Momentum Stocks: AMC Short Interest Information – Plus more.
Community, I’m going to be updating this list of momentum stock and their short interest and utilization daily (AMC short interest, BBIG, MULN, BIOR, GME, APE, and many others).
Be sure to bookmark this page for daily AMC short interest updates and more.
Other metrics being updated daily will include the cost to borrow, shares on loan, + short squeeze scores.
If there are other heavily shorted stocks you’d like me to update daily, please leave a comment below and I’ll be sure to look into them before adding them to the list!
Market News Daily – Nvidia Shorts Are Down Whopping $4.1bn in Losses.
Nvidia (NASDAQ:NVDA) shorts are down $4.1bn in losses.
Financial data firm S3 Partners said on Tuesday these losses occurred over the past three trading sessions.
The chipmaker after the close last Wednesday released its quarterly results and forecast second-quarter revenue more than 50% above Wall Street estimates.
NVDA stock has jumped more than +29% in the past 5 trading days and is currently up more than +179% this year-to-date.
The company is now the first chipmaker to ever hit a $1 trillion market valuation on Tuesday and is now the ninth public company to ever surpass the $1 trillion threshold, joining the ranks of tech giants such as Microsoft, Alphabet, Amazon, and Apple, per Yahoo Finance.
“There’s a war going on out there in AI, and Nvidia today is the only arms dealer out there.
So as a result we’re seeing this huge jump in revenues,” Raymond James managing director Srini Pajjuri said.
The company says it expects revenue of $11 billion, plus or minus 2% for the second quarter.
Wall Street was looking for $7.2 billion.
“We thought if they beat the guidance by about 5%, that’s good enough for the stock to stay where it is.
But they’re beating the guidance consensus by 50%,” said Pajjuri.
“There’s only one supplier of GPUs, and Nvidia has been investing in this market for the last 10 years.
They not only have the chips, they have the systems, the software, it’s a full stack solutions company.”
“In the short term, Nvidia is the only game in town,” he said.
Nvidia Stock Forecast
Market News Daily – Nvidia Shorts Are Down Whopping $4.1bn in Losses.
43 analysts offering a 12-month price forecasts for NVIDIA Corp have a median target of 450.00, with a high estimate of 600.00 and a low estimate of 175.00.
The median estimate represents a +12.37% increase from the last price of 400.46.
The current consensus among 48 polled investment analysts is to buy stock in NVIDIA Corp.
This rating has held steady since May, when it was unchanged from a buy rating, per CNN Business.
Nvidia beat analysts’ expectations in Q1 thanks to its data center business, which brought in $4.2 billion in revenue versus the $3.9 billion Wall Street was anticipating.
That was better than the same quarter last year when the company reported data center revenue of $3.8 billion.
“We see nobody with a full-stack solution remotely matching Nvidia’s capabilities,” Baird Equity Research senior research analyst Tristan Gerra said about the company.
Analysts anticipate AI technology has kicked off due to the popularity and growth of ChatGPT.
“Since then Microsoft and Google have jumped into the arena with search engines, bots, and more running powered by generative AI,” says Yahoo Finance.
Are AI stocks like Nvidia the future? Leave your thoughts in the comment section below.
Market News Published Daily
Market News Today – Nvidia Shorts Are Down Whopping $4.1bn in Losses.
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Market News Daily – Analyst Says MULN Stock is Now a Big Red Flag.
A family office analyst says Mullen Automotive (NASDAQ:MULN) stock is now a big red flag.
The chief investment analyst in a small family office registered in Singapore says that Mullen Automotive should only be seen as a speculative trade for the probability of a ‘short squeeze‘.
“In my opinion, MULN stock can only be a speculative instrument for short-term trading – the only serious risk to my Sell rating is the percentage of shares outstanding sold short.
If MULN experiences even the slightest positive news or the company’s CEO goes public again with a loud statement like the one about solid-state batteries, the stock will most likely experience a strong short squeeze.”
Although MULN stock has a high probability of squeezing, the analyst says MULN stock is now a big red flag due to two major risk factors: the company’s extremely high operating costs and the high possibility of dilution (again).
