Okay folks, so we've got a lot to talk about. And yes, it's going to be violent. So another day, another Amc rally. But this is still kind of that Fomo rally that we've been seeing over the last week.

We still haven't seen much evidence of a short squeeze that seems to be just people buying and buying and buying. So we got to talk about what's going on, what the Ceo just did, why a hedge fund just bought and sold a ton of shares of Amc, and how Amc may be structuring itself to help retail win this battle. And of course, first, before we get into all of this, we're also going to be going ahead and giving updates on some of our major plays and what happened today and what's going to be happening moving forward. And the only thing that I ask of you in return is that you hit that ravishing like button And also don't forget to subscribe either.

Okay, so let's go ahead and start with some updates. So Neo reported deliveries today, and as with most growth stocks, right now, Neo has been in a quiet but steady uptrend over the last couple of weeks, and today, Neo reported that they had a 5.5 drop in deliveries due to the semiconductor shortage and other logistical issues. So why did it rally? Well, a few reasons: Number one, Neil warned us about this, and that allowed Neo shareholders to panic sell it ahead of time, which then softened the blow for when the actual thing happened. and number two, because Neo emphasized that based on its current production and delivery plan, the company will be able to accelerate delivery in June in order to make up for delivery from May, and Neo maintained and reiterated its delivery guidance of 21 000 to 22 000 vehicles in the second quarter.

which means that overall, despite a drop in deliveries, Neo is planning to be able to meet expectations. And the third reason that Neo rallied today, and probably one of the biggest reasons is because just overall growth is getting some inflows right now. Neo has quietly gone up with the rest of growth over the last couple of weeks as people have brushed aside inflation concerns and interest rate concerns that were causing such huge beatdowns over the last couple of months. But keep in mind we're still in an inflationary environment and new reports can come out at any moment.

It's easy for good growth companies to bounce back when people aren't worried about being bludgeoned by interest rates, but the minute that that turns around, you could see some of that short-term money start pulling out again. So what I'd say is I'd be stoic about uptrends and relish the dips because eventually all the fuds surrounding these companies will be behind us. Okay, in terms of morning catalysts From the daily morning briefings: one of my favorite ones from today was Vtnr. Not just because of what it did today, but because of what it's done over the last three market days.

We originally briefed on this one on the 27th after they announced plans to acquire Shell's Alabama Refinery, reiterated it again on Friday morning, and then once again this morning. and in that three day period since we briefed on it, it's basically gone from four dollars to 1150 at Heist. This is a play that is the definition of how putting in the work to find catalyst can help you get in the right place at the right time for when they do run. I think that oftentimes we like to put too much ego in our stock trading.

We like to think, oh, I'm a stock whisperer. I'm a magician. I know what stocks are going to run and which aren't born to predict the movements of the markets. But no folks, the stock market doesn't care about your feelings, and nobody is born to predict the market.

It's all about doing the research, putting the work in so that you're at the right place at the right time, and you're controlling your risk for both when you're right and when you're wrong. In terms of this calculus though, this is actually pretty exciting. Vertex Energy Buying. Shells Refinery is the largest, most significant transaction ever by the company, and the reason that this is a big deal is because it will allow an anticipated 3 billion in annual revenue increase and 400 million in gross profit increases by the end of 2023..

keep in mind that when this was announced, Vertex was trading at a sub 100 million dollar market cap, a company that just bought an asset that is anticipated to give them a 400 million profit increase. so the anticipated profit increase is more than the entire company's market cap. Obvious pricing issue there, and that's why we saw such a huge rally. It was a very, very strategic acquisition.

So good job Vertex. I would actually still argue very cautiously that this is probably still undervalued, a company that's likely to pick up some tailwinds of renewable energy under the binding administration, but also some of the practicality of conventional products and obviously analyst price targets have rocketed as well. One play that I didn't talk about publicly last week because I didn't want to add to the Fomo so late in the rally, which was a play that we briefed on on the morning of the 25th piers. I think this was the best performing briefing play from last week was a fairly slow week anyways.

