Tag Archives: Meme stocks

How AMC Crazy Is Your State?

After an incredible 17-fold rise this year, AMC Entertainment Holdings, Inc. has become one of the hottest stocks in the market. But which state is the craziest for this meme stock?

It turns out my home state of New Jersey is #1 in the country for searches of “AMC” as a proportion of all searches, per Google Trends data from the last 12 months. Kansas, the company’s home state, is #2. (The darker the state, the more AMC crazy it is.)

Play around with the map at the link above and see where your state ranks!

Have a great weekend, everyone!

More on AMC:

HOW SHORT SELLERS COULD EVADE THE NEW NSCC RULES

AMC HAS 35,000 TIMES THE FAILS-TO-DELIVER OF AMAZON

SHORT SELLERS LOSE $44 BILLION IN 30 DAYS

Photo: The AMC in Times Square, NYC, taken this week by yours truly!

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Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.

iHerb

The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.

Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.

AMC Has 35,000 Times the Fails-to-Deliver of Amazon

Investors in AMC Entertainment Holdings, Inc. have long tried to draw attention to the possibility of illegal naked short selling in the company’s shares. One common sign of naked short selling is “fails to deliver,” or trades that are not closed out.

So I found it interesting that AMC has fails-to-deliver 35,000 times as large as those of Amazon, one of the largest stocks in the market, based on the latest SEC data.

Fails to deliver can happen for a variety of reasons, some of them benign. But they can also happen when a trader sells short shares he doesn’t own, also known as naked short selling. The shares aren’t delivered because they never existed.

The example with Amazon may be particularly dramatic, but AMC’s fails to deliver are still about 9 times the size of Apple’s, whose market cap is 150 times greater than little old AMC’s.

Here is the raw data from the SEC’s latest report. The number right before the company name is the fails to deliver:

20210701|00165C104|AMC|3519354|AMC ENTMT HLDGS INC CL A COM S|56.68

20210701|023135106|AMZN|100|AMAZON COM INC;COM USD0.01|3440.16

20210701|037833100|AAPL|406167|APPLE INC;COM NPV|136.96

This is nothing new for AMC. Indeed, it has had so many fails to deliver for such a long time that it has repeatedly featured on a special “threshold list” maintained by the NYSE.

It seems highly likely to me that something fishy is going on here. But will the SEC act?

More on AMC:

AMC ON THE THRESHOLD LIST: STRONG EVIDENCE OF NAKED SHORT SELLING

EXPLOSIVE CLAIMS IN LAWSUIT AGAINST ROBINHOOD

SHORT SELLERS LOSE $44 BILLION IN 30 DAYS

Photo: “nothing to see here” by misterbisson is licensed under CC BY-NC-SA 2.0

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Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.

iHerb

The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.

Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.

AMC Shorts Lost $642 Million Yesterday

Short sellers in AMC Entertainment Holdings, Inc. got slaughtered yesterday:

Dusaniwsky, managing director at short-selling data provider S3 Partners, told Barron’s he estimates 75.8 million AMC shares are sold short, or roughly 15% of shares available for trading. There has been some covering, as he estimates shares shorted are down by about 4 million over the last week. But with the stock up $8.47 on Tuesday, short sellers were down $642 million in mark-to-market losses on Tuesday alone, bringing the year-to-date losses to $3.82 billion.

AMC surged upward as it consolidated two new theaters into its company and announced discussions with landlords to reopen closed locations.

Short sellers, largely hedge funds, have already lost nearly $4 billion betting against AMC. Their total losses in meme stocks exceed $12 billion.

The only way I can make sense of their stubborn behavior is this: that they’re desperate to recover what they’ve already lost. A gambler who has lost 90% of his life savings in poker may have to keep playing: how else can he 10x his money and get back to where he started? Conservative bets won’t do that.

The only difference is, the hedge funds are playing with someone else’s money.

More on AMC:

SHORT SELLERS LOSE $44 BILLION IN 30 DAYS

HEDGE FUNDS LOSE $12 BILLION ON AMC AND GAMESTOP

HEDGE FUNDS’ AMC DEATH SPIRAL

Photo: “the Great Hedge Fund Hei$t” by eyewashdesign: A. Golden is licensed under CC BY-NC-ND 2.0

If you found this post interesting, please share it on Twitter/Reddit/etc. using the buttons at the bottom of the page. This helps more people find the blog! And please leave your comments at the bottom.

