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Apes strong together #ToTheMoon
AMC: 6 Tips For 'Apes' From A Former Retail Activist
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2021-06-14
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strong together #ToTheMoon","listText":"Apes strong together #ToTheMoon","text":"Apes strong together #ToTheMoon","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/185882723","repostId":"1190645365","repostType":2,"repost":{"id":"1190645365","kind":"news","pubTimestamp":1623636430,"share":"https://ttm.financial/m/news/1190645365?lang=&edition=full","pubTime":"2021-06-14 10:07","market":"us","language":"en","title":"AMC: 6 Tips For 'Apes' From A Former Retail Activist","url":"https://stock-news.laohu8.com/highlight/detail?id=1190645365","media":"seekingalpha","summary":"Summary\n\nThe 'apes' of AMC, the retails buyers of Hertz and the short squeezers of GameStop will go ","content":"<p><b>Summary</b></p>\n<ul>\n <li>The 'apes' of AMC, the retails buyers of Hertz and the short squeezers of GameStop will go down in history no matter what happens next.</li>\n <li>Past success isn't guarantee of future success and significant losses can be incurred for both bulls and bears, so trade carefully.</li>\n <li>Short interest as reflected in Ortex Data is about as accurate as it gets.</li>\n <li>Options is the best way to play AMC and reduce your risk.</li>\n <li>Avoid emotional attachment to AMC since that's your worse enemy whether you are a bear, an ape or a bull.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dd1a00c63aa556a03ded74e280acce07\" tg-width=\"768\" tg-height=\"512\"><span>J. Michael Jones/iStock Editorial via Getty Images</span></p>\n<p>It's whacko world out there on YouTube and misinformation has given rise to predatory information being fed to amateur investors of [[AMC]]. I have seen screenshots of people putting all their retirement into this stock following so-called advisors on YouTube (whose only goal is to get as many views as possible to make money off from paid views partnerships with Google). As such, they are incentivized to use clickbait titles of conspiracy and \"proof\" of Citadel employees talking off the books to get you to click on their videos. Though AMC still has significant upside potential - 'apes' have to continue to be smarter than hedge funds or otherwise they risk turning from apes into pigs. You know the saying: \"Bulls make money, bears make money, and pigs get slaughtered.\"</p>\n<p>For those of you who don't know my background, I was one of the first retail activist investors who at the time created the largest consortium of retail traders on now-defunct Synergy Pharmaceuticals. A company that went down as management kept destroying the company and shorts kept piling into it and preventing the company from issuing more shares at reasonable prices. Our hope was to force a sale of the company by combining our shares as a retail group and voting against the dilution of the company while at the same time targeting the shorts of the company. The company was offered a decent offer for the whole company by Bausch Health (BHC) but management instead decided to auction the company in a bankruptcy process that wiped out shareholders completely and rendered the shares worthless.</p>\n<p>A few months before the bankruptcy momentum was in our favor as we were able to vote against all the directors of the company and also to block an increase in the shares outstanding. Our movement gained analyst traction and was featured in Bloomberg. As shareholders, we were beyond proud of being the first retail activist group with a collective power of around 35 million shares. When we defeated the proposals of the company and the company announced a strategic review with investment bankers the shares surged. However, it was our early success that started to make us emotionally attached to the stock and blind to the fact that the underlying business was still crumbling and losing money. Instead of reducing exposure, many double or tripled down putting all or most of their retirement there only to receive the miserable amount of one penny per share out of the bankruptcy proceedings.</p>\n<p>Because we ultimately failed, I am beyond happy that the 'ape movement' has been able to succeed and shareholders on AMC, GameStop, and Hertz have been able to recoup their investments and expose the corruption that's prevalent on Wall Street. However, let's separate facts from fiction but before that, I will give good news to the Apes and that's that AMC can indeed go much higher.</p>\n<p><b>Tip 1: Ignore False Short Interest Talk</b></p>\n<p>The founding members of the Reddit community found that GameStop had 150% of its float shorted because it was readily available information. As such, for every 1 share that actually existed, there were 1.5 out there that were borrowed \"fake\" shares. There was systemic corruption from brokerages because in theory that should have never happened because you need to deliver those borrowed shares within a week to the rightful borrower. Naked shorting was probably happening the moment that the short interest went past the 50% mark on GameStop.</p>\n<p>Stocks in cash accounts can't be lent so every time that you see short interest climb past 50% on any given stock chances are that brokers are failing to deliver those shares and naked shorting is happening. My point is that the short data out there is mostly accurate and that's what allowed Wall Street Bets to exploit the exposure that Hedge Funds had acquired by engaging in corrupt practices and by predatory shorting of companies. If it was easy to hide the real short interest, GameStop shorts would have done so to prevent the public from knowing they were short 150% of the float. Such was the exposure on GameStop that if Robinhood and all other brokers had not intervened and blocked all buying trades in January we could have easily seen GameStop going past $1,500 with the rush of short covering happening because losses to the upside are unlimited and shorts saw their accounts wiped out in literally hours.</p>\n<p>However, AMC shorts have already covered a significant portion of their exposure and short interest sits at or around 13% of the float so don't expect the same violence and speed of upward movement here.</p>\n<p><b>Tip 2: Short Interest can remain the same as old shorts exit and new shorts enter without causing a panic short squeeze.</b></p>\n<p>When a short position doubles or triples it will force most shorts to completely cover. Brokers have very little patience with losses as seen on the Bill Hwang debacle. For example, I would never short AMC at the current prices but if it would triple in price I would probably take a sizable position against the company. My shares shorted would then be counted as shares shorted in the short interest count and perhaps the person I sold the shares short was a short who was being squeezed and decided to cover. The net effect of me entering a short position and a short covering the same amount of shares would equate to a zero change in the short interest. However, apes could be claiming a squeeze from $10 when in reality my average entry price would be around $150. When the price of a stock gets very expensive new shorts enter the market and when a price of a good company gets very cheap bulls scoop up those shares and new bulls make their way into the market. That's what a market is. When there are 200 million shares trading every day it means there are tons of apes selling, there are tons of apes buying, and there are tons of new short sellers entering and tons of short-sellers covering.</p>\n<p><b>Tip 3: Apes come in all sizes, shapes, and forms.</b></p>\n<p>It has been impressive to see how resilient apes have been and how much they work as a family but don't expect all 4 million of them to have the same goals, price targets, and ambition. Some will sell at 50, some at 60, some at 70, some at $100, or perhaps if the stock price starts going down some apes won't be able to afford losses in their portfolio and they will sell if the pain starts to arrive. Don't expect otherIt's whacko world out there on YouTube and misinformation has given rise to predatory information being fed to amateur investors of [[AMC]]. I have seen screenshots of people putting all their retirement into this stock following so-called advisors on YouTube (whose only goal is to get as many views as possible to make money off from paid views partnerships with Google). As such, they are incentivized to use clickbait titles of conspiracy and \"proof\" of Citadel employees talking off the books to get you to click on their videos. Though AMC still has significant upside potential - 'apes' have to continue to be smarter than hedge funds or otherwise they risk turning from apes into pigs. You know the saying: \"Bulls make money, bears make money, and pigs get slaughtered.\"</p>\n<p>For those of you who don't know my background, I was one of the first retail activist investors who at the time created the largest consortium of retail traders on now-defunct Synergy Pharmaceuticals. A company that went down as management kept destroying the company and shorts kept piling into it and preventing the company from issuing more shares at reasonable prices. Our hope was to force a sale of the company by combining our shares as a retail group and voting against the dilution of the company while at the same time targeting the shorts of the company. The company was offered a decent offer for the whole company by Bausch Health (BHC) but management instead decided to auction the company in a bankruptcy process that wiped out shareholders completely and rendered the shares worthless.</p>\n<p>A few months before the bankruptcy momentum was in our favor as we were able to vote against all the directors of the company and also to block an increase in the shares outstanding. Our movement gained analyst traction and was featured in Bloomberg. As shareholders, we were beyond proud of being the first retail activist group with a collective power of around 35 million shares. When we defeated the proposals of the company and the company announced a strategic review with investment bankers the shares surged. However, it was our early success that started to make us emotionally attached to the stock and blind to the fact that the underlying business was still crumbling and losing money. Instead of reducing exposure, many double or tripled down putting all or most of their retirement there only to receive the miserable amount of one penny per share out of the bankruptcy proceedings.</p>\n<p>Because we ultimately failed, I am beyond happy that the 'ape movement' has been able to succeed and shareholders on AMC, GameStop, and Hertz have been able to recoup their investments and expose the corruption that's prevalent on Wall Street. However, let's separate facts from fiction but before that, I will give good news to the Apes and that's that AMC can indeed go much higher.</p>\n<p><b>Tip 4: Past Success is not a guarantee of future success.</b></p>\n<p>I lost my entire portfolio of 270k in Synergy Pharmaceuticals because I put the benefit of an entire group of wonderful people ahead of what was best for me and my family. I was unable to purchase a new home because I went down with the boat. I have had great investment acumen and I managed to turn 40k into 270k by doing big positions in one stock and options. However, that 600% return in a period of 3 years quickly came to an end with one big loss. Diversify and diversify even more and your capital will always be safe.</p>\n<p><b>Tip 5: Dismiss Naysayers of the Future of Movie Theaters. AMC can come back much stronger, just be realistic of what that means.</b></p>\n<p>The CEO of AMC has capitalized on the current rally by selling much-needed stock and as he has repeatedly mentioned in interviews he can use that cash to acquire other movie theater companies as well as some of the best gross selling assets on the market. AMC could be a much bigger and powerful player as he swallows up smaller competitors and puts to good use the cash that stockholders have put in their pockets.