Today I Want to talk about a short squeeze that reached ninety thousand dollars per share I Want to explain what caused the squeeze I Want to go through the numbers and see if it's comparable to AMC and I Also want to talk about why the shorts will have to buy up tons of aims he shares during the settlement. So stay tuned and let's make some money. And now I'll drive straight in with the curation. So by Tech Moose tweeted saying when all hell breaks loose and AMC starts to run up, you will feel tempted to sell early.

He said just as a reminder that a trapped short seller pays our price or your price, not the price they want to pay to close and exit and that's why they spam us and beg us and threaten us to sell our shares so frequently. Now this video is going to be talking about Sin a stock that went up to ninety thousand dollars per share back in 2004 due to a short squeeze and this user says the squeeze for AMC will happen. So stay the course Celeste about synthetic biologists take a symbol s-y-n which is currently trading at just 61 cents per share. Obviously nearly 20 years after the squeeze and what makes this interesting is the stock still has a market cap of 660 million dollars and is trading at 61 cents per share.

And that way, using these figures we can work out what the market cap was at the very tippy top of the squeeze and what AMC's price would be at that same tippy top point. But first, let's also talk about their chart which I think actually experienced two separate squeezes within a two year period. This chart here on the Motley Fool only goes back to November of 2006, which is two years after the suggested squeeze date. So I think back in 2004, it squeezed to ninety thousand dollars per share, but then two years later in 2006, it squeezed again over seven thousand dollars per share.

Obviously, the squeeze was a fairly short-lived event and the stock then fell all the way down to 52 dollars per share by 2009 and obviously now trades around 60 70 cents per share. So obviously we know from this chart that a squeeze is a short-lived event and after that squeeze period, the stock price will fall or return to its usual value. But so let's focus on during this squeeze event just from 2007 where the stock price reached over seven thousand dollars per share. As I said, let's take a look at the numbers.

let's take a look at the market cap. Let's take a look at the share price and see how comparative that is. Frame C So obviously at the moment, Sin has a share price of 60 cents per share and has a market cap of 600 million dollars if we take 600 million dollars divided by 60 cents per share and multiply by seven thousand dollars per share which was near that tippy top squeeze. Point that's a market cap at its very peak of Seven Trips billion dollars.

That means that at its very tippy top squeeze point, it had a market cap over three times the size of Apple. We know as well from the Volkswagen squeeze. during Volkswagen's tippy top squeeze point, it also had a market cap in the trillions of dollar area. I Think somewhere like five trillion dollars, so we know they're actually getting a market cap over five trillion.

3 trillion or seven trillion dollars is very much attainable during a squeak scenario. But so what would AMC's price be if AMC also had a seven trillion dollar marker cap and a very tippy top squeeze? Point Well, AMC currently has a market cap of 1.76 billion dollars and a share price of 3.39 as of today. If we take the 3.39 divided by 1.76 billion dollars of market cap and multiply by seven trillion dollars in market cap. or we just take that seven trillion dollar market cap and divide by the 516 million AMC shares, we get a Max tippy top squeeze point for AMC of 13 500.

now. I Personally wouldn't mind selling the majority of my shares at thirteen thousand dollars per share. maybe slightly above or maybe slightly below. Now this price here just fits into one of my many AMC squeeze brackets.

obviously. I can't suggest a price for you to sell at. that's obviously something you have to decide for yourself. Maybe you try and hold on for longer, or maybe you sell earlier whatever works best for you and your goals.

But thirteen thousand dollars per share fits quite nicely into my ten to twenty thousand dollars per share bracket, which I think was my third or fourth bracket. Obviously, I do have other brackets below that price at say a thousand or two thousand dollars per share, and even some brackets above that price at say, fifty thousand dollars per share. Obviously I Know that maybe not all of my brackets will be here AMC's price may never reach that high. That's why I have more than one selling brackets or selling price points.

