Anyone following the stock market and what the folks at reddit are doing?

Here's the financial results of AMC for 2019 and 2020. In 2018 they made 110 million. Even after the sale of 587 million in stock they are still down $4 BILLION over 2019 and 2020. Yet paying their CEO double in 2020 what they did in 2019. How many years of $110 million gains do they need to even get back to baseline?

If you read the document, you can see that they have basically exhausted all lines of credit available to them, and they are basically dependent on their landlords for allowing them to slide (because what else is the landlord going to do with the space?) in order to stay afloat. 

In my opinion, AMC looks like a really poor stock to own right about now. It looks like a company with a long hard road ahead, dependent on many things outside of its control, with huge debt loads and not huge profit capabilities compared to the debt. Yikes. 

Robbie (Forum Supporter) said:

I just saw an article that AMC capitalized on the high stock price and just sold $587 million worth.

 

I believe that if the top people of a company are going to sell a stock they need to tell ahead of when they are going to sell , 

This is to let the public know , there may be many reasons , many times the founders are older and were given stock all the years they worked and are selling a few percent a month. At least thats what the one guy I know is doing , 

Robbie (Forum Supporter) said:

I just saw an article that AMC capitalized on the high stock price and just sold $587 million worth. And I bet the CEO gets a big chunk of that in salary and also gets a big bonus this year (he was paid 21 million in 2020 up from 9 million in 2019). How much of the 587 million will go to the rest of the AMC employees? Hard to know exactly where the 587 came from, but it came from everyone buying the stock, which I think is a lot of individuals, maybe coupled with investors forced to buy based on prior short agreements. 

Many of the same people who are pumping meme stocks and *coins I understand to be motivated at least in part by a "this is our chance to pull one over on the system" mentality. 

But the way I'm seeing it, now they're just straight up PAYING the CEO of AMC by buying stocks and they're not even getting to enjoy a movie out of the deal. 

Tell me again how this is a win for the little guy over the AMC CEO?

The CEO of AMC is definitely no Ape.  I predict a lot of the Apes on reddit are going to be fairly pissed about this money grab.

Robbie, I agree completely. What would Warren Buffet say? Would he buy? That definitely isn't the end all be all, but it is usually the first question I ask. And I ask it from the perspective, if he knew what I think I know about the company, would it change the answer? In this one, none of the traditional metrics work. I really can't figure out a single one. Everything is saying, this is completely overvalued. 

Even on the non-technical items, is this making sense? Pretend the pandemic never happened. 2019. How many movies did you see, at AMC or any other theater? I think I saw 2. Theater wasn't packed, not even close. Not something I missed, either. I like doing it, but too easy to say "nah", and too many other things that they're competing with - other theaters, live theater, sports, streaming, bars, etc. 

It seems like an area where the margins are thin. I can see that $5 is quite possibly undervalued. But the run up is not feasible. 

In reply to mtn :

warren buffet has said that he thinks of buying a stock by pretending he's buying the whole company (if you don't want the whole company why would you want a small piece?). I think it's an excellent way to think about it. 

In reply to mtn :

Problem is that overvalue doesn't really matter at this point.  The hedge fund folks are upside down in their short options, they were trying to bankrupt AMC, GME, and others and they got caught with their pants down.  Now all the stock is owned by other hedge funds and retail buyers.

The HF guys have to buy back the stock in order to to resolve their shorts.  The amount they have to pay doesn't really matter until they wrap everything up and clear their obligations

In reply to Mr_Asa :

Yep, This isn't about AMC or GME being good companies, it's about the squeeze/meme stock popularity.  Unfortunately for me I forgot that with AMC, saw how overpriced the stock was based on the quality of the company, and bailed with $3 a share profit at $15 a share. Paper handed myself to a $1k profit when I could have made $14k. Lol, feels weird being sad about making $1k. 

For the first time in a decade my MVIS investment (3 shares at this point) is in the green. I should probably sell and take my $10 profit, but I'm going to just let it ride.