</p>\n<p><b>TIP 6: AMC will probably never trade above $110 so have realistic expectations of when to buy and when to sell.</b></p>\n<p>When AMC was trading at $5 it was easy to squeeze the shorts because the market cap was very small and it takes only a couple hundred million dollars to put them in trouble. As the market cap starts to get bigger it requires billions in fresh capital to move the price of the shares. As the market cap approaches $50 billion expect a ton of institutional investors to engage on a new wave of short selling and Apes being maxed out by having put every single penny on their name on the stock already unable to keep pushing the stock much higher. Then it becomes a battle of wills. Institutional investors and hedge funds usually have a 2-10 years horizon for investments. And if their position goes against them at those elevated prices they will double down and triple down until they take the price down. Will apes be able to hold the line for multiple years at elevated prices? The answer is no.</p>\n<p><b>Summary</b></p>\n<p>The stock market is mostly a self-fulfilling prophecy so if bulls take control and the company has shares to issue at elevated prices it can use that needed capital dilution to reinvent itself and survive storms. Shorts on the other hand mostly profit by destroying shareholder value, suffocating companies, and taking away their ability to issue shares at reasonable prices to weather storms at a very high risk of unlimited losses for them but they are an essential force in the market. Honest short-sellers serve a purpose in the market and that's to expose fraud and corruption in management teams. Since the risk of losses is very high for them they tend to be extremely aggressive in their practices and their behavior and many times they engage in illegal activities but they aren't all the same. However, on the other side of short-sellers, it's the pump and dump scheme. Where investors are telling you to buy everything you can with one hand and they are unloading their shares with the other. I am afraid that when people on YouTube are telling you that AMC is going to $1,500 they are <b>willingly engaging in fraud and they are as fraudulent as the shorts</b> who are trying to take away your money by destroying companies. They are both evil and you should block them because they have no idea what they are talking about. Don't put everything on AMC, in fact, don't put more than 10% of your portfolio on a basket of meme stocks. We are all playing musical chairs in here and we are having fun but make no mistake that this is pure gambling. Business fundamentals don't matter until they do. Sell out of the money puts if you believe in the AMC turnaround and give yourself some downside protection while collecting some sizable premiums. Best of luck to all the Apes and keep fighting for justice in the market across a variety of sectors and stocks. Apes won't sell just because you don't. When there's a fire in the jungle, all apes run for the forest. Work as a family of Apes because you have accomplished much together and you have saved a wonderful company with a wonderful CEO which I personally like a lot but don't put your own family at risk and your retirement in jeopardy. In other words,<b>avoid emotional attachment</b> as that will make you a better investor and trader in the future.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: 6 Tips For 'Apes' From A Former Retail Activist</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: 6 Tips For 'Apes' From A Former Retail Activist\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-14 10:07 GMT+8 <a href=https://seekingalpha.com/article/4434623-amc-stock-6-tips-from-a-former-retail-activist-for-the-apes><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nThe 'apes' of AMC, the retails buyers of Hertz and the short squeezers of GameStop will go down in history no matter what happens next.\nPast success isn't guarantee of future success and ...</p>\n\n<a href=\"https://seekingalpha.com/article/4434623-amc-stock-6-tips-from-a-former-retail-activist-for-the-apes\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4434623-amc-stock-6-tips-from-a-former-retail-activist-for-the-apes","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190645365","content_text":"Summary\n\nThe 'apes' of AMC, the retails buyers of Hertz and the short squeezers of GameStop will go down in history no matter what happens next.\nPast success isn't guarantee of future success and significant losses can be incurred for both bulls and bears, so trade carefully.\nShort interest as reflected in Ortex Data is about as accurate as it gets.\nOptions is the best way to play AMC and reduce your risk.\nAvoid emotional attachment to AMC since that's your worse enemy whether you are a bear, an ape or a bull.\n\nJ. Michael Jones/iStock Editorial via Getty Images\nIt's whacko world out there on YouTube and misinformation has given rise to predatory information being fed to amateur investors of [[AMC]]. I have seen screenshots of people putting all their retirement into this stock following so-called advisors on YouTube (whose only goal is to get as many views as possible to make money off from paid views partnerships with Google). As such, they are incentivized to use clickbait titles of conspiracy and \"proof\" of Citadel employees talking off the books to get you to click on their videos. Though AMC still has significant upside potential - 'apes' have to continue to be smarter than hedge funds or otherwise they risk turning from apes into pigs. You know the saying: \"Bulls make money, bears make money, and pigs get slaughtered.\"\nFor those of you who don't know my background, I was one of the first retail activist investors who at the time created the largest consortium of retail traders on now-defunct Synergy Pharmaceuticals. A company that went down as management kept destroying the company and shorts kept piling into it and preventing the company from issuing more shares at reasonable prices. Our hope was to force a sale of the company by combining our shares as a retail group and voting against the dilution of the company while at the same time targeting the shorts of the company. The company was offered a decent offer for the whole company by Bausch Health (BHC) but management instead decided to auction the company in a bankruptcy process that wiped out shareholders completely and rendered the shares worthless.\nA few months before the bankruptcy momentum was in our favor as we were able to vote against all the directors of the company and also to block an increase in the shares outstanding. Our movement gained analyst traction and was featured in Bloomberg. As shareholders, we were beyond proud of being the first retail activist group with a collective power of around 35 million shares. When we defeated the proposals of the company and the company announced a strategic review with investment bankers the shares surged. However, it was our early success that started to make us emotionally attached to the stock and blind to the fact that the underlying business was still crumbling and losing money. Instead of reducing exposure, many double or tripled down putting all or most of their retirement there only to receive the miserable amount of one penny per share out of the bankruptcy proceedings.\nBecause we ultimately failed, I am beyond happy that the 'ape movement' has been able to succeed and shareholders on AMC, GameStop, and Hertz have been able to recoup their investments and expose the corruption that's prevalent on Wall Street. However, let's separate facts from fiction but before that, I will give good news to the Apes and that's that AMC can indeed go much higher.\nTip 1: Ignore False Short Interest Talk\nThe founding members of the Reddit community found that GameStop had 150% of its float shorted because it was readily available information. As such, for every 1 share that actually existed, there were 1.5 out there that were borrowed \"fake\" shares. There was systemic corruption from brokerages because in theory that should have never happened because you need to deliver those borrowed shares within a week to the rightful borrower. Naked shorting was probably happening the moment that the short interest went past the 50% mark on GameStop.\nStocks in cash accounts can't be lent so every time that you see short interest climb past 50% on any given stock chances are that brokers are failing to deliver those shares and naked shorting is happening. My point is that the short data out there is mostly accurate and that's what allowed Wall Street Bets to exploit the exposure that Hedge Funds had acquired by engaging in corrupt practices and by predatory shorting of companies. If it was easy to hide the real short interest, GameStop shorts would have done so to prevent the public from knowing they were short 150% of the float. Such was the exposure on GameStop that if Robinhood and all other brokers had not intervened and blocked all buying trades in January we could have easily seen GameStop going past $1,500 with the rush of short covering happening because losses to the upside are unlimited and shorts saw their accounts wiped out in literally hours.\nHowever, AMC shorts have already covered a significant portion of their exposure and short interest sits at or around 13% of the float so don't expect the same violence and speed of upward movement here.\nTip 2: Short Interest can remain the same as old shorts exit and new shorts enter without causing a panic short squeeze.\nWhen a short position doubles or triples it will force most shorts to completely cover. Brokers have very little patience with losses as seen on the Bill Hwang debacle. For example, I would never short AMC at the current prices but if it would triple in price I would probably take a sizable position against the company. My shares shorted would then be counted as shares shorted in the short interest count and perhaps the person I sold the shares short was a short who was being squeezed and decided to cover. The net effect of me entering a short position and a short covering the same amount of shares would equate to a zero change in the short interest. However, apes could be claiming a squeeze from $10 when in reality my average entry price would be around $150. When the price of a stock gets very expensive new shorts enter the market and when a price of a good company gets very cheap bulls scoop up those shares and new bulls make their way into the market. That's what a market is. When there are 200 million shares trading every day it means there are tons of apes selling, there are tons of apes buying, and there are tons of new short sellers entering and tons of short-sellers covering.\nTip 3: Apes come in all sizes, shapes, and forms.\nIt has been impressive to see how resilient apes have been and how much they work as a family but don't expect all 4 million of them to have the same goals, price targets, and ambition. Some will sell at 50, some at 60, some at 70, some at $100, or perhaps if the stock price starts going down some apes won't be able to afford losses in their portfolio and they will sell if the pain starts to arrive. Don't expect otherIt's whacko world out there on YouTube and misinformation has given rise to predatory information being fed to amateur investors of [[AMC]]. I have seen screenshots of people putting all their retirement into this stock following so-called advisors on YouTube (whose only goal is to get as many views as possible to make money off from paid views partnerships with Google). As such, they are incentivized to use clickbait titles of conspiracy and \"proof\" of Citadel employees talking off the books to get you to click on their videos. Though AMC still has significant upside potential - 'apes' have to continue to be smarter than hedge funds or otherwise they risk turning from apes into pigs. You know the saying: \"Bulls make money, bears make money, and pigs get slaughtered.