Today I Want to talk about how AMC could run the 250 dollars per share and above during the AMC 8 conversion. I Also think the shorts have accidentally revealed when the conversion will be taking place, which is in the next 30 days. So stay tuned and let's make some money. and now I'll drive straight in with the key information.

So Spence tweeting if Ape converts and a new AMC flow of 150 million shares opens up at 45 per share and then runs to 250, is that a squeeze? So I Want to start by talking about how AMC could run to 250 dollars per share and why and then talk about whether that would actually be the squeeze. So obviously during the conversion and reverse split, the price, market cap and flow of both AMC and Ape are added together and then the float is divided by 10 and the price per share is multiplied by 10. the normal trading will then resume where the shorts try and push us down, but the volume and fomo will likely push us back up as well, either creating an equilibrium or creating a run from 45 dollars per share to 250 dollars. During this conversion, you're actually going to have a lot of buying pressure for all of those shorts that were playing the Arbitrage Opportunity by shorting Ape now closing their position during conversion and that alone combined with the Fomo buying combined with the ETF buying could indeed push the price to 250 dollars per share.

especially with this article that I want to talk about which explains how shorting AMC stock ahead of the aid conversion being a risky proposition. But I Guess the real question is would this actually be the squeeze And you can see by my answer here that I voted no 250 dollars per share post conversion is the same as 250 dollars per share pre-conversion which is absolutely not a squeeze because that number can and was reached in the past without Shorts closing out of their short positions. If Shorts did actually close out of their short positions, all that buying pressure and buying volume would push the price at least over 75 dollars per share pre-conversion or 750 per share post conversion. At that point, you'd do need to add on all of the additional buying pressure from the Shorts actually closing out of their short positions, pushing their price significantly higher.

So while a 250 dollar per share run would not be the squeeze, it could actually create that buying pressure to cause the squeeze. Obviously, if AMC runs the 250 dollars per share very quickly post conversion, that would squeeze the Shorts financially and put them in a very stressed position. and in that stressed position, they may be forced to close out of their short positions during a margin call scenario. Especially as this article says, short sellers betting against AMC common shares before the ape conversion could be in for a rough ride.

As it says here as I kind of touched on earlier Arbitrage Traders are betting the AMC and April converge in price once the preferred equity to units are converted to Common shares and given AMC short squeeze. potential betting against the theater chains common shares is risky right now. They also added saying the Wall Street Journal pointed out they believe a ruling is expected within the next few weeks, but as I want to point out a little later I think it's due within the next 30 days. They also said there's been a difference in the prices of AMC and 8 shares of about 2.20 The Arbitrage Traders are betting that both stocks will converge in price when the Ape conversion occurs and therefore have been shorting aims shares, saying they expect the conversion to put downward pressure on AMC common shares in the coming days given that AMC is the one trading at a premium and when it convert US into AMC and those Arbitrage Traders close their AMC shorts, that's tons of AMC buying pressure And thus, even though conversion is close, I see plenty of risk for short sellers in betting on the fall of AMC shares in the short term given a massive potential for a short squeeze.

Also guys, you can currently get a guaranteed free share of Tesla or of Google and a 100 cash Award with Mumu which you could always use to buy more shares of AMC or if GameStop all you have to do is sign up to MooMoo using the link in the description below and make the required qualifying deposit. Signing up to Mumu is obviously free to do and just requires a temporary deposit and is a really great way to support me and to support the channel. I mean it was also very easy to use and has tons of technical indicators, charting, tools, and options trading as well. And that is why is Topg tweeted one random day you will see AMC up 50 000 out of nowhere.

He said it will start in the pre-market He said you'll see it at least a hundred million shares of volume in the first 10 minutes of trading. He said you will know and there will be signs. This is obviously very similar to what happened during the June 2021 run up where most of the trading and most of the action actually took place in the pre and post markets. Obviously on that day on June 2nd, we did see the huge run from 40 to 70 plus dollars per share, but a lot of that movement from kind of fifteen sixteen dollars per share up to 40 happened in the pre-market beforehand and that's why one day when you wake up to AMC trading at 50 per share pre-split or 500 per share post split, you'll know that that is squeeze season now.

I Want to explain how exactly these shorts accidentally gave away the decision date for the AMC lawsuit and when exactly the conversion will happen now? Wall Street Analysts, including the team at Citigroup believe the Delaware Chancery Court will approve the settlement of a class action lawsuit seeking to prevent the conversion of the Apes and Citigroup is expecting the prices of AMC and ape to converge, basically expecting the price of AMC to drop when the courts approve the settlement. Now, you may also remember that Citigroup actually expect the AMC price to fall in the next 30 days with a catalyst. So they're expecting the price of AMC to fall when the conversion is announced, and they're also expecting the price to fall in the next 30 days with a specific Catalyst. Adding the two of those together basically means the conversion and reverse split is expected in the next 30 days now.

I Wrote this tweet and it really put into perspective just how crazy shorting AMC at the moment really is. Scavenger tweeted: Same with AMC's cost to borrow at 500 percent, they're literally paying 25.62 cents per share to shore. AMC These shorts are basically paying an upfront fee of 25 per share to short a five dollar stock. and that's only with the cost to borrow at 500.

But we know that from yesterday, the cost to borrow is actually closer at the moment to 900 or a thousand percent. So these shorts are basically paying an upfront fee of 50 per share to Shorter five dollar stock. And that makes literally zero sense That Shorts would happily pay 10 times the cost of an AMC share to short that one AMC share every single year. Which I think really goes to show these Shorts aren't choosing the short AMC shares.

They're basically being forced to continue their short position because they know they can't refuse to pay their short borrow fee because they know they can't close out of their short position because doing so would bankrupt a hedge fund by causing the squeeze. AMC for all Tweet is saying let's do some quick math: AMC's cost to borrow average for today is 972 percent and he said let's run some calculations on that cost to borrow rate based on the legally disclosed currently shorted shares. He said currently the free float on loan is 34 of the flow or 180 million shares 180 million shares multiplied by the current AMC price as of today is 773 million dollars worth of AMC shares borrowed. a 972 percent cost of Orange Fee on an annual basis is paying 7.5 billion dollars Yes, 7.5 billion with a B each and every year just a short 700 million dollars worth of stock that's 7.5 billion dollars divided into a weekly basis is 144 million dollars per week, The Short: 717 million dollars worth of stock and FYI that means in just 5.3 weeks, the borrowers will have paid more than the entire short position in just borrowing fees alone.

I Also wanted to quickly talk about this tweet from Phil for Real which really gave me a laugh over the last few weeks. You may remember many accounts commenting on some of the legal filings claiming these legal filings were made by AMC's legal team confirming the existence of Project Popcorn. But what most people fail to read is that many of these documents were submitted by the plantif's AK being submitted by Allegheny and not by AMC's lawyers. It really shocked me just how many people thought he's got.

Documents were submitted by AMC's lawyers and not by Allegheny's lawyers. Okay, not understanding the definition of a plant if even some of the supposedly intelligent people in the community like bam investor clearly doesn't know the difference between a plantif and a defendant and even doubled down on his thought process. When people tried to point out the fact that it wasn't AMC's lawyers asking people if they were really that naive, especially after hearing a lawsuit examination on the 29th and 30th of June, it was very clear to see the majority of stuff said by Allegheny's lawyers was just plain made up rubbish. They were simply accusations, completely unfounded and false accusations.

And that's why the lawsuit examination went so downhill for them. So guys, be sure to let me know what you think down in the comments below: whether you believe AMC could run to 250 dollars per share during the conversion. And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when upload a new video. Cheers!.