“The company’s complex capital structure against a backdrop of unprofitability only makes MULN stock more confusing and confounding.
Since the company went public, competition in the market has increased significantly, and now it looks like MULN has lost its chance against this backdrop.
To the chagrin of current shareholders, only a takeover by a larger player can save it, if the executives will be able to find a buyer.
On its own, the company is unlikely to free itself from the shackles of constant dilution – even if its product is commercialized.
Dilution looks like an inevitable solution to at least keep paying salaries”, he continued.
MULN stock is up +6% at the start of the new week and is down more than -89% this year-to-date.
The stock has fallen below Nasdaq’s $1 bid requirement again after its 1-for-25reverse stock split and risks splitting once again.
Latest Mullen Automotive News and Updates
Market News Daily – Analyst Says MULN Stock is Now a Big Red Flag.
Mullen Automotive has entered a new partnership with Amerit Fleet Solutions, a service and warranty provider for vehicle fleet programs with over 1,800 service professionals.
The company announced today Amerit Fleet Solutions as the provider for national service and warranty work, supporting Mullen’s commercial vehicle lineup, including the Mullen CAMPUS – EV Cargo Van, the Mullen ONE – Class 1 EV Van and the Mullen THREE – Class 3 EV Cab Chassis Truck programs.
Amerit will provide national fleet service and warranty repair work for the Mullen CAMPUS EV Van, the Mullen ONE, which is a Class 1 EV Cargo Van, and the Mullen THREE, which is a Class 3 EV Cab Chassis Truck.
Prior to program launch, Amerit will be working closely with the Mullen commercial product team and vehicle technicians in Troy, Michigan, and Tunica, Mississippi, to train on Mullen’s commercial vehicles, establishing servicing protocols and requirements.
“Amerit has over 1,800 highly trained vehicle service technicians across the U.S., and we have built our business and reputation on providing stellar servicing across many different fleet and commercial vehicle programs,” said Dan Williams, CEO of Amerit.
“We look forward to providing Mullen and their fleet customers with the same high level of service and commitment.”
“We are confident that Amerit is a great fit and provider for servicing our commercial vehicles,” said John Schwegman, chief commercial officer of Mullen Automotive.
“Every strategic initiative has been put in place to ensure the viability for our Class 1 and Class 3, from sales, service, warranty and overall vehicle support.
Amerit is a well-established national provider of fleet service and warranty work,” said David Michery, CEO and chairman of Mullen Automotive.
Mullen Stock Joins the Short Sell Restriction List
Last week, Mullen Automotive stock was added to the short sell restriction list.
“This rule is designed to restrict short selling from further driving down the price of a stock that has dropped more than 10 percent in one day compared to the closing price on the previous day,” says the SEC.
As of April 30, Mullen says it possessed $116.1 million of cash available for operations, but the company continues to face risk of delisting or diluting again.
The company traded above its $1 minimum bid price requirement for 10 consecutive days after enacting a reverse stock split, but shares have now fallen below the compliance requirement.
In late April the company announced it was looking into investigating the possibility of manipulative trading.
“Mullen Automotive announced today that it is taking certain affirmative steps in light of the extraordinary trading volume and evidence of unusually high levels of failure to deliver on short sales as reported to the U.S. Securities and Exchange Commission.
These steps include retaining outside counsel, which is working with Shareholder Intelligence Services LLC (“ShareIntel”) to undertake a comprehensive analysis of data derived from broker-dealers, clearing firms and other sources to provide actionable intelligence on potential market manipulation and illegal short selling.
ShareIntel offers unique access and insight into shareholder position movements and the ability to proactively track equity flows and identify suspicious, aberrant and/or unusual trading activity.
As a fiduciary to its shareholders, the Company will do everything in its power to address any evidence of improper trading in Mullen securities.”
Market News Published Daily
Market News Today – Analyst Says MULN Stock is Now a Big Red Flag.
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Market News Daily – New Mullen $45m Funding Has Been Delayed for June.