\"\nFor those of you who don't know my background, I was one of the first retail activist investors who at the time created the largest consortium of retail traders on now-defunct Synergy Pharmaceuticals. A company that went down as management kept destroying the company and shorts kept piling into it and preventing the company from issuing more shares at reasonable prices. Our hope was to force a sale of the company by combining our shares as a retail group and voting against the dilution of the company while at the same time targeting the shorts of the company. The company was offered a decent offer for the whole company by Bausch Health (BHC) but management instead decided to auction the company in a bankruptcy process that wiped out shareholders completely and rendered the shares worthless.\nA few months before the bankruptcy momentum was in our favor as we were able to vote against all the directors of the company and also to block an increase in the shares outstanding. Our movement gained analyst traction and was featured in Bloomberg. As shareholders, we were beyond proud of being the first retail activist group with a collective power of around 35 million shares. When we defeated the proposals of the company and the company announced a strategic review with investment bankers the shares surged. However, it was our early success that started to make us emotionally attached to the stock and blind to the fact that the underlying business was still crumbling and losing money. Instead of reducing exposure, many double or tripled down putting all or most of their retirement there only to receive the miserable amount of one penny per share out of the bankruptcy proceedings.\nBecause we ultimately failed, I am beyond happy that the 'ape movement' has been able to succeed and shareholders on AMC, GameStop, and Hertz have been able to recoup their investments and expose the corruption that's prevalent on Wall Street. However, let's separate facts from fiction but before that, I will give good news to the Apes and that's that AMC can indeed go much higher.\nTip 4: Past Success is not a guarantee of future success.\nI lost my entire portfolio of 270k in Synergy Pharmaceuticals because I put the benefit of an entire group of wonderful people ahead of what was best for me and my family. I was unable to purchase a new home because I went down with the boat. I have had great investment acumen and I managed to turn 40k into 270k by doing big positions in one stock and options. However, that 600% return in a period of 3 years quickly came to an end with one big loss. Diversify and diversify even more and your capital will always be safe.\nTip 5: Dismiss Naysayers of the Future of Movie Theaters. AMC can come back much stronger, just be realistic of what that means.\nThe CEO of AMC has capitalized on the current rally by selling much-needed stock and as he has repeatedly mentioned in interviews he can use that cash to acquire other movie theater companies as well as some of the best gross selling assets on the market. AMC could be a much bigger and powerful player as he swallows up smaller competitors and puts to good use the cash that stockholders have put in their pockets.\nTIP 6: AMC will probably never trade above $110 so have realistic expectations of when to buy and when to sell.\nWhen AMC was trading at $5 it was easy to squeeze the shorts because the market cap was very small and it takes only a couple hundred million dollars to put them in trouble. As the market cap starts to get bigger it requires billions in fresh capital to move the price of the shares. As the market cap approaches $50 billion expect a ton of institutional investors to engage on a new wave of short selling and Apes being maxed out by having put every single penny on their name on the stock already unable to keep pushing the stock much higher. Then it becomes a battle of wills. Institutional investors and hedge funds usually have a 2-10 years horizon for investments. And if their position goes against them at those elevated prices they will double down and triple down until they take the price down. Will apes be able to hold the line for multiple years at elevated prices? The answer is no.\nSummary\nThe stock market is mostly a self-fulfilling prophecy so if bulls take control and the company has shares to issue at elevated prices it can use that needed capital dilution to reinvent itself and survive storms. Shorts on the other hand mostly profit by destroying shareholder value, suffocating companies, and taking away their ability to issue shares at reasonable prices to weather storms at a very high risk of unlimited losses for them but they are an essential force in the market. Honest short-sellers serve a purpose in the market and that's to expose fraud and corruption in management teams. Since the risk of losses is very high for them they tend to be extremely aggressive in their practices and their behavior and many times they engage in illegal activities but they aren't all the same. However, on the other side of short-sellers, it's the pump and dump scheme. Where investors are telling you to buy everything you can with one hand and they are unloading their shares with the other. I am afraid that when people on YouTube are telling you that AMC is going to $1,500 they are willingly engaging in fraud and they are as fraudulent as the shorts who are trying to take away your money by destroying companies. They are both evil and you should block them because they have no idea what they are talking about. Don't put everything on AMC, in fact, don't put more than 10% of your portfolio on a basket of meme stocks. We are all playing musical chairs in here and we are having fun but make no mistake that this is pure gambling. Business fundamentals don't matter until they do. Sell out of the money puts if you believe in the AMC turnaround and give yourself some downside protection while collecting some sizable premiums. Best of luck to all the Apes and keep fighting for justice in the market across a variety of sectors and stocks. Apes won't sell just because you don't. When there's a fire in the jungle, all apes run for the forest. Work as a family of Apes because you have accomplished much together and you have saved a wonderful company with a wonderful CEO which I personally like a lot but don't put your own family at risk and your retirement in jeopardy. In other words,avoid emotional attachment as that will make you a better investor and trader in the future.","news_type":1,"symbols_score_info":{"AMC":0.9}},"isVote":1,"tweetType":1,"viewCount":697,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":185881517,"gmtCreate":1623641145739,"gmtModify":1634030773744,"author":{"id":"3570272212145159","authorId":"3570272212145159","name":"a37d9fc","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3570272212145159","idStr":"3570272212145159"},"themes":[],"htmlText":"L","listText":"L","text":"L","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/185881517","repostId":"1101883141","repostType":2,"isVote":1,"tweetType":1,"viewCount":962,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":185810896,"gmtCreate":1623640473315,"gmtModify":1634030785083,"author":{"id":"3570272212145159","authorId":"3570272212145159","name":"a37d9fc","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3570272212145159","idStr":"3570272212145159"},"themes":[],"htmlText":"Pltr","listText":"Pltr","text":"Pltr","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/185810896","repostId":"1180874867","repostType":4,"repost":{"id":"1180874867","kind":"news","pubTimestamp":1623635718,"share":"https://ttm.financial/m/news/1180874867?lang=&edition=full","pubTime":"2021-06-14 09:55","market":"us","language":"en","title":"Palantir vs. C3.ai: Which Is the Better Artificial Intelligence Stock?","url":"https://stock-news.laohu8.com/highlight/detail?id=1180874867","media":"Motley Fool","summary":"One is controversial; the other is exposed to more macro headwinds.","content":"<p><b>Palantir</b> (NYSE:PLTR) and <b>C3.ai</b> (NYSE:AI) both help organizations and companies crunch data with AI-powered tools.</p>\n<p>Palantir, which generates more than half its revenue from government contracts, wants its Gotham platform to become the \"default operating system for data\" across the U.S. government. Its Foundry platform provides data-mining tools to large commercial customers.</p>\n<p>C3.ai serves a wide range of clients across the commercial, industrial, and government sectors. It generates most of its revenue from energy giants like <b>Baker Hughes</b> and <b>ENGIE</b>.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d0f7a2339e0b8de3ba56318f8cab73d4\" tg-width=\"2000\" tg-height=\"1076\"><span>IMAGE SOURCE: GETTY IMAGES.</span></p>\n<p>Palantir -- which went public via a direct listing last September -- started trading at $10 per share, surged to the high $30s in February, and now trades in the mid-$20s. C3.ai went public at $42 per share via an IPO last December, opened at $100 on the first day, but now trades in the low $60s.</p>\n<p>Both stocks have underperformed the S&P 500 this year as investors have been moving from growth to value stocks, but is one of these companies a better long-term play on the booming AI market?</p>\n<p><b>The differences between Palantir and C3.ai</b></p>\n<p>Palantir, which is named after the all-seeing orbs from<i>The Lord of the Ring</i>s, helps organizations accumulate data on individuals from disparate sources, then processes it with algorithms to make data-driven decisions.</p>\n<p>Palantir's biggest customer is the U.S. government, and its tools are used by the CIA, FBI, ICE, and all branches of the military. Its technology was reportedly used to hunt down Osama bin Laden in 2011, but it was also used by ICE in recent years to locate and deport undocumented immigrants.</p>\n<p>C3.ai initially only served energy companies before expanding into other markets. Unlike Palantir, which gathers data from external and internal sources, C3.ai mainly uses a company's internal operations.</p>\n<p>C3.ai's algorithms can schedule maintenance routines, detect fraud, optimize inventories, and improve CRM (customer relationship management) systems. In short, it's a lot less controversial bet than Palantir.</p>\n<p><b>How fast is Palantir growing?</b></p>\n<p>Palantir's revenue increased 47% to $1.1 billion in 2020. Its government revenue rose 77% as its commercial revenue grew 22%.</p>\n<p>It expanded its government contracts with the FDA, U.S. Army, and U.S. Air Force, and its commercial business attracted big customers including <b>Rio Tinto</b>,<b>PG&E</b>, and <b>BP</b>. Its adjusted gross and operating margins expanded, but it still posted a net loss of $1.2 billion -- compared to a loss of $580 million in 2019.</p>\n<p>In the first quarter of 2021, Palantir's revenue rose 49% year-over-year to $341 million, with 76% growth in its government business and 19% growth in its commercial business. Its adjusted gross and operating margins expanded again, but its net loss again widened, from $54.3 million to $123.5 million. On the bright side, its adjusted EBITDA turned positive with a profit of $119.8 million -- but that excludes its stock-based compensation and a lot of \"one time\" expenses.</p>\n<p>Wall Street expects Palantir's revenue to rise 35% this year, while the company expects its annual revenue to increase more than 30% every year through 2025. That confident outlook indicates a belief that its government business will remain stable as it gradually gains more commercial customers, but the company could remain steeped in controversy about data-gathering and deeply unprofitable for years to come.</p>\n<p><b>How fast is C3.ai growing?