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.

iHerb

The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.

Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.

Short Sellers Lose $44 Billion in 30 Days

Short sellers had a disastrous June:

Overall, U.S. short sellers are down -$44.49 billion in net of financing mark-to-market losses over the last thirty days.

The #1 source of short seller losses? AMC, by a wide margin, at $2.8 billion. AMC was also the #2 stock in the entire market in increased short exposure in June, a little behind Tesla, which has a market cap more than 25 times as large.

How can we describe this behavior by short sellers? Delusional? Suicidal? Or perhaps rational, given the incentives hedge funds are facing. Numerous funds are down heavily on bad bets against meme stocks. Once a hedge fund is well into the red, it has to make back its losses to even have a chance of earning its 20% performance fee. (That fee is collected only on gains over the capital invested.)

So, the deeper in the hole a fund gets, the more incentive it may have to make risky bets. Only a huge payoff on a volatile stock (like AMC) can get them back in the black, earning those sweet, sweet performance fees.

Unfortunately, this exposes investors who have already lost much of their capital to enormous risks. If I were an investor in a hedge fund that bet against meme stocks, which fortunately I am not, I’d pull my money out ASAP before they lose it all. It’s hard to make money shorting anything in such a hot market, but shorting one of the most popular stocks out there is a recipe for disaster.

The hedge funds were just lucky that June is a short month.

More on AMC:

HEDGE FUND TORCHED BY AMC

AMC + UFC = JACKPOT

AMC’S S-3 WITHDRAWAL: WHAT DOES IT MEAN?

Photo: “I’m scared too, but we’ll make it.” by qousqous is licensed under CC BY-NC-SA 2.0

If you found this post interesting, please share it on Twitter/Reddit/etc. using the buttons at the bottom of the page. This helps more people find the blog! And please leave your comments at the bottom.

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.

iHerb

The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.

Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.

Why AMC May Be Even Hotter Than You Think

It’s no secret that AMC is going vertical lately:

But this and other meme stocks may be even hotter than they appear based on prices in public markets like the New York Stock Exchange. The reason is a quirk in how retail orders are handled:

The prices of so-called meme stocks may be distorted because the majority of trades in those names are executed away from public exchanges where share price formation occurs, the head of the New York Stock Exchange said on Wednesday.

Meme stocks have a much higher interest from retail investors than most companies. Since retail orders tend to be processed on private platforms, this could have a significant distortive effect on the price reported in public markets.

If many of the trades done by the most enthusiastic buyers aren’t reflected in public prices, this would make the stock seem less desired than it is. So despite AMC’s staggering rise this year, the real enthusiasm may be understated.

In meme stocks, individual traders contribute as much as 70% of the volume, Cunningham said.

The majority of retail orders bypass exchanges because of an arrangement called payment for order flow, in which retail brokerages sell their customers’ marketable orders to wholesale brokers. The wholesalers match the orders internally, trying to profit off of the bid-ask spread, while offering retail traders the best market price or better.

If meme stock enthusiasm is understated, hedge funds trading against the retail hordes should exercise extreme caution. London-based White Square Capital announced plans to close down today after substantial losses in GameStop. Massive losses in AMC and others could cause many more casualties.

The true power of the retail investor may be even greater than it appears.

More on AMC:

Photo: “Hot – canon 550d” by @Doug88888 is licensed under CC BY-NC-SA 2.0

If you found this post interesting, please share it on Twitter/Reddit/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.

iHerb

The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.

Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.

AMC Share Sales: A Wise Move for the Company’s Future

March 25, 2020:

COVID is sweeping the globe, causing shutdowns worldwide. One casualty: all 1,000 theaters of 100 year old AMC Entertainment Holdings, Inc. Like many businesses, its ability to remain solvent was in serious doubt.

Under these cirumstances, a lot of CEOs arrange a golden parachute for themselves and a few golf buddies in the C-suite and throw the frontline workers to the wolves. But not AMC CEO Adam Aron.

He furloughed himself and the entire headquarters staff. Never have I heard of a CEO furloughing himself to save his company money, no matter how dire the circumstances. Whatever AMC’s other problems, it was clear to me then that Aron is a true leader with the company’s best interests at heart.