The new Mullen Automotive (NASDAQ:MULN) $45m funding has been delayed for June 12.
The company filed a Form 8-K disclosing that Mullen’s reception of $45 million in connection with an existing securities purchase agreement (SPA) would be pushed back from May 15 to June 12.
Mullen Automotive had previously agreed to issue Series D preferred stock and warrants to Esousa Holdings and Acuitas Capital, in exchange for $90 million, part of a $110 million deal.
The warrants are equal to 185% of the Series D preferred stock purchased, originally 110%.
$45 million of that $90 million was received on April 17.
The second payment was scheduled to be received on May 15 but has been delayed for June 12.
Mullen did not provide a reason for the delay, other than that Mullen and each of the buyers in the SPA had agreed to delay the issuance of Series D preferred stock and warrants until Mullen receives the $45 million, per IP.
A note in the company’s last earnings report Mullen detailed it had cash and cash equivalents of $60.3 million as of March 31.
That was up from $54.08 million a year ago.
It also announced it had $26.4 million in restricted cash.
MULN Stock Falls Below $1 Again
Market News Daily – New Mullen $45m Funding Has Been Delayed for June.
MULN stock began trading at $1.50 after the company announced its 1-for-25 reverse stock split but shares closed at $0.9502 on Monday.
This puts the company at risk for issuing another reverse stock split in order to regain Nasdaq compliance.
The company stock has already hit a 52-week low and investor confidence is up in the air at the moment.
Investors are criticizing CEO David Michery for allowing shares of the company to get this low.
But Mullen Automotive announced in late April the company was looking into investigating the possibility of manipulative trading.
“Mullen Automotive announced today that it is taking certain affirmative steps in light of the extraordinary trading volume and evidence of unusually high levels of failure to deliver on short sales as reported to the U.S. Securities and Exchange Commission.
These steps include retaining outside counsel, which is working with Shareholder Intelligence Services LLC (“ShareIntel”) to undertake a comprehensive analysis of data derived from broker-dealers, clearing firms and other sources to provide actionable intelligence on potential market manipulation and illegal short selling.
ShareIntel offers unique access and insight into shareholder position movements and the ability to proactively track equity flows and identify suspicious, aberrant and/or unusual trading activity.
As a fiduciary to its shareholders, the Company will do everything in its power to address any evidence of improper trading in Mullen securities.”
MULN Stock Is Now Added to Short Sell Restriction List
Mullen Automotive stock has now been added to the short sell restriction list.
“This rule is designed to restrict short selling from further driving down the price of a stock that has dropped more than 10 percent in one day compared to the closing price on the previous day,” says the SEC.
The rule is only triggered once the shares of a company drops by 10% within a day. The ten percent starts from the previous day’s close.
Short sell restriction remains for the remainder of the day and in many cases, the rule can extend to the next day.
The company has traded above its $1 minimum bid price requirement for 10 consecutive days after enacting a reverse stock split, but shares have now fallen below $1 again.
Investor sentiment continues to be more bullish than bearish, but institutional short sellers have much stronger advantages in the market than retail investors do, hence why MULN stock continues to plunge.
More than 70% of trading in Mullen Automotive stock is now happening in dark pools.
SEC Chairman Gary Gensler has stated in various occasions that this is a real problem in the market; however, no proposal has been enforced to limit the use of dark pool and off exchange trading.
Market News Published Daily
Market News Today – New Mullen $45m Funding Has Been Delayed for June.
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Market News Daily – New Robinhood Glitch Raises Massive Red Flags.
Users are experiencing a new Robinhood (NASDAQ:HOOD) glitch that is raising massive red flags amongst the retail community.
Some Robinhood customers found their balances had plunged to $0 or even into negative territory on Monday amid a glitch on the app.
Users shared screenshots of their portfolios online, saying the correct amount was shown one minute, and then an incorrect figure the next.
Late Monday, the company announced the “system issue” had been fixed.
“Today we experienced an issue that affected the display of your portfolio balance and for a short time, crypto functionality,” Robinhood tweeted.