</b></p>\n<p>C3.ai's revenue rose 17% to $183.2 million in fiscal 2021, which ended in April. That marked a significant slowdown from its 71% growth in 2020, mainly due to pandemic-related disruptions of the energy and industrial sectors.</p>\n<p>Its average contract value also decreased from $12.1 million in 2020 to $7.2 million in 2021, even as it initiated new enterprise AI projects with big customers like <b>3M</b>,<b>Consolidated Edison</b>,<b>Shell</b>, and the New York Power Authority. But its total number of customers rose 82% to 89 at the end of the year, which indicates its business could recover quickly after the pandemic ends. It expects its revenue to increase 33% to 35% in the current fiscal year.</p>\n<p>C3.ai's adjusted gross margin stayed flat in fiscal 2021 as its operating margin remained in the red, but its net loss narrowed year-over-year from $69.4 million to $55.7 million. It doesn't calculate its profits in adjusted EBITDA terms, and analysts expect it to stay unprofitable for the foreseeable future.</p>\n<p><b>The valuations and verdict</b></p>\n<p>Palantir and C3.ai trade at 31 and 26 times this year's sales, respectively. Those high price-to-sales ratios indicate neither stock is cheap in this market, especially as investors rotate from growth to value stocks.</p>\n<p>That said, it makes more sense to invest in the company that is more dependent on stable government customers than the one that relies heavily on the macro-sensitive energy and industrial sectors. It also makes more sense to invest in the company with superior revenue growth if both stocks are trading at comparable price-to-sales ratios.</p>\n<p>Therefore, Palantir might be more controversial than C3.ai, but I believe it's the better growth play in the AI market. C3.ai's long-term prospects still look bright, but its stock remains too expensive relative to its growth.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir vs. C3.ai: Which Is the Better Artificial Intelligence Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir vs. C3.ai: Which Is the Better Artificial Intelligence Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-14 09:55 GMT+8 <a href=https://www.fool.com/investing/2021/06/13/palantir-vs-c3ai-which-is-the-better-artificial-in/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir (NYSE:PLTR) and C3.ai (NYSE:AI) both help organizations and companies crunch data with AI-powered tools.\nPalantir, which generates more than half its revenue from government contracts, wants ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/13/palantir-vs-c3ai-which-is-the-better-artificial-in/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AI":"C3.ai, Inc.","PLTR":"Palantir Technologies Inc."},"source_url":"https://www.fool.com/investing/2021/06/13/palantir-vs-c3ai-which-is-the-better-artificial-in/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1180874867","content_text":"Palantir (NYSE:PLTR) and C3.ai (NYSE:AI) both help organizations and companies crunch data with AI-powered tools.\nPalantir, which generates more than half its revenue from government contracts, wants its Gotham platform to become the \"default operating system for data\" across the U.S. government. Its Foundry platform provides data-mining tools to large commercial customers.\nC3.ai serves a wide range of clients across the commercial, industrial, and government sectors. It generates most of its revenue from energy giants like Baker Hughes and ENGIE.\nIMAGE SOURCE: GETTY IMAGES.\nPalantir -- which went public via a direct listing last September -- started trading at $10 per share, surged to the high $30s in February, and now trades in the mid-$20s. C3.ai went public at $42 per share via an IPO last December, opened at $100 on the first day, but now trades in the low $60s.\nBoth stocks have underperformed the S&P 500 this year as investors have been moving from growth to value stocks, but is one of these companies a better long-term play on the booming AI market?\nThe differences between Palantir and C3.ai\nPalantir, which is named after the all-seeing orbs fromThe Lord of the Rings, helps organizations accumulate data on individuals from disparate sources, then processes it with algorithms to make data-driven decisions.\nPalantir's biggest customer is the U.S. government, and its tools are used by the CIA, FBI, ICE, and all branches of the military. Its technology was reportedly used to hunt down Osama bin Laden in 2011, but it was also used by ICE in recent years to locate and deport undocumented immigrants.\nC3.ai initially only served energy companies before expanding into other markets. Unlike Palantir, which gathers data from external and internal sources, C3.ai mainly uses a company's internal operations.\nC3.ai's algorithms can schedule maintenance routines, detect fraud, optimize inventories, and improve CRM (customer relationship management) systems. In short, it's a lot less controversial bet than Palantir.\nHow fast is Palantir growing?\nPalantir's revenue increased 47% to $1.1 billion in 2020. Its government revenue rose 77% as its commercial revenue grew 22%.\nIt expanded its government contracts with the FDA, U.S. Army, and U.S. Air Force, and its commercial business attracted big customers including Rio Tinto,PG&E, and BP. Its adjusted gross and operating margins expanded, but it still posted a net loss of $1.2 billion -- compared to a loss of $580 million in 2019.\nIn the first quarter of 2021, Palantir's revenue rose 49% year-over-year to $341 million, with 76% growth in its government business and 19% growth in its commercial business. Its adjusted gross and operating margins expanded again, but its net loss again widened, from $54.3 million to $123.5 million. On the bright side, its adjusted EBITDA turned positive with a profit of $119.8 million -- but that excludes its stock-based compensation and a lot of \"one time\" expenses.\nWall Street expects Palantir's revenue to rise 35% this year, while the company expects its annual revenue to increase more than 30% every year through 2025. That confident outlook indicates a belief that its government business will remain stable as it gradually gains more commercial customers, but the company could remain steeped in controversy about data-gathering and deeply unprofitable for years to come.\nHow fast is C3.ai growing?\nC3.ai's revenue rose 17% to $183.2 million in fiscal 2021, which ended in April. That marked a significant slowdown from its 71% growth in 2020, mainly due to pandemic-related disruptions of the energy and industrial sectors.\nIts average contract value also decreased from $12.1 million in 2020 to $7.2 million in 2021, even as it initiated new enterprise AI projects with big customers like 3M,Consolidated Edison,Shell, and the New York Power Authority. But its total number of customers rose 82% to 89 at the end of the year, which indicates its business could recover quickly after the pandemic ends. It expects its revenue to increase 33% to 35% in the current fiscal year.\nC3.ai's adjusted gross margin stayed flat in fiscal 2021 as its operating margin remained in the red, but its net loss narrowed year-over-year from $69.4 million to $55.7 million. It doesn't calculate its profits in adjusted EBITDA terms, and analysts expect it to stay unprofitable for the foreseeable future.\nThe valuations and verdict\nPalantir and C3.ai trade at 31 and 26 times this year's sales, respectively. Those high price-to-sales ratios indicate neither stock is cheap in this market, especially as investors rotate from growth to value stocks.\nThat said, it makes more sense to invest in the company that is more dependent on stable government customers than the one that relies heavily on the macro-sensitive energy and industrial sectors. It also makes more sense to invest in the company with superior revenue growth if both stocks are trading at comparable price-to-sales ratios.\nTherefore, Palantir might be more controversial than C3.ai, but I believe it's the better growth play in the AI market. C3.ai's long-term prospects still look bright, but its stock remains too expensive relative to its growth.","news_type":1,"symbols_score_info":{"AI":0.9,"PLTR":0.9}},"isVote":1,"tweetType":1,"viewCount":731,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":185810896,"gmtCreate":1623640473315,"gmtModify":1634030785083,"author":{"id":"3570272212145159","authorId":"3570272212145159","name":"a37d9fc","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3570272212145159","authorIdStr":"3570272212145159"},"themes":[],"htmlText":"Pltr","listText":"Pltr","text":"Pltr","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/185810896","repostId":"1180874867","repostType":4,"repost":{"id":"1180874867","kind":"news","pubTimestamp":1623635718,"share":"https://ttm.financial/m/news/1180874867?lang=&edition=full","pubTime":"2021-06-14 09:55","market":"us","language":"en","title":"Palantir vs. C3.ai: Which Is the Better Artificial Intelligence Stock?","url":"https://stock-news.laohu8.com/highlight/detail?id=1180874867","media":"Motley Fool","summary":"One is controversial; the other is exposed to more macro headwinds.","content":"<p><b>Palantir</b> (NYSE:PLTR) and <b>C3.ai</b> (NYSE:AI) both help organizations and companies crunch data with AI-powered tools.</p>\n<p>Palantir, which generates more than half its revenue from government contracts, wants its Gotham platform to become the \"default operating system for data\" across the U.S. government. Its Foundry platform provides data-mining tools to large commercial customers.</p>\n<p>C3.ai serves a wide range of clients across the commercial, industrial, and government sectors. It generates most of its revenue from energy giants like <b>Baker Hughes</b> and <b>ENGIE</b>.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d0f7a2339e0b8de3ba56318f8cab73d4\" tg-width=\"2000\" tg-height=\"1076\"><span>IMAGE SOURCE: GETTY IMAGES.</span></p>\n<p>Palantir -- which went public via a direct listing last September -- started trading at $10 per share, surged to the high $30s in February, and now trades in the mid-$20s. C3.ai went public at $42 per share via an IPO last December, opened at $100 on the first day, but now trades in the low $60s.</p>\n<p>Both stocks have underperformed the S&P 500 this year as investors have been moving from growth to value stocks, but is one of these companies a better long-term play on the booming AI market?</p>\n<p><b>The differences between Palantir and C3.ai</b></p>\n<p>Palantir, which is named after the all-seeing orbs from<i>The Lord of the Ring</i>s, helps organizations accumulate data on individuals from disparate sources, then processes it with algorithms to make data-driven decisions.</p>\n<p>Palantir's biggest customer is the U.S. government, and its tools are used by the CIA, FBI, ICE, and all branches of the military. Its technology was reportedly used to hunt down Osama bin Laden in 2011, but it was also used by ICE in recent years to locate and deport undocumented immigrants.</p>\n<p>C3.ai initially only served energy companies before expanding into other markets. Unlike Palantir, which gathers data from external and internal sources, C3.ai mainly uses a company's internal operations.</p>\n<p>C3.ai's algorithms can schedule maintenance routines, detect fraud, optimize inventories, and improve CRM (customer relationship management) systems. In short, it's a lot less controversial bet than Palantir.</p>\n<p><b>How fast is Palantir growing?</b></p>\n<p>Palantir's revenue increased 47% to $1.1 billion in 2020. Its government revenue rose 77% as its commercial revenue grew 22%.</p>\n<p>It expanded its government contracts with the FDA, U.S. Army, and U.S. Air Force, and its commercial business attracted big customers including <b>Rio Tinto</b>,<b>PG&E</b>, and <b>BP</b>. Its adjusted gross and operating margins expanded, but it still posted a net loss of $1.2 billion -- compared to a loss of $580 million in 2019.