Market News Daily – Analyst says AMC and GME Have Highest Squeeze Potential.
S3 analyst says AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME) stock have the highest squeeze potential in the market.
“As the broader stock market has been on a tear for about a month, things are looking grim for investors with big short positions in stocks like AMC Entertainment Holdings Inc. and GameStop.”
AMC’s and GME’s short interest data is what ignited the massive rallies in 2021.
Today, both AMC and GME have a high short interest of 26.69% (AMC) and 20.73% (GME).
AMC’s short interest was only 25% when it surged to its all-time high of $72 per share in June of 2021.
Short interest dropped to 14% as short sellers closed positions only to pick right back up throughout 2022 and 2023.
Both AMC and GameStop shares have been suppressed from rising through heavy dark pool trading and suspiciously through naked short selling, evident in high FTDs (fails-to-deliver).
AMC Entertainment, the largest movie theatre chain in the world, continues to innovate and creatively raise cash with a mission to erase its debt accumulated during the pandemic.
Hedge Funds Face Big Risks
Ihor Dusaniwsky, head of predictive analytics at financial technology and analytics firm S3 Partners, compiled a list of those most vulnerable stocks, headed by such names as AMC (AMC), GameStop Inc. (GME), Coinbase Global Inc. (COIN) and CarMax Inc. (KMX).
“One factor that is also killing profits for short sellers is the borrowing costs on stocks that no one is willing to part with, and the stock that figures highest on that list is AMC.”
AMC’s cost to borrow recently skyrocketed to more than 1,000% with its cost to borrow average currently being reported at 928%.
“Short sellers want to short the stock, but they are not able to get a stock borrow locate and therefore cannot execute their short on the street,” Dusaniwsky told MarketWatch in an interview.
“But, when any stock borrows become available — lenders, brokers know they can charge inflated fees as there is huge demand for the name.”
“In this case there is an AMC–[preferred stock] APE arbitrage trade that will be profitable if the conversion occurs soon because the high financing costs are eating into those expected profits every day, including weekends,” Dusaniwsky said.
But the S3 analyst isn’t the only one stating there is big squeeze potential in AMC and GameStop.
Strategist Says Mother of All Short Squeezes is Here
Market News Today – Analyst: AMC and GME Have Highest Squeeze Potential.
Interactive Brokers Chief Strategist Steve Sosnick says there’s big demand to short AMC Entertainment stock.
He says the biggest reason aside from the company’s fundamentals is its new merge with its equity (NYSE:APE).
“It’s very hard to keep the momentum in these things because economic reality does take hold.
Bed Bath & Beyond, at one point was the best performing stock on the board until reality set in and they began defaulting, averted bankruptcy, but using a deal that is so dilutive that it’s unavoidable.”
Sosnick says AMC is in a very special situation because of the proposal to merge APE with AMC common shares.
“Right now we’re seeing such a demand to short AMC partly because of its difficulties but partly because of the special situation.
The borrow rate, it costs you 700% to borrow the shares overnight — if you can find them,” said the Interactive Brokers Chief Strategist on Yahoo Finance.
Market News Published Daily
Market News Today – Analyst: AMC and GME Have Highest Squeeze Potential.
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Market News Daily – Robinhood Sued in New Class Action Lawsuit.
Robinhood (NASDAQ:HOOD) is being sued in a new class action lawsuit by Klafter Lesser LLP, Pessah Law Group, and PC and Chelin Law Firm in California.
The firms are seeking to represent investors who held call options on the Robinhood trading platform as of the close on January 27, 2021 to purchase any of the following stocks:
American Airlines Group Inc. (NASDAQ:AAL), AMC Entertainment (NYSE:AMC), BlackBerry Limited (NYSE:BB), Bed Bath & Beyond Inc. (NASDAQ:BBBY), GameStop Corp. (NYSE:GME), or Nokia Corporation (NYSE:NOK).
The latest Robinhood class action lawsuit alleges that on January 28, 2021, Robinhood prohibited purchases of the stocks underlying the affected options on its platform and also prohibited purchases of the exercise of the affected options, and only allowed the closing out of such positions.
The lawsuit further alleges that during the period January 29, 2021 through February 4, 2021, Robinhood imposed significant limits on any purchases and continued to prevent the exercise of the affected options on its trading platform.
Consequently, the value of the affected options dropped dramatically and remained suppressed throughout the month, causing investors to suffer big losses, says the press release.
“It is alleged that by virtue of these purchase and exercise prohibitions and limitations, Robinhood engaged in market manipulation in violation of Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78i(a) and 78(j)(b), and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission (17 C.F.R. § 240.10b-5)).”
Investors Are Looking to Recover Losses
According to the lawsuit, Plaintiffs seek to recover damages for those holders of the Affected Options who suffered losses resulting from this alleged market manipulation.
