Tag: Reddit Stocks (Page 1 of 7)

AMC CEO Adam Aron Hints at Destroying Short Thesis

Market News Daily: AMC Entertainment CEO hints at destroying Wall Street short thesis.
Market News Daily: AMC Entertainment CEO Adam Aron hints at destroying Wall Street short thesis.

AMC Entertainment (NYSE:AMC) CEO Adam Aron just hinted at destroying the short thesis.

The movie theatre chain has been under attack by short sellers since before the pandemic.

However, short sellers saw an opportunity when the world’s largest movie theatre chain closed its doors in 2020 due to the pandemic lockdowns.

Adam Aron says the company went from earning millions per month to $0 overnight during the wake of the Coronavirus pandemic.

When retail investors found how high the short interest data in AMC was, they piled up to squeeze short sellers from their positions by purchasing shares of the movie theater chain en masse.

At first, investors were able to drive AMC’s stock price to $20 in January.

Then, shareholders saw AMC stock hit an all-time high of $72 per share in June.

Since then, low borrow fees have made it easier for short sellers to bring the stock back down.

But now that short borrow fees have skyrocketed, retail investors have clearer runway to squeeze short sellers again.

Adam Aron on an AMC Short Squeeze

Adam Aron AMC Short Squeeze
AMC Entertainment CEO Adam Aron hints at destroying Wall Street short thesis.

AMC CEO Adam Aron has said in the past that to his personal knowledge, there are no synthetic AMC shares (naked shares used to illegally drive the price of a share down).

Genius Group (GNS) CEO Roger Hamilton, who is leading a group of CEOs to take legal action against short sellers and toxic lenders has reached out to Adam Aron in efforts to fight market injustices.

“It may boil down to this. Many of you are frustrated, strongly urging us to address market forces that you are convinced are unfair. We continuously think about what actions would be wise and CREDIBLE. Certainly good ideas: Build up our cash reserves and smartly lead AMC forward,” said Adam Aron on Twitter.

Some investors believe AMC’s debt covenants are restricting the CEO from speaking publicly about the short seller stock manipulation happening with AMC since the lenders themselves are short on AMC Entertainment stock.

Debt covenants are restrictions that lenders (creditors, debt holders, investors) put on lending agreements to limit the actions of the borrower (debtor), AMC Entertainment.

In other words, debt covenants are agreements between a company (AMC) and its lenders (Citi, Goldman, Credit Suisse) that the company will operate within certain rules set by the lenders.

Should a borrower violate a covenant, such as not maintaining a certain interest coverage ratio or engaging in unpermitted business activities, it may constitute a loan default, per The Balance.

Destroying the Short Thesis

On Twitter, Adam Aron responded directly to a user regarding AMC’s short thesis.

The user said, “Shorts attack companies they feel they can destroy. If you become a successful company you destroy a short’s thesis hence no logical reason to continue shorting. This is @CEOAdam strategy and the only strategy that has ever worked in the history of the market! #AMC#AMCSqueeze.”

To which the CEO answered:

“Joe, you nailed it. I could not have put it better myself”.

Adam Aron has made it clear that his way to tackle the short thesis is strictly through a fundamental process and strategy.

Some investors argue that he could tackle the short thesis both through fundamentals and legal action.

But as Roger Hamilton has stated, it might be best for a company to get their finances in order before proceeding with such a task.

Do you believe AMC Entertainment will end the short thesis once and for all?

Leave your thoughts in the comment section below.

Related: AMC Failure-to-Delivers Are Skyrocketing Through the Roof

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Market News Today - AMC Stock News Today
Market News Today – AMC Stock News Today.

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Here’s How Meme Stocks Performed This Week

The performance of so called ‘meme stocks’ will be updated every week below. The latest news will also be available for your reading pleasure.

Optin for push notifications or join the newsletter to receive a weekly reminder straight to your inbox.

Here’s how meme stocks performed for the week of: 2/27-3/3

Here's how meme stocks performed this week: GameStop (GME).
Here’s how meme stocks performed this week: GameStop (GME).

#1. GameStop

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GameStop Corp. (NYSE:GME) closed: up -4.79% this past trading week.

The latest press release details the retailer’s earnings for the third quarter of fiscal year 2022.

During that period, GameStop reported net sales of $1.186 billion, down from $1.297 billion a year ago.

