Today I Want to talk about how the AMC reverse split will impact the squeeze price and the squeeze brackets I Want to talk about where the previous brackets that people have set are still realistic and I also want to dispel some fun around the reverse split. so stay tuned and let's make some money. And now on the dive. Straight in with the key information.

So Stephanie tweeted saying this is why I'm voting Yes Yes she said I know it's scary, but not voting yes is more scary in her opinion. With a No-No vote, Shorts can continue pushing the price of eight down because Ape doesn't have a share locate requirement as it's a preferred stock and after that, they can go after AMC heart with a No-No vote. the Ape stock would again fall and Adam Aaron would have to continue selling shares at or below 60 cents per share. If you wanted to raise money for the AMC company, AMC would also be weaker without the conversion and without the reverse split and therefore the Shorts would be free to go off to AMC with all of their Firepower they would have generated billions of dollars shorting Ape that they can then put into additional AMC short positions with a no yes vote.

Okay, yes to the conversion and no to the reverse split. there would be a huge flow of 1.5 billion AMC shares. You'd also have a significantly cheaper price as the AMC stock would go from a flow of 500 million shares up to 1.5 billion. AMC's debt would also not be fully paid off as AMC could not generate any more Capital via the use of Ape as it's now been converted and therefore the Shorts could potentially push the price of AMC down even further.

However, with a yes yes float, the float becomes smaller and obviously small float stocks are historically well known to be more volatile. AMC would also be debt free as more cash could be generated for AMC. In the future, paying down the debt and the AMC stock would have a much higher price. Many people are saying that a reverse split on AMC would harm the potential of the squeeze, but I couldn't disagree further.

James tweet is saying 10 AMC shares becomes one AMC share. Some of his shares were bought at 56 dollars per share. The cost of 10 shares for him at that time was 560 dollars. but now the AMC share price is four dollars per share and 10 of his current Shares are only worth forty dollars in total.

So after the reverse split, all his one AMC share hit 560 again in the future for him to break even. 560 is massive compared to the current all-time high of 72 dollars per share. But number One, you have to remember that with a reverse split, the all-time high will be made much larger as well. And what I think is really important to consider is the actual squeeze mechanics based on market capitalization, what I'm saying is that share price doesn't determine a company's Worth or doesn't determine their squeeze potential.

As a prime example, the NVR stock has a share price of nearly five thousand dollars per share, but actually the total value of the company is relatively smaller only 14 billion dollars. I Think Many of you are thinking that with a share price of nearly five thousand dollars per share, that makes NVR 10 or 20 times the size of Apple 10 or 20 times the size of Amazon 10, 10 or 20 times the size of Microsoft and many other companies like that. But in reality, NVR is actually quite a small company with a market cap of only 14 billion dollars, which obviously doesn't rival anywhere close to Apple's total value of two trillion dollars. Just because the Apple share price is a measly hundred and thirty dollars, it does not mean that it's not a big company, especially compared to a stock worth five thousand dollars that actually has a much smaller market cap.

Therefore, what I'm saying is that we should calculate the AMC squeeze based on its total market cap, not based on a specific share price. For example, if we focus on AMC only AKA ignoring the synthetic shares and ignoring the ape shares, AMC has a flow of 513 million shares. If AMC squeezes to a very tippy top peak of a thousand dollars per share where few lucky Apes actually sell their shares for a thousand dollars that give AMC a total market capitalization of 513 billion dollars. If you're one of those lucky few and you manage to sell 10 shares, a thousand dollars per share That obviously gives you ten thousand dollars in total.

Maybe you believe that AMC has more squeeze potential than 513 billion dollars. 513 billion wouldn't even make AMC the largest company on record. It would actually not even place it in the top five or the top six. Therefore, maybe you think that AMC actually has squeezed potential of 5 trillion dollars in total.

That would make it larger than Apple, but only for a split second when few lucky eight sell at the very Tibby top price. This is obviously relatable to Volkswagen back in 2008 because for a very short moment, Volkswagen was the most expensive company in the entire Market based on market capitalization. With a market cap of 5.13 trillion dollars, that I mean the AMC is squeezing to ten thousand dollars per share. And obviously, if you're one of those lucky few that sells 10 shares at ten thousand dollars each, that's a whopping total of a hundred thousand dollars.