More than two years later after the ‘meme stock’ frenzy swept the entire financial markets by a storm, and the events are still as strong as they were then.
“The game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game,” says ex-Citadel Data Scientist Patrick McConlogue.
Patrick McConlogue appeared on Fox Business during the ‘meme stock’ frenzy of 2021 when retail investors created one of the biggest scares in Wall Street history.
GameStop and AMC shareholders were able to create panic on Wall Street by heavily buying shares of the overleveraged shorted stocks.
As share prices soared, short sellers experienced massive losses.
GameStop was able to put Melvin Capital out of business, but Patrick McConlogue says other hedge funds were able to make back billions in losses during the halt.
The halts allowed hedge funds to enter AMC and GameStop knowing shares would plummet, allowing them to capitalize on the deflation of the price.
Patrick says the rules of the game also heavily favor hedge funds, something retail investors have urged SEC Chairman Gary Gensler for years to change.
“I respect many of my colleagues, the problem isn’t the people, it’s the rules of the game which heavily favor the funds.”
On the Search for a Lead Plaintiff
The Private Securities Litigation Reform Act of 1995 permits any investor who held Affected Options on the Robinhood trading platform as of the close on January 27, 2021, who sold such options, or such options expired, during the Class Period to seek appointment as lead plaintiff in this class action lawsuit.
A lead plaintiff is generally the movant with the greatest financials interest in the relief sought by the putative class who is also typical and adequate of the putative class.
A lead plaintiff acts on behalf of all other class members in directing a class action lawsuit.
“The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. Pursuant to the Private Securities Litigation Reform Act of 1995, if you wish to serve as lead plaintiff, you must move the Court that this action is pending in no later than June 9, 2023.”
You can contact the Clerk of the Northern District of California, at 450 Golden Gate Avenue, San Francisco, CA 94102-3489, or by calling (415) 522-2000, to find out if this lawsuit has been transferred to the Southern District of Florida and also for a copy of the Complaint.
To discuss your rights or interests regarding this class action, you are free to consult counsel of your choosing.
You may also contact Nancy Velasquez of the Klafter Lesser LLP law firm at (914) 934-9200 or via email at nancy.velasquez@klafterlesser.com, or Pessah Law Group, PC at (310) 772-2261 or via email at info@pessahgroup.com or Stuart Chelin at (310) 556-9664 or via email at stuart@chelinlaw.com.
Klafter Lesser LLP has extensive experience in prosecuting class actions and the founding partners of the firm, who have extensive class action experience, have recovered over $1 billion for the benefit of classes in numerous cases.
Market News Published Daily
Market News Today – Robinhood Sued in New Class Action Lawsuit.
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Market News Daily: Ex-Citadel employee Patrick McConlogue says the market is rigged.
Patrick McConlogue, an ex-Citadel Data Scientist said during the ‘meme stock’ frenzy that the stock market is rigged, claiming he helped design it.
“The game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game.”
Not many investors know this, but Patrick actually breaks down how Citadel and other hedge funds were able to make billions back in only weeks from halts.
In this article, I’m going to share his words and knowledge in the industry directly with you.
Share this article to raise awareness of the market injustices ‘experts’ have claimed were never true.
Your voice matters.
Let’s get started.
Ex-Citadel Employee Reveals Rigged Trading Game
Ex-Citadel employee Patrick McConlogue says the market is rigged.
Patrick McConlogue appeared on Fox Business during the ‘meme stock’ frenzy of 2021 when retail investors created one of the biggest scares in Wall Street history.
GameStop and AMC shareholders were able to create panic on Wall Street by heavily buying shares of the overleveraged shorted stocks.
As share prices soared, short sellers experienced massive losses.
GameStop was able to put Melvin Capital out of business, but Patrick McConlogue says other hedge funds were able to make back billions in losses during the halt.
The halts allowed hedge funds to enter AMC and GameStop knowing shares would plummet, allowing them to capitalize on the deflation of the price.
Patrick says the rules of the game also heavily favor hedge funds, something retail investors have urged SEC Chairman Gary Gensler for years to change.
“I respect many of my colleagues, the problem isn’t the people, it’s the rules of the game which heavily favor the funds.”
Below is ex-Citadel Data Scientist Patrick McConlogue’s story.
Patrick McConlogue Says the Stock Market is Rigged
Ex-Citadel employee Patrick McConlogue says the market is rigged.
“The game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose.
How do I know? I helped design the game.
A few years ago, I worked at the massive hedge fund Citadel. The multi-billion dollar fund was caught up in this week’s scandal for bailing out hedge fund Melvin Capital after everyday traders on Robinhood appeared close to liquidating the fund through mass buying of the GameStop stock $GME.