Gross profit tallied in at $291.6 million, while selling, general and administrative expenses were $387.9 million.

That led to a net loss of $94.7 million compared to a net loss of $105.4 million the previous year.

According to an amended Schedule 13G filingVanguard owns a total of 24.66 million shares of GME as of Dec. 30, equivalent to an 8.1% ownership stake.

As of Q3, the firm owned 24.16 million shares, meaning it purchased about a half a million shares during Q4.

Here's how meme stocks performed this week: AMC Entertainment (AMC).
Here’s how meme stocks performed this week: AMC Entertainment (AMC).

#2. AMC Entertainment

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AMC Entertainment Holdings, Inc. (NYSE:AMC) closed the week: up +4.28% this past trading week.

The company stock is now making higher highs and higher lows in 2023.

In recent news, AMC and its board members, including CEO Adam Aron, are getting sued by a pension fund.

The latest lawsuit comes from the issuance of AMC’s preferred equity, APE.

The shareholder vote to either convert APE equity back into common AMC shares or go through a reverse stock split has been delayed — though Adam Aron has not made an official statement yet.

Read: AMC Failure-to-Delivers Are Skyrocketing Through the Roof

#3. APE

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AMC Preferred Equity (NYSE:APE) closed this week: down -17.65%.

The equity has risen more than +90% this year after surging from $0.35 to more than $3 per share earlier this year.

44% of shareholders say they hold more APE over AMC stock.

The company is also proposing converting APE shares back into common AMC stock through a shareholder vote.

If approved, AMC’s share price will rise and the equity will be delisted.

APE has been able to provide the company with hundreds of millions of dollars in liquidity to pay down debt.

Will APE squeeze prior to the merge (if approved)?

Leave your thoughts below.

Related: AMC CFO Sean Goodman Cashes in $230K of APE

Here's how meme stocks performed this week: Bed Bath & Beyond (BBBY).
Here’s how meme stocks performed this week: Bed Bath & Beyond (BBBY).

#4. Bed Bath & Beyond

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Shares of Bed Bath & Beyond (NASDAQ:BBBY) were: down -5.04% in the past trading week.

On social media, shareholders of the so called ‘meme stock’ continue to buy the stock despite talks of bankruptcy.

The company edged closer to a bankruptcy filing in late January after the retailer said it had received a default notice from JPMorgan Chase & Co., its loan agent, and warned it didn’t have enough funds to make payments. 

Creditors are demanding immediate repayment of the company’s debt after it breached the terms of a credit line, according to a regulatory filing Thursday, per Bloomberg.

“Generally, in situations like this where a company defaults on their loan agreement our experience is, if they don’t come to an agreement with their lenders, the likelihood of a bankruptcy filing within the next 30 days is relatively high,” said Dennis Cantalupo, chief executive officer of Pulse Ratings, a credit-rating and consulting firm.

BBBY stock is up +1.73% this year-to-date.

Here's how meme stocks performed this week

#5. Hycroft Mining Holding Corporation

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Shares of Hycroft Mining (NASDAQ:HYMC): rose +0.86% in the past week.

The mining company’s stock is down more than -28% this year-to-date.

In December, the company’s share price jumped 25% after announcements it had discovered more silver and gold deposits than anticipated.

Shares rose to $0.57 from a previous low of $0.44.

AMC CEO Adam Aron made the exciting announcement on Twitter stating, “so far ALL 20 of the newly drilled bores contained gold/silver, and 14 of the 20 showed higher grades than previously known to Hycroft.

AMC acquired a 22% stake in the silver and gold mining company in 2022 when they received 23.4 million warrants in Hycroft at $1.07 per share.

The stock at the time surged to $1.70 after trading at $0.60 earlier that same year.

More updates coming soon

market news - meme stocks this week

This page will get updated every week with news, performance, and updates.

Readers are receiving updates like this from various stocks and news daily via push notifications or from the newsletter.

Are you holding any of these ‘meme stocks’?

Leave your thoughts on this week’s performance or ideas on how to make this page better down in the comment section.

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


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Ken Griffin Thanks Redditors for ‘Meme Stocks’

Ken Griffin Thanks Redditors for 'Meme Stocks'

“Redditors, thank you so much for helping create the best pipeline we’ve ever had”, said Ken Griffin on Business Insider.