Uh, but but it rallied on a collaboration with Genentech. I like this example, and it's important that I show you this because it shows just how ridiculous of an overreaction market catalyst can cause, in this case, pushing the good news way too high then made logical sense. This is great if you're a short-term trader, but it's not so great if you're drinking the kool-aid like so many people do with these plates. But for the takeaway on how you find some of these plates, one of the things that I look for every single morning when I'm doing my scoping for companies to brief on is companies partnering with bigger companies or collaborating with bigger companies.

In some way, if a small company is getting help from a big company, you know that's a big Catalyst. and in the case of peers, an unknown 200 million dollar market cap company partnering with Genentech, a Fortune 100 company, an industry leader? Well, that's a big damn deal. So we briefed on it in the mid twos that pre-market when I became aware of the Catalyst and it ran to 605.. this was certainly a lucky play.

Don't get me wrong, but in order to be lucky, you do have to be putting in the work to see where the luck may fall. Last briefing play, but I want to recap really quickly. Oeg I was certainly late to the game on this one. This morning it announced that subsidiary was awarded a massive 700 million dollar construction project across Mississippi.

We briefed on it 30 minutes prior to market open right below five bucks a share, it rallied to over eight after hours showed some opportunity in the pre-market We were kind of late on it and then what happened? Well, it kind of traded like this for hours and then a lot of the run was towards the end of the day. I like Catalyst plays that either have a very very strong uptrend or a very very strong downtrend. So then at least you know what you're dealing with, But with this play, it just kept giving so many fake outs for hours and I think this was a nightmare play even if you're trading this over the directional Sma line. which is to say, you're trading the trend.

You know I mean it's it's a dirty play. Lastly, in terms of crypto miners, I know that Riot and Mara were up today, but I continue to think that of all of our high Conviction plays, these are the most likely to still be in their losing cycle, or at least in their slow cycle. We need to see Bitcoin bounce back, and it hasn't been able to find that resilience. It's still in that bearish trend.

Sure, it's been bouncing back and forth a little bit since it had its major sell-off but there's a lot of regulatory and environmental foot that it needs to go through and we gotta let it all breathe. Okay, now for the main entree. Amc First event that happened today was Amc selling 8.5 million shares at a 4 premium to hedge fund Mudric Capital. This hedge fund bought Amc at a price of 27 and 17 cents, which was higher than it closed at on Friday.

Amc is in this very, very strange situation where after a decade of retreating revenue and then a year of being basically shut down entirely, it needs to figure out how to balance protecting its future without pissing off its retail traders who hold the majority of its shares. And the way that they executed today sale is really a representation of that. They offered a relatively low amount of shares 8.5 million, which compared to Amc's 450 million shares are so outstanding, isn't very much and they sold it at a premium, so nobody was really pissed off about this. And then shortly after the very same hedge fund that just purchased the shares.

Well, it was reported that it then sold all of them, presumably at a large profit. Since the stock rallied throughout the day, Bloomberg reported what. Well, they reported that the decision to dispose of the stake came after the firm concluded that Amc stock was overvalued. Boy, what honest report in there, huh? We like Amc enough to pay over 200 million bucks to buy a ton of shares at a very, very heightened price After you know, last week's massive rally.

And then right when we get our shares, we're gonna be like, oh, you know what, We just didn't do enough Dd, You know, I just didn't google Amc to realize that hey, you know what? Maybe this is. Maybe this is fundamentally overvalued because hedge funds, you know, they always focus on the fundamentals what a company's worth. That's why they buy and sell so many times in a day, because they just change their mind so often. It has nothing to do with manipulating market cycles.

I don't know. Somebody with a brain may say. perhaps maybe these folks saw an opportunity to pile on a large position in a hot and heavily shorted stock, right the momentum and then get out at a damn near profit pedestrian gaining more than 40 million in the span of a few hours. But a lot of the media wants us to believe that they just decided that the fundamentals didn't make sense anymore.

After a couple dollar rally, how stupid do they think we are? You put over 200 million bucks in a company and then you expect us to believe you just changed your mind a couple hours later and you weren't just playing the cycles. That being said, I've got to hand it to Modric. They have been one of the few hedge funds that have accurately played the Amc rally this year pretty much the entire year, and last year they frequently came to Amc's help over and over again and made a hefty profit. But they did come to Amc's health and at the end of the day, I don't blame them for selling their shares.

