AMC: Planet Of The Apes

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AMC Cashes In Again

It’s been quite a rollercoaster ride for AMC Entertainment Holdings (AMC) recently.

The company cashed in with another secondary offering, raising another $587 million by selling 11.5 million shares at the market. ZeroHedge reported that AMC’s CEO said after the secondary that his company had $2 billion in cash on hand. In a nice bit of reflexivity, the apes at Wall Street Bets memed AMC into having a stronger balance sheet. In a livestream with Trey’s Trades on Thursday evening, AMC CEO clarified to the “ape” community that the company only has another 46,000 shares its authorized to sell this year, but he also said he hoped shareholders would authorize the company to offer an additional 25,000,000 shares starting in 2022.

If you haven’t heard him speak, Adam Aron handles himself and social media pretty well. Elon Musk could learn a thing from him.

A Former Top Name Loses Steam

After Thursday’s 18% drop, shares of AMC were only up about 449% from when the stock hit our top ten on April 1st.

A New Top Name Ties In Nicely

On Thursday, the hedge fund manager John Hempton, alluding to AMC’s announcement that it would offer free popcorn to its shareholders, quipped that maybe people should invest in corn.

Image via Twitter.

Coincidentally, a corn name was one of our top ten names on Thursday: not the agricultural company Corteva, Inc. (CTVA) that Hempton mentioned, but the Teucrium Corn ETF (CORN).

Screen capture via Portfolio Armor on 6/3/2021.

CORN ties in with the inflation theme we’ve written about recently (Too Much Crypto, Not Enough Stuff):

While so much money and brainpower has poured into this new class of intangibles, the world economy is apparently running low on all sorts of tangibles.

In a global economy running hot on cheap money, betting on the basics getting more expensive seems a reasonable near-term bet.

In Case We’re Wrong About Corn

In the event we’re wrong about corn, and the dollar becomes more expensive relative to it over the next several months, here are a couple of ways you can hedge the ETF.

We used the November expiration options in that video, but you could use the same approach with any options expiration. All the available options expirations for CORN are available in the drop down menu in our app.

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