AMC share price quadruples as retail traders raid hedge-fund short targets

[catfish1957]

https://www.cnbc.com/2021/01/27/amc-shares-triple-as-retail-investor-raid-of-hedge-fund-short-targets-spreads-from-gamestop.html

Shares of embattled movie theater giant AMC Entertainment more than quadrupled on Wednesday amid a flurry of trading activity in some of Wall Street’s most shorted stocks.

The frenzy started right out of the gate. About 10 minutes into the session, trading in the stock was halted for the first time due to volatility. Shares were halted several additional times during the first hour of trading amid heavy activity.

The stock finished the day with a 301.21% gain to close at $19.90. That was slightly below the stock’s high of the day — $20.36 — from just after the opening bell. During premarket trading shares had been up as much as 360%.
Roughly one hour into trading more than 500 million shares had already changed hands — significantly above the stock’s 30-day average volume of 86.8 million shares a day. By 4pmET more than 1.1 billion shares had been traded.

Individual investors are creating short squeezes by piling into these names, while hedge funds that are short on the other side are rushing to cover their losses. They are promoting their activity on the wallstreetbets Reddit board, which has 2.8 million members. AMC appeared to be a growing topic of interest on the board.

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Rather that discuss this actual event (social media manipulation of equity price, in a war of shorts vs. reddit nuts), I would rather talk about the symptoms of what appears to be a hurricane of a market in the not too distant future.  10,000 flashing red lights should be blinding investors when there is a 31K DJIA in the shadow of a Biden presidency, where business will be facing those head winds of that hurricane. There will be a tipping point when speculation finally collapses under the weight of consitent poor EPS reporting,

There is a legend that either Joe Kennedy or J.D Rockerfeller got out of the market in the summer of 1929, when he started getting stop tips from shoe shine boys who were shining their shoes for a penny a pop. I see these fun and games at Reddit, as a similar event.  And honestly, IMO .....  ANY speculative play right now is risky as hell. 

OTOH, I do see one bit of brightness in this mess.  I have always abhored Shortys, who amount to be the vultures of the business world.  Seeing these buzzards getting their wings clipped a bit, does give me a few chuckles.

[Weird Tolkienish Figure]

https://www.cnbc.com/2021/01/27/amc-shares-triple-as-retail-investor-raid-of-hedge-fund-short-targets-spreads-from-gamestop.html

Shares of embattled movie theater giant AMC Entertainment more than quadrupled on Wednesday amid a flurry of trading activity in some of Wall Street’s most shorted stocks.

The frenzy started right out of the gate. About 10 minutes into the session, trading in the stock was halted for the first time due to volatility. Shares were halted several additional times during the first hour of trading amid heavy activity.

The stock finished the day with a 301.21% gain to close at $19.90. That was slightly below the stock’s high of the day — $20.36 — from just after the opening bell. During premarket trading shares had been up as much as 360%.
Roughly one hour into trading more than 500 million shares had already changed hands — significantly above the stock’s 30-day average volume of 86.8 million shares a day. By 4pmET more than 1.1 billion shares had been traded.

Individual investors are creating short squeezes by piling into these names, while hedge funds that are short on the other side are rushing to cover their losses. They are promoting their activity on the wallstreetbets Reddit board, which has 2.8 million members. AMC appeared to be a growing topic of interest on the board.

===================================================================================

Rather that discuss this actual event (social media manipulation of equity price, in a war of shorts vs. reddit nuts), I would rather talk about the symptoms of what appears to be a hurricane of a market in the not too distant future.  10,000 flashing red lights should be blinding investors when there is a 31K DJIA in the shadow of a Biden presidency, where business will be facing those head winds of that hurricane. There will be a tipping point when speculation finally collapses under the weight of consitent poor EPS reporting,

There is a legend that either Joe Kennedy or J.D Rockerfeller got out of the market in the summer of 1929, when he started getting stop tips from shoe shine boys who were shining their shoes for a penny a pop. I see these fun and games at Reddit, as a similar event.  And honestly, IMO .....  ANY speculative play right now is risky as hell. 