Bank of America ragequit

Let me paraphrase:

BoA said:

We can't predict the future for any stock. But in the case of GME, we can't even come up with a single logical explanation of the past. 

Hilarious! 

In reply to Robbie (Forum Supporter) :

i love that BofA used "meme stock" in an official position publication.  

I just checked on my stocks. Half of my Gamestop just sold on an old Limit Order at $298.40. Yet today's high so far is $297.76. I bet it's going to be a crazy trading day. Holding what's left 'to the moon.' 

Edit: It just went over $300 as I typed that. The sale went through in pre-market, about 28 minutes before Open.

AMC is also doing decently today, no huge numbers but it seems like AMC and GME trade off on who is doing the big climb.

I heard about CLOV Thursday or Friday of last week.  It was in single digits and now its up to $17-18ish with the potential to have a GME or AMC type squeeze.  Apparently there are a large amount of companies out there that were the targets of short sell plans and they are all being discovered.  Its like turning over rocks to find out what hedge funds are hiding where.

Govt put out a bunch of federal loans to a bunch of hedge funds.  Now they're asking for them to be returned.  Accounted for AMC jumping up today, probably.

I've heard it said that this has gotten big enough that when the squeeze actually happens with GME and AMC that it might trigger another crash as the hedge funds will have to sell so much other stuff to fund the buyback.

In other news, Ford appears to be up almost 75% for this year.  That's fun.

BofA is basically pissed that retail traders, not hedge funds, are influencing a price stock and this is how they react: the game is rigged y'all. 
 

when the berkeley is BofA going to rage quit TSLA? Which "fundamentals" support that stock price?

Mr_Asa said:

In other news, Ford appears to be up almost 75% for this year.  That's fun.

I got the bright idea of picking up some Ford stock roughly a month ago, and since then they've unveiled the EV F150 and the Maverick.  It's up nearly 25% in just the past month!  That's what I call a good buy.

Nice.  Good job, broseph.

Probably a decent time to pick up automotive stock in general.  Everyone is hurting from the chip shortage, once that's worked out there should be a solid rise.

In reply to Arafen :

Go look up canoe stock

CLOV keeps popping up on reddit.  From what I can see it appears to be a pump and dump mostly held by citadel?  Or at least it was?

Anyways, I bought some at 11, rode it up to 24, then pulled the cord as it started to fall and got out at 20.  I'm keeping an eye on it in the meantime to see if it is going to do that again.

Gamestop ran back up to $255 today. I managed to sell a couple at $250 before it fell back down. Think I'll hold on to the rest ( only 5 now ) in case it ever does go to the Moon. I really don't understand stock prices, but it's a fun game to play.

In reply to AAZCD (Forum Supporter) :

I freaked out cause I was in a meeting and I got back and saw it was up ~16%.

Bed Bath & Beyond is doing some deal with Kroger which drove their stock up almost 80% or so, them being one of the "meme" stocks it drove up all the others.

The movement almost caused my AMC sell limits to hit. I bumped them up

I gotta be honest, they're keeping this up a lot longer than I thought they would...

 

Really weird market day for me. I have a bunch of PAE that went up (almost doubled) two weeks ago due to a buy out agreement for early next year.

 The buy out is $10.05 a share in January as I understand it. Today the stock is running between 10.05 and 10.10. 3Q earnings are tomorrow. I want to sell it all if it's over 10.05, but??? Why is it at 10.10?

Edit - Back where it belongs in the 9.90s now and I didn't sell. Not sure if I missed out or won that round.

Had thrown a bit down on Zillow earlier thinking they might bounce back soon... that was a mistake.

Bumped by a canoe, but this saga continues. If Reddit tracking numbers are to be believed, retail has "DRS'ed" about half of the Official number of shares available to trade. 

Normally, if you buy a share - your broker (Vanguard, Fidelity, etc) can actually still loan that share to a hedge fund or anyone to short sell. You then, technically, have an IOU in place of your share in your account. The DRS process gives you direct ownership of your share and keeps it from being loaned out. We have a few that are DRS'ed, will probably do more this week or next. Still having fun watching and waiting :)