A overhang traumatising $AMC Entertainment(AMC)$ shareholders was finally lifted after the theatre chain raised almost $326 million from its latest fund raising by issuing 40 million new shares. The stock dilution which had originally led to roller-coaster rides on the stock was finally welcomed by the boost in cash reserve much needed for its survival to avoid a liquidity crunch, which unresolved would have led AMC to file Chapter 11 for bankruptcy protection. Nevertheless, the company has still much work to strengthen its fundamentals after the onset of the pandemic damaged its business, as it struggled with vacant theatre halls. Expectation of higher interest rates for longer to rein in a sticky inflation wil
With a lack of catalysts, cryptocurrencies have been trading range-bound lately. However, the lackluster performance has not deterred $Coinbase Global, Inc.(COIN)$ from acquiring FTX Europe as it pursues its business strategy in expanding its streams of revenue from derivatives trading in cryptocurrencies, to offset weakness in spot price trading. It does not help that the Fed has hinted at maintaining higher interest rates for longer period of time to rein in a sticky inflation that has threatened to push US economy into a stagflation as demands slow under pressure from higher borrowing costs. Cryptocurrencies have thrived at the onset of the pandemic with easy money flows, but have since plunged after a strin
Stocks of electric vehicle makers are for the brave hearts, and their volatile swings make for trading opportunities. Despite their volatility, their long-term growth remains intact alongside growing global awareness of climate change and tightening of emissions controls, so that adoption of electric vehicles remains on the rise. I’m particularly optimistic over the Chinese EV market given its sheer size and incentives for EV adoption. Hence, by proxy I like the Chinese EV stocks $NIO Inc.(NIO)$ , $XPeng Inc.(XPEV)$ and $Li Auto(LI)$ as they invest heavily in
With hopes dented of an end to the Fed’s rate hike and reversion to rate cut starting early next year after the latest Fed policy meeting earlier in the week, the market is now awakening to the reality of higher rates for longer and bracing itself for another rate hike before this year ends. Highly speculative growth stocks took the blunt of the blow, due to their higher sensitivity to interest rates. As such, I’m looking to rebalance my portfolio by reducing my positions on speculative plays the likes of $C3.ai, Inc.(AI)$ , $Palantir Technologies Inc.(PLTR)$ and $Semiconductor Bull 3X Shares(
$AMC Entertainment(AMC)$ has just had one of the overhangs on share dilution removed over its stock after it managed to raise $325.5 million from new equity sale. Its earlier reverse stock split and ensuing new equity issue had sent the stock on a roller-coaster ride, with many investors bowing out after the volatile swings. With significantly boosted cash reserves, liquidity concerns have been put on hold at least for the time being. However, much work remains to be carried out to strengthen its fundamentals, as it strive to attract movie-watchers back to its theatres. With rising competition from online streaming providers such as $Amazon.com(AMZN)$
Franklin Templeton has just jumped cryptocurrency bandwagon as it announces it entry into the spot bitcoin ETF race. The asset manager with over a trillion dollars in assets under custody has just filed an application with the SEC to launch a spot bitcoin ETF, joining the ranks of Blackrock, ARK Invest and VanEck. Hopefully, the latest entry by the heavyweight will be a vote of confidence for the cryptocurrency market and a respite for $Coinbase Global, Inc.(COIN)$ which has been embroiled in legal battles with the SEC. I believe that cryptocurrencies have a place in the global economy by virtue of its speed of transactions across international boundaries, even though they may have to be regulated to weed out t
With the United Auto Workers’ strikes threatening to shut down production lines of major conventional car makers, if its demand for wage increases as high as 40 percent is not met, no signs of a deal closure are in sight yet despite negotiations progressing in earnest, a clear beneficiary is the electric vehicle industry which has resisted unionisation. The brewing storm for the incumbents may hence be good news for electric vehicle startups the like of $Faraday Future Intelligent Electric Inc.(FFIE)$ and $Rivian Automotive, Inc.(RIVN)$ that are in need of any catalyst to bolster their weakening fundamentals. A clear winner would be <
With the next Fed review on monetary policy round the corner next week, volatility has returned to the stock market which gave up earlier gains in the week to end the week lower yesterday. Despite some encouraging signs emerging of cooling prices, inflation has remained sticky amidst a robust labor market and is not helped by recent rebound of crude oil prices as the OPEC+ slashes production, citing global demand slowdown. With inflation rate still well above the Fed’s long-term target of 2%, though a hard-landing of the economy appears unlikely with still strong job data, the risk of stagflation is becoming more real, and the Fed is between a rock and a hard place on its next monetary policy. I expect the Fed to stay put on interest rate, while watching for more economic data and the infl
News emerged recently that $Coinbase Global, Inc.(COIN)$ is launching its first cryptocurrency lending platform targeting institutional investors for a start. With another new source of revenue, this may lift market expectations on its near-term earnings. However, with the stock overhang due to its legal struggles with the Securities and Exchange Commission, and market uncertainty over the approval by regulator on the first bitcoin exchange-traded fund based on spot prices, I expect bitcoin price to remain subdued and overall market sentiments over cryptocurrencies to be weak. Hence, I can’t help but remain pessimistic on the short-term prospects of the cryptocurrency exchange, even though I believe that crypto
Reports of usage bans of iPhones by employees at government offices and news of expanding ban to state-controlled companies by the Chinese government have served a severe blow to $Apple(AAPL)$ that counts China as its largest overseas market. With rising geopolitical tensions between the two superpowers across the Pacific Ocean, companies with significant operations and businesses in the two countries have been paying the price as they get caught in the crossfire. However, I remain optimistic on the prospects of the iPhone maker with its loyal customer base and unparalleled pricing power. With an anticipated coming launch of new Apple products, hopefully its stock price will be finding support. Hence, I’ll