Type in meme stocks in the search bar and get the full list of almost 300 companies. I told you last week about the launch of the "potential meme stocks" on Stock Card. Let's wrap up discussing the best way you can find other potential meme stocks that are actually worth buying now. I would be wary of entering into the stock this late in the game. There is no fundamental to support the stock and the short squeeze probability is low based on measurable information. So, the strategy for AMC is a bet on a possible wild card, like a possible good piece of news that changes the current trend, that's all. One of these strategies included being able to raise capital by selling 25 million more shares, but this move was voted down by current shareholders. The management is aware of this hole it’s in but is still crafting a strategy to climb out. Clicking into “Profitability” raises another red flag- the company’s Earnings Per Share are terrible as well. Its debt to equity ratio and debt affordability ratio are both quite poor. Clicking on “Cash Availability” gives me more in-depth data. Under the company's operational section, I'm curious about how long AMC can hold and fund its operations. To understand why analysts' price target is so low, let's do some stock analysis. This might not matter in the short term when emotions are running high, but over time it’s inevitable that it will cool down and revert back to a realistic price. Investors and hedge funds alike recognize that the current price is not sustainable or reflective of the real value in the company.
If you were considering owning AMC stock for the long run, here’s a cautious reminder that analysts are giving out a price target of $5.25, under the “Fair share price estimate” tab on its Stock Card.
We can't talk about stocks and not do fundamental analysis. So, the short squeeze probability is low but you never know whether a wild card is around the corner or not.įor full transparency, I have some shares of AMC, which I bought at $15 and am still holding just to have a stake in this phenomenon. For example, if AMC manages to partner with a large corporation, or some new large investor comes in to invest or buy the company. The only wild card here is exciting news. The pressure on short sellers to cover their positions fades by the day, and I’m not sure if AMC can gather enough steam to break out into new highs. It’s been trending downward all month, even dropping through the previous big dip of $42.80.įrom my perspective, the odds are high that the boat has already sailed if you were wanting to benefit from the short squeeze excitement. Price trend: If I held a short position right now like the hedge funds betting against AMC, I wouldn’t be stressing too much.Short percentage: Currently, the volume of stocks shorted comes out to about 15%, which is abnormally high, but not a ticking time bomb like Gamestop which was over 100% shorted.Institutions: It seems that many of the larger firms refuse to let go, so investors are left with more ground to cover still.Let’s explore three big factors that need to be considered: But, that strategy seems to not be working anymore. That consecutively drives the stock price further up. This is the point when institutional investors who have bet against the stock have to buy the shares at the new and higher price to cover their short bets. Hoping to capitalize off of cheap and heavily shorted stocks, retail traders piled on to push the stock price high enough to trigger the so-called short squeeze. The mystical short squeeze was the goal of many recent meme stocks, AMC included. Let’s take a deeper look into this stock to find out where it might be headed. On Wednesday, for example, AMC's share prices dropped 15%, bringing it down to half the price of its record high only a few weeks before. Unfortunately, as time has gone on, things haven’t panned out quite as cleanly. If you’ve been paying any attention to headlines, AMC Entertainment (AMC) has been the other favorite stock of retail traders banking on hype and short interest.
Reddit forum Wallstreetbets began the meme mania with Gamestop (GME), and it has since spread to other companies. 2021 has been quite an interesting year in the stock market, and the rise of “ meme stocks” is definitely part of it all. To answer the question, let's step back for a second. Folks, an interesting question came through our private Facebook community the other day that I want to dedicate today's episode to discussing with you.Ī fellow Stock Cardian asked, is the AMC Entertainment (AMC) short squeeze over?
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