</p>\n<p>In the first quarter of 2021, Palantir's revenue rose 49% year-over-year to $341 million, with 76% growth in its government business and 19% growth in its commercial business. Its adjusted gross and operating margins expanded again, but its net loss again widened, from $54.3 million to $123.5 million. On the bright side, its adjusted EBITDA turned positive with a profit of $119.8 million -- but that excludes its stock-based compensation and a lot of \"one time\" expenses.</p>\n<p>Wall Street expects Palantir's revenue to rise 35% this year, while the company expects its annual revenue to increase more than 30% every year through 2025. That confident outlook indicates a belief that its government business will remain stable as it gradually gains more commercial customers, but the company could remain steeped in controversy about data-gathering and deeply unprofitable for years to come.</p>\n<p><b>How fast is C3.ai growing?</b></p>\n<p>C3.ai's revenue rose 17% to $183.2 million in fiscal 2021, which ended in April. That marked a significant slowdown from its 71% growth in 2020, mainly due to pandemic-related disruptions of the energy and industrial sectors.</p>\n<p>Its average contract value also decreased from $12.1 million in 2020 to $7.2 million in 2021, even as it initiated new enterprise AI projects with big customers like <b>3M</b>,<b>Consolidated Edison</b>,<b>Shell</b>, and the New York Power Authority. But its total number of customers rose 82% to 89 at the end of the year, which indicates its business could recover quickly after the pandemic ends. It expects its revenue to increase 33% to 35% in the current fiscal year.</p>\n<p>C3.ai's adjusted gross margin stayed flat in fiscal 2021 as its operating margin remained in the red, but its net loss narrowed year-over-year from $69.4 million to $55.7 million. It doesn't calculate its profits in adjusted EBITDA terms, and analysts expect it to stay unprofitable for the foreseeable future.</p>\n<p><b>The valuations and verdict</b></p>\n<p>Palantir and C3.ai trade at 31 and 26 times this year's sales, respectively. Those high price-to-sales ratios indicate neither stock is cheap in this market, especially as investors rotate from growth to value stocks.</p>\n<p>That said, it makes more sense to invest in the company that is more dependent on stable government customers than the one that relies heavily on the macro-sensitive energy and industrial sectors. It also makes more sense to invest in the company with superior revenue growth if both stocks are trading at comparable price-to-sales ratios.</p>\n<p>Therefore, Palantir might be more controversial than C3.ai, but I believe it's the better growth play in the AI market. C3.ai's long-term prospects still look bright, but its stock remains too expensive relative to its growth.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palantir vs. C3.ai: Which Is the Better Artificial Intelligence Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalantir vs. C3.ai: Which Is the Better Artificial Intelligence Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-14 09:55 GMT+8 <a href=https://www.fool.com/investing/2021/06/13/palantir-vs-c3ai-which-is-the-better-artificial-in/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Palantir (NYSE:PLTR) and C3.ai (NYSE:AI) both help organizations and companies crunch data with AI-powered tools.\nPalantir, which generates more than half its revenue from government contracts, wants ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/13/palantir-vs-c3ai-which-is-the-better-artificial-in/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AI":"C3.ai, Inc.","PLTR":"Palantir Technologies Inc."},"source_url":"https://www.fool.com/investing/2021/06/13/palantir-vs-c3ai-which-is-the-better-artificial-in/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1180874867","content_text":"Palantir (NYSE:PLTR) and C3.ai (NYSE:AI) both help organizations and companies crunch data with AI-powered tools.\nPalantir, which generates more than half its revenue from government contracts, wants its Gotham platform to become the \"default operating system for data\" across the U.S. government. Its Foundry platform provides data-mining tools to large commercial customers.\nC3.ai serves a wide range of clients across the commercial, industrial, and government sectors. It generates most of its revenue from energy giants like Baker Hughes and ENGIE.\nIMAGE SOURCE: GETTY IMAGES.\nPalantir -- which went public via a direct listing last September -- started trading at $10 per share, surged to the high $30s in February, and now trades in the mid-$20s. C3.ai went public at $42 per share via an IPO last December, opened at $100 on the first day, but now trades in the low $60s.\nBoth stocks have underperformed the S&P 500 this year as investors have been moving from growth to value stocks, but is one of these companies a better long-term play on the booming AI market?\nThe differences between Palantir and C3.ai\nPalantir, which is named after the all-seeing orbs fromThe Lord of the Rings, helps organizations accumulate data on individuals from disparate sources, then processes it with algorithms to make data-driven decisions.\nPalantir's biggest customer is the U.S. government, and its tools are used by the CIA, FBI, ICE, and all branches of the military. Its technology was reportedly used to hunt down Osama bin Laden in 2011, but it was also used by ICE in recent years to locate and deport undocumented immigrants.\nC3.ai initially only served energy companies before expanding into other markets. Unlike Palantir, which gathers data from external and internal sources, C3.ai mainly uses a company's internal operations.\nC3.ai's algorithms can schedule maintenance routines, detect fraud, optimize inventories, and improve CRM (customer relationship management) systems. In short, it's a lot less controversial bet than Palantir.\nHow fast is Palantir growing?\nPalantir's revenue increased 47% to $1.1 billion in 2020. Its government revenue rose 77% as its commercial revenue grew 22%.\nIt expanded its government contracts with the FDA, U.S. Army, and U.S. Air Force, and its commercial business attracted big customers including Rio Tinto,PG&E, and BP. Its adjusted gross and operating margins expanded, but it still posted a net loss of $1.2 billion -- compared to a loss of $580 million in 2019.\nIn the first quarter of 2021, Palantir's revenue rose 49% year-over-year to $341 million, with 76% growth in its government business and 19% growth in its commercial business. Its adjusted gross and operating margins expanded again, but its net loss again widened, from $54.3 million to $123.5 million. On the bright side, its adjusted EBITDA turned positive with a profit of $119.8 million -- but that excludes its stock-based compensation and a lot of \"one time\" expenses.\nWall Street expects Palantir's revenue to rise 35% this year, while the company expects its annual revenue to increase more than 30% every year through 2025. That confident outlook indicates a belief that its government business will remain stable as it gradually gains more commercial customers, but the company could remain steeped in controversy about data-gathering and deeply unprofitable for years to come.\nHow fast is C3.ai growing?\nC3.ai's revenue rose 17% to $183.2 million in fiscal 2021, which ended in April. That marked a significant slowdown from its 71% growth in 2020, mainly due to pandemic-related disruptions of the energy and industrial sectors.\nIts average contract value also decreased from $12.1 million in 2020 to $7.2 million in 2021, even as it initiated new enterprise AI projects with big customers like 3M,Consolidated Edison,Shell, and the New York Power Authority. But its total number of customers rose 82% to 89 at the end of the year, which indicates its business could recover quickly after the pandemic ends. It expects its revenue to increase 33% to 35% in the current fiscal year.\nC3.ai's adjusted gross margin stayed flat in fiscal 2021 as its operating margin remained in the red, but its net loss narrowed year-over-year from $69.4 million to $55.7 million. It doesn't calculate its profits in adjusted EBITDA terms, and analysts expect it to stay unprofitable for the foreseeable future.\nThe valuations and verdict\nPalantir and C3.ai trade at 31 and 26 times this year's sales, respectively. Those high price-to-sales ratios indicate neither stock is cheap in this market, especially as investors rotate from growth to value stocks.\nThat said, it makes more sense to invest in the company that is more dependent on stable government customers than the one that relies heavily on the macro-sensitive energy and industrial sectors. It also makes more sense to invest in the company with superior revenue growth if both stocks are trading at comparable price-to-sales ratios.\nTherefore, Palantir might be more controversial than C3.ai, but I believe it's the better growth play in the AI market. C3.ai's long-term prospects still look bright, but its stock remains too expensive relative to its growth.","news_type":1,"symbols_score_info":{"AI":0.9,"PLTR":0.9}},"isVote":1,"tweetType":1,"viewCount":731,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":185882723,"gmtCreate":1623641274662,"gmtModify":1634030770970,"author":{"id":"3570272212145159","authorId":"3570272212145159","name":"a37d9fc","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3570272212145159","authorIdStr":"3570272212145159"},"themes":[],"htmlText":"Apes strong together #ToTheMoon","listText":"Apes strong together #ToTheMoon","text":"Apes strong together #ToTheMoon","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/185882723","repostId":"1190645365","repostType":2,"repost":{"id":"1190645365","kind":"news","pubTimestamp":1623636430,"share":"https://ttm.financial/m/news/1190645365?lang=&edition=full","pubTime":"2021-06-14 10:07","market":"us","language":"en","title":"AMC: 6 Tips For 'Apes' From A Former Retail Activist","url":"https://stock-news.laohu8.com/highlight/detail?id=1190645365","media":"seekingalpha","summary":"Summary\n\nThe 'apes' of AMC, the retails buyers of Hertz and the short squeezers of GameStop will go ","content":"<p><b>Summary</b></p>\n<ul>\n <li>The 'apes' of AMC, the retails buyers of Hertz and the short squeezers of GameStop will go down in history no matter what happens next.</li>\n <li>Past success isn't guarantee of future success and significant losses can be incurred for both bulls and bears, so trade carefully.</li>\n <li>Short interest as reflected in Ortex Data is about as accurate as it gets.</li>\n <li>Options is the best way to play AMC and reduce your risk.</li>\n <li>Avoid emotional attachment to AMC since that's your worse enemy whether you are a bear, an ape or a bull.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dd1a00c63aa556a03ded74e280acce07\" tg-width=\"768\" tg-height=\"512\"><span>J. Michael Jones/iStock Editorial via Getty Images</span></p>\n<p>It's whacko world out there on YouTube and misinformation has given rise to predatory information being fed to amateur investors of [[AMC]]. I have seen screenshots of people putting all their retirement into this stock following so-called advisors on YouTube (whose only goal is to get as many views as possible to make money off from paid views partnerships with Google). As such, they are incentivized to use clickbait titles of conspiracy and \"proof\" of Citadel employees talking off the books to get you to click on their videos. Though AMC still has significant upside potential - 'apes' have to continue to be smarter than hedge funds or otherwise they risk turning from apes into pigs. You know the saying: \"Bulls make money, bears make money, and pigs get slaughtered.