AMC Entertainment launched its second share issue in three days on Thursday, while warning investors that after a week of stellar gains they risked losing their shirts if they backed the company at current prices. AMC’s share price nearly doubled on Wednesday, a day after it issued 8.5 million shares to Mudrick Capital, which the hedge fund flipped at a profit. “Our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last,” AMC in a statement. The pack continues to call for small investors to buy shares and call options on certain “meme stocks”, caring little about the companies’ fundamentals and particularly targeting stocks with high short interest to force bearish investors to unwind their bets at a loss. Of other big recent “meme” plays, BlackBerry Ltd’s US listing was up 19 per cent before the bell, while GameStop Corp dipped 5 per cent and Koss Corp shed 17 per cent.

Source: The Irish Times June 03, 2021 12:39 UTC