Category: Investing (Page 1 of 2)

Can AMC Stock Reach $100? Market News and Updates

Market News: Can AMC stock reach $100?
Market News: Can AMC Stock reach $100?

Investors want to know; can AMC stock reach $100 per share?

Last year AMC’s share price skyrocketed to an all-time high of $72 per share.

Retail investors were able to trigger this price surge when a few short sellers decided to close their short positions.

AMC’s short interest percentage during that time dropped from 23% to 20%, and then to 14%.

AMC Entertainment was barely recovering during this time.

Today, the company is stronger than ever before.

Here’s what we know.

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Comparing AMC this year to last year

Can AMC stock hit $100 per share?
Can AMC stock hit $100 per share?

AMC is no longer the same company it was last year.

So much has changed ever since the retail community armed the century old movie theatre chain with more than a billion dollars in liquidity.

AMC repaid $45 million of deferred rent reducing their balance to approximately $272 million in Q1 of 2022.

The company plans to reduce the deferred rent by another $125 million by the end of this year.

CFO Sean Goodman announced that AMC seated 39 million guests in Q1 alone this year; it had seated 7 million guests in Q1 of 2021.

A whopping 32 million difference.

AMC Entertainment earned $785.7 million in revenue this first quarter, more than five times the revenue in Q1 of 2021 ($148.3m).

The company also ended Q1 with $1.4 billion in liquidity.

Quick updates

  • Financial reports suggest AMC is on a road to financial recovery from the impact of Covid-19.
  • AMC’s Perfectly Popcorn business is on schedule to enter the retail game later this year.
  • The company is currently doing product testing, research, and looking at new concepts.
  • AMC says the launch of an AMC credit card is going to be a lucrative business opportunity for the company.
  • 8 different NFT programs have been launched or are in the works of being launched so far, further fueling movie ticket sales.

AMC Entertainment is a stronger company fundamentally today.

Its innovation with crypto and NFTs are going to propel not just the business forward, but its share price in the long-term future too.

Related: Cinemark Competes with AMC in New NFT Deal with Disney

The Journey to $100 per share

Can AMC stock reach $100?
Can AMC stock reach $100?

AMC stock almost reached $100 per share when it surged to $72 last year during the month of June.

The stock price was only at $14 when it began to uptrend.

AMC traded at $13.53 on Friday though it’s been hovering below and at $14 in the past week.

Can AMC stock reach $100 per share?

Of course it can.

But the process will require retail investors to be patient.

Whether fundamentals play a role in it or not, AMC only needs a few short sellers to close their positions in order to make this share price level come to fruition.

You can keep an eye out on the reported short interest here (updated daily).

Is there anything you would like to add?

Leave a comment down below.

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Related: Here's How Shareholders Can Trigger an AMC Short Squeeze

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Will Redbox Stock Keep Going Up?

Will Redbox stock keep going up?
Will Redbox stock keep going up?

Redbox stock has been having an incredible rally despite the current market situation.

The stock is up more than 430% on the monthly chart.

Today RDBX finished up 15.68% but saw gains up to 30%.

Retail investors want to know, will Redbox keep going up?

Let’s discuss it.

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Redbox Stock outperforms the market

The stock market had one of the worst trading days in history today.

SPY stock was down almost 4% on Monday and the NASDAQ almost 5%.

Seeing the market today seemed unnatural – catastrophic almost.

But Redbox stock outperformed the market.

It closed today’s trading day with 55.3 million in trading volume from its average of 18.9 million.

Redbox has been exploding in the past month due to the massive surge of retail investors jumping in on this new ‘meme stock’.

It earns its ‘meme stock’ title due to Redditors discovering its incredibly high short interest, and short squeeze possibility.

Mainstream media is saying today’s rally was due to Redbox squeezing, but in order for us to track its short squeeze we’ll have to take a close look at the short interest data.

Will Redbox stock squeeze?

will Redbox stock squeeze?
Will Redbox stock squeeze?

Redbox stock currently has a short interest of 225.59%.

This is massive.

But mainstream finance platforms say RDBX stock squeezed today.

We will have to keep an eye out on this short interest percentage to determine whether shorts indeed closed some positions.

You will know shorts began to buy back shares if the short interest drops significantly.

Otherwise, the price movement could have simply been from big buying pressure.

AMC Entertainment stock saw gains up to 3,000% last year when some shorts began to close their positions.

GameStop saw gains upwards to 1,500%.

Redbox stock has only seen some 430% gains so far and has a much higher short interest than what AMC and GameStop had.

Will RDBX stock squeeze?

Just like we saw with AMC and GameStop, heavy buying pressure all at once may trigger short sellers to close, initiating a short squeeze.

How high will Redbox stock go?

Reddit: how high will Redbox stock go?
Reddit: How high will Redbox stock go?

Redbox has a high probability of reaching all-time high share prices.

The stock was hard to knock down despite the stock market heavily getting splattered.

While majority of the stock market was pulled down, Redbox stock finished the day green.

It’s always difficult to determine how high a heavily shorted stock such as Redbox will go.

This is primarily due to how many factors affect its share price.

