Meme stocks a 'false market' but will cause a radical shift for cinema industry, Man Group CEO says

  • 📰 CNBC
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

The rise to prominence of so-called 'meme stocks' is creating 'false markets' that should be actively avoided, according to Man Group CEO Luke Ellis.

on Wednesday, Ellis said Man Group uses technological screening and natural language processing to identify the stocks being touted on sites such as Reddit and "avoid trading the names that they're super excited about because they're mostly creating false markets."

Some of the surging share prices have translated into tangible results for the companies involved. Cinema chainrecently saw its credit rating upgraded by S&P after using Reddit-fueled share offerings to raise capital and make a debt restructuring program less likely. "I think it becomes really interesting when companies then take advantage of what are otherwise false share prices and issue stock, and I think we're going to see a radical shift in the cinema industry because one of the cinema chains has been able to use the pumping of the stocks on 'Wallstreetbets' in order to go and raise capital," Ellis said.

"That's going to put them at a significant competitive advantage compared to other people in their industry." However, Ellis added that his FTSE 250-listed firm, which manages around $124 billion in assets, was interested in up to 10,000 stocks around the world and therefore found it "easy to avoid the ones where we think it's a false market."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Do you guys think we give a shit what Man Group CEO says.

'Meme stocks' are just short squeeze plays created when greedy criminal hedge funds short GAMESTOP 140%. They are heavily shorted stocks and retail will squeeze them for the hedge funds were reckless irresponsible gamblers.

FUD ALERT 📢

good luck

Sucks to be the people in charge of running this twitter.😂😅

It's all fraudulent blow it up raise interest rates an taxes

FALSE MARKET WITH REAL MONEY 🦍🔥💯 $AMC

😂🤣😂🤣

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

German business lobby group defends its mocking of Greens leaderA German business lobby group on Tuesday defended a controversial campaign in which it portrays Greens chancellor candidate Annalena Baerbock dressed as a biblical Moses, holding two tablets under the caption 'Annalena and the 10 bans.'
Source: Reuters - 🏆 2. / 97 Read more »