The Road to Tendie Town, for a Better Future
Good morning my Friends and Family,
It is another beautiful morning, and we are one day closer to the MOASS!
(The Mother of All Short Squeezes).
Let’s get right into it — how many of you are wondering, “what in tarnation is going on with this woman?”
Many of you have reached out with genuine curiosity, camaraderie, and encouragement: having these conversations with you was my goal! Thank you for taking the time out to engage with me, and this content :)
I am very excited for our wild ride to Tendie Town ($$), at the expense of these crooked, greedy, motherfuckin’ HEDGE funds!
Here are some questions that may have crossed some folks’ minds in the past week or so, due to my newfound obsession and hype of AMC stock on social media:
Is this some sort of pyramid scheme, to hype and buy AMC stock?
Did she get radicalized and brainwashed online to believe that another GameStop/AMC squeeze is going to happen, let alone possible?
Is this an early-stage mental health crisis, akin to when someone thinks they are gonna be the next *Eminem, or a reincarnation of Jesus?
*Not to say I wouldn’t try to be the next Eminem, if possible, but just sayin’ lol
SO… to answer your questions, we’ll reel back the tape a bit and explain how we got here:
At the beginning of the pandemic, I was working 2 different restaurant jobs as a server, bartender, and part-time manager in the San Francisco Bay Area. I was also being recruited for a sales role in a restaurant supply and distribution company.
The economy was booming: with explosive sales that never seemed to end, even after the holiday rush, and during tax season, money and opportunity in San Francisco seemed endless; back-to-back tech conferences, business deals, and insane VC money flowing into the city, every single day.
And then BOOM! The pandemic breaks out, we all get locked down in our houses, I lose ALL three jobs, and am sitting in my living room filling out EDD paperwork online for the first time in my life.
At first, all of it seemed like it would be temporary. My employers kept in close contact during those first several months, waiting for when we could all re-open again. PPP loans were being dispersed, unemployment benefits were boosted by the federal government, and the pandemic seemed it would be sorted out in a few months’ time: everything was going to be “OK”.
So accordingly, I passively waited for my “temporary” lay-off to end: I picked up part-time work at the company my partner works for, as well as my father’s business, and ultimately waited for the pandemic to end like everyone else, figuring out what to do next.
Fast forward nine months, and this passive mindset lifestyle came to a screeching halt:
Enter, the GameStop Short Squeeze that occurred on January 27th, 2021.
We all read the headlines: “Redditors rally around GameStop, a company on the brink of bankruptcy, to stick it to the man, and successfully trigger a Short Squeeze at the expense of a handful of hedge funds”.
The mainstream news media went ballistic, portraying this as an extremely BIG deal: every single news and media outlet seemed to be covering it. I, as well as millions of other Americans and folks around the globe, was intrigued!
Up to this point, I considered myself an avid Redditor: it was and still continues to be my favorite social media platform. However, this GameStop squeeze had my mind spinning: how, after thousands of hours on Reddit in 2020, did I miss this HUGE opportunity?????
Well, this is where things get interesting: I log on to reddit, expecting to see all of the comrades celebrating their gains from the squeeze, happy memes, celebratory shout-outs and awards, screen shots of how much money everyone made…only to find the complete opposite: People were PISSED.
Apparently, all of the people who managed to make money on January 27th were “Paper-Handed Bitches” and the real “Diamond-Hands” were holding out for the “REAL squeeze” with @DeepFuckingValue (DFV) aka Keith Gill, as their leader, who never sold!
What the hell is all of this?
After a few hours of perusing a variety of sub-reddits, the theory became clear: Robinhood halting trading ruined the squeeze, which was prophesied by Mr. Keith Gill to go much, much higher. The consensus online was that the hedge funds won this battle, but this war was only just ramping up, and that no one was leaving.
As a matter of fact, DFV, who never sold a single share, doubled down on his GameStop position the day after he testified to congress. This had the community absolutely ROARING.
At this point, I was completely hooked.
Since we needed to #BoycottRobinhood, I opened a cash brokerage account at a much larger institution (read Vanguard, Fidelity, TD Ameritrade, etc.)
Of all the shorted stocks (GameStop, AMC, BlackBerry, Nokia, Koss, and others) I decided that AMC was the one that I was going in on. This is because:
1. The price per share of AMC after the baby squeeze was more affordable
2. Going out to the big screen is a fabric of American life: the fact that these hedge funds were going to bankrupt AMC, in the middle of the pandemic, makes my blood boil
3. I started following a handful of AMC stock influencers that I love and feel connected to
I have immense respect for everyone over at the GameStop stock channels, and all the other shorted stocks. We are in this together.