My role at Citadel was as an engineer in Long Term Quantitative Strategies. The entire department, filled with programmers and compliance officers, is dedicated to something called ‘alpha’ which determines the buying strategy of the fund.
I was responsible for innovative proprietary technology that capitalizes on public data faster than any other hedge fund. It’s a classic situation of machines against humans. I respect many of my colleagues, the problem isn’t the people, it’s the rules of the game which heavily favor the funds.
A group of traders on the r/WallStreetBets Reddit thread, now consisting of over 8.6M members, noticed that someone had overly “shorted” the GameStop $GME stock.
They decided it was the perfect time to buy. It was only around $18 per share and easily affordable for the common investor who kept buying, driving up the price of the stock.
As the buying frenzy continued the hedge funds who had taken the opposite position started to hemorrhage money.. BIG money.
The small investors celebrated their success online as news broke that the hedge fund Melvin Capital Management had lost so much on the $GME short position that they had to be bailed out by bigger hedge funds.
While the markets were closed Melvin Capital’s sinking battleship received an emergency infusion of $2.75 billion from Citadel and Point72.”
‘Meme Stock’ Halts
Ex-Citadel employee Patrick McConlogue says the market is rigged.
“On Thursday morning, Robinhood — the commission-free stock trading app used by small investors — suddenly shut down buys on $GME and a few other stocks that were under siege.
Only sell orders went through, reversing the trend, driving the stock prices back down and shoring up the hedge funds’ sinking ships. Remember, when the stock price goes down, the people who hold the “shorts” make money.
This started a chain reaction. Other retail trading platforms like E*Trade and TD AmeriTrade began freezing the stock for individual investors. But hedge funds own supercomputers.
They have direct access to stock markets. While small investors were frozen the hedge funds traded massive positions and quickly earned back the billions in losses from the past few days.
The rules of the game had been exposed, in broad daylight no less.
Robinhood users, when signing up for the popular trading app that offered “free trading” were likely unaware of their role in the hedge funds’ ability to reap huge profits.
The system is broken.”
Patrick McConlogue left Citadel for decentralized finance and co-founded a new technology called Overline that takes the philosophy of DeFi to the extreme.
Not only is Overline unable to freeze any of your assets but it can’t even turn off the exchange; it’s not possible.
Market News: How hedge funds manipulate the stock market.
Hedge funds have been manipulating the stock market for decades.
But it wasn’t until now that a community has risen to raise awareness of market injustices.
The shorting of both AMC and GameStop stock have uncovered a number of nefarious strategies used against retail investors.
What is the SEC doing to regulate these financial entities?
We’re here to find out.
Welcome to Franknez.com – The blog that fights for retail investors. Today we’re discussing how hedge funds manipulate the stock market and what the SEC is doing about it.
Let’s get started!
Overleveraging Borrowed Shares
Hedge funds have an incredible supply of short shares available to borrow.
This advantage has allowed them to manipulate a stock’s share price by initiating short-ladder attacks.
While supply and demand are pushing a stock’s price up, hedge funds short the stock using an insane amount of leverage.
This predatorial strategy has yet to be announced as illegal nor has it been addressed by the SEC.
Off Exchange Trading
Hedge funds and market makers are getting away with being able to trade and swap stock in foreign exchanges where the stock’s price isn’t required to be disclosed.
They’re taking retail orders and, in a way, manipulating the circulating supply by not reporting accurate transactions.
We’ve seen this happen with Barclays.
Barclays CEO, Jes Staley – Hedge fund manipulation
Reports by Finra have been made public detailing multiple fines on Barclays for inaccurate books and records.
Barclays is one of Citadel’s clearing houses.
Off exchange trading where transactions aren’t displayed on the list market such as the NYSE is a massive problem the SEC is still trying to figure out.
AMC and GameStop have had an incredible amount of FTDs, or failure-to-delivers.
These are orders that have not been executed in options, and are usually a result of a ‘short party’ not owning or not having all of the underlying asset.
This has led retail investors to the educated assessment that synthetic shares are floating in the market; shares known as naked shares used to short a stock.
According to Investopedia, “Despite being made illegal after the 2008–09 financial crisis, naked shorting continues to happen because of loopholes in rules and discrepancies between paper and electronic trading systems.”
Naked shorting has gone mainstream with CNBC’s Melissa Lee and Fox Business’s Charles Payne bringing light to this predatorial practice in the market.
Retail investors must use their voice to address these issues to the SEC.
According to The Fool, you should invest in this or that “instead”.
We’ve seen the headlines countless times.
The Motley Fool is a source that provides its subscribers with hand-picked stocks with potential gains.
With tremendous respect, stick to what you do.
The integrity of this company is to help investors pick winning stocks, not to divert them from a stock due to its potential upside that can cause hedge fund partners to lose billions of dollars.