\"</p>\n<p>For those of you who don't know my background, I was one of the first retail activist investors who at the time created the largest consortium of retail traders on now-defunct Synergy Pharmaceuticals. A company that went down as management kept destroying the company and shorts kept piling into it and preventing the company from issuing more shares at reasonable prices. Our hope was to force a sale of the company by combining our shares as a retail group and voting against the dilution of the company while at the same time targeting the shorts of the company. The company was offered a decent offer for the whole company by Bausch Health (BHC) but management instead decided to auction the company in a bankruptcy process that wiped out shareholders completely and rendered the shares worthless.</p>\n<p>A few months before the bankruptcy momentum was in our favor as we were able to vote against all the directors of the company and also to block an increase in the shares outstanding. Our movement gained analyst traction and was featured in Bloomberg. As shareholders, we were beyond proud of being the first retail activist group with a collective power of around 35 million shares. When we defeated the proposals of the company and the company announced a strategic review with investment bankers the shares surged. However, it was our early success that started to make us emotionally attached to the stock and blind to the fact that the underlying business was still crumbling and losing money. Instead of reducing exposure, many double or tripled down putting all or most of their retirement there only to receive the miserable amount of one penny per share out of the bankruptcy proceedings.</p>\n<p>Because we ultimately failed, I am beyond happy that the 'ape movement' has been able to succeed and shareholders on AMC, GameStop, and Hertz have been able to recoup their investments and expose the corruption that's prevalent on Wall Street. However, let's separate facts from fiction but before that, I will give good news to the Apes and that's that AMC can indeed go much higher.</p>\n<p><b>Tip 1: Ignore False Short Interest Talk</b></p>\n<p>The founding members of the Reddit community found that GameStop had 150% of its float shorted because it was readily available information. As such, for every 1 share that actually existed, there were 1.5 out there that were borrowed \"fake\" shares. There was systemic corruption from brokerages because in theory that should have never happened because you need to deliver those borrowed shares within a week to the rightful borrower. Naked shorting was probably happening the moment that the short interest went past the 50% mark on GameStop.</p>\n<p>Stocks in cash accounts can't be lent so every time that you see short interest climb past 50% on any given stock chances are that brokers are failing to deliver those shares and naked shorting is happening. My point is that the short data out there is mostly accurate and that's what allowed Wall Street Bets to exploit the exposure that Hedge Funds had acquired by engaging in corrupt practices and by predatory shorting of companies. If it was easy to hide the real short interest, GameStop shorts would have done so to prevent the public from knowing they were short 150% of the float. Such was the exposure on GameStop that if Robinhood and all other brokers had not intervened and blocked all buying trades in January we could have easily seen GameStop going past $1,500 with the rush of short covering happening because losses to the upside are unlimited and shorts saw their accounts wiped out in literally hours.</p>\n<p>However, AMC shorts have already covered a significant portion of their exposure and short interest sits at or around 13% of the float so don't expect the same violence and speed of upward movement here.</p>\n<p><b>Tip 2: Short Interest can remain the same as old shorts exit and new shorts enter without causing a panic short squeeze.</b></p>\n<p>When a short position doubles or triples it will force most shorts to completely cover. Brokers have very little patience with losses as seen on the Bill Hwang debacle. For example, I would never short AMC at the current prices but if it would triple in price I would probably take a sizable position against the company. My shares shorted would then be counted as shares shorted in the short interest count and perhaps the person I sold the shares short was a short who was being squeezed and decided to cover. The net effect of me entering a short position and a short covering the same amount of shares would equate to a zero change in the short interest. However, apes could be claiming a squeeze from $10 when in reality my average entry price would be around $150. When the price of a stock gets very expensive new shorts enter the market and when a price of a good company gets very cheap bulls scoop up those shares and new bulls make their way into the market. That's what a market is. When there are 200 million shares trading every day it means there are tons of apes selling, there are tons of apes buying, and there are tons of new short sellers entering and tons of short-sellers covering.</p>\n<p><b>Tip 3: Apes come in all sizes, shapes, and forms.</b></p>\n<p>It has been impressive to see how resilient apes have been and how much they work as a family but don't expect all 4 million of them to have the same goals, price targets, and ambition. Some will sell at 50, some at 60, some at 70, some at $100, or perhaps if the stock price starts going down some apes won't be able to afford losses in their portfolio and they will sell if the pain starts to arrive. Don't expect otherIt's whacko world out there on YouTube and misinformation has given rise to predatory information being fed to amateur investors of [[AMC]]. I have seen screenshots of people putting all their retirement into this stock following so-called advisors on YouTube (whose only goal is to get as many views as possible to make money off from paid views partnerships with Google). As such, they are incentivized to use clickbait titles of conspiracy and \"proof\" of Citadel employees talking off the books to get you to click on their videos. Though AMC still has significant upside potential - 'apes' have to continue to be smarter than hedge funds or otherwise they risk turning from apes into pigs. You know the saying: \"Bulls make money, bears make money, and pigs get slaughtered.\"</p>\n<p>For those of you who don't know my background, I was one of the first retail activist investors who at the time created the largest consortium of retail traders on now-defunct Synergy Pharmaceuticals. A company that went down as management kept destroying the company and shorts kept piling into it and preventing the company from issuing more shares at reasonable prices. Our hope was to force a sale of the company by combining our shares as a retail group and voting against the dilution of the company while at the same time targeting the shorts of the company. The company was offered a decent offer for the whole company by Bausch Health (BHC) but management instead decided to auction the company in a bankruptcy process that wiped out shareholders completely and rendered the shares worthless.</p>\n<p>A few months before the bankruptcy momentum was in our favor as we were able to vote against all the directors of the company and also to block an increase in the shares outstanding. Our movement gained analyst traction and was featured in Bloomberg. As shareholders, we were beyond proud of being the first retail activist group with a collective power of around 35 million shares. When we defeated the proposals of the company and the company announced a strategic review with investment bankers the shares surged. However, it was our early success that started to make us emotionally attached to the stock and blind to the fact that the underlying business was still crumbling and losing money. Instead of reducing exposure, many double or tripled down putting all or most of their retirement there only to receive the miserable amount of one penny per share out of the bankruptcy proceedings.</p>\n<p>Because we ultimately failed, I am beyond happy that the 'ape movement' has been able to succeed and shareholders on AMC, GameStop, and Hertz have been able to recoup their investments and expose the corruption that's prevalent on Wall Street. However, let's separate facts from fiction but before that, I will give good news to the Apes and that's that AMC can indeed go much higher.</p>\n<p><b>Tip 4: Past Success is not a guarantee of future success.</b></p>\n<p>I lost my entire portfolio of 270k in Synergy Pharmaceuticals because I put the benefit of an entire group of wonderful people ahead of what was best for me and my family. I was unable to purchase a new home because I went down with the boat. I have had great investment acumen and I managed to turn 40k into 270k by doing big positions in one stock and options. However, that 600% return in a period of 3 years quickly came to an end with one big loss. Diversify and diversify even more and your capital will always be safe.</p>\n<p><b>Tip 5: Dismiss Naysayers of the Future of Movie Theaters. AMC can come back much stronger, just be realistic of what that means.</b></p>\n<p>The CEO of AMC has capitalized on the current rally by selling much-needed stock and as he has repeatedly mentioned in interviews he can use that cash to acquire other movie theater companies as well as some of the best gross selling assets on the market. AMC could be a much bigger and powerful player as he swallows up smaller competitors and puts to good use the cash that stockholders have put in their pockets.</p>\n<p><b>TIP 6: AMC will probably never trade above $110 so have realistic expectations of when to buy and when to sell.</b></p>\n<p>When AMC was trading at $5 it was easy to squeeze the shorts because the market cap was very small and it takes only a couple hundred million dollars to put them in trouble. As the market cap starts to get bigger it requires billions in fresh capital to move the price of the shares. As the market cap approaches $50 billion expect a ton of institutional investors to engage on a new wave of short selling and Apes being maxed out by having put every single penny on their name on the stock already unable to keep pushing the stock much higher. Then it becomes a battle of wills. Institutional investors and hedge funds usually have a 2-10 years horizon for investments. And if their position goes against them at those elevated prices they will double down and triple down until they take the price down. Will apes be able to hold the line for multiple years at elevated prices? The answer is no.</p>\n<p><b>Summary</b></p>\n<p>The stock market is mostly a self-fulfilling prophecy so if bulls take control and the company has shares to issue at elevated prices it can use that needed capital dilution to reinvent itself and survive storms. Shorts on the other hand mostly profit by destroying shareholder value, suffocating companies, and taking away their ability to issue shares at reasonable prices to weather storms at a very high risk of unlimited losses for them but they are an essential force in the market. Honest short-sellers serve a purpose in the market and that's to expose fraud and corruption in management teams. Since the risk of losses is very high for them they tend to be extremely aggressive in their practices and their behavior and many times they engage in illegal activities but they aren't all the same. However, on the other side of short-sellers, it's the pump and dump scheme. Where investors are telling you to buy everything you can with one hand and they are unloading their shares with the other. I am afraid that when people on YouTube are telling you that AMC is going to $1,500 they are <b>willingly engaging in fraud and they are as fraudulent as the shorts</b> who are trying to take away your money by destroying companies. They are both evil and you should block them because they have no idea what they are talking about. Don't put everything on AMC, in fact, don't put more than 10% of your portfolio on a basket of meme stocks. We are all playing musical chairs in here and we are having fun but make no mistake that this is pure gambling. Business fundamentals don't matter until they do. Sell out of the money puts if you believe in the AMC turnaround and give yourself some downside protection while collecting some sizable premiums. Best of luck to all the Apes and keep fighting for justice in the market across a variety of sectors and stocks. Apes won't sell just because you don't. When there's a fire in the jungle, all apes run for the forest. Work as a family of Apes because you have accomplished much together and you have saved a wonderful company with a wonderful CEO which I personally like a lot but don't put your own family at risk and your retirement in jeopardy. In other words,<b>avoid emotional attachment</b> as that will make you a better investor and trader in the future.