The incredible thing is that it’s also costing short sellers a lot to short this stock.

RDBX has a cost to borrow of 636.42.

There’s no reason why anyone in the market should be able to short the stock this much.

It’s as if institutions did not learn from shorting both AMC and GameStop.

The short interest data in this stock is so high, there’s no doubt shorts will be getting burned on this one again.

I published an article on RDBX stock almost two weeks ago before it began to rally even higher.

If you’d like me to keep you posted on this ticker symbol, leave me a comment below.

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Related: Redbox Short Interest Updated Daily Here

Are Institutions Preparing to Close Short Positions in AMC?

how soon will institutions close short positions in AMC stock?
How soon will institutions close short positions in AMC stock?

Retail investors have been waiting for big institutions to close their short positions in AMC for over a year now.

Many short positions in AMC Entertainment stock still remained open after January’s and May’s runup last year.

This year’s bear market has dropped stock prices back to all-time lows.

Will this provide institutions with incentive to close short positions in AMC now?

Let’s discuss it below.

franknez.com

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

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AMC drops to all-time lows again

Are institutions preparing to close short positions in AMC stock?
Are institutions preparing to close short positions in AMC stock?

The entire market is on a free-fall.

AMC Entertainment stock managed to fall below $13 on Monday despite heavy buying volume.

The off-exchange trading for AMC is currently around 62.26% according to Fintel, and shorts have borrowed an additional 1M shares to short the stock according to Stonk-O-Tracker.

These predatorial strategies have retail investors pinned and losing money on their investment.

The economy’s health isn’t helping much either, but further fueling the market’s stress.

Interest rates are rising, inflation is at an all-time high, and the U.S is battling several issues outside the country with Russia and Ukraine, and at home.

Today’s economy has the entire market beat.

And AMC Entertainment is no exception the free-fall despite the company’s continuous progress.

AMC has become a trading ground

Traders and institutions are trading AMC at all times.

At some point, positions will have to get closed.

DTCC B16845-22 raised margin requirements by 25% for stock trading above $10 per share.

If AMC stock drops below $10 per share, then margin requirements will be raised to 30%.

This is rather significant because it requires institutions shorting AMC stock to carry more collateral.

Unfortunately for the rest of the market, institutions will continue to create massive selloffs just to keep up with these margin requirements.

But it gets worse for them because the lower AMC drops, the more collateral will be required of them.

Financial institutions are being stretched beyond their means and it’s not going to end well for them.

We’ve already seen hedge funds fall – and we can expect this trend to continue.

Related: Hedge Fund Melvin Capital is Shutting Down in June

Could institutions be preparing to close short positions?

Institutions will eventually begin to hedge on the upside (long).

For this to happen, they will need to identify the market’s bottom.

Economists believe there is still quite aways to go before the market begins bottoming out.

Others such as Forbes believes the stock market is finishing this crater of a selloff.

With this in mind, institutions always strategize when it comes to market conditions.

It is very possible AMC short sellers could begin to close their positions as the markets begin to bottom out.

When this will occur is unknown.

No one has been able to perfectly time the market; however, there are always signals in the market that allow investors to foresee specific trends.

A reversal is imminent

Despite where the bottom lies, investors holding AMC stock should know that a reversal is imminent.

A reversal is a change in the price of an asset which can occur to the upside or downside – depending on a securities’ current trendline.

For AMC, a reversal would push the stock up.

Not only is a reversal imminent for AMC stock, but for the entire market as well.

Stocks can’t keep going down forever, at some point they must go up again.

I have a feeling this is going to be one of the biggest reversals in history.

I’m interested to learn what you think.

Leave a comment down below.

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Related: Is AMC Stock Due to Go Up Next Week?

How to Get Professional Help with Finance Homework on Stock Price Analysis

Stock Price Analysis
Stock Price Analysis

Published by FrankNez Team.

Most people are intimidated to begin the stock price analysis process because of the tremendous amount of material one needs to learn.

Some people think that it is essential to have a degree in finance to complete this type of assignment.

Stock price analysis can be a daunting task for students who are just getting started in business courses, but there is a great way to get help with finance homework on stock price analysis.

AssignmentShark is an excellent solution to do my finance homework, and I always recommend this service to get professional finance assistance.

Read: How to Invest in The Stock Market for Beginners

What Is a Stock Price Analysis?

Stock Price Analysis meaning

A stock price analysis refers to the analysis of the stock price performance by the use of different financial instruments.

The main goal of a stock price analysis is to analyze whether a company’s stock price is moving in the same direction as the financial management of the company.

A financial manager who takes control of a company may work on increasing the value of the company by carefully managing its financial resources.

Stock price analysis is studying data that a publicly traded company produces.

It is the study of selected financial and economic data, which can be presented on a stock exchange to determine the price at which a company’s stock can be bought and sold by the public.

This is the process of analyzing what the market value should be forgiven for stocks.

This is not just a one-time activity. It is an ongoing activity that involves reviewing price changes concerning past trends in order to make short-term decisions.

This can include determining when to invest in a particular stock and when to sell it.

Why Stock Price Analysis Can Be Challenging

Stock price analysis is defined as the process of forecasting future stock prices by analyzing the relation between supply and demand.