Keith Gill shed light on all of this, and words cannot describe the impact that this one person has had. Because of him, there are thousands upon thousands of people working together to bring down these crooked, greedy, effed-up hedge funds, who have not and will not share their immense wealth to make this world a better place.
They have had all of the resources you could imagine, to mitigate and/or end environmental degradation and human suffering, for generations. Time and time again, they have shown us that they have no interest in such endeavors, as long as they can stay rich and stay on top, they will continue to squeeze the rest of us and the planet for all of the profit they could possibly extract.
We are watching the biggest wealth transfer in the history of money, and I want all of my friends, family, colleagues, online and real life, to get in on this action.
Back to the mainstream news media reaction after the January 27th “squeeze”.
After reading everyone’s input on Reddit about the debacle, it became clear that the media was spinning this as a ‘once in a lifetime squeeze phenomenon’, that was ‘extremely newsworthy’ because it was so ‘rare’ and would ‘never happen again’. They also hammered down the idea that the “Redditors won”, when in reality, it took about eight or so minutes to see those very Redditors, were fuming at the mouth!
One of the hedge funds that held a large number of short positions on the shorted stocks, called Melvin Capital, made a public announcement that they were exiting their put options positions on GameStop in the news. There was no mention, however, of whether they continued to hold a short position on the stock: and what their intentions were for this position, if they were to continue holding it.
Disclosing the exiting of their options position was a distraction from discussing the more pertinent issue of the status of their short positions.
Melvin Capital nonetheless took the hit in the media, while other shorting hedge funds such as Citadel, said nothing, and temporarily enjoyed the benefit of avoiding public scrutiny.
This is where things get interesting, again, Part 2:
Melvin Capital was able to dodge addressing the status of their short positions, because hedge funds and institutions do not have to disclose their short positions to the public.
All the while, the media continued to cover the story all week, portraying that “the Redditors won”, and that the squeeze was over: hoping we would get bored, fold up our lawn chairs, and head home to binge watch the next Netflix series on TV.
This is because, if God forbid this movement got any larger, and if the retail investor knew that these short positions were not covered during the January baby squeeze, it would completely bankrupt any shorting hedge fund to oblivion.
All throughout 2020, GameStop, AMC, and the other shorted companies, were on the brink of bankruptcy. They thought shorting these companies during the pandemic was a shoe-in.
When a hedge fund is able to successfully short the stock of a company to bankruptcy, AKA to ZERO, they are able to profit 100% on their short positions, tax-free :/
The mathematical LOSSES on a short position, are INFINITE. This is because theoretically, the price of a stock can increase to infinity.
When looking at the research that is readily available on Reddit, Discord, YouTube, and Twitter, it is clear that the shorts have not covered.
It makes sense, that they DID NOT cover their short positions on GameStop, AMC, and other stocks, because:
1. The shorts were originally taken out during 2020 and early 2021 when the underlying stock price was much, much lower (AMC was on the brink of bankruptcy and the stock traded at or less than $2/share for several weeks in late 2020)
· Since the short position was entered at a price that was lower than at any point since the January 27th baby squeeze, the hedge funds are incentivized NOT to cover at loss, because “You only lose money when you sell”.
· They have essentially been waiting us out to exit their extremely over-leveraged short positions, hopefully at a profit, when we all lose interest and/or are unable to keep fighting. They are waiting for the stock price to come down, before covering.
2. When the stock price for AMC jumped from $2 to $20 (and $15 to $400 for GameStop) on and leading up to January 27th, trading was halted on Robinhood, which is where the majority of Redditors were trading these shorted stocks.
3. When trading was halted, this artificially plummeted buying pressure on the stock, triggering the algorithms used by hedge funds to stop covering their short positions, in hopes that the stock price would come crashing back down to their original price, pre-baby squeeze.
4. The stock prices did come crashing down: however, because enough retail investors and institutions held through the dip, the stock prices never went down to pre-baby squeeze numbers.
5. Their intention was to make the public believe that the squeeze was over, so that they could continue with their original plan of making a profit on their short positions on these companies down the road.
6. It is clear now that this is not going to happen, because it has been four months and the price of neither GameStop nor AMC stock have come down to an acceptable price, for shorts to be profitable.