“Robinhood nearly gave me a heart attack… my numbers were way off and this is the first time it’s ever happened… I’m about to switch all of my cryptos into Ledger wallet… this is ridiculously scary…, said one user.
Robinhood nearly gave me a heart attack….. my numbers were way off🤦🏽♂️ and this is the first time it’s ever happened…… I’m about to switch all of my cryptos into Ledger wallet….this is ridiculously scary…This is what happens when you don’t store this in your personal wallet😓
Investors expressed resentment towards Robinhood as they momentarily saw their entire accounts go to $0.
Other users reported being unable to buy or sell assets momentarily.
But this isn’t the only Robinhood glitch that has given investors a scare.
The platform is known for posting misinformation deemed to be extremely detrimental to businesses and investors affected.
Robinhood Glitch Enrages Investors
Market News Daily – New Robinhood Glitch Raises Massive Red Flags.
On May 1st, Robinhood falsely reporting AMC Entertainment (NYSE:AMC) has filed for bankruptcy on its trading platform.
AMC Shareholders have shared various screenshots of what many believe to be a ‘short and distort’ campaign against the movie theatre company.
AMC Entertainment has not filed for bankruptcy nor is it in any position to file for bankruptcy.
“What the DUCK !!!!! I am getting multiple reports that Robinhood briefly posted today that AMC filed for bankruptcy.
How can companies like Robinhood do this?
So ludicrous, so wrong, so irresponsible.
On Friday, we report Q1 earnings, and will announce our sizable cash position,” said AMC CEO Adam Aron in a statement on social media.
Robinhood users are reporting the platform has issued a notice on ticker symbol AMC stating the following:
“This company has filed for bankruptcy. This typically happens when companies are close to running out of money or have trouble repaying their outstanding debts.”
Robinhood AMC Bankruptcy Glitch.
“On 5/1/23 at 1:45 pm ET, Robinhood experienced a technical issue leading to an incorrect banner being applied to AMC. The banner was removed at 1:48 pm ET. We apologize for this error,” said the trading platform.
Robinhood’s ‘glitch’ was enough to set the CEO off who later claimed he was seeking to sue the company.
“I am so Ducking angry about this. They are either incompetent or evil, and either is absolutely inexcusable. Obviously, there is no truth to their postings. Outrageous behavior. I have already asked our lawyers if we can sue the Dastards. #IncompetentEvil”
AMC Market Cap Glitch
AMC Robinhood Glitch News.
In March, Robinhood and other brokerages have been reporting AMC Entertainment at a $417 billion market cap and even $421 billion market cap.
This puts AMC Entertainment up with Facebook in terms of market cap, per the false reportings.
Many shareholders shared screenshots of what CEO Adam Aron believes to be discrepancies from these brokers.
The CEO said data sources are under review for accuracy after several sources, including MarketWatch, were reporting the company’s equity APE (NYSE:APE) of also having a 93.79 billion market cap.
Both AMC and APE are displaying what some shareholders believe to be the true value of the securities.
All of these Robinhood glitches certainly raise red flags and concerns over both holdings and company data.
Investors today continue to show resentment towards the platform years after the company prohibited investors from buying ‘meme stocks’ when trading was halted.
Robinhood and Citadel colluded the night prior to the halt though the judge ruling the case said not enough evidence was found for either party to face consequences.
Robinhood is currently being sued in a new class action lawsuit for the events that occurred during this time.
Market News Published Daily
Market News Today – New Robinhood Glitch Raises Massive Red Flags.
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Market News Daily – Next Bridge Hydrocarbons Now Owns 100% of Orogrande Project
Next Bridge Hydrocarbons now owns 100% of working interest in the Orogrande Project.
Next Bridge will now fully control the development and reap 100% of the value and proceeds of the Orogrande Project once it is developed.
The company announced on Tuesday that it has closed the previously-announced transaction among certain subsidiaries of Next Bridge, Wolfbone Investments, LLC, McCabe Petroleum Corporation and Gregory McCabe, the sole owner of Wolfbone and MPC.