It can be extremely challenging because factors such as investor psychology, fundamental and technical analysis, and the impact of news events can significantly affect it in several ways that cannot be foreseen.

Financial markets are highly volatile, and their behavior is often unstable. The instability of their behavior is such that you can’t predict what will happen next.

There are many reasons for this, but one is the complexity of financial instruments used in speculation and trading.

You may have many questions about why stock price analysis is so complex.

Partly it is because financial markets are highly volatile, and their behavior is often unstable.

The instability of their behavior is such that you can’t predict what will happen next.

There are many reasons for this, but one is the complexity of financial instruments used in speculation and trading.

Contrary to widespread opinion, stock price analysis isn’t an easy job, even for experienced traders.

Designing a successful strategy based on stock price analysis requires a lot of knowledge and a significant amount of time.

It’s more than simply analyzing market data, drawing a chart, and predicting its future state.

In fact, it’s much more complex than that. Many students think that the only thing that matters in stock price analysis is buying low and selling high at the right time. But that isn’t true. It’s also essential to develop an understanding of why the stock behaves the way it does so that you know how to use it in your strategy in the future.

Instruments to Prepare for Stock Market Assignments

Macro Currency Strength Meter

A currency strength meter is an online tool that gives you an instant snapshot of the relative strength of a particular currency at any time during the trading session.

This lets you measure and compare the strengths of different currencies over time to understand their movements.

Currency strength meter doesn’t always agree with market forex exchange rates, as it relies on daily foreign exchange trading volumes and market sentiment, but nevertheless, it can be used as an indicator or a signal generator for currency trading.

Refinitiv Eikon App

Refinitiv Eikon is the first news and information app designed for the finance industry by the financial sector.

The app delivers breaking news, market data, business intelligence, and portfolio management capabilities to audiences of on-the-go.

Thanks to the intuitive features and advanced analytics from the Refinitiv Eikon app, you can easily keep up with the market and make informed decisions about your investments.

One of the best features is the research library, where you can look upmarket trends and cross-reference them with news sources.

You can even insert the data into your documents, so everything is in one place.

CNBC Business News and Finance App

CNBC Fast is the official app of CNBC, the leading global business news network.

Here you’ll get the latest headlines from America and worldwide: breaking news from business and financial markets, the latest on the stock market, consumer trends, and exclusive interviews with CEOs.

Want to see which companies are doing well in real-time?

Check out the list of stocks that are currently trading. View their stocks’ price and volume fluctuations.

See how easy it is to track your favorite stocks live.

CNBC is the leading provider of live business news, real-time financial market coverage, and business information to a global audience of millions of people in over hundred countries.

Professional Help

Stock price analysis is a subject that could be quite challenging to many students and people who are not used to this type of analysis.

The first thing we should ask ourselves is the significance of stock price analysis.

Many people will say that it all comes down to money, and the truth is that it does.

The reasons why we should get the help of professional writers when working on stock price analysis are twofold.

Analysis of market trends, movement of stocks, and other similar factors are often too complex to analyze without any experience in this field.

Expert writers are often asked to assist students who need to complete their finance homework on stock price analysis.

It’s nothing wrong with getting professional help.

You can consider using AssignmentShark or any other similar service.

Read: How to Invest in The Stock Market for Beginners

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Investing in Commodities: An Easy Introduction

Investing in Commodities
Everything you need to know about investing in commodities

Published by FrankNez Team.

Commodities trading goes back further in history than trading stocks and bonds.

Commodities are simply goods that can be exchanged for money or other goods.

In other words, they are the heart of the market – the stuff that gets bought and sold.

The commodities market runs on the basic principle of supply and demand.

Since prices of a given type of commodity fluctuate in response to market forces – including anything from natural disasters to the COVID-19 pandemic – commodities can be a riskier investment option than stocks unless you have enough expertise and resources, making it a historically more prohibitive investment option for individuals.

Keep reading to learn more about investing in commodities and your options for getting started.

Commodities Trading Basics

Commodity Market
Commodity Market – what is commodities trading?

What is commodities trading?

Commodities trading refers to the practice of buying and selling goods at agreed upon prices.

A commodities exchange may refer to the exchange of the goods themselves, or to regulatory bodies that facilitate commodities exchanges through the enforcement of contractual and legal rules, such as:

Who engages in commodities investment?

Historically, commodities trading has been reserved for commercial or institutional producers or consumers.

Think farm owners selling crops or airlines buying jet fuel.

Other commercial or institutional investors may not be involved in the direct production or consumption of goods but look to investment in commodities as a way to diversify their portfolios or hedge against the volatility of other investments, such as stocks.

In fact, because commodities and stocks tend to have an inverse relationship, many investors will put money in commodities like gold during bear markets, periods of high stock market volatility, or times of high inflation.

Finally, individual investors can also profit on commodities through speculation.

Because speculating on commodity prices requires a high level of expertise across many fields – including macroeconomics, microeconomics, and the specifics of a given industry and commodity – this can be an expensive and risky investment option for individuals.

What are the risks of commodities investment?

It’s important to note that commodities investment comes in many forms with different levels of risk.