As a matter of fact, they have been increasing since mid-February, week-by-week, incrementally.
So why aren’t they covering? Why not just accept defeat, cover the shorts, call it quits, stop the bleeding, and move on?
7. They have not covered their short positions, because they would incur an insurmountable and unrecoverable loss from doing so, due to how grossly over-leveraged they are on these very positions.
If they were to cover now, it would immediately bankrupt them.
It is essentially cheaper for them to keep kicking the can down the road, in an attempt to wait out the retail investor, and other institutions going long on the stock, that have since joined the movement.
8. Another reason to keep kicking the can down the road, is that they are buying time. And with this time, they are scraping together more liquidity to keep fighting us in this war.
Enter, the cryptocurrency crash.
9. At this point, you all saw the epic crypto crash yesterday (5/19/21), and specifically Bitcoin’s monstrous crash all the way down to 34K from its ATH of 63K, just a few weeks ago. I believe based on research that the hedge funds were knee-deep in cryptocurrency, and Bitcoin specifically.
The crypto crash was not only a result of hedge funds, institutions, and whales pulling out from their investments, however;
· Whenever there is volatility, there is money to be made. This means money could be made when the price of a security goes up or down. In essence, this allows the big money to keep making money no matter what happens in the market, as long as it is volatile, and they know that it is coming.
· We have to remember, we are fighting motherf’ers who are masters at shorting.
When Bitcoin, along with every other crypto crashed, these hedge funds made money in two ways: 1. pulling out liquidity from their holdings before it crashed, and 2. shorting Bitcoin and Ethereum because they knew the crash was coming.
They knew the crash was coming because they were causing the crash!
THIS is the type of bullshit they have been doing in the stock market for decades. THIS is what we are exposing, while we fight this war!
10. If they can keep pulling liquidity out of the market, and kick the can endlessly down the road, aren’t we going to be waging this war against them for the rest of the year, or for the rest of our lives?
What is stopping them from doing this endlessly until we truly cannot afford to stay in the fight?
11. The SEC and DTCC have stepped in, and have passed a variety of new memorandums and rules against the following strategies that have allowed this situation to get so out of control:
· Naked Shorting
· Fails-To-Deliver (FTDs)
· Synthetic Shares
· Over The Counter (OTC) Dark-Pool Trading
· Margin Requirements for leveraged securities
· Over-leveraging of securities by banking institutions that were allowed in 2020 in order to keep the market from tanking during the course of, and as a result of, the Covid-19 pandemic
12. The reality of the historic bull market of 2020 and 2021, during the pandemic, is that the Fed printed trillions of dollars into the stock market, in order to artificially boost the economy.
13. The government allowed for banks to loan out an ever-increasing amount of capital to hedge funds with miniscule margin requirements, as another strategy to boost the economy during the pandemic. This resulted in the over-leveraging of these exact short positions, sometimes to the magnitude of 100x, due to the combination of abhorrent mismanagement and unscrupulous greed by the hedge funds.
14. The hedge funds took advantage of these benefits in order to aggressively pursue a campaign to short and bankrupt the most vulnerable American companies, in the middle of a pandemic, to take profit for themselves, tax-free.
15. The financial services committee in Congress have already announced that there will be no bail-outs for hedge funds who become bankrupt due to these types of malpractices.
The mind-boggling levels of over-leveraging and market manipulation by these hedge funds have resulted in a market that is currently teetering on the brink of collapse. In order to reign in the chaos and to lower the temperature on the pressure cooker, the **SEC and DTCC have stepped in to abate this situation by passing a variety of new rules regarding the above metrics.
The CEO of AMC has initiated a share recall, where all real shares of AMC will be counted, weeding out those that are synthetic. The deadline for this is June 2nd, 2021.
These rules are now going into effect, that were drafted as a response to the January 27th baby squeeze, which revealed the aforementioned malpractices. New rules take several months to be enacted in the bureaucracy that is our federal government.
As a conclusion, and if you are still reading, I believe that investing in AMC stock is the BIGGEST money move of the decade. I believe this will be the Mother of All Short Squeezes and that my friends and family, in life, and online, can come together and join this absolutely legendary movement.
So much freaking love, and see you on this other side!
Love, Mariel
**note: the SEC and DTCC are not doing this out of the kindness of their hearts to help the retail investor: they are doing this because otherwise, a 2008-level market crash is imminent if these practices are allowed to continue.