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC: 6 Tips For 'Apes' From A Former Retail Activist</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC: 6 Tips For 'Apes' From A Former Retail Activist\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-14 10:07 GMT+8 <a href=https://seekingalpha.com/article/4434623-amc-stock-6-tips-from-a-former-retail-activist-for-the-apes><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nThe 'apes' of AMC, the retails buyers of Hertz and the short squeezers of GameStop will go down in history no matter what happens next.\nPast success isn't guarantee of future success and ...</p>\n\n<a href=\"https://seekingalpha.com/article/4434623-amc-stock-6-tips-from-a-former-retail-activist-for-the-apes\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线"},"source_url":"https://seekingalpha.com/article/4434623-amc-stock-6-tips-from-a-former-retail-activist-for-the-apes","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1190645365","content_text":"Summary\n\nThe 'apes' of AMC, the retails buyers of Hertz and the short squeezers of GameStop will go down in history no matter what happens next.\nPast success isn't guarantee of future success and significant losses can be incurred for both bulls and bears, so trade carefully.\nShort interest as reflected in Ortex Data is about as accurate as it gets.\nOptions is the best way to play AMC and reduce your risk.\nAvoid emotional attachment to AMC since that's your worse enemy whether you are a bear, an ape or a bull.\n\nJ. Michael Jones/iStock Editorial via Getty Images\nIt's whacko world out there on YouTube and misinformation has given rise to predatory information being fed to amateur investors of [[AMC]]. I have seen screenshots of people putting all their retirement into this stock following so-called advisors on YouTube (whose only goal is to get as many views as possible to make money off from paid views partnerships with Google). As such, they are incentivized to use clickbait titles of conspiracy and \"proof\" of Citadel employees talking off the books to get you to click on their videos. Though AMC still has significant upside potential - 'apes' have to continue to be smarter than hedge funds or otherwise they risk turning from apes into pigs. You know the saying: \"Bulls make money, bears make money, and pigs get slaughtered.\"\nFor those of you who don't know my background, I was one of the first retail activist investors who at the time created the largest consortium of retail traders on now-defunct Synergy Pharmaceuticals. A company that went down as management kept destroying the company and shorts kept piling into it and preventing the company from issuing more shares at reasonable prices. Our hope was to force a sale of the company by combining our shares as a retail group and voting against the dilution of the company while at the same time targeting the shorts of the company. The company was offered a decent offer for the whole company by Bausch Health (BHC) but management instead decided to auction the company in a bankruptcy process that wiped out shareholders completely and rendered the shares worthless.\nA few months before the bankruptcy momentum was in our favor as we were able to vote against all the directors of the company and also to block an increase in the shares outstanding. Our movement gained analyst traction and was featured in Bloomberg. As shareholders, we were beyond proud of being the first retail activist group with a collective power of around 35 million shares. When we defeated the proposals of the company and the company announced a strategic review with investment bankers the shares surged. However, it was our early success that started to make us emotionally attached to the stock and blind to the fact that the underlying business was still crumbling and losing money. Instead of reducing exposure, many double or tripled down putting all or most of their retirement there only to receive the miserable amount of one penny per share out of the bankruptcy proceedings.\nBecause we ultimately failed, I am beyond happy that the 'ape movement' has been able to succeed and shareholders on AMC, GameStop, and Hertz have been able to recoup their investments and expose the corruption that's prevalent on Wall Street. However, let's separate facts from fiction but before that, I will give good news to the Apes and that's that AMC can indeed go much higher.\nTip 1: Ignore False Short Interest Talk\nThe founding members of the Reddit community found that GameStop had 150% of its float shorted because it was readily available information. As such, for every 1 share that actually existed, there were 1.5 out there that were borrowed \"fake\" shares. There was systemic corruption from brokerages because in theory that should have never happened because you need to deliver those borrowed shares within a week to the rightful borrower. Naked shorting was probably happening the moment that the short interest went past the 50% mark on GameStop.\nStocks in cash accounts can't be lent so every time that you see short interest climb past 50% on any given stock chances are that brokers are failing to deliver those shares and naked shorting is happening. My point is that the short data out there is mostly accurate and that's what allowed Wall Street Bets to exploit the exposure that Hedge Funds had acquired by engaging in corrupt practices and by predatory shorting of companies. If it was easy to hide the real short interest, GameStop shorts would have done so to prevent the public from knowing they were short 150% of the float. Such was the exposure on GameStop that if Robinhood and all other brokers had not intervened and blocked all buying trades in January we could have easily seen GameStop going past $1,500 with the rush of short covering happening because losses to the upside are unlimited and shorts saw their accounts wiped out in literally hours.\nHowever, AMC shorts have already covered a significant portion of their exposure and short interest sits at or around 13% of the float so don't expect the same violence and speed of upward movement here.\nTip 2: Short Interest can remain the same as old shorts exit and new shorts enter without causing a panic short squeeze.\nWhen a short position doubles or triples it will force most shorts to completely cover. Brokers have very little patience with losses as seen on the Bill Hwang debacle. For example, I would never short AMC at the current prices but if it would triple in price I would probably take a sizable position against the company. My shares shorted would then be counted as shares shorted in the short interest count and perhaps the person I sold the shares short was a short who was being squeezed and decided to cover. The net effect of me entering a short position and a short covering the same amount of shares would equate to a zero change in the short interest. However, apes could be claiming a squeeze from $10 when in reality my average entry price would be around $150. When the price of a stock gets very expensive new shorts enter the market and when a price of a good company gets very cheap bulls scoop up those shares and new bulls make their way into the market. That's what a market is. When there are 200 million shares trading every day it means there are tons of apes selling, there are tons of apes buying, and there are tons of new short sellers entering and tons of short-sellers covering.\nTip 3: Apes come in all sizes, shapes, and forms.\nIt has been impressive to see how resilient apes have been and how much they work as a family but don't expect all 4 million of them to have the same goals, price targets, and ambition. Some will sell at 50, some at 60, some at 70, some at $100, or perhaps if the stock price starts going down some apes won't be able to afford losses in their portfolio and they will sell if the pain starts to arrive. Don't expect otherIt's whacko world out there on YouTube and misinformation has given rise to predatory information being fed to amateur investors of [[AMC]]. I have seen screenshots of people putting all their retirement into this stock following so-called advisors on YouTube (whose only goal is to get as many views as possible to make money off from paid views partnerships with Google). As such, they are incentivized to use clickbait titles of conspiracy and \"proof\" of Citadel employees talking off the books to get you to click on their videos. Though AMC still has significant upside potential - 'apes' have to continue to be smarter than hedge funds or otherwise they risk turning from apes into pigs. You know the saying: \"Bulls make money, bears make money, and pigs get slaughtered.\"\nFor those of you who don't know my background, I was one of the first retail activist investors who at the time created the largest consortium of retail traders on now-defunct Synergy Pharmaceuticals. A company that went down as management kept destroying the company and shorts kept piling into it and preventing the company from issuing more shares at reasonable prices. Our hope was to force a sale of the company by combining our shares as a retail group and voting against the dilution of the company while at the same time targeting the shorts of the company. The company was offered a decent offer for the whole company by Bausch Health (BHC) but management instead decided to auction the company in a bankruptcy process that wiped out shareholders completely and rendered the shares worthless.\nA few months before the bankruptcy momentum was in our favor as we were able to vote against all the directors of the company and also to block an increase in the shares outstanding. Our movement gained analyst traction and was featured in Bloomberg. As shareholders, we were beyond proud of being the first retail activist group with a collective power of around 35 million shares. When we defeated the proposals of the company and the company announced a strategic review with investment bankers the shares surged. However, it was our early success that started to make us emotionally attached to the stock and blind to the fact that the underlying business was still crumbling and losing money. Instead of reducing exposure, many double or tripled down putting all or most of their retirement there only to receive the miserable amount of one penny per share out of the bankruptcy proceedings.\nBecause we ultimately failed, I am beyond happy that the 'ape movement' has been able to succeed and shareholders on AMC, GameStop, and Hertz have been able to recoup their investments and expose the corruption that's prevalent on Wall Street. However, let's separate facts from fiction but before that, I will give good news to the Apes and that's that AMC can indeed go much higher.\nTip 4: Past Success is not a guarantee of future success.\nI lost my entire portfolio of 270k in Synergy Pharmaceuticals because I put the benefit of an entire group of wonderful people ahead of what was best for me and my family. I was unable to purchase a new home because I went down with the boat. I have had great investment acumen and I managed to turn 40k into 270k by doing big positions in one stock and options. However, that 600% return in a period of 3 years quickly came to an end with one big loss. Diversify and diversify even more and your capital will always be safe.