By far the riskiest options for individual investors are direct investment and futures contracts, which will be explained later in this article.

However, all commodities trading is subject to the effects of market forces on supply and demand, and thus the effects of supply and demand on commodity prices.

One major risk of direct commodities trading is that small price fluctuations can amplify your gains or losses exponentially, meaning that you could gain significantly more than you invested – but you can also lose much more too.

The Commodity Futures Trading Commission – a regulatory body that registers commodities trading professionals, among other things – warns that “many individuals lose all of their money” in futures markets.

Types of Commodities

different types of commodities
Different types of commodities

Commodities are divided into the following four categories:

1. Metals

Metals include gold, copper, palladium, etc.

As mentioned, gold and silver are popular investments for those hedging against losses due to stock market volatility.

According to the CFTC, metals are typically most impacted by industrial and macroeconomic factors.

2. Energy

This category includes a broad range of natural resources, including natural gas.

Risk factors usually relate to supply and storage availability, or actions made by regulatory bodies like the Organization of Petroleum Exporting Countries (OPEC).

3. Livestock and Meat & 4. Agriculture

Both livestock/meat and agriculture are typically affected by weather patterns, but can also be affected by natural disasters, epidemics and pandemics (human and animal), or other global supply chain issues.

Options for Investing in Commodities

Futures Contracts

A futures contract is a contract in which one party agrees to purchase and receive a given commodity at a certain price and at a certain time.

For example, a developer might agree to buy lumber at a certain price for a certain number of months.

If the market price falls below the contract price before the contract is up, the developer will lose money.

But if prices rise beyond the agreed upon price, the developer is locked into the better deal.

Futures trading – or the buying and selling of futures contracts – is the most common way to directly invest in commodities.

It’s also expensive and can be risky.

As mentioned, it is typically reserved for commercial or institutional investors who need to be sure they can buy the goods necessary for the operation of their businesses at prices that are protected from volatility in the market.

Otherwise, futures trading is done by large organizations or individuals to profit on price fluctuations or hedge against other investments.

Futures trading usually requires a brokerage account (which will charge brokerage fees), as well as deposits for the commodity investments themselves.

Sometimes investors even receive a “margin call” from their broker requiring them to deposit more money than what they initially paid.

With some exceptions, commodity futures and options must be traded through an exchange by professionals or firms who are registered with the CFTC.

As you can see, futures trading can be prohibitive to individual investors and should be approached with caution.

Stocks

Stocks can be an alternative option for investing in commodities.

With this strategy, an investor buys stocks in a company that deals with the commodity they’re interested in.

However, this is fundamentally different from investing directly in the commodity.

With futures contracts, an investor is directly purchasing ownership of the commodities themselves, while with stocks an investor is simply buying a share of an entity that deals with the commodity.

As Investopedia points out, stocks are affected by different factors than commodity prices, including internal company factors that have nothing to do with the macroeconomic factors impacting the commodities in question.

ENTs, ETPs, ETFs and Mutual Funds

Like stocks, ENTs, ETPs, ETFs and mutual funds can be less volatile investment options than direct commodities trading.

These options come with risks similar to those of stocks, but also similar advantages: good money management (if you’re using a broker), diversification opportunities, and the ability to make a profit on commodities without losing lots of money on speculation.

Commodity Pooling

Sometimes, a group of investors will pool their investment and go in on a futures contract together.

This type of arrangement is typically facilitated by a professional commodity pool operator (CPO), who will hire a commodities trading adviser (CTA) registered by the CFTC.

Pooling resources can offer the advantage of lower upfront investments from all parties, and the CTA helps make money management easier.

What to Consider Before Investing in Commodities

The CFTC suggests that investors consider the following before investing in commodities:

  • Your financial experience, goals and financial resources
  • How much you can afford to lose (beyond your initial investment)
  • All of the obligations of your contract(s)
  • The risk disclosure documents the broker is required to provide
  • Whom to contact with problems or questions

As with any prospective investment, do your research carefully and thoroughly before making any purchase, and take a look at some of the resources available from the CFTC.

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AMC Entertainment Just Acquired 7 New Movie Theatres

AMC Entertainment just Acquired 7 New movie theatres - Bow Tie Cinemas
Bow Tie Cinemas – AMC acquires 7 new movie theatre locations in Northeast – AMC Acquisition

AMC Entertainment (AMC) just acquired seven former Bow Tie Cinemas locations.

Five of which are in Connecticut, one in upstate New York, and another one in Annapolis, Maryland.

The new movie theatres in Connecticut will double AMC’s presence in the state.

Has AMC Entertainment officially become a fundamental play?

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Let’s dive right into it!

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AMC buys seven Bow Tie Cinemas locations

AMC Entertainment CEO Adam Aron announced on Twitter that AMC continues to play on the offense as they acquire seven Bow Tie Cinemas locations in the northeast.

AMC Acquires seven Bow Tie Cinemas locations

Bow Tie Cinemas locations that previously served alcohol will continue to offer wine, beer and liquor and be rebranded under AMC’s MacGuffins brand.