And that’s exactly what happened.
No matter how many times mainstream media outlets tried to divert retail investors from buying AMC stock, it cost hedge funds a lot of money all year.
And at the same time, a lot of retail investors have a lot of unrealized gains.
This ladies and gentlemen is how the media has tried to manipulate the performance of a stock.
This influence can sway a new retail investor from adding to the surging volume of shares being purchased in the market.
To the new retail investor – make your financial decisions based on your own due diligence.
Not on what media sources get paid to write about.
Yahoo Finance & InvestorPlace
Platforms such as Yahoo Finance & InvestorPlace have also had their fair share of negative headlines to try and divert the public from skyrocketing AMC to the moon.
With InvestorPlace even throwing a jab at GME investors saying, “If You’ve Made Money On GameStop, You’re Not An Investing Genius”.
Perhaps not, but I’m pretty certain these investors are wealthier than the person who came up with that punchline.
These media sources have been discouraging new retail investors from investing in AMC since the beginning of the year although the stock is up year-to-date!
Manipulation In the Stock Market
Robing Hood? Stock market manipulation
I’m sure you’ve all heard of the Robinhood scandal.
This is another form of manipulation in the stock market caused by the halt of buying power.
Robinhood prevented its users from buying stocks such as AMC and GME (GameStop) during GME’s bull run.
Although restrictions aren’t as tight anymore, we’re beginning to see trusted and beloved companies get exposed as hedge funds worst nightmares become a reality.
Today we’re seeing more people learn about how the stock market moves.
If more of the public is to understand how hedge funds pose a risk to our economy and businesses, we must expose these financial institutions for who they really are.
Franknez.com fights The Fool, Yahoo Finance, and InvestorPlace
Franknez.com is fighting for the community against malpractice from all news media shunning AMC, GameStop, and other retail favorites.
This platform will serve as a positive media outlet for the community and only spread factual documentation, and news related cited-sources.
I will not encourage retail investors to take a position in any stock.
However, I will outline the facts and evidence to help you make your own personal financial decision.
How can retail investors bring awareness to the community?
Retail investors can expose false information on social media to shine light on manipulation tactics driven by hedge fund partners.
Sharing factual and positive articles relating to the performance or analytics of a particular stock is another way the investing community can stay united.
Franknez.com is a platform for the community.
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Market News: Conflicts of interest arise – #CitadelScandal
David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, and has a board seat at the DTCC.
The conflict of interest has raised big concerns amongst the retail investor community online as Citadel has been a leading and one of the biggest short sellers in the stock market.
On January 28th, 2021, The DTCC waived $9.7 billion of collateral deposit, limiting institutional losses and limiting retail profits during the ‘meme stock’ frenzy.
The organization allowed several naked shares to flood the market prior to the massive jump in share prices only to help financial institutions in the end.
Citadel and Melvin Capital who shut down last year, lost billions during the event.
Melvin was crippled throughout 2022 from its severe losses in GameStop the year prior.
Had the DTCC not stepped in, the hedge fund would have closed that same year.
“Anyone shorting AMC or GameStop is out of their mind. Wallstreetbets is too powerful, and trying to bet against them right now is just giving them more ammo”, said Jim Cramer.
Since the halt of ‘meme stocks’, the retail community has been uncovering a variety of conflicts of interest too big to ignore.
Who is David Inggs?
David Inggs is Global Head of Operations at Citadel and is responsible for all products across asset servicing, billing, cash management, clearing, Collateral Management, Reconciliation & Control and Settlements and is on the Board of Directors at the DTCC.
Prior to joining Citadel, David served as Chief Operations Officer of E*TRADE where he led operations globally across Trade Execution, Global Clearing, Middle Office and Shared Services, among other functions.
David spent most of his career at Goldman Sachs, where he was a Managing Director and held numerous leadership positions over the course of a decade, including Global Head of Clearing Operations and Head of Credit Default Swaps and Equity Derivative Operations.
David also worked at Morgan Stanley, where he served as an Executive Director and Head of Global Bank Loans, in addition to work in credit derivatives and collateral management.
The Global Head of Operations at Citadel has worked for every major criminal financial institution that has been too big to face serious consequences from fraud or market manipulation in the past.
Retail investors say this is market injustice and regulators are part of the problem.
Who is the DTCC?
The DTCC (Depositary Trust and Clearing Corporation) is an American post-trade financial services company providing clearing and settlement services to the financial markets.
The DTCC processes trillions of dollars of securities on a daily basis.
As the centralized clearinghouse for various exchanges and equity platforms, the DTCC settles transactions between buyers and sellers of securities.
The information is recorded by its subsidiary, the NSCC.
