‘Zombie’ stocks AMC and GameStop could feel the cash burn, says New Constructs

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Shares of AMC Entertainment and GameStop have risen 98.4% and 76%, respectively, over the last three months, compared with the S&P 500 index’s 5.7% rise.

Meme stock darlings AMC Entertainment Holdings Inc. and GameStop Corp. have been added to New Constructs’ list of “zombie” companies facing severe cash burn.

See also: Shares of bankrupt Revlon soar 17% as investors cheer news that Morgan Stanley purchased the stock in latest quarter But New Constructs’ Trainer is unmoved. “GameStop has played into the meme stock craze, announced a crypto/NFT business, and took a page from Tesla TSLA, -0.78%, one of the original meme stocks, by splitting its stock,” he wrote. “The company’s valuation simply cannot be justified by the deteriorating fundamentals of the actual business.”

Earlier this month AMC announced its “APE” special dividend, which will list on the New York Stock Exchange under the symbol “APE,” a nod to the investors who turned the company into a meme stock, who often refer to themselves as “apes” or “ape nation.” “I believe all of this makes us vastly, and I mean, vastly, stronger,” he added. The CEO, who referred to AMC’s critics as “naysayers” and “prophets of doom” during the call, said the dividend is very bad news for people “not rooting for AMC.”

 

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GME 1 billion cash, virtually no debt, mid turnaround .. this is more like attempted stock manipulation here. Skeezy stuff. And a zombie stock is a stock that hedge funds have shorted into the ground and cellar boxes by the way. You trying to cover the narrative for them? 🤔

The federalreserve is doing such a great job at controlling inflation.

mel____z_n AMC, mate. ShouldaWouldaCoulda

15 months to slow the spread of Meme Stocks 😉

Better keep your eyes on these -zombie- stocks

Trade them at your own risks, they are disasters

That literally means nothing.

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