Trey’s Trades just released an honest video interviewing Jordan Belfort, AKA The real Wolf of Wall Street.
The ape community holding AMC stock was actually looking forward to this video but found themselves perplexed and rather disappointed.
I’m going to breakdown key points from the video to provide some clarification. I’ve watched ‘listened’ to the video a few times to gain a different perspective on the interview.
Massive thanks to Trey’s Trades for the intention. I think we can all agree Trey held himself very well during the interview with Jordan Belfort. You’re the real goat brother.
Trey’s Trades vs. Wolf of Wall Street – Intro
This interview begins with Trey humbly expressing his gratitude, concern for Jordan’s health, and respect for the wolf’s time.
Trey sets the mood with by saying, “I think there’s a huge opportunity for some education”. He also mentions there’s been a lot of cool stuff going on in The Wolf of Wall Street’s Twitter as he expresses his excitement.
As most of you know, Jordan Belfort has been supporting the AMC movement via Twitter.
The AMC & GameStop situation
The Wolf of Wall Street goes on to discuss the dilution of shares in general. Jordan Belfort further explains that a dilution would mean short-term discomfort in the stock but could benefit a company immensely long-term.
I actually said this back on April 1st when AMC share price started to drop due to Adam Aron’s announcement seeking approval from its shareholders to issue 500 million more shares. You can check out the post here.
Jordan Belfort thinks an issue of shares will pass
Trey asks The Wolf if he thinks it’s likely that an issue of shares can pass where Jordan then responds with certainty that it will pass.
Apes, you have to take this with a grain of salt. This is only Jordan Belfort’s opinion. Remember, you the shareholder get to vote whether this passes or not.
If you hold AMC stock then you should have received an email from your brokerage account with the form to vote. Be sure to search it in your mailbox if you’re uncertain.
What happens if 500 million shares are approved?
If it passes:
- AMC becomes more of a long-term investment with a lot of upside for the company. As a shareholder, you will still be profitable.
- Will a squeeze still happen? More than likely. A dilution would bring the stock price down which would be a favorable position for shorts to cover.
- Approving this does not mean all shares will be issued at once. This is only a ‘backup’ in case of another disaster that can be a detriment to AMC as a company.
If we vote no:
- AMC will simply have to pay it’s dues as they continue to see profits
- The share price will not dilute
- AMC won’t have a backup in case a second pandemic occurred hypothetically speaking
Verdict?
All in all, The Wolf of Wall Street had nothing negative to say about AMC here. These are straight facts that really don’t affect AMC negatively in any way.
“Wildly Overvalued”
Jordan Belfort then begins to advise that both AMC and GameStop are wildly overvalued.
I personally think he’s mainly referring to GameStop here. GameStop is wildly overvalued and it’s certainly no surprise to hear so. Again, there’s no negative talk about the stock(s). The Wolf of Wall Street is presenting an opinion that is widely accepted through fundamentals.
GameStop was hyped to squeeze despite the drop in value and revenue in the company, so there’s no argument there. However, AMC is currently undervalued if you look at pre-pandemic records.
The Wolf is already thinking ahead. AMC is not overvalued yet, but it will be.
And as he mentions in the interview, once these stocks take off they are bound to come back down. Fundamentals will eventually correct the stock and trade on ‘normal’ levels.
At least they should.
“Whoever Buys The Stock Is Kinda Nutty”
The Wolf of Wall Street goes on to say that as a shareholder, it is our responsibility to take advantage of the inflated price.
Jordan Belfort is trying to get a lot out during this part of the interview. He mentions if people are going to buy the stock at 10 times the price that it’s trading at ‘fundamentally’ it’s not worth buying.
Again, I believe he’s referring to GameStop where it’s currently sitting at. What I get from this message is that it doesn’t make sense to buy at the top of a stock that can potentially correct itself back to fundamentals.
He then goes to say whoever buys the stock (at the inflated price) is ‘kinda nutty’.
“This doesn’t mean you can’t make a lot of money trading at these higher prices”. This quote is why I believe he’s referring to GameStop. AMC isn’t there yet.
This is how I’m perceiving this part of the video. Let me know in the comments section below your personal opinion.
Trey agrees with this
Trey agrees that GME is overvalued and that a dilution would help AMC in the long-term with cash should they ever need it.
Most people didn’t catch the Bitcoin bit
Most apes didn’t catch this but the reason The Wolf mentioned Bitcoin is because he was using it as an example to compare it vs. how stocks work.
He basically states that Bitcoin unlike stocks can go up and stay up for a while, come back relatively low, and continue this cycle. Jordan states that stocks don’t move this way and he wanted to clarify this for the viewers, mainly new retail investors.
GameStop second squeeze?
Trey asks The Wolf of Wall Street if he thinks GameStop will have a second squeeze. Jordan responds saying he predicted the second squeeze meaning it’s already happened and that a third one isn’t likely. Although, he does make a reference that it was most likely a ‘gamma squeeze’ the second time around.
Again, this is only Jordan Belfort’s opinion and solely based on GameStop, not AMC.
“I love the average person is making money”
The Wolf of Wall Street expresses he thinks it’s great the average person is making money and doesn’t want us to think he’s against what’s going on. Jordan then goes to say he just doesn’t think any high price action will be sustainable.
Which makes sense apes. When GameStop’s squeeze peaked at $500 it did not sustain. It became volatile and dropped all the way back down to $40 before gamma squeezing up to $200.
The bear market discussion
The Wolf of Wall Street explains that a rising tide lifts ships and a falling tide sinks all ships.
He’s referring to a bear market vs. a bull market. Jordan further explains that during a bear market all stocks tend to go down no matter what hype surrounds it.
We’ve seen a little bit of this occur with AMC mainly on the days that the S&P 500 has been down. It’s simply how the market works.
Here, The Wolf is simply having a discussion with a younger investor as he portrays Trey after asking him his age.
You see this sentiment carry over when discussing how his former colleagues lost a lot of money day-trading. This conversation can be looked as personal insight from The Wolf’s experience and possible ‘advice’ to new retail investors.
We get off track a bit
A lot of the interview from here on out is simply a conversation between Jordan and Trey.
The Wolf seems to get off track from the AMC phenomena and starts talking about other investments and fundamentals. The rest of the video from here on out is a rant from Jordan that Trey entertains out of respect.
The video is concluded with The Wolf of Wall Street advising to make as much of money as you can while the times are good, and to play it more conservatively when they’re not.
Conclusion
Trey did an amazing job at respecting Jordan Belfort’s time which is why we didn’t see much deeper conversations regarding manipulation in the market, etc.
I hope you guys enjoyed this breakdown from the video. I too was a little puzzled after watching it the first time. With a lot of uncertainty going on, I figured I’d listen to it a few times over and provide some perspective to provide some form of value to the community.