I bet Aron, his executive team, and the employees manning their theaters could’ve never guessed where AMC would be a year later: solvent, reopening, and an unexpected stock market darling. Indeed, AMC stock is up more than 20-fold this year, with retail traders piling in.

Aron took advantage of that soaring share price last week, selling 20 million new shares for over $800 million. Some have critized that move as selling out existing shareholders by diluting their ownership stake, but I think this decision is a shrewd move to put the company on solid long term footing.

AMC lost over $4 billion in 2020 amid COVID shutdowns and ended the year with just $300 million in cash left. The company faced bankruptcy in a matter of months, if not less. But AMC capitalized on its increasing stock price early this year to issue more shares, and ended the first quarter of 2021 sitting on over $800 million.

With last week’s $800 million sale, AMC’s cash hoard likely exceeds $1.5 billion, taking bankruptcy off the table for the forseeable future.

And while the share sales early in the year involved significant dilution, last week’s issuances only increased the share count by about 4%. With such a high share price, AMC simply doesn’t need to sell as many shares to rake in a nice cash pile. To me, 4% dilution is a small price to pay to ensure the future of a company that looked to be on its last legs just a few months ago.

Do the fundamentals justify owning AMC at current prices? Probably not. But in a world where corporate leadership is often venal, I applaud Aron for putting the company first and ensuring its future. In the long run, its employees, customers, and shareholders will benefit from that.

More on meme stocks:

Photo: “Police Stationed outside AMC Theater showing Joker film 4573” by Brechtbug is licensed under CC BY-NC-ND 2.0

If you found this post interesting, please share it on Twitter/Reddit/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.

iHerb

The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.

Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.

Wendy’s: a Deliciously Different Meme Stock

Shares of Wendy’s exploded today as Reddit’s merry band of traders piled in:

Beloved burger and Frosty chain Wendy’s (WEN) has won the honor of being the first fast-food stock to get roped into the red-hot meme stock trade.

Shares of Wendy’s spiked 16% in early afternoon trading on Tuesday after a favorable mention by traders on Reddit.

Shares closed up over 25% for the day, and packed on another 4% so far after hours:

Over 84 million shares were traded today, versus an average of 3 million. Options activity also exploded:

Investors bought 115,831 call options on the stock. This is an increase of approximately 6,360% compared to the typical daily volume of 1,793 call options.

Wendy’s slogan is “deliciously different,” and indeed it has some major differences from the usual meme stocks. The fast food chain turns out solid profits, versus substantial losses at Gamestop and AMC. It made $41 million in net income in the most recent quarter, and $117 million in 2020.

Wendy’s valuation is nearly as rich as its burgers, with a price to earnings ratio of 55 for the most recent year, compared to an average of 37 for the S&P 500. But at least the meme hordes are focusing on a company that has a real, viable, money making business.

Perhaps for this reason, Wendy’s stock is not heavily shorted, with just 4.6% of shares sold short. This removes one catalyst for further gains, but I’d still feel better holding a profitable company’s stock than that of an unprofitable company.

One way in which Wendy’s makes sense as a choice for Wallstreetbets: it’s a beloved, consumer-facing brand. We don’t see a lot of companies like oil services giant Schlumberger or document management firm Iron Mountain catching their attention. But business to business companies can be great moneymakers. This appears to be something of a blind spot for some retail traders.

In any event, I look forward to seeing where Wendy’s stock goes, and to trying their new breakfast menu!

More on meme stocks:

Photo: “Your Choice – A 1970 Ford Pinto or 10 Piece Chicken Nuggets From Wendy’s?” by Sister72 is licensed under CC BY 2.0

If you found this post interesting, please share it on Twitter/Reddit/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.

iHerb

The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.

Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.

Short Sellers Lose $1 Billion on AMC

AMC stock has doubled in just ten days, extending a 13-fold rally this year:

Investors shorting the meme stock AMC Entertainment are estimated to have lost $1.23 billion over the last week as the shares rallied more than 116% since Monday, according to data from S3 Partners.

AMC was the most active stock on the New York Stock Exchange by far on Friday as more than 650 million shares changed hands. Its 30-day trading volume average is just above 100 million shares, according to FactSet.

With 450 million shares outstanding, the entire company changed hands nearly 1.5 times during Friday’s trading.

More here.

Some of the interest in AMC may be coming from traders rotating out of cryptocurrencies as those markets have fallen:

Pierantoni observed that just as selling of bitcoin and ethereum picked up, retail purchases of AMC jumped — as did the number of people buying risky but bullish call options popular among Robinhood investors.