The transactions became effective on April 25, 2023 and the closing of the Merger occurred on May 11, 2023.
As a result of the Merger, Next Bridge now controls Wolfbone’s 22.6249% remaining rights to working interest in the oil and natural gas project the Company holds in the Orogrande Basin in West Texas in Hudspeth County, Texas (the “Orogrande Project”).
As consideration for the working interest, Next Bridge issued 56,297,638 shares of common stock to McCabe.
The Company also announced that it has entered into and closed the transactions described in six separate Contribution and Exchange Agreements to acquire the remaining 10.8751% working interest in Orogrande Project.
Next Bridge now operates its entire land position in the Orogrande Project with 100% working interest across approximately 134,000 contiguous block acres.
Under the various Contribution Agreements, the Company issued 27,060,637 shares of its common stock to each of the six separate working interest owners to acquire the remaining working interest in the Orogrande Project.
Official Statements
Market News Daily – Next Bridge Hydrocarbons Now Owns 100% of Orogrande Project
Commenting on the transaction, Clifton DuBose, Jr., Next Bridge’s Chairman and Chief Executive Officer, stated, “We are pleased to have closed the Wolfbone merger while successfully negotiating agreements with the other six working interest owners in the Orogrande Project.
The completion of all these separate transactions to acquire the remaining working interest in the Orogrande Project marks a significant milestone for Next Bridge as we now own 100% of our most valuable asset.
Next Bridge will now fully control our development and reap 100% of the value and proceeds of the Orogrande Project once it is developed.
We also note and appreciate the trust that Gregory McCabe and the other working interest owners have shown in us to develop the Orogrande Project in order to provide returns to all of our shareholders as we continue our drilling and operational plans.”
Next Bridge is an independent public reporting energy company engaged in the acquisition, exploration, exploitation and/or development of oil and natural gas properties in the United States.
Their primary focus has been the development of interests in an oil and gas project consisting of 134,000 contiguous gross acres they hold in the Orogrande Basin in West Texas in Hudspeth County, Texas.
Next Bridge is a private company and shares of common stock are not traded on a public stock exchange of any kind.
MMAT News and Updates
MMAT stock news and updates.
In April, Meta announced that it has priced an underwritten public offeringof 83,333,334 shares of its common stock and warrants to purchase up to an aggregate of 83,333,334 shares of common stock at a combined public offering price of $0.30 per share and accompanying warrant.
META granted the underwriters a 30-day overallotment option to purchase up to an additional 12,500,000 shares of its common stock and/or warrants to purchase up to an additional 12,500,000 shares of common stock at the public offering price.
Each warrant is exercisable immediately at an exercise price of $0.375 per share and will expire five years following the date of issuance.
All of the securities are to be sold by META.
The gross proceeds of the offering are expected to be approximately $25 million before deducting the underwriting discount and estimated offering expenses payable by META.
“META intends to use the net proceeds from the offering for working capital and general corporate purposes, which include, but are not limited to: on-going development of our existing and future products, (such as our advanced materials NPORE® and NCORE™ for Li-ion battery applications, electro-optical devices, the expansion of our manufacturing facilities and capital equipment purchases), as well as general and administrative expenses.”
Market News Published Daily
Market News Today – Next Bridge Hydrocarbons Now Owns 100% of Orogrande Project
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Market News Daily – Nation’s Largest Bank JPMorgan Faces Painful $1.5 Billion Fee.
The nation’s largest bank JPMorgan (NYSE:JPM) is facing a painful $1.5 billion fee that may also be felt by various other banks later this year.
The Federal Deposit Insurance Corporation’s board of directors approved a proposal to raise the fees banks pay to have depositors’ money insured.
This comes after the government insured depositors’ money that exceeded the $250,000 insurance cap at Silicon Valley Bank and Signature Bank to stem the panic that ensued from their failures.
In total, that depleted $15.8 billion from the FDIC’s Depositor Insurance Fund (DIF).
Banks that are FDIC-insured pay fees to the fund in exchange for coverage in the event that they fail.
