Sunday, July 3, 2022
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Stocks

AMC, other ‘meme’ stocks jump; regulator signals concern

MtR by MtR
June 8, 2021
in Stocks
0
AMC, other ‘meme’ stocks jump; regulator signals concern


An AMC theatre is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., January 27, 2021. REUTERS/Carlo Allegri/File Photo

Related articles

Nigerian Stock Market end first half of 2022 as one of the best in the world

July 3, 2022

Stock Picks to Buy, Recession Investing Advice From BofA

July 3, 2022

Shares of AMC Entertainment Holdings Inc (AMC.N) and other “meme stocks” jumped on Monday, extending a rally in social-media favorites into a third week as message boards hummed with talk of squeezing Wall Street short-sellers.

The sharp gains prompted the U.S. Securities and Exchange Commission to say it was looking into signs of market manipulation given the “volatility in certain stocks.”

The volatility has challenged analysts, and two of them in the past week have stopped covering video game retailer GameStop, whose shares soared in January in a retail-driven rally.

Cinema operator AMC jumped almost 15%, putting its gain over the past five sessions at 111%. BlackBerry’s U.S. listing surged 14% and is now up 57% since the start of June.

“AMC never ceases to amaze me. Just when I think that train is over, it jumps almost 10 points in the first 30 min of trading,” one poster on Reddit wrote.

AMC shares are up about 2,500% in 2021 as the company has courted individual investors, while GameStop has surged over 1,300% year to date.

Some bearish investors retreated from bets against AMC on Friday. Short interest slumped to 74.5 million shares, or 14.9% of AMC’s float, from 88.2 million on Thursday, according to S3 Partners.

Clover Health Investments (CLOV.O), which has been the target of short sellers, was one of the most mentioned stocks on Reddit’s wallstreetbets on Monday, with some users suggesting the shares as the forum’s next short-squeeze target.

The insurer’s shares soared 32% in their highest volume trading day since April 19.

Institutional investors are largely sitting on the sidelines as the meme-stock rally continues.

Amateur investors, however, “don’t need a reason,” said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut. “They’re trying to do the same thing they did last week. It’s a new week. They start over, the meme stock buyers, the wallstreetbets Reddit community.”

ANALYSTS SIT OUT

Despite the retail-investor driven rally, Wall Street analysts have largely refused to raise target prices, which reflect their view of fair value for a company’s shares.

Telsey Advisory Group analyst Joseph Feldman terminated coverage of GameStop. His last rating was “underperform,” with a price target almost 90% below Monday’s level.

“We’re focusing on other areas,” he said. “It’s hard to justify where the stock is trading relative to the fundamentals.”

Bank of America stopped covering GameStop last week, citing “a reallocation of resources.”

With GameStop set to report its quarterly results on Wednesday, the same day it holds its annual shareholders meeting, options prices imply a potential 24% swing for the stock in either direction by the end of the week, according to data from Refinitiv.

AMC has been the top-traded stock among clients of brokerages Fidelity and Freetrade, used heavily by individual investors managing their own money, data showed.

BlackBerry topped the list of stocks mentioned on wallstreetbets on Monday, according to the swaggystocks.com sentiment tracker.

The SEC continues to “monitor the market in light of the ongoing volatility in certain stocks to determine if there have been any disruptions of the market, manipulative trading, or other misconduct,” an SEC spokesperson said in a statement on Monday.

“In addition, we will act to protect retail investors if violations of federal securities laws are found,” the SEC said.

Market participants have told Reuters that some institutional investors are ramping up options trades that let them bet the shares will fall while keeping a lid on potential losses if they gain.

AMC’s corporate debt has benefited from the rally in its stock, though not to the same extent, in part because corporate debt is less accessible to retail investors. Its June 2026 12% bond , worth about $1.5 billion, is up over 360% since Jan. 1, tame compared to the stock’s gain.

“Bond holders are suspect of the volatile swings in the equity and where the real valuation is,” said John McClain, high yield portfolio manager at Diamond Hill Capital Management. “Do you really want to be the investor who buys AMC debt and watches the equity come back to reality?”

Our Standards: The Thomson Reuters Trust Principles.



Source link

Related Posts

Nigerian Stock Market end first half of 2022 as one of the best in the world

by MtR
July 3, 2022
0

The Nigerian All Share Index closed the first half of 2022 with a gain of about 21.17% year to date...

Stock Picks to Buy, Recession Investing Advice From BofA

by MtR
July 3, 2022
0

Stocks endured a brutal first half of 2022 as investors felt a recession was getting more likely.  Jill Carey Hall...

Global factors, crude oil, macro data to drive stocks this week: Analysts

by MtR
July 3, 2022
0

Stock markets would be driven by domestic macroeconomic data, global trends, crude oil movement and FII...

Top Piotroski-Graham Long Term Value Stocks: July 2022 Semi-Annual Selections

by MtR
July 3, 2022
0

SCStock/iStock Editorial via Getty Images Top Piotroski-Graham Long Term Value Stocks: July 2022 Semi-Annual Selections These selections continue as ongoing...

2 Sensational Summer Stocks to Buy Now

by MtR
July 2, 2022
0

The coronavirus pandemic forced people to spend much more time at home than they would like to over the last...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021
Fed tapering and emerging markets

Fed tapering and emerging markets

June 7, 2021
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

Cryptocurrency Market: Crypto week at glance: Volatility jolts crypto markets, BTC below $20k

July 3, 2022

Pine Nuts: Flunking Personal Finance Class

July 3, 2022

F1 fans praise ‘life saving’ halo after Zhou Guanyu survives horror crash at British Grand Prix

July 3, 2022

3 Disastrous Outcomes of Relying On Social Security Alone to Fund Your Retirement

July 3, 2022

Recent News

Cryptocurrency Market: Crypto week at glance: Volatility jolts crypto markets, BTC below $20k

July 3, 2022

Pine Nuts: Flunking Personal Finance Class

July 3, 2022

F1 fans praise ‘life saving’ halo after Zhou Guanyu survives horror crash at British Grand Prix

July 3, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter