Thread by @BJKonkle

Why can’t legacy finance media (or your friends or family) wrap their heads around #AMC and the #AMCAPES?

Other than they get paid off to spew FUD - they miss the simple supply and demand battle being waged.

For many it’s obvious, but for others it doesn’t appear to be... 1/

The supply of #AMC stock (commonly referred to as “the float”) is suggested to be 493 million shares.

Hedge-funds began shorting (betting against) #AMC after the pandemic. The amount of shares shorted is referred to as “short interest.” 2/

Many saw how heavily shorted #AMC was and continues to be, and thus started a worldwide coalition of #AMCAPES who began buying up as many shares as possible - which shrunk the supply of stock available to be shorted. 3/

When the Apes buy up the majority of the float, supply of stock decreases.

Here is the rub:

When a stock is shorted, the stock is borrowed and MUST eventually be bought and returned for the short to close their position. 4/

This creates additional demand from those who originally sought to see the stock decrease in value.

Economics 101 illustrates that when supply goes down and demand goes up, this creates tremendous price pressure in an upward direction. 5/

The ultimate kicker:

The shorts are “printing” synthetic naked short shares (essentially IOUs just like the ones in Dumb and Dumber) because the supply of legitimate shares continues to decrease. They do this in hopes of crushing share price. 6/

BUT remember:

These IOUs must also be bought back and returned in the same fashion as the legitimate short shares - creating a snowball effect compounding the demand and ultimately the VALUE of each share.

This is no different than trying to extinguish a fire with gasoline. 7/

Many Apes saw that the intrinsic value in AMC shares lies within the simple laws of supply and demand - thus the tremendous upward price explosion we see and will continue to see until the short positions get out from their graves - I mean holes they’ve dug for themselves. 8/

This is the essence of a short squeeze, where short positions are “squeezed” out of and forced to buy shares at a high price to close their positions.

BUT it’s the (billions of?) synthetic shares that many believe will create the #MOASS (Mother Of All Short Squeezes) 9/

Despite being a movie FANATIC and lover of the cinemas, this is not a play on reopening movie theatres after the pandemic (although of course it helps the stock and overall business).

This is a play on the simple economic functions of supply and demand. 10/

And...

The gas is thrown on the fire in the form of Wall Street greed, ego, and arrogance.

The Apes have exposed and exploited this greed.

All of these simple factors add up to #AMC500k.

#AMC 🚀👨🏻‍🚀🍿

11/end

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@TradesTrey
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@matt_kohrs
@TaraBull808
@BAMinvestor
@masked_investor
@PappaApe
@vickilaketta
@Joshuajammes
@KongPosting
@Lancestipher
@amcsupporter
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