Shares of
AMC Entertainment Holdings Inc (NYSE:AMC) are trading higher by 7% Thursday morning following a series of comments CEO Adam Aron made Wednesday on YouTube channel Trey Trades regarding the issuance of 500 million new shares of the world’s largest theater chain.
“We are going to pledge right now today publicly and we will file this publicly so it will be binding on us, because you can’t announce intentions and then not carry through it, we hereby pledge at AMC that if the shareholders approve this authorization for 500 million new shares to be issued we will not use one of those 500 million shares in the calendar year 2021. Not one. Not one,” Aron said during the interview.
The
Invesco QQQ Trust Series 1 (NASDAQ:QQQ) had another impressive day of trading Thursday, the fund seeing gains of 1.52% and finishing higher at $341.61.
U.S. indices were trading higher following strong economic data, including retail sales and jobless claims, as well as better-than-expected bank earnings.
The
SPDR S&P 500 ETF Trust (NASDAQ:SPY) jumped 1.07% to finish at an all-time closing high of $415.87. The
SPDR Dow Jones Industrial Average ETF Trust (NASDAQ:DIA) also had a very strong day, trading higher by 0.86% to finish at an all-time closing high of $340.44.
Here are the day s winners and losers from the QQQ, according to data from Benzinga Pro.
Low float stocks can be some of the most volatile stocks in the market. If you mix in a short squeeze, the potential short-term gains in a low float stock can be extreme.
A stock s float is the number of shares that trade freely on the public market. Because insiders and institutional investors don’t typically trade their shares on a daily basis, those shares don’t typically contribute to a stock s near-term liquidity.
Float is the number of shares that remain after accounting for insider and institutional ownership.
Why Is It Important? When a stock gains positive momentum in the market, momentum buyers can rush in all at once. If a stock has a high short interest, short covering can quickly ramp up demand for shares, triggering a short squeeze. Since low float stocks have relatively few shares trading freely, a major imbalance in supply and demand can serve as rocket fuel for the share price.
GameStop Corp. (NYSE:GME) stock may not be revisiting its recent highs anytime soon.
Resistance has formed at the $200 level for GameStop. This could put a top on the stock, at least in the short-term.
Resistance is a large concentration of sellers who have gathered at the same price level. Rallies end when they reach resistance levels.
The GameStop chart shows the $200 level has been resistance in recent weeks.
AMC Entertainment Holdings Inc (NYSE:AMC) has offered buyers another opportunity.
There is support for AMC around the $9 level. The stock is currently testing this level.
Support is the opposite of resistance. It is a concentration of buyers gathered around the same level. Selloffs tend to end when they reach support levels.
Share:
The U.S. film exhibition industry absorbed a major loss as the privately-held Decurion Corporation announced the closure of its Arclight Cinemas and Pacific Theatres chains.
What Happened: The two chains have been shuttered since the COVID-19 pandemic took root in March 2020. In a statement, the company announced operations will not be revived.
“This was not the outcome anyone wanted, but despite a huge effort that exhausted all potential options, the company does not have a viable way forward,” the company said.
The Pacific Theatres and Arclight brands consisted of more than 300 screens in California, most notably the iconic Cinerama Dome, a geodesic dome theater built in 1963 to accommodate the premiere of the slapstick epic “It’s a Mad, Mad, Mad, Mad World” and featured in many notable films, most recently Quentin Tarantino s Once Upon a Time in Hollywood. The chains also operated venues in Boston, Chicago and the Washington, D.C., metro area.