all at the same time, and i also can't speak for those institutions and just those other regular investors that aren't apes. Therefore, if too many people do sell and paper hand early, then obviously the price won't necessarily reach. 800K, it will just reach a much higher value than it currently is, but lower than 800k.

This is why so many people are trying to raise awareness of amc and ensure that people don't pay per hand too early and realize the magnitude of this event and the possibilities of this event, speaking of which another poster posted this chart indicating the early morning short Ladder attack failed today and that's why amc is running up so nicely at the time of making. This video amc is up around nine and a half percent and has just passed the 37.50 mark and is making its way back to 38, 39 and potentially 40 as well. I personally think this is a very good start of the week and we're now heading back to that 40 barrier and that 40 resistance. If we can break through that 40 resistance, i think we'll see some very promising price action.

And finally, this post wants to talk about the bull thesis for amc and why we're going up in the short term, the medium term and the long term, let's start with the wider markets. Before we talk about amc, we need to talk about the outlook on the wider markets, and this is something i've mentioned in my previous videos as well. I can be brief here, but it's still important to know as you need to know and understand the environment from which these stocks will grow. Short-Term, wider markets, it's looking bleak for the economy, but that's good for amc.

We've got a lot of macro indicators like the reverse, repos, the schiller ratio, cpi, ppi all pointing towards an upcoming market crash as counter-intuitive as this sounds. A market crash is good for heavily shorted stocks, provided the holder of these stocks well holds on for dear life. Basically, you've got ta, have diamond hands medium term neutral for the economy, good for amc. We still have the pandemic to contend with, which will slow down any form of recovery, but at the same time, industries have grown and learned to adapt and live with the pandemic.

Overall, this will keep us in a natural range or a neutral range, meaning in the medium term. Amc will make their own fate and for the long term, it's bullish overall markets always recover, and if amc has taken proper advantage of the short and medium term, then going into the long term, they could be poised to become even bigger. Lots of companies have survived crashes and then thrive in the aftermath due to reduced competition and healthy balance sheets, which we know for sure that mc has, with over two billion dollars of cash on hand, to be acquisitive for any companies that do fail in an eventual Market crash now, let's look at the amc fundamentals, the profitability and earnings. So currently, amc's earnings are negative, meaning they're spending more money than they're making.

That being said, it's not all doom and gloom on this front. Quite the opposite. Amc beat the last estimated earnings and its earnings have been continually trending to a positive with the executives at the company, projecting that they will be profitable again come quarter 4 of 2021 this year, which is massive at the end of the day. You can't go bankrupt if you're making money, even if debt comes up to be paid and amc, doesn't have the cash on hand to pay it.

It does more on that in a second, no lender in their right mind would take a profitable company to bankruptcy core. Alternatively, amc could just refinance their debt to a different lender and obviously a different lender would refinance that debt, because amc would be profitable and would be able to pay it back in the future. They'd shut down the company and lose out on potential returns even taking away executives estimates. Financial analysts are looking at amc being profitable around quarter 3 of 2022, with them being damn near break even in quarter one and quarter two of 2022 as well.

Therefore, let's look at it on a short term time scale, the short squeeze the big one. Currently amc has reported short interest of 85 million shares or 17 of its free flow. We know this number is rubbish and likely a lot higher, but between the strong fundamentals and a market crash threatening it makes the chance of a short squeeze even with just 85 million shares a potential guarantee hidden short interest, whether that be via abusive options use synthetic Long puts or married puts or via transference to etfs we know a vast majority of the short interest in amc has been hidden that effectively changes a short squeeze into a mother of all short squeezes, abnormal options, love them or hate them condone or condemn them. You can't deny there is a treasure trove of data to be pulled from options.

In particular, they point to resetting, filter, delivers and hiding short interest. There's also the gamma squeeze aspect to consider and another strong avenue for a price rise. Ftds amc has abnormally large amounts of ftds and has even found itself on the threshold list this year. Given enough time on this list, it can cause a cascade of forced covering leading to another avenue for a price increase.

Conclusion moas is coming now i'll leave the rest of this article down in the description below in case. You want to read the medium term and the long-term aspects for yourself guys be sure to. Let me know down in the comments below what you think about robin hood being desperate to get new customers in any way they can, and also, if you haven't yet signed up to a trading platform, then be sure to check out the links down in the description Below to moomoo, if you're in the us, or in singapore and free trade, if you're in the uk to get some free shares and as always guys if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and being that notification bell, because that way, you'll be alerted when i upload a new video cheers:.