Welcome back to the channel everyone today, i want to explain how goldman sachs are hiding the failed delivers and how, if the apes keep up our current trajectory, we could cause an amc share, recall which would almost definitely cause the amc short squeeze so stay tuned and, Let's make some money, but guys before i dive into the video. I just want to give a massive shout out to the 3 400 of you that have currently dinged that notification bell, because you guys are always the first to watch a new video as soon as it's released so guys be sure to drop a like down below Subscribe to the channel and ding that notification bell, if you haven't already so that you don't miss another video just like this one, but before i dive in with the key information, i've actually got a big announcement towards the end of the video that i actually need. Your help with so be sure to watch to the end, and let me know what you think down in the comments below and now i want to dive straight in with the key information. So goldman sachs provides borrowing and lending services to allow institutions to cover their short positions aka.

They are volleying the same shares between each other to reset the failed delivers. This post on reddit then comes with the attached photo, but it's quite hard to see. So i managed to find the source of this article published by goldman sachs in their 2021 resolution plan. Equities financing includes prime brokerage and other equities financing activities, including securities lending margin, lending and swaps.

We earn fees by providing clearing settlement and custody services globally. In addition, we provide our hedge fund and other clients with a technology platform and reporting that enables them to monitor their security portfolios and manage risk exposures. We provide services that principally involve borrowing and lending securities to cover institutional clients, short sales and borrowing securities, to cover our short sales and to make deliveries into the market. In addition, we're an active participant in broker to broker securities lending and third-party agency lending activities.

We provide financing to our clients for their securities trading activities through margin, loans that are collateralized by securities, cash or other acceptable collateral. We earn a spread equal to the difference between the amount we pay for funds and the amount we receive from our clients. We execute swap transactions to provide our clients with exposure to securities and indices. So basically, what that's explaining is that goldman sachs provide a service to other hedge funds, market makers and, just generally other institutions to cover their short positions as in to cover their filter delivers or more than likely, they just borrow stock from goldman sachs.

In order to make deliveries into the market, as in just to show framework, look guys, we got some stock, so we're delivering it. So we don't have those filter delivers anymore, but in reality all they've most likely done is created. Another fail to deliver just with goldman sachs in order to reset the clock, i'm sure there's other brokers or other large banks that engage in these practices as well, giving the hedges an opportunity just to swap their fail to delivers with another firm. But there's two reasons.

As to why this can't go on forever, it's because the hedge funds actually have to pay goldman sachs a fee to provide this service. I imagine that fee is going to be fairly large and a percentage of the overall failed to deliver position say like half a percent or 1 2 or 5, for example, because obviously goldman sachs is taking on a lot of risk by holding those filter delivers or By engaging in a buy right transaction with them again, i've explained by right transactions in one of my other videos, but it's effectively the process they use to juggle the fail to delivers between the two parties, but both parties are actually exposed to risk and therefore that's, Why goldman sachs charges a fee for it, but, in addition, goldman sachs also provide financing to our clients through margin loans and those margin. Loans are obviously going to cost money. Therefore, as the hedges are currently digging their position deeper and deeper and deeper they're going to be taking on more and more and more in terms of margin, loans and therefore their interest and overall fees are going to go higher and higher and higher.

Yes, the amc cost of borrow fb is fairly low, say between 0.1 and 1, but that's just the cost to borrow fee, not including any fees that have been charged by goldman sachs for these margin loans and in addition, as that hole, is dug, deeper and deeper. And deeper, with short positions, the cost of borrow fee will go up as utilization gets closer to a hundred percent, and i think a recent post from peter han explains that really really well. He says, nonetheless, the overall spirit of the community is strong. The recent selloff to 29 continue to see strong retail buying and i really have to question what is the point of just adding more shorts to an already impossibly large position.

Latest data from the amc shareholders question survey is showing actual float is over a billion shares by the most conservative estimate on the higher side, five billion or more, and that's exactly what i've been trying to explain. The hedges have been digging this hole deeper and deeper and deeper. The hole's not just gon na magically disappear and they're not going to magically get out of it at some point they will have to cover and, as i've said before, yes, they can continue beating the amc price down to 25, 20 or 15. But to do that they're having to short more and more and more shares and therefore digging the hole, deeper and deeper and deeper, and therefore when they do cover the amc share.

Price is going to shoot straight back up to 70 and they'll have only covered a small portion when that happens, they'll be back at square. One they've effectively taken two steps forward and two steps back. By doing this, they haven't actually ever covered any of their original short positions. They've just covered the new positions that were used to beat the amc stock price down to whatever price they beat it down to.

They still have all of the original shorts still to cover back up at 70 dollars, so i also wanted to discuss how we could effectively cause a forced share. Recall the current update from the say technologies platform is 48 300 votes. Around percent of the apes to 56.1 million shares around 10 of the float. So, therefore, one percent of apes hold a whopping 10 of the float already.

Also, don't forget that this number doesn't include any institutions and also at the moment currently doesn't include a lot of people from the uk, europe and canada that can't yet register to vote. This still gives an average share per ape of 1 161 shares, which is absolutely incredible. These votes are continuing to climb, but the average is not falling. Yes, you could argue that a lot of apes that only own one, two, five or ten shares haven't been voting and therefore on a straight average.