After the NSCC has processed and recorded a trade, they provide a report to the brokers and financial professionals involved.
This report includes their net securities positions after the trade and the money that is due to be settled between the two parties.
Clearing corporations such as the DTCC may receive cash from a buyer and securities or futures contracts from a seller.
The clearing corporation then manages the exchange and collects a fee for this service.
The size of the fee is dependent on the size of the transaction, the level of service required, and the type of security being traded.
Investors who make several transactions in a day can generate significant fees.
This means every naked share that has been created on the ‘short side’ has been recorded and bypassed by the DTCC/NSCC, all for a fee.
A press released was published advising of the circumstances that occurred during the time ‘meme stocks’ were halted.
The DTCC waived $9.7 billion of collateral deposit requirement on January 28th, 2021, limiting institutional losses and limiting retail profits.
While AMC Entertainment stock was able to surge months after the January event, GameStop shareholders were strongly affected by the halts.
Retail investors say they feel cheated from regulators who failed to let the short squeeze play out in their favor.
Conflicts of interest such as David Inggs’ involvement with Citadel and the DTCC could be seen as a detriment to market integrity.
In an interview with ‘We The Investors’, SEC Chairman Gary Gensler said one proposal they’re looking at this year involves tackling conflicts of interest in the financial markets.
Citadel processes more than 40% of retail’s orders through PFOF (payment for order flow), and with a bias towards short selling, gives the hedge fund an incredible advantage over the common investor.
Should the involvement between both Citadel and the DTCC be considered a crime?
Or is this just a coincidence?
Leave your thoughts below.
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Franknez.com is the media blog that keeps retail investors informed.
Market News: The SEC attacks retail investors with propaganda
The SEC meme stock video is circulating all over social media due to its surprisingly and unprofessional attack on retail investors.
The agency was created in the 30s after the Great Crash to prevent fraud and protect retail investors from predatorial practices conducted by Wall Street.
But something happened along the way – the branch has proved to take a stance with congress in tailoring policies for financial institutions.
Who is going to protect retail investors from the corrupt?
Former SEC Branch Chief expresses her thoughts on the propaganda published by the SEC.
Let’s discuss it.
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SEC publishes Meme Stock Video
If you haven’t watched the SEC meme stock video, it’s embedded below.
SEC Meme Stock Video
The SEC published the video on their official YouTube channel where they restricted public commenting.
Former SEC Branch Chief Lisa Braganca said she was “very disappointed to see the SEC disparage investors in meme stocks as if they must have done it thoughtlessly – especially when the SEC permits most trading to take place in dark pools.”
She then tweeted, “how about a video on dark pools Gary Gensler?”
Lisa Braganca is an activist who fights for market transparency.
She’s talked on Matt Kohrs’ channel before and has done an AMA on Reddit’s r/Superstonk answering questions about self-regulatory regulations, SEC regulation, and SEC enforcement.
Gary Gensler admitted in a Bloomberg exclusive 90%-95% of retail orders don’t go through the lit exchange but failed to mention a solution to the problem.
In an interview with Jon Stewart, the SEC Chairman fails to deliver a quality and productive discussion on solving the problems in the market.
Jon Stewart described Gary Gensler as a sheriff in town that allows blatant corruption to occur.
For Gary, it’s clear it’s more about keeping the job rather than creating a legacy.
Activism Matters
The SEC’s meme stock video might try to portray retail investors as young and clueless novice investors.
But that’s far from who the retail community is.
Retail investors outsmarted hedge funds, exposed the corruption in the SEC, mainstream media, and are now attacking with this propaganda.
It’s a sign of weakness.
The retail community is made up of a very diversified group of people all fighting for the same cause.
And this is a threat to corporate media and powerful institutions.
Republicans and democrats getting together to fight for market transparency, what!?
But this isn’t just about the left and right getting together to combat corruption, it’s a global movement – and opps (opposers) don’t like this.
The SEC spent nearly half a million dollars on the ‘meme stock’ ad campaign that ridiculed millions of retail investors.
A Twitter user had sent in a FOIA application inquiring about the costs to produce “Investomania”, the video published on the SEC’s official YouTube channel.
The agency that was established in the early 1930s to protect retail investors took a shot at millions of investors who participated in the ‘meme stock’ frenzy.
Former SEC Branch Chief Lisa Braganca stated she was “very disappointing to see SEC disparage investors in meme stocks as if they must have done it thoughtlessly”.
“Especially when the SEC permits most trading to take place in dark pools… how about a video about dark pools @GaryGensler?”
And retail investors continue to hold this one against the agency, even in 2023.
What are your thoughts?
The SEC has ignored retail’s cry for help, and now they’ve made fun of the community with the meme stock video.
Did this unprofessionalism in our government surprise you?
I’d love to learn what you think.
