Zombie Bubble Phenomenon Reinflates AMC

By Dan AmossPosted May 26, 2021

AMC shares are moving higher from an intense desire by inexperienced traders to own a stock at prices that will require endlessly strong demand for the stock. Time-tested fundamental analysis indicates that AMC shares are practically worthless, but this latest buying spree is hurting our position. It’s the latest version of “zombie bubbles” that have occurred in 2020-21.

You Must Be A Subscriber To View This Content.

If you are already a subscriber, click the login button below to get access. Not yet a subscriber? Checkout our publication below and get access today!

Jim Rickards’ Crash Speculator

Dan Amoss

Dan Amoss, CFA, tracks aggressive accounting and other red flags that markets miss. He’s a student of the Austrian School of economics and Daily Reckoning fan since 2000. Agora Financial relies on Dan for macro market commentary as well as profitable plays like his 2008 call to readers to buy Lehman Bros. puts, which...

View More By Dan Amoss

Reopening Plays Are Priced To Perfection

By Dan AmossPosted March 17, 2021

If an investor does not have context about the financial health of a company, then that investors might believe that changes in the fortunes of a company are the only thing that determine its stock price. But, a closer look at fundamentals can determine its direction more than just positive news about the sector overall.

Our Crash Monitor Signals Weakness Ahead for Stocks

By Dan AmossPosted June 12, 2019

After a decade of great returns, investors have been lulled into complacency. The reality is many stocks do not deserve the strong rallies they’ve enjoyed. But it often requires the onset of a recession for weak stocks to enter into a death spiral. Today, Dan discusses one indicator used to predict short-term market performance and downturns in stocks.

This Disruption Will Soon Hurt Restaurant Stocks

By Dan AmossPosted October 2, 2019

The restaurant industry has always been a competitive business. With the advent of food delivery apps, the competition has intensified. The net effect of the food delivery boom — once incremental sales fade — will be to significantly lower profit margins at the restaurant level. Lower margins along with weaker consumer spending on discretionary items will put immense pressure on restaurant stocks.

When Momentum Stock Darlings Fall Through A Trap Door

By Dan AmossPosted November 11, 2020

We’re at the stage in the bull market when novice investors mistake bubble dynamics for real, sustainable fundamentals. Many of Wall Street’s “darlings” are propped up by hype and narratives instead of solid fundamentals like sustainable earnings, strong balance sheets, and predictable returns on capital. This can cause their stock prices to plummet without warning.

Supply Of New Shares Will Depressurize The Bubble

By Dan AmossPosted January 6, 2021

Today’s bulls rest easy with the notion that central banks “have their back.” Central bankers have promised not to raise interest rates for years, so there’s no perceived threat of tighter financial conditions. They shouldn’t rest easy though. Because another slower-moving threat to the overvaluation environment is emerging. A relentless supply of new securities could ultimately be the pin that pricks today’s bubble.

Why PG&E Shareholders Own More Liabilities Than Assets

By Dan AmossPosted June 26, 2019

As PG&E goes through the bankruptcy process, shareholders will find the utility company’s assets are likely worth less than its liabilities. As a result, there’s a very good chance PCG stock will likely go to zero or a tiny fraction of its current trading price. Today, Dan examines its balance sheet and why assets aren’t worth as much as bulls expect.