AMC and GameStop both had very successful trading weeks finishing March up 13% and 8.57%, respectively.
Both stocks saw an incredible bullish runup before the stocks were halted on Tuesday.
The theatre chain announced this month its gold mining company Hycroft had raised more than $195 million in only two weeks.
GameStop followed weeks later with news on a stock split in the form of a dividend.
Let’s break it all down together.
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AMC’s Hycroft raises $195 million
AMC announced last week Hyrcroft raised an astonishing $195 million in only a span of two weeks.
Both AMC and billionaire businessman Eric Sprott took a large stake in Hyrcoft (HYMC).
Eric Sprott is known for specializing in precious metals and real assets investing.
He is considered one of the world’s leading gold and silver investors.
Combined, AMC and Mr. Sprott invested $56 million in Hycroft (HYMC), or approximately $28 million each.
CEO and president of AMC Entertainment Adam Aron announced on Friday in a tweet a total of $139 million had been raised in additional equity.
Both AMC and HYMC stock surged in prices the following week after the announcements.
AMC short sellers suffered more than $750 million during this runup.
The movie theatre chain is down 5.44% on Friday but is up more than 13% on the 5-day trading week.
GameStop announces massive news
Shortly after GameStop fired a firm connected to Citadel (BCG), news comes out of Ryan Cohen’s stake in BBBY.
The GameStop Chairman now owns a stake of 9.8%.
Both GameStop and BBBY shares rose.
Ryan had announced a week prior he had also increased his position in GameStop increasing his stake to 11.9%.
The news caused short sellers a heavy loss of almost $500 million in just one day alone.
But the biggest news came Thursday when the company announced GameStop would be issuing a stock split in the form of a dividend.
I published a detailed article of what this could mean for both shareholders and short sellers alike.
The stock soared afterhours, but retail investors were disappointed with GameStop’s performance on Friday.
GameStop closed Friday down 0.95%; the stock continued to dip after hours.
However, GME stock is up 8.57% on the 5-day weekly chart and investors will take that win any day.
Short interest data
Let’s go over AMC and GameStop’s short interest data from this week.
AMC’s current SI: 20.58% | Utilization: 100 | CTB: 1.65 | DTC: 2.44
GME’s current SI: 22.19% | Utilization: 100 | CTB: 9.49 | DTC: 4.49
Both AMC and GameStop have enough short interest to squeeze shorts from their positions.
Screenshots have been floating around on Twitter showing short squeeze scores of 90 to 95+ for both these stocks via. Fintel.
AMC also had 3 short squeeze signals via Ortex in March.
These should be taken with a grain of salt but signal the high probabilities.
I update AMC, GameStop’s, and other shorted stock’s short interest here.
What is next week looking like?
I expect next week we’re going to see something very similar to March’s last trading week.
Weekly gains consisting of bullish runs and then f’u*ery in ‘short and distort‘ campaigns.
The NASDAQ was up during the last week of march while DOW underperformed, and the SPY saw very little gain.
In general, the market as a whole tends to follow the performance of these indexes.
So, there’s influence from just about every corner in the financial sector despite companies having positive news and red days.
As indexes adjust, small and midcap companies will too.
I’d love to hear your thoughts.
What are you expecting from the market next week?
Leave a comment below.
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The shorts also have advantage of unlimited capital. Even another hedge steps in to help. There is something almost seemingly unbeatable about short as they just keep buying more every surge they lose they also can make a better position. I believe they could take a perfectly fine company and bring it to its knees. One great example of a stock beating shorts is Tesla yet how many companies are of tesla strength?
They do have a lot at their disposal, but they also pay for keeping their positions open. Nevertheless, they do have a big advantage over retail.
Let’s start a discussion!