The OTHER AMC

WOAHHH, THE OTHER AMC?

Just a post describing what I think the current market sentiment for AMC networks is. AMCX or AMC networks is a company that provides content through multiple outlets, including AMC+, WeTV, BBC america, Sundance channel, IFC channel, and also owns the horror centric streaming service Shudder.

I entered a position back in October of 2021. I bought a few shares north of $40 as an attempt to keep it in my position list and keep and eye on it (Cuz you only watch close enough when it effects the bottom line, right?) I was mainly invested in AMC the theater company at the same time, and surrounding myself with AMC apes is what lead to me entering a position in AMCX. The negative rhetoric and tenacious attempts to convince investors that AMCX was a dead cat started to pile up so high I began to question the motives of this opinion, and ultimately decided that there was financial viability in investing into AMC Networks.

I eventually sold at that $40 price point, and watched for a few months while starting to dig into AMC networks as a company, intending to buy back in at a better entry. The company undoubtedly had issues, and the streaming sector has been blowing up like .Coms did 20 years ago, and almost everyone realizes that it is due for a massive consolidation, so out of all the possible candidates, why did I pick AMCX? Cuz it was beaten down TOO MUCH. Cuz just some months ago the short interest of on AMCX was DISGUSTING, and for almost the entire year and a half I held a position, Webull was showing a company with 110% ownership. The only sentiment I could see for months on the Webull AMCX chat was just AMC theater apes stopping by to bash it, and warn others that this ticker “isn’t what you’re looking for”.

Throughout my time holding a position, one of the first indications of upward momentum was when short term CEO Christina Spade stepped down, and the company handed the reigns back to a lifelong, family trusted name, Kristin Dolan. A company wouldn’t typically give the CEO position to a key person bearing the family name if it was going to implode. You give people like Spade the position temporarily through uncertain and volatile times, but once things start looking up, the company and CEO role was immediately given back to a Dolan. Bullish. I bought more. Even through the announced lay offs, I bought more, cuz you know what they say, (if the underlying company is solid, a lay off can mean a pay off )

As I said, I’ve been an adamant AMC Theaters shareholder since March of 2021 as well. The only thing I heard from those cats during this time is that AMCX Is “the wrong ticker”, and “AMCX is going out of business”, and this sentiment started to be repeated at a rate which I thought was ulterior and premeditated.

I dollar cost averaged AMCX for the next year and a half, and ended up owning 95 shares at $20.13 (don’t judge, I’m a powerline maintenance arborist, I’m not loaded, 95 was dope to me). I was simultaneously going long on Paramount, and Standard Lithium (SLI) which ended up running, i banked 30%+ on both PARA and SLI and i decided after some TA, to pull all the profit from both PARA AND SLI and move it to AMCX last week.

I chose to do this because AMCX had just shown a twin inverted head and shoulders, which is two inverted head and shoulder patterns, where the 2nd shoulder of the first formation begins a 2nd inverted head and shoulders pattern. This was all happening within a massive downward wedge on AMCX’s yearly chart, and the breakout of that downward wedge was confirmed with a massive influx of volume and a push upwards just after the bottom of the 2nd inverted head and shoulders.

So, On Friday of last week, the day AMCX was announcing its earnings, it gapped up MASSIVELY and reached highs of 27.50. After lay offs and restructuring, AMCX killed their earnings report and bulls were rushing in to snag an entry.

Many people think the show is over, and it’s in everyone’s best interest to sell now and buy puts. I disagree. I think that Tuesday is going to bring about another massive jump, and AMCX should be sitting around $30-32. You must remember it was IPO’d at $40/share, and at one point in 2021 was so massively shorted it was approaching 30 days to cover. The reduction in this short position over the last year and a half is another factor that affirmed my entry.

So basically……

Tl;dr: I went long on AMC NETWORKS and got called insane and uneducated for doing so, and then AMCX ran 30%+ last Friday. I believe it still has plenty of room to run come Tuesday, and anyone buying puts or selling covered calls expecting an immediate drop or correction is utterly fucked. I’m convinced it will continue to run based not only on its history and IPO price, but on the simultaneous campaign of FUD directed at AMC theater apes that it achieves. It is convenient timing to convince AMC apes they “invested in the wrong ticker” as AMCX continues to gap up on Tuesday.