Leave your thoughts in the comment section of the blog below.
Here are 7 Reddit stocks you’ll want to keep an eye out on in 2023.
Reddit stocks have become more and more popular as we saw penny stocks such as GameStop (GME) and AMC Entertainment (AMC) explode to all-time highs during the ‘meme stock’ frenzy two years ago.
In late January of 2021, GameStop shares rose to nearly $500 before getting halted.
At the same time, AMC Entertainment stock had risen from $2.50 to $22 per share only to peak at $72 five months later in June.
Since then, investors have been wanting to find the next BIG Reddit stocks that might just have the potential to yield +1,000% (thousands) in percentage gains.
While there are never any guarantees, here are 7 Reddit stocks gaining traction that are worth putting on your watchlist this year.
Mullen Automotive (MULN): Analysts are predicting massive growth in 2023 with signs pointing towards a short squeeze.
Tesla (TSLA): The growth stock is amongst the most discussed stocks on Reddit; perfect for long-term value investors.
AMC Entertainment Holdings, Inc. (AMC): AMC’s short interest is still high and more than 93% of shareholders continue to hold the stock this year.
GameStop (GME): More shareholders are direct registering their shares this year to limit shorting in the company stock and trigger price action from mere buying pressure.
Amazon (AMZN): Despite a slowing economy, Amazon plans to invest billions of dollars in theatrical film releases and compete with Paramount Pictures.
Warner Bros. Discovery (WBD): Goldman Sachs and Bank of America highlight an attractive “risk/reward” profile, with the former designating the firm its “favorite media stock.”
Alibaba Group Holding Limited (BABA): Restrictions overseas are easing, and analysts are forecasting Alibaba to soar nearly 100% this year.
Mullen Automotive (MULN)
Mullen Automotive (NASDAQ:MULN) become one of Reddit’s trending stocks when a case study found that analysts are predicting shares to rise more than +7,000% by the end of the year.
Shares are currently trading around $0.37 but experts say favorable news during the company’s earnings report sometime in February has the potential to trigger a short squeeze.
Analysts predict shares of the automotive company to soar as high as $24 per share by the end of 2023.
Call options have decimated the number of put options on Webull by more than 96%.
Best of all, out of 173 financial institutions investing in Mullen Automotive, only 1 is short with 172 being long.
Share price at time of original publication 1/11: $0.40
In 2021, Tesla reported 308,600 vehicle deliveries in the fourth quarter, and full-year deliveries of around 936,172 vehicles.
Dan Raju, CEO of Tradier, a brokerage platform says, “if and when a market bottom emerges in the first half of 2023, we’d be looking to technology as a fantastic long-term opportunity, given the heavy drawdowns since late 2021.”
Given Tesla’s current low prices, investors all over Reddit stock forums can’t keep it off their watchlist.
Share price at time of original publication 1/11: $123.28
The AMC community known as ‘apes’ are determined AMC Entertainment stock will break its current all-time high record by squeezing short sellers again.
Not only does the community have the numbers, but the short interest is the same from 2021 levels when AMC soared to $72 per share.
Although company fundamentals have strongly improved over the past two years, 2021’s massive price surge proved fundamentals don’t necessarily have to be tied to a short squeeze play.
Last year, experts said Netflix missed out on $200 million in revenue by taking Glass Onion out of movie theatres too early, earning only $15 million.
Amazon.com Inc. will be investing billions of dollars to produce movies that will release in theatres, according to people familiar with the company’s plans.
This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.
The fact is people are still enjoying the theatrical experience only movie theatres can provide.
And Amazon plans to use the movie theatre industry to its advantage.
Amazon Prime video may potentially pre-release some of these films to subscribers, which could bring in more online streaming customers to the company as well.
Share price at time of original publication 1/11: $93.96
Warner Bros. Discovery (NASDAQ:WBD) rose more than 31% in the first week of 2023 after Wall Street analysts upgraded the company with a modest 63% upside for the year.
“We estimate that WBD is best positioned to drive EBITDA growth, ramp free cash flow and delever its balance sheet in 2023 as it pursues $3.5 billion of merger synergies and relaunches its flagship streaming service,” said Goldman Sachs analyst Brett Feldman.
Meanwhile, Bank of America analyst Jessica Reif Ehrlich reiterated her “buy” rating and $21 price objective on the stock, while adding it to her company’s so-called “U.S. 1 list” of “best investment ideas.”
The Bank of America expert also highlighted positive trends and potential catalysts ahead. “It already appears January advertising trends have improved sequentially (albeit off a modest base) from December levels, and comps would ease as the year progresses,” she wrote.
On Reddit, Warner Bros. Discovery has been discussed amongst the r/wallstreetbets community and several other stock and investing sub-channels.
