What an insane time we live in! Have you been paying attention to the craziness? We have. As of this writing GameStop ($GME) has traded 155 Million shares, and is currently trading at $145 (after 2 stock suspensions throughout the day). INSANE. That is more than the entire market cap! But that is the past, no point of getting in now. In this article we speculate on the next parabolica move – potentially AMC Stock. In this article we ask, Is AMC Stock the Next GameStop Wall Street Bets Pump?
WTF is Going On?!
If you have been watching as we have (yes, we are shocked as well), GameStop stock has been on an absolute monster rocket ship ride. This has largely been fueled by the incredible excitement generated on the Reddit group r/WallStreetBets.
If you have visited the boards recently you know the die hard supporters have been pumping this beast to high heaven. In fact, it appears from some of the posts that it is uncouth to even speak about anything else.
These “traders” seem hell bent on driving this thing into the stratosphere…and it’s working.
Just look at the chart below:
It’s hard to tell, but $GME was trading at about $3 in March…
Currently, the stock is flying high around $150.
Even funnier is the fact that GME flash crashed yesterday from its high of $158 down to $65, quickly recovering all the way into today.
The stock hit a high of $150 today and closed at $146 on 160M+ volume…that is incredible!
Good work if you were brave enough to get in. And, in reality, the pump may not be over…
Michael Burry Was Right
Several months ago, the legendary trader Michael Burry added GameStop as one his very few portfolio stocks.
Today, he is sitting on some monster gains.
From a recent BusinessInsider article:
Michael Burry briefly reached a 1,500% gain on his GameStop investment on Monday.
The “Big Short” investor’s 1.7 million shares soared in value to $271 million at the peak.
GameStop shares surged up to 145% on Monday as day traders piled in.
1.7 million shares times $150 is $255 Million USD in case you were wondering. We do not know if he sold or is still in. Regardless, Michael Burry is the legend of legends.
Should have taken his advice…
Is it possible that Mr. Burry’s fund is behind the mania?
Is AMC Stock Next?
So now for the big question…IS AMC Stock next in line for the $100 club? It’s definitely possible…
When these traders are sitting on mountains of gains, they will probably be looking for the next stock to pump. With so much excitement surrounding penny stocks and high short interest stocks lately, it does seem very likely.
Check out the chart below:
As you can see, AMC has been doing nothing but declining for several years now. It appears the movie theater business is in decline…or is it?
Does AMC have some tricks up its sleeve? A potential streaming service like Netflix, perhaps?
That would be wildly bullish…
As a result, these are the top reasons we believe AMC might be next on the $100 list…
Too crazy? Tell that to the GME millionaires…
Very Similar Setup
According to High Short Interest, there a significant portion of the total AMC float is short. If the chart below is correct, then we are looking at almost 70% of the float held short…bullish!
This is very similar to GameStop, which had virtually no interest until recently and was heavily shorted. If that chart was correct, then the short interest was 138%…
Disclosure: this may not be the most recent data, as data is not updated daily*
Generally speaking, the shorts get squeezed pretty hard on major buying interest.
And if the WallStreetBets crowd, or StockTwits crowd decide to go in heavy on AMC…run for cover…
As of today, the AMC board on StockTwits has about 50,000 watchers. Seems a bit much for a penny stock. But, if you believe that AMC is the next GME, you should probably join in on the excitement!
In this absolutely wild speculative mania, anything could happen. Personally, I believe $AMC stock could be the next GameStop mania for the reasons mentioned above. For this reason, I decided to take a position of 2500 shares at an average of $3.00. BULLISH AF. If this continues moving higher, I will probably add double until the crescendo of insanity dies down. If you have not already, it might be worth it to check out the stock. With vaccine production and distribution ramping up, high short interest, and states opening back up…might be a fun ride. We will undoubtedly be updating on this regularly!
LET’S GO AMC BULLS!
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