While the converted theaters will no longer honor Bow Tie Cinemas Criterion Club rewards, impacted customers who sign up for AMC Stubs with the same email used for their account will be rounded up to the next Criterion Club award they would have received under the program. 

The largest movie theatre chain in the world has also acquired several Cinemark Cinemas locations.

AMC Theatres reopened Cinemark’s former lease as AMC Evanston 12 in Chicago earlier this year.

Last year the movie theatre chain took over the famous Gove and Americana theatres in Los Angeles.

Both of which were listed in the top 30 most successful movie theatres in the world.

AMC has had a rocky drop since it surged to $72 per share back in May of 2021.

The short interest data shows us that it is still primed to squeeze shorts from their positions.

But is AMC Entertainment now a fundamental play?

AMC now has positive EBITDA and lower debt

AMC Positive EBITDA

AMC now has a positive EBITDA after 2 years.

The company announced it has a positive operating cashflow of $160 million.

EBITDA provides investors with a snapshot of a company’s overall financial performance.

Fundamentally speaking, it’s a massive win for AMC Entertainment as a business.

AMC Shareholders were able to arm AMC with more than $1.8 billion in liquidity for Q4 of 2021.

CEO and President Adam Aron said this $1.8 billion will provide AMC with more security and flexibility to go on the offense.

Which we’ve seen with these new movie theatres and with the 22% stake acquisition of Hycroft (HYMC).

AMC Entertainment paid $61 million in Q4 of deferred (postponed) rent, reducing the total debt to $315 million.

It reduced a total of $155 million of deferred rent in the last 9 months of 2021.

At this rate, the company could be caught up with their deferred rent by 2023.

They plan to reduce the deferred rent by $150-$200 million in 2022 leaving them with $160-$115 million left for 2023.

Last year the company sold a $950 million junk bond which enhanced their financial stability.

Is AMC a fundamental play now?

Is AMC a fundamental play?
AMC Acquisition – AMC buys seven Bow Tie Cinemas

Given the company’s fundamental growth, it’s safe to say AMC is now a fundamental play.

They’ve gotten through the worse part of the pandemic and straining debt and have raised enough cash to expand the brand though new movie theatre acquisitions, and distressed investing.

Does this change the narrative that AMC is a short squeeze play?

Absolutely not.

Like GameStop, these two companies have established themselves in very unique positions.

One where investors will likely continue to invest in even after a short squeeze.

But I’m curious to hear your thoughts.

Leave a comment down below.

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What is LMNOP Stock and Where Do You Buy It?

LMNOP Stock
Where do you buy LMNOP stock? Is LMNOP stock real?

LMNOP stock is up +2000%!

You’re seeing it everywhere right.

On Twitter, Facebook, Reddit, etc.

How did you miss these gains!

And where do you buy it???

Let’s discuss it down below.

franknez.com

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

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What is LMNOP stock?

LMNOP stock began trending on Twitter after several users began posting massive gains on the ticker.

This created a massive chain reaction of people panicking wondering how they missed this play!?!

Well guess who didn’t miss the play, those who joined my newsletter.

All jokes aside, LMNOP stock is not a real stock or ticker symbol.

But the hysteria carried on as more retail investors in the ‘ape’ community pushed the narrative.

Would you call it destressing from the markets?

I would say so!

People’s responses are hilarious and creative you have to check them out on Twitter.

What started the LMNOP trend on Twitter?

LMNOP
Where to buy LMNOP stock, is LMNOP stock real?

Community members initially triggered an “LMNOP price runup” to trick Twitter and Reddit bots to pump a company that doesn’t exist.

And it worked.

The community is expecting the news of this fake stock to be all over the media talking about it as it was a real stock.

At least that’s what the premise behind it is.

It’s also a lesson for investors to do their own research prior to pulling the trigger on an asset they have no idea about.

The experiment goes to show how quickly bots and algos can spread misinformation on tickers to derail investors from what’s truly trending or already being talked about.

Behind the scenes on ticker symbol LMNOP

I talked to Mehul @mehulRRao on Twitter where he explained to me how it all started.

In this experiment, he purchased 100 bots online to reply to a very specific tweet, which not many did.

However, they started pumping ticker symbol LMNOP and it gained traction, not just from the ‘ape’ community, but from many other twitter bots.

Mehul said on Twitter his 4-year-old was singing the ABC’s where he took $LMNOP from.

‘Apes’ who promoted the ticker began to receive DM’s from accounts urging users to dump AMC stock and buy $LMNOP stock instead.

We’ve seen other ticker symbols get promoted on social media to distract the ‘ape’ community from their beloved AMC and GameStop.

What’s the moral of the story here?

FUD can be driven by bots or people with a hidden agenda.

Always do your research before allowing unknown users to scare you from your money.

Mehul is taking it to YouTube to educate people on how easy it may be for bad characters to deceive other on social media.

So, is LMNOP stock real?

No.

It was merely an experiment carried out by the retail community.

How did you feel when you saw people posting massive gains?

Did you get a rush of FOMO?

While the concept from its inception is serious, the community decided to have a little fun with it, and it’s been hilarious, nonetheless.

Leave your thoughts below.