OTOH, I do see one bit of brightness in this mess.  I have always abhored Shortys, who amount to be the vultures of the business world.  Seeing these buzzards getting their wings clipped a bit, does give me a few chuckles.

I think the Reddit baby boys are trying to hurt the hedge funds but bidding up short sales. While I hate reddit with all of my being, I bid them good luck on this endeavor.

[catfish1957]

I think the Reddit baby boys are trying to hurt the hedge funds but bidding up short sales. While I hate reddit with all of my being, I bid them good luck on this endeavor.

The deep dark secret is that there has likely lot of collusion among these large fund managers that is so stealth that SEC would have no chance of intervening in equtiy price manipulation.  I have always considered the underbelly of the investment world, but with little or few solutions to fix. 

But I agree with you, I do get a warm feeling seeing some payback unleashed on  these guys.   But in this kind of game of high stakes chicken, they stand to loose a wad in the process.  Hope it was fun money.

[Hoodat]

Look who Biden chose to run the SEC's Enforcement Division:


Melissa Hodgman Named Acting Director of Division of Enforcement
FOR IMMEDIATE RELEASE   |   2021-15

Washington D.C., Jan. 22, 2021 —
The Securities and Exchange Commission today announced Melissa R. Hodgman, currently an Associate Director in the Commission's Division of Enforcement, has been named Acting Director of the Division of Enforcement.

https://www.sec.gov/news/press-release/2021-15


Melissa Hodgman is the wife of Peter Strzok.

[XenaLee]

Rush is talking about this right now...

[Bigun]

Look who Biden chose to run the SEC's Enforcement Division:


Melissa Hodgman Named Acting Director of Division of Enforcement
FOR IMMEDIATE RELEASE   |   2021-15

Washington D.C., Jan. 22, 2021 —
The Securities and Exchange Commission today announced Melissa R. Hodgman, currently an Associate Director in the Commission's Division of Enforcement, has been named Acting Director of the Division of Enforcement.

https://www.sec.gov/news/press-release/2021-15


Melissa Hodgman is the wife of Peter Strzok.

The swamp is incestuous to the max!

[catfish1957]

The swamp is incestuous to the max!

This appointment is akin to allowing this outfit running an animal shelter.....

[Bigun]

This appointment is akin to allowing this outfit running an animal shelter.....

  Pretty much!

[GrouchoTex]

Wall Street can't stand it because they didn't get their cut.
Especially with this administration, watch them now regulate the heck out non-licensed brokers, day traders, etc.
The outsiders can't be allowed in, in their eyes.

It is a lot like what the swamp is trying to do to Trump and his supporters.
Discourage any person who is not from the swamp from trying to crash their party.

[XenaLee]

Wall Street can't stand it because they didn't get their cut.
Especially with this administration, watch them now regulate the heck out non-licensed brokers, day traders, etc.
The outsiders can't be allowed in, in their eyes.

It is a lot like what the swamp is trying to do to Trump and his supporters.
Discourage any person who is not from the swamp from trying to crash their party.

As usual, with the RL, it's all about control of the 'little people' (the people whose sweat and hard work pays their salaries) re: every aspect of their/our lives.  Only the elitist leftists are allowed to become rich, after all.

[catfish1957]

As usual, with the RL, it's all about control of the 'little people' (the people whose sweat and hard work pays their salaries) re: every aspect of their/our lives.  Only the elitist leftists are allowed to become rich, after all.

There are a lot of new little startups like Robinhood, Webull, and MooMoo that are allowing a lot of flexibility for young small investers.  They are scaring the hell out of the institutional goons. I've dealt with enough of them and their eliteism is starting to crash around their deminishing brokerage fees and commissions.  The "That's too bad" Seinfeld meme couldn't be more apt.