To recover the $15.8 billion, the FDIC is proposing levying higher fees on banks that have more than $5 billion in uninsured deposits.
The FDIC is focusing on these banks since they benefited the most from the FDIC’s unprecedented actions in the wake of the collapse of SVB and Signature Bank, according to CNN.
The proposed rule would charge banks 0.125% annually for two years on all their uninsured deposits as of the end of last year after deducting $5 billion.
JPMorgan Chase would pay around $1.5 billion in additional fees given the bank had around $1.2 trillion in uninsured deposits at the end of 2022, according to FDIC records.
Is JPMorgan in Trouble?
Market News Daily – Nation’s Largest Bank JPMorgan Faces Painful $1.5 Billion Fee.
Dr. Stephen Leeb, one of the world’s top money managers, says that JPMorgan’s gold derivate short positions are so numerous and large that they likely exceed the entirety of the bank’s assets on hand – “which is a very dangerous position in which to be.”
“Should the price of gold ever shoot up from its current price by, say, another $1,000 in the coming weeks or months due to an unexpected “black swan” event, banking giant JPMorgan Chase would more than likely find itself underwater due to the massive gold derivative short positions it currently holds,” says Planet Today.
JPM stock is now down -0.75% this year-to-date and its CEO Jamie Dimon has begun to raise concerns around the shorting of bank stocks.
Days after White House press secretary Karine Jean-Pierre said President Biden’s administration was looking into short seller activity around bank shares in the United States, triggering predictions of a possible ban, JPMorgan CEO has expressed his view that short-selling of bank stocks should, indeed, be prohibited.
“Professional shorts are paraded on national television all day long allowed to present their “thesis” often with rebuttal from anchors or target and major firms including JP Morgan can pound the market and specific stocks day in and day out now a line has been crossed? GTFO,” said FOX Business’s Charles Payne.
“People going short and then making a tweet about a bank should be punished to the full extent of the law,” said JPMorgan CEO Jamie Dimon.
Retail investors argue that banks and hedge funds use mainstream media for ‘short and distort’ campaigns when targeting small or struggling companies.
Is JPMorgan in trouble?
It certainly seems like they’re concerned about karma (in terms of shorting) catching up to them.
Market News Published Daily
Market News Today – Nation’s Largest Bank JPMorgan Faces Painful $1.5 Billion Fee.
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Market News Daily – Disney CEO Says Theatres Are Big Reason He’s Optimistic.
Disney (NYSE:DIS) CEO Bob Iger says movie theatres are a big reason he’s optimistic about the movie business today.
“People love to be entertained in theaters around the world, and it gives us reason to be optimist about the movie business,” said the Disney CEO.
AMC Entertainment (NYSE:AMC) CEO Adam Aron, who leads the world’s largest movie theatre chain in the worlds was very pleased with Mr. Iger’s words about the movie industry.
“AMC is 100% in Bob Iger’s corner, We support him and Disney with our all,” Adam Aron said on Twitter.
Today, streaming platforms are realizing they will need the movie theatre industry to succeed in the entertainment industry.
Earlier this year, Disney announced the company was planning to lay off 7,000 employees as online streaming services tanked.
Iger says he’s “targeting $5.5 billion of cost savings across the company” and that the layoffs will “help achieve this.”
“Our priority is the enduring growth and profitability of our streaming business,” Iger says.
“Our current forecasts indicate Disney Plus will hit profitability by the end of fiscal 2024 and achieving that remains our goal.”
The Dependency for Movie Theatre Premiers is Strong
Glass Onion: A Knives Out Mystery starring Daniel Craig was released in the U.S. as well as the UK, Ireland, Italy, Germany, and Spain.
CEO Adam Aron stated on Twitter that success here could lead to more Netflix (NFLX) movies at AMC.
The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.
The sequel to Johnson’s popular “Knives Out” opened in nearly 700 theaters, the largest release of any Netflix original film to date, 200 of which were AMC Entertainment theatres.
Unfortunately for the online streaming platform, hundreds of millions of dollars were left on the table.
Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.
CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue.“
“With a traditional wide release, premium screen spread, and full marketing campaign, I think ‘Glass Onion’ could have generated at least $50 million to $60 million to lead the entire market,” said Shawn Robbins, chief analyst at BoxOffice.com.
Retail Giants Invest Billions in New Movie Theatre Titles
Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) are now contributing billions of dollars to the movie theatre industry.
Amazon Studios released its first-ever original movie debuting in theatres globally on April 5th, 2023.
AIR tells the story of the game-changing partnership between Nike and a then-rookie named Michael Jordan.
So far, Amazon Studios has four original movie titles coming out with dates still to be determined.
The world’s largest online retailer aims to make between 12 and 15 movies annually that will get a theatrical release.
The movie theatre industry will also receive an additional $1 billion per year in theatrical titles from Apple.
AMC Entertainment CEO Adam Aron has said in the past that the only challenge the theatre chain currently faces is not having enough movie titles to premier.
Apple’s investment is part of the tech company’s efforts to raise its profile in Hollywood and lure subscribers to its streaming service, Apple TV+, Bloomberg reported, citing people familiar with the matter.
Bloomberg reports that Amazon and Apple must collaborate with various studios who have the knowledge of releasing films in theatres since they cannot release films in theatres on their own yet.
Wall Street is delusional to think the movie theatre industry is dead.
But I’d love to hear what you think — leave your thoughts below.
Market News Published Daily
Market News Today – Disney CEO Says Theatres Are Big Reason He’s Optimistic.
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Market News Daily – Short Sellers Are Now Turning on One Another.
Short sellers are now turning on one another.
Billionaire investor and activist short seller Carl Icahn is now being targeted by well-known short seller Hindenburg Research, per WSJ.
Icahn Enterprises, the publicly traded firm controlled by Mr. Icahn, was targeted by short seller Hindenburg Research early this month.
Carl Icahn disclosed that his investment company is under investigation by federal prosecutors and went on the attack against the short seller that likely spurred the inquiry, accusing it of “wantonly destroying property and harming innocent civilians.”
“Hindenburg Research, founded by Nathan Anderson, would be more aptly named Blitzkrieg Research given its tactics of wantonly destroying property and harming innocent civilians,” said a quote from Mr. Icahn in the company’s response to Hindenburg’s accusations.
The U.S. Attorney’s Office for the Southern District of New York contacted Icahn Enterprises asking for information about the value of its assets, corporate governance, dividends and other topics, the firm said in a securities filing Wednesday.
Icahn Enterprises said in the filing that it is cooperating with the investigation and doesn’t believe it will have a significant impact on the business.
The company’s stock (NASDAQ:IEP) fell -15% on Wednesday and nearly -2% on Thursday.
Hindenburg Research alleged that Icahn was highly leveraged and relying on inflated valuations of its assets to trade at several times the value of its held assets.
“Confidence games never last forever,” Hindenburg’s report concluded.
“We expect Icahn Enterprises will be no different.”
Hindenburg Research Spots Short Opportunity in Icahn Enterprises
Market News Daily – Hindenburg Research Shorting Icahn Enterprises | Short Sellers Are Now Turning on One Another.
Hindenburg Research wrote down the value of one of the holdings that Hindenburg highlighted in its report as overvalued.
In its filings, Icahn acknowledged that its auto-parts division filed for Chapter 11 bankruptcy at the end of January.
In March, Icahn reported that the auto-parts division at the end of the year was worth $381 million.
Icahn Enterprises said Wednesday it lost $270 million in the first quarter of 2023, compared with a profit of $323 million over the same period last year.
The company’s own short bets backfired, resulting in a drag on the company’s investment portfolio, which lost $443 million in the quarter.
Icahn reported other potential write-downs in its filing as well. The company marked the value of its real-estate portfolio at the end of the quarter as $457 million.
In a footnote, however, the company said that since the end of the quarter its tenant for a commercial high-rise property worth $218 million had defaulted on its now-terminated lease.
The company said it would consider taking an impairment charge in the second quarter.