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AMC Theatres’ CFO Sean Goodman Joins HYMC Board

Sean Goodman HYMC Board
Sean Goodman Joins HYMC Board

AMC’s Sean Goodman just joined Hycroft’s (HYMC) board, CEO Diane Garrett announced earlier on Twitter.

Sean Goodman has served as Executive Vice President and Chief Financial Officer of AMC since February 2020.

Now the CFO is joining AMC’s gold mining company Hycroft (HYMC) further strengthening its partnership.

This is big news for HYMC shareholders and we’re going to discuss more about it below.

franknez.com

Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

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AMC’s Sean Goodman Joins Hycroft (HYMC)

Sean Goodman Hycroft HYMC Board
Sean Goodman Hycroft

Hycroft (HYMC) released a press release this morning confirming the partnership with AMC Entertainment’s Sean Goodman.

Sean has more than 30 years of experience in strategic planning, capital markets, and finance.

Prior to AMC, Sean Goodman was the Chief Financial Officer of Asbury Automotive Group from July 2017 to November 2019.

Earlier in his career, Mr. Goodman served in various senior strategy and finance roles at Unifi and The Home Depot.

Sean started his career as an investment banker with Morgan Stanley and in various consulting and public accounting positions.

Mr. Goodman has a Master of Business Administration degree from The Harvard Business School and a Bachelor of Business Science degree (with honors) from the University of Cape Town in South Africa.

Stephen Lang also to join Hycroft (HYMC) board

But Sean Goodman isn’t the only addition to Hycroft’s board.

Stephen Lang has over 40 years of experience in the mining industry, including engineering, development and production at gold, copper, coal and platinum group metals operations.

Mr. Lang is Chair of Hudbay Minerals and was Chief Executive Officer of Centerra Gold Inc. from 2008 to 2012 and served as Centerra’s Board Chair from 2012 to 2019.

Mr. Lang has also held senior operating positions at Stillwater Mining
Company, Barrick Gold Corporation, Rio Algom Limited and Kinross Mining Corporation.

Stephen Lang holds a Bachelor of Science degree and a Master of Mining Engineering degree from the University of Missouri-Rolla.

HYMC price target

HYMC stock has a current price target of $13 according to several analysts.

CNN has one analyst while StockAnalysis has 8 analysts valuating the company at $13.26.

HYMC stock is currently trading at $2.22, that would be an almost 500% gain.

HYMC Stock Forecast

HYMC was heavily shorted prior to its 22% stake acquisition from AMC Entertainment Holdings, Inc.

Hycroft’s short interest has significantly dropped meaning several short positions have closed out.

Early investors in the gold mining company got a chance to reap from the price runup in March.

However, it’s long-term shareholders who are in for potentially massive gains.

The gold and silver mining company has raised a lot of money since its partnership with AMC Entertainment and its shareholders, raising an astonishing $195 million in only two weeks.

With experts on board such as Eric Sprott and Stephen Lang backed up by shareholder capital, Hycroft (HYMC) has a serious arsenal.

Recent gold news: Gold rises

Gold is rising and this can only mean great things for the commodity industry.

Goldman Sachs says the price of gold will continue to rise due to the slowdown of economies due to the Russian-Ukraine conflict.

There has been a steady climb up to $1956/oz, but the bank says we may see gold exceed $2,500 this year.

This puts Hycroft (HYMC) in a very good spot considering they now have the capital to increase production.

Gold tends to rise during bear markets so this could be a great opportunity for Hycroft (HYMC) and shareholders to capitalize from flow of the market.

I think Sean Goodman, Eric Sprott, and Stephen Lang are going to be great assets to the business.

What do you think?

Leave a comment below.

Are you ready to make money?

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Investors who joined the Patreon saw massive gains on AMC stock, Shiba Inu Coin, and HYMC stock due to early investment opportunity alerts.

I update our private community when I add to my stock and crypto portfolios.

Patreon is not a financial advice platform but intended for educational purposes only.

Opportunity is everywhere, you just have to learn how to identify where to take it.

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Calls VS Puts: The Biggest Differences in Options Trading

Calls VS Puts
A simple guide to Calls VS Puts – Puts vs Calls – Calls vs Puts explained

This article is going to help new investors identify the difference between calls vs puts.

I’m going to provide you with a very simple overview and breakdown of what these two trading strategies mean in the world of options trading.

And if you’re not familiar with what options trading is, I will further explain that down below.

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What is a call option?

What is a call option?
What is a call option? – Calls vs puts explained

A call option is a bullish strategy that allows a trader to profit from a trade on the upside.

The trader essentially bets that the price of a stock is going to go up by buying call options.

How does a call option work?

When you open the options chain, you will have many contracts to choose from, ITM, ATM, or OTM, which I’ll use as a quick example for now.

If you are betting on the price of a stock to go up, you might buy a contract with a strike price of a few dollars above the underlying securities’ current price, depending on your risk.

If the stock does indeed move up in price, you will begin to see gains on your contract.

You may then sell your contract and profit from your play when you are ready.

What is a put option?

what is a put option?
What is a put option? – calls vs puts options – puts vs calls stocks

A put option is a bearish strategy that allows a trader to profit off a trade on the downside.