[Ghost Bear]

Robinhood Halts Trading Of GameStop, AMC As Wall Street Backlash Continues

Popular investing app Robinhood blocked users from purchasing shares of GameStop, AMC, and several other companies Thursday morning due to “volatility.”

Shares of GameStop rose to over $500 in pre-market trading Thursday morning as retail investors continued to drive the price up against the wishes of many hedge funds and other institutional investors. The full list of stocks Robinhood halted purchasing of includes GameStop, AMC, Blackberry, Nokia, Bed Bath & Beyond, Express Inc., KOSS Corp, and Naked Brand, according to CNBC.

Excerpted, more at the link: https://dailycaller.com/2021/01/28/robinhood-stops-trading-gamestop-amc-wallstreetbets-reddit-nokia-amc/

My comment: they've really kicked the hornet's nest now. This ain't over by a long shot.

[XenaLee]

There are a lot of new little startups like Robinhood, Webull, and MooMoo that are allowing a lot of flexibility for young small investers.  They are scaring the hell out of the institutional goons. I've dealt with enough of them and their eliteism is starting to crash around their deminishing brokerage fees and commissions.  The "That's too bad" Seinfeld meme couldn't be more apt.

Lol....(love Seinfeld)....

[catfish1957]

Robinhood Halts Trading Of GameStop, AMC As Wall Street Backlash Continues

Popular investing app Robinhood blocked users from purchasing shares of GameStop, AMC, and several other companies Thursday morning due to “volatility.”

Shares of GameStop rose to over $500 in pre-market trading Thursday morning as retail investors continued to drive the price up against the wishes of many hedge funds and other institutional investors. The full list of stocks Robinhood halted purchasing of includes GameStop, AMC, Blackberry, Nokia, Bed Bath & Beyond, Express Inc., KOSS Corp, and Naked Brand, according to CNBC.

Excerpted, more at the link: https://dailycaller.com/2021/01/28/robinhood-stops-trading-gamestop-amc-wallstreetbets-reddit-nokia-amc/

My comment: they've really kicked the hornet's nest now. This ain't over by a long shot.

Fascinating.  I have been a serious investor my entire adult life, and have never heard of a brokerage firm imposing their own "circuit breakers"  This stinks to high heaven, and needs to be fully investigated.   I don't have proof, but I would bet good money that there are some panicking Hedge Fund Shorters calling in some favors.

OTOH, this may be raising some quandaries.....    Who investigates the investigators?

[Weird Tolkienish Figure]

Robinhood Halts Trading Of GameStop, AMC As Wall Street Backlash Continues

Popular investing app Robinhood blocked users from purchasing shares of GameStop, AMC, and several other companies Thursday morning due to “volatility.”

Shares of GameStop rose to over $500 in pre-market trading Thursday morning as retail investors continued to drive the price up against the wishes of many hedge funds and other institutional investors. The full list of stocks Robinhood halted purchasing of includes GameStop, AMC, Blackberry, Nokia, Bed Bath & Beyond, Express Inc., KOSS Corp, and Naked Brand, according to CNBC.

Excerpted, more at the link: https://dailycaller.com/2021/01/28/robinhood-stops-trading-gamestop-amc-wallstreetbets-reddit-nokia-amc/

My comment: they've really kicked the hornet's nest now. This ain't over by a long shot.

Basically they're following bigtech's lead with free speech.

[mountaineer]

Eric Matheny   @EricMMatheny
There is blatant stock market manipulation occurring right before our eyes and the DOJ is pouring their resources into prosecuting a 5-year old Hillary meme.
1:11 PM · Jan 28, 2021·

[Hoodat]

Fascinating.  I have been a serious investor my entire adult life, and have never heard of a brokerage firm imposing their own "circuit breakers" 

You are an investor.  Those involved here are gamblers.  Short-selling stock is no different than betting the 'Don'ts' are rge Craps table.

[catfish1957]

You are an investor.  Those involved here are gamblers.  Short-selling stock is no different than betting the 'Don'ts' are rge Craps table.

I am well versed in the concept of shorting, but we are now getting into some brand new territory, where the population is fighting back against a corrupt insider industry that has fleeced Trillions over the years through equity price manipulation. 

I don't condone either side's tactics, but what is happening right now gives me kind of the same feeling I get when I hear an Antifa member has been shot dead.

[Hoodat]

I don't condone either side's tactics, but what is happening right now gives me kind of the same feeling I get when I hear an Antifa member has been shot dead.

I share your sentiments wholeheartedly.  It's why I root against Tom Brady.

[catfish1957]

I share your sentiments wholeheartedly.  It's why I root against Tom Brady.

IF I didn't have any ethics this would be me yesterday  with Gamestop at $450/sh on a short play.



Based on the past few days of trading GME's  market capitalzation has changed hands 4 TIMES!!!!!  I really feel sorry for the serious investor who is seeing his investment vehicle being used as a battlefield.

Honestly, the entire futures market needs the "Cleanup on Aisle 6" treatment.

[Ghost Bear]

Combining two recent crazes, sea chanties and buying Gamestop, there is this:


Error 404 (Not Found)!!1

[mountaineer]

I really feel sorry for the serious investor who is seeing his investment vehicle being used as a battlefield.

I do, too. Just keep this nonsense away from the particular stocks in which I invest!

[Hoodat]

Fascinating.  I have been a serious investor my entire adult life, and have never heard of a brokerage firm imposing their own "circuit breakers"  This stinks to high heaven, and needs to be fully investigated.   I don't have proof, but I would bet good money that there are some panicking Hedge Fund Shorters calling in some favors.

Today, Robin Hood suspended the purchase of these stocks, but not the selling.  Someone has already filed a lawsuit against them for violating their own EULA.  The effect of their purchase suspension was to drive down the price.  As @catfish1957 called it, someone called in some favors.

But this violates equal protection.  The pajama investors should have the same access to the market as the hedge fund folks.  The hedge funders are the ones who have driven up the price through their demand to cover their short sells.  They wanted less competition for those shares, hence they limited other peoples' ability to buy.  Yet it is the pajama investors who are being accused of manipulating the market?  Please.

Another item that made this all possible is that the quantity of stocks that these hedge funds shorted exceeded the total number of outstanding shares.  Let's say there are 12 million shares outstanding and there are three hedge funds.  The first hedge fund goes to Brokerage House A and borrows 5 million shares to be paid back in two weeks.  That hedge fund then sells those shares at $5/share to Brokerage House B.  The second hedge fund then goes to Brokerage House B and borrows those same 5 million shares to be paid back in 2 weeks and sells them to Brokerage House C at $5/share.  The third hedge fund approaches Brokerage House C and borrows the same 5 million shares, and sells them to Brokerage House A.  As far as the brokerage houses go, the actual stock is back where it started.  Each brokerage house has paid out $25 million a piece.  And each is owed 5 million shares of stock two weeks from now.  That's 15 million shares total.  But there are only 12 million shares outstanding.  See why these guys are panicking?

They gambled.  They lost.  They each need to face the bookie.

[berdie]

IF I didn't have any ethics this would be me yesterday  with Gamestop at $450/sh on a short play.



Based on the past few days of trading GME's  market capitalzation has changed hands 4 TIMES!!!!!  I really feel sorry for the serious investor who is seeing his investment vehicle being used as a battlefield.




I am no investment guru. I don't even have a good concept of "shorting". But from what I have read and kind of understand....it sounds border line illegal. Allowed, but should it be?

]

[Hoodat]

I am no investment guru. I don't even have a good concept of "shorting". But from what I have read and kind of understand....it sounds border line illegal. Allowed, but should it be?

Which part?  The hedge fund investors shorting more stock shares than there were in existence?  Or some 23-year-old (who spends his time playing video games in his basement) figuring it out?