Ken Griffin, on how the GameStop frenzy helped raise Citadel’s profile with potential hires.

Business Insider says the SEC found no truth to any of the conspiracy theories but how can the SEC really go against one of the most powerful hedge funds in the world?

Transcripts showed Citadel and Robinhood did in fact have “blunt negotiations” the night prior to the halts.

A Miami district court judge admitted the Citadel and Robinhood transcripts were suspicious.

However, the federal court has dismissed the case due to a ‘lack of evidence’.

Research shows Judge Cecilia Altonaga had a close connection to the defendant’s law firm, insinuating a conflict of interest in the case.

Ken Griffin on Meme Stock Rally

The GameStop affair, in an odd twist, actually helped boost Citadel’s clout with potential recruits, Griffin said.

“For a lot of people this was a wake-up call that this firm Citadel is actually one of the most important players in the world’s financial markets,” he told Business Insider.

“Redditors, thank you so much for helping create the best pipeline we’ve ever had.”

“We’ve lost sight of the opportunities people can enjoy in America in recent years,” Griffin said.

To help counteract that, Griffin said he plans to give away the vast majority of his fortune during his lifetime.

“I’m going to give my money away in a way that I think has a real impact for our country,” he said. “I hope that the gifts I make will have an impact on America and the world for many years to come.”

Source(s): Business Insider.

Retail Investors Weigh In

Ken Griffin has made his money off the backs of retail investors who are simply looking to start building wealth through their favorite company stocks.

Retail investors say Ken Griffin’s Citadel takes advantage of its payment for order flow (PFOF) and use of off-exchange trading.

Backdoors in the financial system allow institutions to essentially control the game even when the ball is in retail’s court.

Chairman Gensler has even admitted to dark pools having a strong suppression on a securities share price which goes to show how much power these institutions really have in the game.

Were Ken Griffin’s comments about ‘meme stocks’ and redditors arrogant?

Leave your thoughts below.

Market News Published Daily

Market News: Ken Griffin on 'meme stocks' and redditors.
Market News: Ken Griffin on ‘meme stocks’ and redditors.

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Robinhood Lost $57 Million Shorting COSM Stock

Robinhood Lost $57 Million Shorting COSM Stock
Market News Today: Robinhood lost $57 million shorting COSM stock.

Robinhood (NASDAQ:HOOD) lost $57 million shorting Cosmos Health Inc. (NASDAQ:COSM) stock due to a ‘processing error’ that caused the company to glitch into shorting the healthcare stock.

“A processing error caused us to sell shares short into the market, and although it was detected quickly, it resulted in a loss of $57 million as we bought back these shares against a rising stock price,” CFO Jason Warnick said.

Robinhood ended up down $57 million in a single day after a glitch let its trading app customers temporarily short a meme stock, according to company executives.

Cosmos Health’s share price tripled on December 16, when a 1-to-25 reverse stock split for the healthcare company went into effect.

But the reverse stock split caused issues in Robinhood’s trading app, allowing users to briefly sell more Cosmos shares than they owned to create a temporary short position, the company said in its fourth-quarter earnings release Thursday.

Executives Forgo $500 Million

Robinhood News Today.
Robinhood News Today.

The loss suffered by Robinhood tops Cosmos’ current total market capitalization, with the healthcare stock valued at $52 million as of Friday.

Robinhood executives will forgo around $500 million in stock-based compensation to help it cut costs.

Retail investors continue to scrutinize the company after it had colluded with Citadel during the ‘meme stock’ frenzy to halt trades.

Investors speculate Cosmos Health (COSM) may have a short squeeze this year, so Robinhood’s short ‘glitch’ doesn’t look too well in retail’s eyes.

HOOD stock is currently up +23% year-to-date.

Will Robinhood ever win retail back?

Share this article and leave your thoughts below.

About the company

[stock_market_widget type=”chart” template=”basic” color=”#5679FF” assets=”HOOD” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” display_currency_symbol=”true” api=”yf”]


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Market News Published Daily

Market News Today - Robinhood lost $57 Million shorting COSM stock.
Market News Today – Robinhood lost $57 Million shorting COSM stock.

For more stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


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You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
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  • Get drawn at the end of the year for holiday giveaways.


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