Unlike calls, traders buying put options are betting the price of a security will drop.

How does a put option work?

I’ll use another OTM example for now and explain the other scenarios below.

You will have many options in the options chain to choose from.

Here you will be able to select a contract to buy based on the ‘strike’ price you’ve selected.

The strike price you’ve selected is where you believe the price of a security will go down to.

If a price of a stock is at $20 and you buy a contract for a strike price of $17, you’re betting that the price of the stock will fall in the future.

If the stock falls to $19 then $18, you will begin to see gains on your bet.

The closer the price of the underlying security gets to $17, the more gains you will see.

You can then close your position at any moment before the contract’s expiration date and take profits.

Both these examples are examples of an OTM contract which I’ll explain more below.

Here are other examples of how calls vs puts work.

What is ATM and ITM?

ATM vs ITM
Options trading: ATM vs ITM

ATM stands for “at the money”.

At the money (ATM) is the current price a stock/security is trading at.

When your strike price is near the current share price this is considered to be “at the money” (ATM) for both calls and put options.

ITM puts

ITM stands for “in the money” and will be a little different for puts vs calls.

When a strike price is in the money for put options, it means the price is above the “at the money” (ATM) price.

Example: You’re betting the price of a stock will go down, so you buy a put options contract “ITM” for $11 while the stock is currently trading at $10 (ATM).

You contract has a higher probability to earn gains since the current share price (ATM) is already below your strike price (ITM).

The further the price of a stock goes down from your strike price, the more money you make.

ITM calls

When a strike price is in the money for call options, it means the price is below the ATM price.

Example: You’re betting the price of a stock will go higher so you buy a call option contact “ITM” at $9 while the stock is trading at $10 (ATM).

Your call option contract has a better probability of making money from the start since the current share price is already above your strike price.

If the price of that stock continues to surge, then you will continue to make gains.

“In the money” (ITM) contracts are a little more expensive to buy since your probability to make money is higher.

“At the money” (ATM) contracts which are closer to the “current” share price had a medium risk factor and are cheaper than ITM contracts.

So then what are OTM contracts?

OTM “out the money” explained

OTM Explained
Calls vs puts explained – OTM – Calls vs Puts options

OTM, or “out the money” is the strike price above the ATM for calls, and the strike price below the ATM for puts.

Call option example: If you buy a call options contract OTM at $12 and the price of the stock is currently at $10 “at the money” (ATM), you are betting the price of a stock will rise above $10 per share.

Put option example: If you buy a put options contact “out the money” (OTM) at $8 and the price is currently at $10 “at the money” (ATM), you are betting the price of a stock will go below $10.

Remember, the closer a stock’s price gets to your strike price, the more gains you will reap.

So, the further out the money your strike price is, the higher the reward may be.

Should you buy ATM, ITM, or OTM?

Every trader will use the strategy that best tailors to their risk.

  • Out The Money (OTM) = High Risk / High Reward
  • At The Money (ATM) = Medium Risk / Medium Reward
  • In The Money (ITM) = Low Risk / Low Reward

Traders will need to study the performance of an underlying asset to get a feel and understanding of where the price may go.

Once you have determined whether you will be buying puts vs calls or vice versa, then you may begin to look at the contracts available.

Options contracts explained

Every 1 contract equates to 100 shares of a particular stock.

OTM contracts are usually less expensive.

With these contracts you can buy 100 shares of a stock for only cents.

ITM contracts are more expensive because they are the safest choice.

ATM contracts are in between ITM and OTM in pricing.

The options chain will allow you to choose when contracts based on short-term or long-term expiration dates.

You can go short or long on both a call and put options contract.

These expiration dates may vary from only a few days to weeks, to months, and even years.

Whether you should trade short-term or longer-term expiration options contracts is a strategy that will be highly based on your trading goals.

Where can you trade options?

options trading with webull
Options trading with Webull – calls vs puts options – calls vs puts explained

The most popular platform to trade options is Webull.

Webull is where I personally began learning reading charts and familiarizing myself with the options chain and data.

Here traders will be able to purchase calls vs puts or vice versa.

Some traders use both strategies to make money during a bull and bear market.

Other platforms where you can trade options include:

  • TD Ameritrade
  • ETrade
  • Robinhood
  • Fidelity

If you’re already invested in stocks, you might already be using one of these platforms.

The difference between trading stocks and trading options is that you will need to open a margin account for options.

A cash account will not allow you to buy calls vs puts.

You can earn 5 free stocks from Webull when you sign up using my affiliate link.

If you choose not to keep these 5 stocks, you can sell them and fund your margin account to trade options.

Puts VS Calls: Why trade options?

puts vs calls: why trade options
Puts vs Calls stocks – calls vs puts options – calls vs puts explained

Buying puts or buying calls allow traders to bulk up on stock and use leverage to make money in the stock market.

There are 4 different ways you can trade options.

  1. Buy Calls
  2. Sell Calls
  3. Buy Puts
  4. Sell Puts

All four essentially allow you to use leverage and make money whichever side of the play you want to begin trading options.

However, selling calls and selling puts from the get-go will require further in-depth explanation, which I will do in another article.