It's obviously overestimating, but that's why you'd use something like an 80 20 principle or a 94 6 principle, or even a 99 or 1 principle. Whatever you use, it still shows there's more shares in issue than 513 million shares, as this figure climbs higher and higher and higher and closer to the full flow of shares, without being anywhere close to 4.1 million apes, it will effectively enact a force share, recall the Lenders won't be able to ignore it any longer and will have to forcibly recall the shares. This is something similar to what happened on kbio, that caused the stock price to squeeze from around 1.90 all the way up to 40 to 45 calobios kbio infinity squeeze in november 2015 farmer, bro martin shkreli, orchestrated a violent short squeeze on failed biotech calobios that caused Its share price to rise by a staggering 10 000 in just five trading days, kbio had been perceived by short sellers as a no brainer near term. Zero kbio's only real drug had just failed, and the company had insufficient cash to pay over six million dollars in debt lesson number one: fundamentals do not matter period in early november of 2015, kbio was an utterly defunct, failed.

Biotech clearly headed for insolvency. Kbio had just one single feasible drug in clinical trials at the time and had no revenues when that drug failed, kbio was left with an insufficient cash to pay nearly 7 million dollars in debt kbio quickly slashed headcount by 61, and then publicly announced their earlier. Hopes of pursuing strategic alternatives would not be viable due to having such limited cash resources. Then, on november 17 2015 the nasdaq notified kbi that the stock would be delisted because it had failed to file a 10-q for the september quarter.

So, to be clear, kbio's problems were catastrophic and unfixable way worse than amc at the moment, as amc is actually quite a successful company and with the reopening is doing record-breaking numbers after the closing markets on november 18th, just one day after kbio received its d listing Notice kpio announced that an investor group led by martin shkreli had just acquired more than 50 percent of kbio shares. So that's why the share price had spiked from 44 cents to around two dollars when the market opened the next day, kbo skyrocketed from two dollars to over 14 on staggering volume as terrified shorts scrambled for the exits after the close on november 19th, kbio released a Second announcement stating that the group had now acquired a full 70 of outstanding shares and that shkreli had been appointed as kbio's new ceo and chairman shkreli's group had stated that it would inject an initial three million dollars in cash with an additional 10 million dollars following Shareholder approval by november 23rd, kbio had briefly hit 45 per share. Phase 2 forced borrow recall after briefly, hitting 45 kbio quickly retreated into the twenty dollars. After all, it was still just a defunct biotech stock without a real drug, even with a bit of cash from shkreli, the stock was worth nowhere near a market cap of over 200 million dollars.

Short sellers piled in to short more in the 20s on the basis that it was just a squeeze and that would quickly fall apart and that's exactly what's happening with amc. At the moment. We own over 70 percent of the flow over 80, potentially even over 90 percent of the float and short sellers are piling in because it's just a short squeeze and the short squeeze is over. Obviously, that was sarcasm as cabero's share price had been spiking short interest.

Had been growing like we're, seeing in amc and shkreli now owns 70 of the outstanding shares, then, on thanksgiving day of 2015, when markets were closed, shkreli tweeted that he decided to recall his kbio shares that had been lent out to short sellers. The resulting squeeze was just a simple math problem. When shkreli recalled his shares, brokers would be forced to buy in the short sellers causing it to spike uncontrollably when the market reopened, on black friday for a short in session, shares of kbio continued to squeeze higher, reminding some investors of the volkswagen porsche infinity squeeze from 2008 shares surged 31 as shorts trampled over one another to close their positions, the stock again surged back to as high as 45 dollars and remained elevated for weeks thereafter, he takeaways from kbio's infinity squeeze the ability to say i told you so as in i told You so it's just a short squeeze. Amc is still going down six months down.

The road has precisely zero value, especially for traders who went broke in the process. Basically, after amc squeezes and comes back down, it will be worth zero value for hedge funds. To say i told you guys it's coming back down now after they've all gone bankrupt when shorting any stock. It's important to know who's on the opposite side of the trade and what they might be capable of and guys us apes are on the opposite side of that trade, and we are capable of a lot easy to short, does not always equate to easy to cover.

As late as november, the 16th short interest in kbo had stood at less than six percent. The cost to borrow shares was not excessive. The sudden double whammy of rising short interest against the sudden change in availability of float is often easy to miss the fact that martin shkreli ultimately came to an unpleasant end, as he was arrested for something completely different. Does nothing to reverse the losses of those who were on the wrong side of the kbio squeeze and guys that's gon na be the hedges now guys before i leave you today.

I want to give you my special announcement from the bottom of my heart. I am very, very thankful for all of the people that have subscribed to the channel ding, that notification bell watch all of my videos and who have recently joined the patreon and to say thank you to you guys. I really want to do a giveaway. I was thinking 500, 600 or 700, but i don't really know what to give away.

I was thinking maybe just an amazon gift card or an expensive whiskey, but i don't know how difficult it is to ship whiskey from the uk to the us or maybe some of the apple headphones, but i don't really know so leave a comment down below. Let me know what you think i could give away for between 500 to 700. and guys i also wanted to let you know that i've just released some amc related merch. It should just be below the video but like before the description.

So if you want to pick up some cool amc, merch and support me at the same time, then check it out. I've got five different designs, some t-shirts and hoodies and other bits and pieces as well and guys, as always, be sure to leave a comment down below. Let me know what you think of goldman sachs, hiding the fail to delivers and, as always guys, if you enjoyed this video, be sure to check out some of our others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.