AMC shares - hedgefunds forced to buy them?

Type_45

I appreciate I'm very late to this party, buy does anyone have the facts about AMC and whether it's a good idea to buy some?

The back story (apparently) is that hedge funds are forced to buy them at some stage and therefore the price will keep inflating? 

It's all the rage with the youngsters on twitter and Reddit!

kuratowski

I don't have any unique insight into AMC.  However, if someone tells you a story about why an asset is bound to go up in value and profits are guaranteed if you invest, well I know how much weight I would place in that story. (None)

Voyager2002

Type_45 said:

The back story (apparently) is that hedge funds are forced to buy them at some stage and therefore the price will keep inflating?

Hedge funds are free to do exactly what they want (unlike index trackers). The only time they would need to buy a particular share is when they have previously short-sold it (in other words borrowed shares to sell because they believe the price is going to go down). In this case they need to buy in order to return the shares they borrowed.

cloud_dog

Type_45 said:

I appreciate I'm very late to this party, buy does anyone have the facts about AMC and whether it's a good idea to buy some?

The back story (apparently) is that hedge funds are forced to buy them at some stage and therefore the price will keep inflating? 

It's all the rage with the youngsters on twitter and Reddit!

AMC, as in LSE listed Amur Minerals?

Type_45

cloud_dog said:

Type_45 said:

I appreciate I'm very late to this party, buy does anyone have the facts about AMC and whether it's a good idea to buy some?

The back story (apparently) is that hedge funds are forced to buy them at some stage and therefore the price will keep inflating? 

It's all the rage with the youngsters on twitter and Reddit!

AMC, as in LSE listed Amur Minerals?

AMC Entertainment Holdings, Inc. Class A Common Stock (AMC)

moneysavinghero

If hedgefunds are 'forced' to buy them then that it because they have heavily shorted them. They would do this because they think that there are fundamental problems with the company. If you are looking to invest for the long term then they are likely to make a bad investment. If you want to try and ride the wave in the hope that you will get off before the wave collapses then that is up to you to decide whether you want to take that gamble.

Malthusian

Type_45 said:

I appreciate I'm very late to this party, buy does anyone have the facts about AMC and whether it's a good idea to buy some?

The back story (apparently) is that hedge funds are forced to buy them at some stage and therefore the price will keep inflating? 

It's all the rage with the youngsters on twitter and Reddit!

So it's Gamestop mark 2.

A load of bros trying to recover their losses from the Gamestop pump and dump and the bursting of the crypto bubble have bought AMC shares and want you to buy some so they can cash out at a higher price.

The pitch with Gamestop was that the hedgies had shorted so many of the shares that it only took a relatively small amount of money to buy enough shares at rock-bottom prices to create a short squeeze. However most of the trading of Gamestop shares earlier this year had nothing to do with exploting the short squeeze. Bros were buying Gamestop because it had already rocketed in value and they were hoping it would carry on going up. This is the same.

AMC has trebled in price, if there was any opportunity to exploit a potential short squeeze it's gone now. Otherwise you wouldn't be reading about it on Reddit. The smart money has already been taken off the table.

Type_45

Malthusian said:

Type_45 said:

I appreciate I'm very late to this party, buy does anyone have the facts about AMC and whether it's a good idea to buy some?

The back story (apparently) is that hedge funds are forced to buy them at some stage and therefore the price will keep inflating? 

It's all the rage with the youngsters on twitter and Reddit!

So it's Gamestop mark 2.

A load of bros trying to recover their losses from the Gamestop pump and dump and the bursting of the crypto bubble have bought AMC shares and want you to buy some so they can cash out at a higher price.

The pitch with Gamestop was that the hedgies had shorted so many of the shares that it only took a relatively small amount of money to buy enough shares at rock-bottom prices to create a short squeeze. However most of the trading of Gamestop shares earlier this year had nothing to do with exploting the short squeeze. Bros were buying Gamestop because it had already rocketed in value and they were hoping it would carry on going up. This is the same.

AMC has trebled in price, if there was any opportunity to exploit a potential short squeeze it's gone now. Otherwise you wouldn't be reading about it on Reddit. The smart money has already been taken off the table.

Good points! 
I try increasingly to invest by the phrase "be fearful when others are greedy, and greedy when others are fearful".

eskbanker

Type_45 said:

I try increasingly to invest by the phrase "be fearful when others are greedy, and greedy when others are fearful".

Nothing wrong with being a contrarian but better to have carefully thought-out strategies rather than adopting a glib saying as a mission statement, especially one vague enough to encompass just doing stupid stuff!

Thrugelmir

Type_45 said:

Malthusian said:

Type_45 said:

I appreciate I'm very late to this party, buy does anyone have the facts about AMC and whether it's a good idea to buy some?

The back story (apparently) is that hedge funds are forced to buy them at some stage and therefore the price will keep inflating? 

It's all the rage with the youngsters on twitter and Reddit!

So it's Gamestop mark 2.

A load of bros trying to recover their losses from the Gamestop pump and dump and the bursting of the crypto bubble have bought AMC shares and want you to buy some so they can cash out at a higher price.

The pitch with Gamestop was that the hedgies had shorted so many of the shares that it only took a relatively small amount of money to buy enough shares at rock-bottom prices to create a short squeeze. However most of the trading of Gamestop shares earlier this year had nothing to do with exploting the short squeeze. Bros were buying Gamestop because it had already rocketed in value and they were hoping it would carry on going up. This is the same.

AMC has trebled in price, if there was any opportunity to exploit a potential short squeeze it's gone now. Otherwise you wouldn't be reading about it on Reddit. The smart money has already been taken off the table.

Good points! 
I try increasingly to invest by the phrase "be fearful when others are greedy, and greedy when others are fearful".

Then you need to be contrarian investor and start buying when a stock is totally unloved. Requires a lot of patient.  As a small retail investor not as if you can "park your tanks on the lawn" and wait for other to join you. 

csgohan4

that graph for AMC, scares me and looks alot like Gamestop.  I was looking at AMC 6 months back, together with CINE, but decided against it due to the main production studios streaming their movies and the bleak outlook. Fast forward and you would have made a killing AMC, and to a lesser extent CINE. I sold my CINE at 30 %  profit after panicking at the 20+% sudden drop when WB announced the news. 

Buying individual shares takes alot of research, but sometimes things happen no matter what you look at. Personally barge pole for me regarding AMC, unless you like sponsoring others for their profits. 

I'm done investing in recovery stocks, back to global trackers for me, I like to sleep at night