But again, it is indeed nice to see that thirteen thousand dollars per share for AMC is actually attainable based on a previous historic short squeeze. Now, what actually makes this short squeeze quite interesting is the manner in which it short squeezed and what exactly caused the squeeze. So in the Synthetic Biologics 10K filing there's a section here titled corporate History It says our predecessor Sheffield Pharmaceuticals was incorporated back in 1986 and in 2006 engaged in a reverse merger with Pipex Therapeutics. Now, a reverse merger is basically another way of saying a reverse share combination or a reverse share conversion.

Effectively, the shares of Sheffield Pharmaceuticals and the shares of Pipex Therapeutics combined, which is very, very similar to the shares of AMC and Ape combining as well or converting. Now, what is also very interesting is that at the same time they changed their name from Pipex Pharmaceuticals to Adriana Pharmaceuticals and as a result of the name change, the American Stock Exchange will begin to trade the company's shares of common stock as of today under a new ticker symbol aen with a new Q-sip number as well. So not only did they perform some kind of reverse merger or reverse conversion or reverse combination, but they also change their ticker symbol with a new Q-sip number. Now I'm not trying to put words into your mouth, but this is pretty much the exact same thing that AMC is doing as well.

Now not that Todd Also tweeted saying the interesting part of the AMC settlement is that Shorts will have to deliver one share for every 7.5 shares they've sold. Sure, obviously it's not just real shareholders that receive that AMC settlement. Anyone that's holding synthetic AMC shares must also receive the same settlement too. Therefore, the Shorts have to buy AMC shares on the open market to deliver to the shareholders that hold their synthetic shares.

Todd believes the Shorts have sold billions, meaning those same Shorts will have to buy up hundreds of millions of AMC shares to deliver on that settlement day. But Todd is say they cannot buy his shares, not unless they pay the price he is willing to sell for Now, what is also interesting is that Spence has tweeted saying the AMC and a conversion will lead into covering due to the Arbitrage setup AK those Arbitrage shorts playing the short AMC long a play. we'll have to close out of those AMC short positions. He's saying 83 funds are reported short in AIM C or have puts on both AMC and ape and we'll need to cover those shorts and close those puts as a result of the arbitrary play ending and he said when short covering hits match with the ape an AMC fomo, not everyone will get out.

basically saying that some funds will end up being squeezed and may end up being liquidated and he said there will be some funds that fail over this event in his opinion as Melvin Capital did back in March of 2022 and he said some funds will obviously be the last to cover and take some heat on the tail end. And it's not just Spence that thinks AMC and ape are about to run up, but a real actual Trader is also telling Amy that AMC is about to squeeze. Travis tweeted saying Amy was losing her marbles when an actual Trader tried to tell her that AMC is gonna squeeze due to the mark reversal on the S P 500 and the NASDAQ causing an algorithm run up on AMC Now Wall Street Breakers was basically explaining that because Nvidia and Tesla and many other stocks have been running up this year, these shorts have been taking on massive massive losses and if these stocks continue running up and the S P 500 and the NASDAQ get close to setting new highs or even set new highs, this means the shorts are going to lose billions and billions of dollars. And he is saying that as a result, this short squeeze will continue in many of the other tech stocks and smaller growth stocks and eventually in meme stocks too.

Obviously I don't want to pay the full 2 minute and 20 second video, but you can get the general gist. Amy was basically crying saying the short interest has dropped to only 200 percent which is still ridiculously high. so AMC won't squeeze and the Adam Aaron is going to dilute AMC with 400 million shares allowing the shorts to cover. but interestingly is Tony Dinaro tweeted he said that AMC have made a much better decision than expected.

AMC Do want to issue a capital raise, but only want to issue 25 million new shares. Yes, 25 million shares is dilution and I don't think that dilution is a good thing, but 25 million shares is actually a very small number compared to a possible 450 million shares. Yes, it maybe does allow some shorts to cover, but we know the shorts don't just have 25 million synthetic shares. they have synthetics in the billions.

25 million shares is not enough to allow those shorts to close out of their synthetic short positions. And it wouldn't surprise me if they've made 25 million new synthetics in just the last week or two alone. Even though I didn't want dilution, 25 million shares actually isn't that bad at all. So guys, be sure to let me know what you think down in the comments below.

And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when I put a new video. Cheers!.