• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Hitting the Lottery with Meme Mania

Tech Letter

Meme mania is back and warping the equity markets – many thought they were left for dead.

They have come back in the past week as GameStop (GME) and AMC (AMC) shares have doubled.

The doubling isn’t just because of the extremely oversold nature of the stock market.

It’s not only that.

Even more critical, meme companies are finally embracing who they are – highly speculative in nature and presenting it as a positive to their investor base.

Management has gotten the memo and is pushing the boundaries yet again by stirring up the pot.

Readers with strong stomachs should only consider GME and AMC if they are willing to lose 100% of their principal because these stocks are in no way long-term buy and hold material.

Many traders have already gotten rich by catching parabolic moves, and management’s behavior signals there will be more to come from these highly volatile stocks.

Earlier this month AMC announced it was buying a stake in gold and silver miner Hycroft Mining Holding Corp (HYMC).

Acquiring a major stake in a tiny gold and silver miner that has been on shaky financial ground from a distance appears somewhat bizarre.

CEO Adam Aron is now starting to think more outside the box and traversing industries could play to their alternative audience.

Aron doesn’t need to play to institutional money since it was them that created high amounts of short interest in the stock.

Retail traders are the target audience and third-party external M&A announcements going forward where AMC can reach for the stars could whip up this base of investors.

They are taking over a highly dysfunctional miner with past management problems.

Now Aron views this company as an upstart minnow waiting for a turnaround story at a time when commodities are red hot.

It’s yet to be seen whether this type of move will impact the narrative of AMC but getting AMC out of the movie theatre business should be paramount.

Netflix has effectively killed the movie theatre business during covid and getting into commodities in a high inflationary environment is more sensible.

GME CEO Billionaire Ryan Cohen's investment company bought 100,000 shares of GameStop Corp taking Cohen's stake marginally higher to 11.9%, with the total number of shares owned at 9.1 million.

An oversized reason for the spiking shares is that there is still loads of short interest in these stocks.

Institutional money is still betting on big down moves and when the reverse happens, they must buy back the stock at higher prices to close positions which drives the stock even higher.

Cohen is also hoping to diversify GME’s business from a retail video game store.

He co-founded online pet products retailer Chewy and earlier this month said he now owns nearly 10% of Bed Bath & Beyond and wants the home goods retailer to explore alternatives including a full sale of the company.

He also plans to modernize GMEs business by building a NFT marketplace.

The management at these companies has realized that they can’t stand pat with the current businesses they overlook because they are outdated and lack sustainability.

The spiking stock price has offered them financial gunpowder to go after industries they never even thought about before as well as giving them more financial slack.

Upgrading their business model could go a long way to suppressing volatility in these stocks and making them into appealing long-term buy and hold companies.

They are a long way off from that today, but everyone needs to start somewhere.

 

amc

 

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-03-30 16:02:122022-03-31 22:22:52Hitting the Lottery with Meme Mania
You might also like
Another Tech Company Bets the Ranch on Blockchain
July 19, 2018
February 8, 2021
June 7, 2021
March 3 Biweekly Strategy Webinar Q&A
An Under the Radar Biopharma Play

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: Quote of the Day - March 30, 2022 Link to: Quote of the Day - March 30, 2022 Quote of the Day - March 30, 2022 Link to: March 30, 2022 Link to: March 30, 2022 March 30, 2022
Scroll to top