\nTip 5: Dismiss Naysayers of the Future of Movie Theaters. AMC can come back much stronger, just be realistic of what that means.\nThe CEO of AMC has capitalized on the current rally by selling much-needed stock and as he has repeatedly mentioned in interviews he can use that cash to acquire other movie theater companies as well as some of the best gross selling assets on the market. AMC could be a much bigger and powerful player as he swallows up smaller competitors and puts to good use the cash that stockholders have put in their pockets.\nTIP 6: AMC will probably never trade above $110 so have realistic expectations of when to buy and when to sell.\nWhen AMC was trading at $5 it was easy to squeeze the shorts because the market cap was very small and it takes only a couple hundred million dollars to put them in trouble. As the market cap starts to get bigger it requires billions in fresh capital to move the price of the shares. As the market cap approaches $50 billion expect a ton of institutional investors to engage on a new wave of short selling and Apes being maxed out by having put every single penny on their name on the stock already unable to keep pushing the stock much higher. Then it becomes a battle of wills. Institutional investors and hedge funds usually have a 2-10 years horizon for investments. And if their position goes against them at those elevated prices they will double down and triple down until they take the price down. Will apes be able to hold the line for multiple years at elevated prices? The answer is no.\nSummary\nThe stock market is mostly a self-fulfilling prophecy so if bulls take control and the company has shares to issue at elevated prices it can use that needed capital dilution to reinvent itself and survive storms. Shorts on the other hand mostly profit by destroying shareholder value, suffocating companies, and taking away their ability to issue shares at reasonable prices to weather storms at a very high risk of unlimited losses for them but they are an essential force in the market. Honest short-sellers serve a purpose in the market and that's to expose fraud and corruption in management teams. Since the risk of losses is very high for them they tend to be extremely aggressive in their practices and their behavior and many times they engage in illegal activities but they aren't all the same. However, on the other side of short-sellers, it's the pump and dump scheme. Where investors are telling you to buy everything you can with one hand and they are unloading their shares with the other. I am afraid that when people on YouTube are telling you that AMC is going to $1,500 they are willingly engaging in fraud and they are as fraudulent as the shorts who are trying to take away your money by destroying companies. They are both evil and you should block them because they have no idea what they are talking about. Don't put everything on AMC, in fact, don't put more than 10% of your portfolio on a basket of meme stocks. We are all playing musical chairs in here and we are having fun but make no mistake that this is pure gambling. Business fundamentals don't matter until they do. Sell out of the money puts if you believe in the AMC turnaround and give yourself some downside protection while collecting some sizable premiums. Best of luck to all the Apes and keep fighting for justice in the market across a variety of sectors and stocks. Apes won't sell just because you don't. When there's a fire in the jungle, all apes run for the forest. Work as a family of Apes because you have accomplished much together and you have saved a wonderful company with a wonderful CEO which I personally like a lot but don't put your own family at risk and your retirement in jeopardy. In other words,avoid emotional attachment as that will make you a better investor and trader in the future.","news_type":1,"symbols_score_info":{"AMC":0.9}},"isVote":1,"tweetType":1,"viewCount":697,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":185881517,"gmtCreate":1623641145739,"gmtModify":1634030773744,"author":{"id":"3570272212145159","authorId":"3570272212145159","name":"a37d9fc","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3570272212145159","authorIdStr":"3570272212145159"},"themes":[],"htmlText":"L","listText":"L","text":"L","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/185881517","repostId":"1101883141","repostType":2,"repost":{"id":"1101883141","kind":"news","pubTimestamp":1623628546,"share":"https://ttm.financial/m/news/1101883141?lang=&edition=full","pubTime":"2021-06-14 07:55","market":"us","language":"en","title":"‘Momentum’ Stocks Are a Mess. Why It’s Time to Buy Them Now.","url":"https://stock-news.laohu8.com/highlight/detail?id=1101883141","media":"Barrons","summary":"The stock market’s best-performing stocks have been anything but the best-performing stocks. That ma","content":"<p>The stock market’s best-performing stocks have been anything but the best-performing stocks. That may be about to change.</p>\n<p>Yes, that sounds confusing, but it makes quite a bit of sense. Over the long term, buying the stocks with the most“momentum”—for example, the best performers over the past 12 months—usually leads to more outperformance. Over the past 10 years, for instance, the iShares Edge MSCI USA Momentum Factor exchange-traded fund(ticker: MTUM) has gained 264%, easily beating the S&P 500’s168% rise over the same period. But sometimes momentum fails, and that’s what has happened recently. In 2021, the momentum ETF has gained just 6.5%, well behind the S&P 500’s 14% rise.</p>\n<p>But today’s momentum basket isn’t the same as it was just a short while ago. Last month, the MSCI USA Momentum index was rebalanced, and 68% of the portfolio changed. But the changes run even deeper. Financial stocks went from just 1.6% of the index to 32.5%, as JPMorgan Chase(JPM),Berkshire Hathaway(BRK.B), and Bank of America(BAC) were added to the basket. Technology, meanwhile, fell from 41.1% to 17.9% as Apple(AAPL),Microsoft(MSFT), and Nvidia(NVDA) were dropped.</p>\n<p>That shift has meant some major changes to the characteristics of the momentum basket. Fourteen months ago, high-momentum stocks were more expensive relative to low-momentum stocks than anytime since the dot-com bubble, according to Wells Fargo data. Now, high-momentum stocks are cheaper than low-momentum ones for the first time since 2017—a good sign for the performance of high-momentum stocks. In the past, the stocks have gone on to outperform low-momentum ones by eight percentage points over the next 12 months.</p>\n<p>“High-momentum stocks now are slightly cheaper than low-momentum names, a rare occurrence,” explains Christopher Harvey, U.S. equity strategist at Wells Fargo Securities. “Historically, this condition generally leads to attractive momentum factor returns over the following six to 12 months.”</p>\n<p>The shift does come with a downside. Typically, investors are willing to pay up for high-momentum stocks because they offer more certain returns and lower volatility than low-momentum stocks. With the changes in the basket, however, high momentum is now more volatile than low momentum. That volatility should “decay” over time and ultimately drive the outperformance of the new high-momentum names, Harvey explains.</p>\n<p>“Should volatility decay, we would expect to see multiple expansion for the group,” he writes. “In the past, the Mo’ basket’s post-recession volatility decay has been a long and steady process, helping the style perform.”</p>\n<p>This past week hasn’t been too kind to some of the additions to the momentum basket. Banks got hit hard—the SPDR S&P Bank ETF(KBE) fell 2.5%, while JPMorgan dropped 3.7% and Bank of America declined 3.3%.Caterpillar(CAT), a new addition, fell 9.6%. If Harvey is correct, it could be a good time to buy momentum stocks on the dip.</p>\n<p>Just be ready for a wilder ride.</p>","source":"lsy1601382232898","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>‘Momentum’ Stocks Are a Mess. Why It’s Time to Buy Them Now.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n‘Momentum’ Stocks Are a Mess. Why It’s Time to Buy Them Now.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-14 07:55 GMT+8 <a href=https://www.barrons.com/articles/buy-momentum-stocks-51623454669?mod=hp_LATEST><strong>Barrons</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The stock market’s best-performing stocks have been anything but the best-performing stocks. That may be about to change.\nYes, that sounds confusing, but it makes quite a bit of sense. Over the long ...</p>\n\n<a href=\"https://www.barrons.com/articles/buy-momentum-stocks-51623454669?mod=hp_LATEST\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.barrons.com/articles/buy-momentum-stocks-51623454669?mod=hp_LATEST","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1101883141","content_text":"The stock market’s best-performing stocks have been anything but the best-performing stocks. That may be about to change.\nYes, that sounds confusing, but it makes quite a bit of sense. Over the long term, buying the stocks with the most“momentum”—for example, the best performers over the past 12 months—usually leads to more outperformance. Over the past 10 years, for instance, the iShares Edge MSCI USA Momentum Factor exchange-traded fund(ticker: MTUM) has gained 264%, easily beating the S&P 500’s168% rise over the same period. But sometimes momentum fails, and that’s what has happened recently. In 2021, the momentum ETF has gained just 6.5%, well behind the S&P 500’s 14% rise.\nBut today’s momentum basket isn’t the same as it was just a short while ago. Last month, the MSCI USA Momentum index was rebalanced, and 68% of the portfolio changed. But the changes run even deeper. Financial stocks went from just 1.6% of the index to 32.5%, as JPMorgan Chase(JPM),Berkshire Hathaway(BRK.B), and Bank of America(BAC) were added to the basket. Technology, meanwhile, fell from 41.1% to 17.9% as Apple(AAPL),Microsoft(MSFT), and Nvidia(NVDA) were dropped.\nThat shift has meant some major changes to the characteristics of the momentum basket. Fourteen months ago, high-momentum stocks were more expensive relative to low-momentum stocks than anytime since the dot-com bubble, according to Wells Fargo data. Now, high-momentum stocks are cheaper than low-momentum ones for the first time since 2017—a good sign for the performance of high-momentum stocks. In the past, the stocks have gone on to outperform low-momentum ones by eight percentage points over the next 12 months.\n“High-momentum stocks now are slightly cheaper than low-momentum names, a rare occurrence,” explains Christopher Harvey, U.S. equity strategist at Wells Fargo Securities. “Historically, this condition generally leads to attractive momentum factor returns over the following six to 12 months.”\nThe shift does come with a downside. Typically, investors are willing to pay up for high-momentum stocks because they offer more certain returns and lower volatility than low-momentum stocks. With the changes in the basket, however, high momentum is now more volatile than low momentum. That volatility should “decay” over time and ultimately drive the outperformance of the new high-momentum names, Harvey explains.\n“Should volatility decay, we would expect to see multiple expansion for the group,” he writes. “In the past, the Mo’ basket’s post-recession volatility decay has been a long and steady process, helping the style perform.”\nThis past week hasn’t been too kind to some of the additions to the momentum basket. Banks got hit hard—the SPDR S&P Bank ETF(KBE) fell 2.5%, while JPMorgan dropped 3.7% and Bank of America declined 3.3%.Caterpillar(CAT), a new addition, fell 9.6%. If Harvey is correct, it could be a good time to buy momentum stocks on the dip.\nJust be ready for a wilder ride.","news_type":1,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9}},"isVote":1,"tweetType":1,"viewCount":962,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}
