Profit Pregame

How a Big Week for AMC Could Kick Off as Early as Today

AMC Entertainment Holdings, Inc. (AMC) has been one of the most talked about stocks of the year.

And this week, AMC investors are going to get an extraordinary opportunity to talk about the stock with the executive at the very top of the AMC corporate structure.

In a rare move, CEO Adam Aron has announced that he will be taking questions from individual investors – a first for the company – when AMC presents its Q2 2021 earnings after the market closes today.

Many of the retail investors that that been holding AMC stock with the goal of squeezing the large short position on the stock are hoping the earnings report could be the next big catalyst after shares of AMC have dipped roughly 46% from their high in mid-June.

More than 4,200 questions for Adam Aron have come pouring in through the Say app that AMC has used to solicit questions from its retail investors.

Some of the most popular questions include inquiries on how AMC is planning on managing its balance sheet, whether there are plans to offer a dividend again in the near future, and whether AMD is planning any collaborations with fellow “meme stock” GameStop Corp. (GME).

Aron has done a fantastic job of embracing AMC’s meme status and has taken steps to engage its newfound army of retail investors.

During its earnings call today, AMC will be hoping that it can reignite interest in its stock not just through bottom line numbers that beat analyst expectations, but also by addressing the most pressing questions retail investors have.

I’m very interested to see not just which questions Aron decides to field, but how well his responses land to potentially fuel a resurgence in buying activity now that AMC seems to have found a floor just above the $30 level.

But that’s not the only catalyst on AMC’s horizon.

In the battle between retail investors and hedge funds that have shorted AMC stock, there are some speculating that this could be a huge week. According to an SEC rule, a firm has up to 35 calendar days following the trade date to close out the failure to deliver position by purchasing securities of like kind and quantity.

And retail investors have pointed to failures to deliver on millions of AMC shares that occurred over a weeklong period beginning – you guessed it – 35 days ago.

If true, that could mean a huge buying spree of AMC shares from those institutions that are now forced to deliver.

You can bet that I’ll be keeping a sharp eye on this situation.

AMC is on my Super Squeeze Watchlist this week…

With everything AMC seemingly has going for it this week, combined with the still sky-high short interest in the stock, I’m keeping a close watch for any hint of unusual buying activity.

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Trading Tip of the Week

Always have a stop loss in place when trading stocks, especially if you’re sitting on a profitable trade.

That rule of thumb has been reinforced time and time again, but we got a great example of why you should protect yourself against the downside last week.

Was HOOD a winner if you bought it at $60?

Well, it went up to $69 but then fell back to $50.

So, you could have bought it at $60 and had a stop loss at $65, and you could have gotten out of that trade on the way down and still banked a profit.

Earnings Report to Watch

Another earnings report with big ramifications for its shareholders is dropping today.

3D Systems Corporation (DDD) will release its Q2 2021 earnings report today after the market closes.

Analysts are expecting 3D Systems to post impressive gains on increase, with an anticipated 26% increase year over year.

The company is expected to have seen increased demand for its products over the second quarter, particularly in its healthcare arm. Moves to reduce costs are also expected to boost its bottom line.

But whether or not DDD can exceed expectation is anyone’s guess. Over its past four earnings reports, DDD has only delivered a beat on half of them.

As such, this is a name I’d rather avoid trying to trade around its earnings report.

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