But what happens after the ten for One reverse split? Remember for this example: I'm ignoring those synthetics and I'm ignoring the ape shares as well. Obviously, after a 10 for One reverse split, 513 million shares becomes only 51.3 million shares if AMC's float of 51.3 million shares squeezes to only a thousand dollars each. That's actually not a 513 billion dollar market cap. That's only a 51.3 billion dollar market cap.

A 51.3 billion dollar market cap wouldn't even put AMC in the top 100 companies, let alone the top 10, let alone the biggest company company. If AMC only reaches 51 billion dollars. I Personally wouldn't even class that as the mother of all short squeezes as it doesn't make it larger than the Volkswagen squeeze as it doesn't make it the largest company in the market. Therefore, if you believe that right now, AMC with 513 million shares can reach a thousand dollars per share.

That means that you believe in a 513 billion dollar market cap of 513 billion dollar market cap after the reverse split. Therefore means that you instantly believe in AMC at ten thousand dollars per share. If you believe that with 513 million shares, AMC can reach a thousand dollars per share, then you must believe that after the reverse split, AMC can reach 10 000 per share because a thousand dollar AMC now is the exact same thing as a ten thousand dollar AMC after the reverse split as the market capitalization doesn't even change by a penny. And obviously, if you believe that right now, AMC can reach ten thousand dollars, that's a 5.13 trillion dollar market cap.

If you believe in that five trillion dollar market cap making it the largest company in the market, making it the mother of all short squeezes, then you must believe in a one hundred thousand dollar AMC off the reverse split. Therefore, if you believe in a 500 billion dollar market cap, you therefore definitely believe AMC can reach 560. Again, you believe it can reach a thousand and you believe it can reach ten thousand dollars per share after the reverse split. If you don't believe AMC can reach ten thousand dollars off the reverse split, You therefore don't believe that AMC can reach a thousand dollars.

Therefore, you don't believe that AMC can actually experience the mother of all short squeezes and therefore, you should probably sell your shares now. And as Sal tweeted, he said the amount of people who still don't understand what a market capitalization is scares the hell out of him and Stonky Donkey actually tweeted exactly what I was talking about in my previous video. He said people who say the shorts will short it from 50 to 5 after the split is the exact same as them shorting from 5 to 50 cents. Pre-split he said AMC is currently worth two billion dollars with five billion in debt.

He asks what's it worth with zero debt and on top of that, we can also see some absolutely insane numbers set in the January 2023 call options. This user tweets saying this: 5.5 billion dollars in call options ending January 20th The January 20th chain is absolutely crazy. There's a massive amount of call options compared to the very, very small amount of puts If we look at Stonka Tracker, we can see there's currently over 400 000 AMC calls. There is a lot of perks nearly 300 000 puts, but they're obviously significantly lower puts worth significantly less.

Yes, the majority of these cool options are currently out of the money, but that means that if AMC experiences a run-up that run-up could compound quickly. during an AMC run up, more and more and more of these cool options will be becoming in the money and therefore these market makers and hedge funds will have to hedge for these new in the money calls. If market makers have to hedge for hundreds of thousands of in their money call options as they become come in the money, That means they have to buy hundreds of millions if not billions of agency shares. And I think, especially with the way the current market crash is going.

AMC could very soon experience its next run up, causing these market makers to hedge the calls. The capacity letter Tweeter Saying this year we've had the most tech layoff since 2001, the worst drop in tech stocks. Also, since 2001, a war, the most aggressive Fed policy ever into a recession, and 2.5 trillion dollars lost in crypto he said. But yet the S P 500 is down just 20 percent and he asks what will it take to break this? Market But he also kind of answered this question in the very next tweet.

He said the year-to-date performance for many of these tech stocks is appalling. Down 70, 60, 50, and 40 percent, He said, yeah, the S P 500 is down just 20 percent and therefore Apple May really be holding up the entire Market Apple is obviously a massive portion of the S P 500. And so far this year, apple is only down 29 percent. Relatively small fry compared to 50 and 60 drops.

and that is why Ryan Cohen Tweeted saying the Apple doesn't fall far from the tree. basically saying that when Apple drops, everything will drop. Composite: Dave Also tweeted this chart of apples showing that Apple has just Fallen below its 52-week low Apple has barely any resistance left on its way down, potentially below as low as 50 dollars if Apple Falls by an additional 66 percent. That really would cause the S P 500 to crash Even further, and obviously, when we see that S P 500 crash, we will be seeing a massive wave of liquidations obviously causing AMC to run up again, causing these market makers to hedge for those AMC in the money calls causing the squeeze.

But 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 have a new video. Cheers!.