This was at the AMC South Barrington theater near me and it was about an hour before showtime. When I looked on Fandango for last night for the 7:30 show, only six of the 75 seats had been sold. So I thought I had better check on the availability of tickets. The 7 Best Consumer Discretionary Stocks to Buy for Q4 2021Īs a big James Bond film fan, I definitely am looking forward to going to the theater to see the latest Bond release No Time To Die.That’s certainly not a great backdrop for a company that is facing increased competition from the likes of Netflix (NASDAQ: NFLX) and now Apple (NASDAQ: AAPL). AMC has lost over $10 per share in the past year and is expected to lose money again next quarter. Add in some serious dilution from the recent capital raises and it is difficult to make a case for owning AMC stock anywhere near current levels.Ī look at the last four earnings reports shows just how much cash is being burned. He noted the combination of onerous debt loads, continued cash burn and lagging attendance are serious headwinds for company moving forward. InvestorPlace contributor Muslim Farooque took a deep dive into the fundamentals in his recent article.
Time to fade every rally attempt on an extremely overvalued AMC stock. The meme momentum mania has passed, or at least paused. Like many travel-related stocks, its business has suffered during the pandemic.It’s important to remember that these red-hot rips higher were fueled by short squeezes and not actual fundamentals. The company offers wifi access to passengers on flights. Among the Home Improvement & Goods sector, it’s ranked #40 out of 60. The POWR Ratings are also bullish on BBBY as it has a Buy rating with an “A” for Trade Grade and a “B” for Industry Rank. BBBY has a short float of 65% which could lead to an exaggerated move higher especially if these market conditions persist. The near-term picture also looks compelling due to expected online sales growth of over 50%, a strong housing market, and a flush consumer due to looming stimulus payments. Thus, same-store sales were already showing signs of increasing. The company is also on the other side of a restructuring which involved improving its online sales and distribution channels and shuttering underperforming locations. This was largely due to increased consumer spending on home goods and household upgrades, and the company increasing online sales and adapting to curbside pickup. However, just like GME, it has defied expectations. It is a physical retailer that many believed was in secular decline due to the rise of e-commerce and the costs associated with running retail locations, especially during a pandemic. Three stocks to consider are Bed Bath & Beyond ( BBBY ), Tilray ( TLRY ), and Gogo ( GOGO ).īBBY fits many of the same parameters as GME. Investors should look for stocks with improving fundamentals, high short floats, and looming catalysts. This short squeeze trend could spill over to other highly shorted stocks.
Electric vehicle stocks have been making new, all-time highs since last summer and have continually defied the skeptics. The bull market in Internet stocks started in earnest in the mid-90s and didn’t stop until 2000. One lesson of previous stock market bubbles is that these trends last longer than anyone thinks possible. Recent gains have been amplified by the high short-interest and retail traders piling into the stock to generate a short-squeeze which has captured the attention of people around the world.Īt this point, no one knows when the short squeeze in GME will end. This combination of factors was behind Gamestop’s gradual rise from its March low of $2.57 to $20 at the end of 2020. He has also taken a 12.9% stake in the company and is focused on helping it transition to e-Commerce. Earnings have surprised to the upside due to increased spending on gaming due to the pandemic and the new console cycle.Īnother catalyst was the appointment of Chewy ( CHWY ) founder to Gamestop’s Board of Directors. There were also some fundamental improvements in GameStop’s business that have been undermining the bearish consensus on the stock including a string of earnings beats and analyst upgrades.
Usually, this effect isn’t enough to meaningfully move a stock but call-buying volumes have exploded in recent months especially in single-stock equities. If enough of these options are purchased, it can end up with the investors that are short buying call options to hedge exposure. Many of the traders on WallStreetBets are buying out-of-the-money short-term call options.
0 kommentar(er)
