First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We'd like our readers to start paying for Daily Maverick

More specifically, we'd like those who can afford to pay to start paying. What it comes down to is whether or not you value Daily Maverick. Think of us in terms of your daily cappuccino from your favourite coffee shop. It costs around R35. That’s R1,050 per month on frothy milk. Don’t get us wrong, we’re almost exclusively fuelled by coffee. BUT maybe R200 of that R1,050 could go to the journalism that’s fighting for the country?

We don’t dictate how much we’d like our readers to contribute. After all, how much you value our work is subjective (and frankly, every amount helps). At R200, you get it back in Uber Eats and ride vouchers every month, but that’s just a suggestion. A little less than a week’s worth of cappuccinos.

We can't survive on hope and our own determination. Our country is going to be considerably worse off if we don’t have a strong, sustainable news media. If you’re rejigging your budgets, and it comes to choosing between frothy milk and Daily Maverick, we hope you might reconsider that cappuccino.

We need your help. And we’re not ashamed to ask for it.

Our mission is to Defend Truth. Join Maverick Insider.

Support Daily Maverick→
Payment options

AMC Leads Reddit-Driven Rally as Spotlight Turns to Sil...



AMC Leads Reddit-Driven Rally as Spotlight Turns to Silver

The GameStop Corp. website on a laptop computer arranged in Hastings-On-Hudson, New York, U.S., on Friday, Jan. 29, 2021. GameStop Corp. advanced on Friday and was on track to recoup much of Thursday’s $11 billion blow after Robinhood Markets Inc. and other brokerages eased trading restrictions on the video-game retailer.
By Bloomberg
01 Feb 2021 0

AMC Entertainment Holdings Inc. and some other day-trader favourites led the Reddit-fuelled rally Monday despite the shift in focus to silver among retail investors using the platform.

By Paul Jarvis and Bailey Lipschultz
(Bloomberg) —AMC rose as much as 30% and cannabis firm Sundial Growers Inc. gained 26%, while BlackBerry Ltd. added 10% as brokerages eased trading restrictions The movie-theater chain, which has been hammered by Covid-related closures, gained 525% in January after announcing fresh financing that will help it avoid bankruptcy.This comes as the silver market was roiled after a now-removed post appeared on Reddit’s WallStreetBets forum that encouraged traders to pile into BlackRock Inc.’s iShares Silver Trust. Shares of U.S. and Canadian listed silver companies also surged.

GameStop Corp., the most high-profile target of the Reddit forums, slumped as much as 35% Monday. The video-game retailer surged 1,625% last month, propelled by day traders who inflicted multibillion-dollar losses on hedge funds with large short positions. Short interest in GameStop tumbled to 53% of its float from 140% last month, according to data from S3 Partners.

Robinhood Markets Inc. further eased the trading limits on some stocks on Monday afternoon, informing customers that it could purchase more shares of firms like GameStop and AMC. On Sunday, it had removed restrictions on 42 others. Clients can now buy a maximum of 20 shares in GameStop, and as many as 350 in AMC. The popular trading app put buying limits in place last week after its clearinghouse deposit requirements for equities increased. Other brokerages including Morgan Stanley’s E*Trade also eased restrictions.

The restrictions held the number of shares traded for the Grapevine, Texas-based video game retailer in check while AMC volume took off. At 2:34 p.m. in New York, about 29 million GameStop shares had been traded while AMC’s volume was at 350 million.

CMC Markets, a U.K.-based financial services company, is only allowing long trades on a handful of Reddit-touted companies including AMC and GameStop, according to a spokesman. Other retail darlings like Healthier Choices Management, which trades at fractions of a penny, soared as more than 4 billion shares changed hands and Nokia Corp. rose as much as 9.4%.

Read more: Koss, Express Among Reddit Favorites Sliding as Silver Gains

While AMC shares rallied on Monday, the movie theater chain was downgraded to sell from neutral by MKM Partners. Analyst Eric Handler cut the stock and halved his price target to $1, saying that current share prices are almost double the industry’s historical peak.

“The emotion behind the #SaveAMC movement could carry the shares higher in the near-term, but we believe this valuation-be-damned momentum is not sustainable over the long term,” he wrote.

Shift to Silver

The attention of the retail speculators shifted over the weekend to commodities such as silver, which broke above $30 an ounce.

Short selling positions on GameStop, AMC Entertainment tumble

European-listed silver miners surged, with Fresnillo Plc rising as much as 21% in its biggest intraday gain since 2008, and Hochschild Mining Plc climbing 19%. U.S.-listed peers also skyrocketed, with Coeur Mining Inc. up 39%, Hecla Mining Co. jumping 49% and First Majestic Silver Corp. adding 33%.

“So far, it is not exactly the GameStop anomaly, but it is a hint that the retail traders who just discovered the strength of their unity are out there, looking for new targets — and apparently bigger ones,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said in written comments.

(Updates with the easing of trading restrictions at Robinhood in the fifth paragraph.)

–With assistance from Joe Easton and Kristine Owram.

© 2021 Bloomberg L.P.

Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet

Please peer review 3 community comments before your comment can be posted