Share price at time of original publication 1/11: $12.70
Alibaba (NASDAQ:BABA) is another Reddit stock that was recently added to Goldman Sachs conviction ‘buy’ list.
Analysts say shares may rise more than 25% this year.
As part of its Nov. 17 earnings report, which showed adjusted profit up 5% year over year to $1.82 a share but revenue down 6% to $29.1 billion, BABA said it’s increasing its share buyback program by $15 billion, on top of an existing $25 billion program.
As of Nov. 16, the company said it already repurchased $18 billion worth of stock under its existing program.
Alibaba’s Composite Rating of 85 (on a scale of 1-99 with 99 being the best) has improved significantly due to the stock’s relative price strength.
The current consensus among 59 polled investment analysts is to buy stock in Alibaba.
Analysts are giving BABA a low of $74.35, mid of $142.70, and high of $220.61.
Share price at time of original publication 1/11: $114.50
Market News: Here’s how Bloomberg’s beloved Citadel Securities manipulates the stock market.
Citadel Securities is a leading financial institution known for its expertise in electronic trading and market making.
However, the company has also been embroiled in controversy surrounding allegations of manipulation in the markets.
In this article, we will explore the history of Citadel Securities and the accusations of market manipulation that have been levied against the company.
We will also examine the potential consequences of such behavior, both for Citadel Securities and for the broader financial industry.
How Does Citadel Securities Manipulate the Stock Market?
How does Citadel Securities manipulate the stock market?
Citadel LLC was founded in 1990 while Citadel Securities was founded in 2002 by Ken Griffin.
Citadel Securities is a leading global market maker that provides liquidity to financial markets.
The company is known for its use of advanced technology and quantitative strategies to facilitate price discovery and drive market efficiency.
However, Citadel Securities has also been accused of manipulating financial markets in order to gain an unfair advantage.
Here are 5 ways Citadel Securities manipulates the stock market.
#1. High Frequency Trading (HFT)
One example of Citadel Securities’ alleged market manipulation is its use of high-frequency trading (HFT) algorithms.
HFT algorithms are designed to execute trades at extremely high speeds, often in fractions of a second.
This allows Citadel Securities to react to market movements faster than other traders and potentially gain an unfair advantage.
Critics argue that the use of HFT algorithms allows Citadel Securities to manipulate prices by quickly buying or selling large volumes of securities, which can create artificial demand or supply and move prices in their favor.
#2. Dark Pools
Another area where Citadel Securities has faced accusations of manipulation is in the realm of dark pools.
Dark pools are private stock exchanges that allow traders to buy and sell securities without revealing their identities or the details of their trades.
This can create a lack of transparency, making it difficult for regulators to monitor market activity and prevent manipulation.
Citadel Securities operates a number of dark pools and has been accused of using these platforms to engage in insider trading and other forms of market manipulation.
In addition to its use of HFT algorithms and dark pools, Citadel Securities has also been criticized for its role in the flash crash of 2010.
On May 6, 2010, the Dow Jones Industrial Average plunged nearly 1,000 points in a matter of minutes, before quickly recovering.
The cause of the flash crash was traced to a large sell order that was executed by Citadel Securities, which many believe was done intentionally to trigger a market panic.
Critics argue that Citadel Securities exploited the vulnerabilities of the market in order to profit from the flash crash.
#3. Spoofing
Another tactic that Citadel has been accused of using is spoofing, which involves placing a large number of fake orders in the market with the intention of tricking other traders into thinking there is more demand or supply than there actually is.
This can cause prices to move in the desired direction, allowing Citadel to profit from the manipulation.
In 2015, Citadel was one of several firms that were fined by the U.S. Commodity Futures Trading Commission for engaging in spoofing.
In December of 2022, a Biotech company researching cancer has decided to sue Citadel Securities for spoofing their stock.
#4. “Front Running”
Citadel has also been accused of engaging in “front-running” – a practice in which traders use inside information to gain an unfair advantage in the market.
In 2013, the company was sued by the New York Attorney General for front-running, but the case was later settled out of court.
Despite these controversies, Citadel remains a major player in the financial world.
Its use of algorithms and high-frequency trading has made it incredibly successful, but it has also raised concerns about the potential for market manipulation.
One of the key reasons for Citadel’s success is its ability to manipulate the markets to its advantage.
This is done through a variety of strategies, including high-frequency trading, where the firm uses powerful computer algorithms to make trades at incredibly fast speeds.
This allows Citadel to take advantage of even the slightest market movements and make a profit.
Another way in which Citadel manipulates the markets is through the use of complex financial instruments known as derivatives.
These are financial contracts that derive their value from an underlying asset, such as a stock or a bond.
Citadel uses derivatives to speculate on the future value of these assets, and to hedge against potential losses.