For today’s breakdown, I’ve explained buying both calls and puts.

There are a variety of things that attract investors to trading options.

  1. Short-term gains
  2. Big returns
  3. Losses are limited to what you put in your contract
  4. Quick accumulation of cash / shares

If you’re here today, it’s because you’ve probably seen people in your space talk about how much money they’ve made playing options.

And while options can yield a full-time income stream, new traders should also be aware of the risks.

Is trading options risky?

Is trading options risky?
Calls vs puts options – puts vs calls stocks –

Trading options has its risks as bets aren’t 100% guaranteed to play in your favor.

However, there are a few things you can do to increase your chances at becoming profitable.

  1. Familiarize yourself with technical analysis / chart patterns
  2. Only buy what you can afford to lose

While traders can certainly trade based on market sentiment, it would be wise to gain some understanding of how prices move through technical analysis.

TA can help traders determine the trajectory of a stock’s price moves in the coming minutes, hours, days, and even weeks.

It’s best to armor yourself up and learn as much as you can to properly set yourself up for success.

If you’d like me to do a write-up on bullish and bearish patterns leave me a comment below.

When it comes to choosing between calls vs puts, it really comes down to adapting to the changes in the market to help you increase your income potential.

If you have any questions, be sure to leave a comment below.

You can connect with me on: Twitter | Facebook | LinkedIn


AMC and GME Stock Get Halted During Trading Surge

AMC and GameStop Halts
Halts are happening again as ‘meme stocks’ soar in volume and price

AMC and GameStop were halted shortly after the market opened this morning.

AMC stock reached a high of $34.09 and GameStop reached a high $199.24 before plunging.

The halts seized the ‘meme stocks’ from soaring, momentarily freezing momentum.

Shareholders might recall halts occurred last year as well before ‘meme stocks’ reached all-time highs.

Let’s discuss it.

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Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.

Let’s dive right into it!

Join the newsletter to become part of an activist group fighting for market transparency!

Receive weekly market news to stay up to date.

Momentum triggers gamma halts in AMC and GameStop

Both AMC and GameStop have more than 3 times their average trading volume today.

Could these early gamma squeezes have triggered a short squeeze in both AMC and GameStop had the stocks not been halted?

It’s certainly possible.

Although, it’s no secret these halts play in financial institutions’ favor.

Perpetual momentum could cause significant damage to institutions short on these plays.

The halts are not there for retail to regain composure, it’s for short sellers to regain their composure.

It gives financial institutions time to access the situation as it is no longer in their control.

The only control market makers have during these volatile swings are when to pause the game for themselves.

The thing is, when they resume retail investors will still be there.

So, while market makers might be able to slow down the process, they cannot prevent the inevitable.

Is history about to repeat itself?

AMC and GameStop along with other ‘meme stocks’ were halted in January of 2021.

Not only did these halts prevent these stocks from surging but Robinhood also froze the ability to purchase them.

AMC experienced halts again in May before its price ran up to more than $72 per share.

Retail investors were temporarily prohibited from purchasing the stock like they were in January.

Retail investors should view these halts as confirmation massive gains are coming in the near future.

While minor setbacks such halts might discourage bullish investors, it’s important to zoom out and look at the broader picture.

AMC stock is up more than 57% in the last five trading days.

And GameStop is up more than 36% in the last five trading days.

More than 56% of retail investors own GameStop and more than 90% of retail owns AMC Entertainment.

No one in the community is going to quit the crusade against crime in the markets due to halts.

What to look out for this week

AMC stock halted
AMC Stock Halted | GME Halt | GameStop Halt | AMC and GME Halt

Here’s what we can expect this week for AMC and GameStop.

  1. Surge in trading volume
  2. Short and distort campaigns

We can expect the same surges in volume throughout the week for both AMC and GameStop.

Retail investors are not letting off the gas pedal and short sellers know this.

For this reason, we can expect short and distort campaigns to take full flight again.

Corporate media has taken shots at AMC and GameStop for over a year, what’s to stop them now?

Despite the adversity, shorts have not closed their positions which means these two stocks have a lot of room for growth.

AMC currently has a short interest of 20.99% and GameStop has a short interest of 24.62%.

I update a list of heavily shorted stocks here daily so be sure to bookmark the page.

The short interest shows us the percentage of a stock’s float that is shorted.

10% is typically considered to be high while anything above 20% is out of the norm and deemed as ‘extremely high’ short interest.

We can spot some short covering as the short interest begins to decrease.

Are short squeezes on the horizon?

An AMC or GME short squeeze may happen at any moment.

This is why it’s imperative that shareholders hold the stock.

Investors are creating pressure through buying momentum, which increases the probability of runups and short covering.

AMC short sellers have suffered more than $750 million in the past two weeks.

Last week GME short sellers lost almost $500 million in one day alone.

The odds are definitely in retail’s favor.

Shorting AMC and GME stock will prove to be one of the riskiest bets in stock market history.

The pressure is certainly on and I’m excited to see retail come out at the end of this victorious.

I’d love to hear your thoughts.

Do you own AMC and GME stock?

Leave a comment below.

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