On Wednesday, the company said that Icahn’s assets were booked using accepted valuation methodologies.
Hindenburg’s critiques, the company said, were fundamentally flawed and historic investments of the company were sold at a premium to book value.
Icahn reiterated that it would pay its dividend, a major component of the stock’s allure for individual investors who make up most of its public ownership, per WSJ.
Will More Short Sellers Turn on One Another?
Market News Daily – Short Sellers Are Now Turning on One Another | Hindenburg Research Carl Icahn News and Updates.
For many months now, retail investors have prophesized that short sellers at some point would begin to turn on one another.
It was only a matter of time before the perfect storm brewed as we’re seeing today.
Bad short bets caused Icahn Enterprises to lose hundreds of millions of dollars this year and now it has become a target for other short sellers.
In 2022, hedge funds lost $208 billion with only very few ending the year profitable.
In February of this year, short sellers were down more than $81 billion as we saw a bull rally take off during the first quarter of 2023.
And as we transition from the first quarter to the second quarter of 2023, we are seeing banks face a crisis.
Shares of PacWest Bancorp (NASDAQ:PACW) fell more than -50% on Thursday but recouped its losses on Friday.
PACW stock is still down more than -45% in the past week and more than -75% this year-to-date.
Now The American Bankers Association on is urging federal regulators to investigate significant short sales of publicly traded banking equities that it said were “disconnected from the underlying financial realities.”
Retail investors are raising concerns over the banking sector’s requests, stating that the SEC should address manipulative trading practices in individual company stocks too, not just within the banking sector.
“We urge the SEC to consider all its existing tools and to take measures to reduce the avenues for abusive trading practices and restore investor confidence,” the banking group said.
“These measures include, at a minimum, a clear message and appropriate enforcement actions against market manipulation and other abusive short selling practices.”
The Fight Against Manipulative Short Selling Grows
Market News Daily – Bankers Urge the SEC to Look into Manipulative Trading.
Short sellers made approximately $378.9 million in paper profits on Thursday alone from betting against certain regional banks, according to Ortex.
U.S. federal and state officials are assessing the possibility of “market manipulation” behind big moves in banking share prices in recent days, a source familiar with the matter said on Thursday, as the White House vowed to monitor “short-selling pressures on healthy banks.”
Increased short-selling activity and volatility in shares have drawn increasing scrutiny by federal and state officials and regulators in recent days, given strong fundamentals in the sector and sufficient capital levels, said the source, who was not authorized to speak publicly.
“State and federal regulators and officials are increasingly attentive to the possibility of market manipulation regarding banking equities,” the source said.
White House press secretary Karine Jean-Pierre said the Biden administration was closely watching on the situation.
ABA President and CEO Rob Nichols told Gensler that short selling could be a legitimate financial tool, but his group was “unalterably opposed to short selling practices that distort the markets through manipulation and abuse.”
He called on Gensler to send a clear message to market players and take appropriate enforcement action against market manipulation and other abusive short selling practices, per Reuters.
“The harm caused by short selling that runs counter to economic fundamentals ultimately falls on small investors, who see value destroyed by others’ predatory behavior,” he said.
Chairman Gensler on Thursday said the agency would go after any form of misconduct that might threaten investors or markets.
Investors Are Looking for Relief
Retail investors invested in several companies are looking for relief in the market.
Mullen Automotive for example just announced the company will be opening an investigation into potential market manipulation and illegal short selling of its stock, MULN.
“These steps include retaining outside counsel, which is working with Shareholder Intelligence Services LLC (“ShareIntel”) to undertake a comprehensive analysis of data derived from broker-dealers, clearing firms and other sources to provide actionable intelligence on potential market manipulation and illegal short selling,” the company said.
Investors in $GTII and now delisted ticker symbol $MMTLP have their own unique battles against manipulative short selling.
There are several companies who are experiencing manipulative trading by big institutions.
The question is whether the SEC will begin to enforce strict policy to keep these institutions in line.
Nearly 35,000 retail investors have signed a letter to the SEC published by We The Investors requesting improvements to market rules and new disclosures.