This allows the firm to make huge profits even in volatile market conditions.
Despite its impressive track record and reputation, Citadel Securities has faced allegations of manipulation in recent years.
In particular, the company has been accused of using its dominant market position to manipulate prices and engage in other forms of misconduct.
These allegations have led to significant scrutiny from regulators, authorities, but primarily by retail investors who are concerned about the impact of such practices on the integrity of financial markets.
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Market News: What is happening with GameStop stock in 2023?
GameStop stock is one of the few companies who actually crushed in during the bear market in 2022.
The stock, currently trading at $18.40, amassed worldwide attention in 2021 when the ‘meme stock’ frenzy took Wall Street by surprise.
Today, GameStop has one of the most raving fanatics and shareholder base which without a doubt are the backbone of the company.
How much of GME’s float is owned by retail investors?
Approximately 70% of the float is owned by individual shareholders according to Vickers Stock Research.
GameStop’s Chair Ryan Cohen himself owns more than 12% of GME shares.
These are held through Ryan’s holding company RC Ventures, which Vickers considers to be Institutional ownership.
So, where is GameStop headed in 2023?
Let’s break down some important figures to determine just that.
Where is GameStop Headed in 2023?
2022 was another memorable year for GameStop.
Under Chairman Ryan Cohen and CEO Matt Furlong, it was the first year of the implementation of the company’s turnaround plan, which aimed to transform GameStop into a tech-oriented business.
This consisted of investment initiatives in e-commerce, an NFT marketplace, and Web 3.0 gaming.
But the company needs to focus on raising more capital despite its $1bn cash pile and having virtually no debt.
GameStop’s quarterly cash burn averaged at $400 million per quarter throughout 2022.
This means that if the company’s operating cash flow remains at similar levels next year, GameStop’s balance sheet could run out of cash in the next two years.
Over the last four quarters, GameStop’s sales have grown only by 1.3%.
Still, what made 2022 so significant for GameStop is the reporting of positive cash flow for the first time since Q1 of 2021.
Cashflow came in at $177.3 million this year compared to an outflow of $293.7 million last year.
This is already great news for GameStop going into 2023.
GME Stock Remains Popular Amongst Retail Investors
In 2023, GME stock will remain popular amongst retail investors, primarily due to the massive community of shareholders who are looking to take GameStop shares to the moon.
During the spark of the ‘meme stock’ frenzy, GameStop shares rose to $483 per share, a superior all-time high.
But shareholders are not convinced the stock is done running.
In fact, many GME shareholders believe share prices may skyrocket to new records, primarily due to overleveraged shorting in GameStop.
According to GameStop, shareholders registered 71.8 million shares via the transfer agent.
This equates to a massive 30% of GameStop’s total float – something that’s very unlikely in the markets.
Transfer agents can’t lend shares for short sellers who want to bet against GameStop.
The high number of market participants taking this action signifies that retail investors are here to stay.
Final thoughts
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2023 opens up new possibilities for GameStop as e-commerce, NFTs, and Web 3.0 gaming continues to grow.
While the company may benefit from arming itself with more short-term capital, GameStop enters the new year with positive cash flow, an incredible start for the company as many continue to struggle.
Even at a fundamental level, analysts are predicting GameStop stock to rise significantly higher next year.
But I’m curious to know your thoughts on where GameStop stock is going in 2023.
Leave your thoughts down below.
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Cosmos Health Inc. (COSM) stock closed the trading day on Tuesday at $4.40.
Liquidity in the security fell massively from its average trading volume of 60 million.
COSM stock fell more than -31% on Tuesday alone and is currently down -95.31% this year-to-date.
Our current bear market has dragged several companies down and Cosmos Health Inc. is no exception.
Just two weeks ago the stock surged from $0.30 to more than $23.
The stock has come down drastically since, but shareholders say the stock is not done moving.
There seems to be growing ambitions of creating a short squeeze here due to the extremely high short interest.
Here’s the latest COSM stock news and updates.
COSM Short Interest Today: Will COSM Squeeze?
Fintel is reporting COSM’s short interest today at a whopping 61.34%, data per FINRA.
Just weeks ago, COSM stock had a short interest of 321.74%.
The massive surge from $0.30 to $23 and drop in short interest suggests there are shorts who have closed their positions.
But like AMC Entertainment stock, (when it first surged to $22) there is a lot of short interest remaining.
AMC’s share price had cooled following the events of the first price surge in late January of 2021.
Five months later, retail investors were able to squeeze more short sellers out of their positions, taking AMC from $14 per share to its current all-time high of $72 per share.
Will the same happen with Cosmos Health?
If there’s anything the current bear market has proved it’s that there is much that is uncertain.
However, due to COSM’s residual high short interest, the probability of a larger short squeeze is certainly there.
