![]() "These meme stocks are so volatile in their trading it doesn't take much to get a big move up or down," said MKM Partners analyst Eric Handler, whose AMC rating is "sell" with a $1 price target. read moreĪMC did not immediately respond to a request for comment. Vagner, who said he worked at Noble Group and in credit analyst roles at banks before launching Iceberg in 2015, declined to reveal details of the firm's short position.ĪMC's latest rally was helped by heavy trading of equity options, financial derivatives that give buyers the right to buy or sell shares at a fixed price in the future, depending on where the stock price is.Īs the share price skyrocketed, market makers who sold AMC options were forced to buy the company’s shares to offset their exposure, driving the stock higher in a phenomenon known as a gamma squeeze. Commodities trader Noble denied the allegations but subsequently saw its profits collapse and was forced to sell most of its assets. Iceberg gained attention in 2015 for highlighting what it called aggressive accounting practices at Hong Kong-based Noble Group. ![]() ![]() Vagner said Iceberg is a company that makes both long and short bets but declined to give further details. Little is known about Iceberg, which publishes a blog with its research on Wordpress. Vagner said that while there are risks associated with betting against meme stocks, "any sharp rise is followed by a correction. "Our position is based on the fundamentals of the company and the fact its stock price has been inflated by call options, which is always temporary," said Iceberg's Arnaud Vagner in an email to Reuters.īearish investors forced to unwind their bets in the face of a rapidly rising stock price have helped fuel rallies this year in AMC, video game retailer GameStop (GME.N) and other companies that are popular on online forums such as Reddit’s WallStreetBets.ĪMC shares, while well below their June 2 peak of $72.62, were still up more than 2,500% year-to-date after finishing 2020 at $2.12. The so-called meme stock closed at $51.96 after falling almost 12% to $47.77 in morning trading after Iceberg's tweet that it had sold the shares short, which involves borrowing shares with a view to buying them back at a lower price to cover the bet. The phrase was first coined in a 1966 New York Times article by sociologist William Petersen, who used it to describe Japanese Americans overcoming discrimination to find success, attributing it to hard work and family structure.July 2 (Reuters) - AMC Entertainment (AMC.N) shares closed down 4% on Friday after short-seller Iceberg Research tweeted that it had made a bearish bet against the theater chain operator's stock. Sung said it’s important to consider the “model minority” myth during conversations like this. “The ‘roof Korean or Asian’ can be historically situated within a pattern of touting Asian Americans as both a proxy for whiteness and as a racial weapon against Black claims of racial inequity,” she said. When used by right-wing extremists, the “roof Korean” meme is meant to drive a wedge between Black and Korean communities, said Wendy Sung, an assistant professor of critical media studies at the University of Texas at Dallas. Racial resentment and distrust are bound to spring from that, as they did in Koreatown in 1992, when many Black patrons of Korean American businesses believed shop owners were funneling money out of the community and never putting anything back in. If we recognize that white Americans have, historically speaking, monopolized and excluded racial minorities from resources, we can see how easily Black people and Asians may feel as if they’re competing for the same pool of limited resources among themselves. (One of the Minneapolis police officers who stood by last month as Derek Chauvin pressed his knee down on George Floyd’s neck is Asian American, which has sparked a heated debate in the community about how Asians benefit from their proximity to whiteness.) The fact that the meme has been shared or defended by some Asian Americans underscores an important truth: Racial minorities can be and often are racist against other racial minorities ― and in many Asian American families, anti-Blackness sentiment runs deep.
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