The rally isn’t tied to fundamentals: AMC’s business is still struggling, with a net loss of over $400 million in the first quarter of 2021 and rent nearly three times as high as ticket revenue. But in a market where armies of retail traders suddenly band together to push up heavily shorted stocks, shorting anything is a fool’s errand. If a trader wanted to express a negative view, put options, where the downside is limited, are likely to be a safer bet.

I do wonder how long it will take the hedge funds to absorb this lesson. Numerous funds got torched on GameStop, with some losing a majority of their capital. And yet others seem to be lining up to get punched in the face on AMC stock. They would do well to remember the (perhaps apocryphal) words of John Maynard Keynes:

The markets can stay irrational longer than you can stay solvent.

Happy Memorial Day to my US readers, and a thanks to our brave veterans!

Dig into these posts for more on AMC:

Photo: “Police Stationed outside AMC Theater showing Joker film 4573” by Brechtbug is licensed under CC BY-NC-ND 2.0

If you found this post interesting, please share it on Twitter/Reddit/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.

iHerb

The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.

Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.

How the Mormon Church Made Millions on GameStop

There have been a lot of winners in GameStop’s dizzying, over tenfold rise in the last year. An unlikely one is the Mormon Church, which made over $8 million on GameStop shares through its investment arm:

The Church of Jesus Christ of Latter-day Saints’ play for stock in GameStop paid off big-time as the Utah-based faith saw its shares in the video game retailer swell in value from $867,000 to $8.7 million in a matter of months.

Overall, the church’s largest investment fund, managed by Ensign Peak Advisors in Salt Lake City, grew by $2.4 billion in early 2021, continuing a dramatic rebound from pandemic-induced losses last spring and catapulting its total value to $46.5 billion.

More here.

Their timing was superb: Ensign bought 46,000 shares at the end of 2020, just before a short squeeze briefly pushed the stock to prices over $300. The church also scored huge gains on Tesla shares. Ensign Peak Advisors is wholly owned by the Church of Jesus Christ of Latter-day Saints, making it perhaps the only church in the world with its own hedge fund.

The fund’s assets total over $100 billion, greater than the GDP of Ethiopia. The church has banked up over $6,000 for each member, a staggering rainy day fund. This money comes primarily from all members being required to donate 10% of their income to the church, a practice called tithing.

I’ve always found the Mormon church fascinating and have read several books about it. I was intrigued to find out they played a part in something as far removed from religion as the GameStop saga!

Dig into these posts for more on GameStop:

Photo: “Salt Lake City Temple” by SheldonPhotography is licensed under CC BY-NC 2.0

If you found this post interesting, please share it on Twitter/Reddit/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.

iHerb

The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.

Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.

GameStop Pays Off $216 Million in Debt

It’s no secret that GameStop shares have gone vertical, up more than ten fold this year. Besides making millionaires of a lot of Redditors, this also lets GameStop sell more shares at high prices, enabling them to raise capital with ease.

And raise they did, to the tune of $550 million in April. They recently used that money to completely pay off their long term debt:

The company said it completed its voluntary early redemption of $216.4 million of its 10.0% senior notes due 2023. The voluntary redemption covered all of the outstanding 10.0% notes, which represented all of its long-term debt.

More here.

At 10%, this debt was costing GameStop over $20 million a year. Getting rid of it should give them more room to fund their planned transformation into an e-commerce business, which is being led by Chewy co-founder and soon-to-be GameStop board chairman Ryan Cohen. On the other hand, this share raise dilutes existing GameStop shareholders, making their stake worth less.

GameStop still has $146 million in short term debt and a revolving line of credit, per their most recent annual report, but that is likely under lower interest rates than those long term bonds. I wouldn’t be surprised to see the short term debt paid off early as well.

In all, GameStop seems to be seizing the opportunity to use its high stock price to fund its transformation. Whether they can actually pull that transformation off remains to be seen.

Dig into these posts for more on GameStop:

Photo: “Retail GameStop” by ccPixs.com is licensed under CC BY 2.0

If you found this post interesting, please share it on Twitter/Reddit/etc. using the buttons at the bottom of the page. This helps more people find the blog! 

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.

iHerb

The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.

Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.

Misfits Market

My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.