Yeah, it's not that easy to take out 200 million from a stock like this. Well, the higher the Amc goes, the more of a liability it becomes for this company to take their shares out. When you have 200 million dollar positions you don't have like a couple thousand dollar positions like most retail traders, then you have to worry about 200 million dollars worth of buyers. Whereas if you sell into strengths like we saw today, you're gonna make a profit.

If you sell into sort of a more flat, non-liquid market, you may not be able to make much of a profit. It might just go down dramatically. The mechanism for Amc to skyrocket is also the mechanism that can restrict the ability for people to take profits at very high levels if you have 400 million shares in circulation that all retail traders want to dump it once. Well, obviously Amc is going to go really, really quickly down because there's going to be so much selling pressure and hedge fund doesn't want to get stuck in that process it wants to sell into strength.

Now in terms of short sellers, short sellers are continuing to lose money, but short interest has continued to increase on Amc. According to Ortex, hedge funds haven't given up. They still think they're going to win this, and it's based on whether Rito can keep showing up. To determine whether they're going to be proven right or wrong, you look at the after hours trading and it's really clear that retail is throwing a ton of buying power into the game.

I mean, this is almost unbelievable, but I also think that the data suggests that we are earlier in the battle than we think we are Short interest hasn't even begun to cool off yet, so retail has to keep showing up or at least not selling in order for this squeeze to actually work. may end up taking a lot more patience. and it's hard to say at what point the ape community is going to decide to sell out. I hear you guys saying never, but still.

legitimately. at the end of the day, that's a real question. Pretty obvious that the longer this goes on, the more statistically, it makes sense for this to have an intense short squeeze. Eventually it's going to be a bludgeon in one way or the other.

And in terms of the company, the company itself is playing a pretty aggressive game. Here, it's playing a very strong offensive, using the capital to expand aggressively and perhaps push the merger and acquisitions. For example, it's looking to take over to change with a combined 300 screens that were shuttered during the pandemic. Admittedly, it's a very interesting strategy because the pandemic screwed so many feeders that if Amc can position itself aggressively to take over all the small kids on the block, then the bounce that is going to happen to movie theaters in the movie theater industry is going to be disproportionately rewarded to Amc.

The issue, of course, is that hey, overall, over the last 20 years, you've seen attendance go down, so that market that Amc is fighting to get a bigger share Of is getting smaller. Now I'm of the opinion that hey, there's a clear trend where movie theater attendance is going down, but I think that movie theaters are always going to be around in some form. I think that there's going to be a small but consistent level of movie theater attendees that persists and eventually the downtrend will level out. I also think that over the short to medium term you're going to see massive growth in attendance because everything's opening up again.

People don't have to wear masks in theaters. People want to go out and see a movie. I think that the growth rates are going to be very good in terms of recovery, but I don't think that this is going to reverse the decades trend of people not going to the movies anymore. Keep in mind, I don't think that Amc is best traded on the fundamentals.

Amc is simply a short squeeze. Market manipulation. screw the hedge funds play that has potential specifically because hedge funds played unfair and retail called their bluff. But in terms of the company itself, hey, here's the problem.

You gotta remember at the end of the day that Amc was trading in the 30s in 2015, and despite a strong economy and booming bull market, it just refused to break into new highs and was one of the worst performers for five years. One of the things that I've been very clear on is that I'm not making the argument for Amc being a good deal based on the fundamentals of the company, I think the Amc is doing a very good job of repositioning themselves and taking good advantage of this rally of retail traders in order to expand and perhaps capture that movie theater attendance market. But at the end of the day, it's not like Amc is a company that's going into this emerging booming industry. It's going into a temporarily emerging booming industry because covert restrictions are going away, and obviously Amc is a leader in the movie theater industry.

But I don't expect the movie theater industry to have these insane levels of growth post pandemic recovery. You know, after 2025, are you going to be saying that Amc is the biggest growth story? So at the end of the day, you want to make sure you know exactly why you're buying this and why you're holding this. I'm not the magical garden gnome of all knowledge. If you think that movie feeders are really going to be the future and that's like the big thing of the next 50 years, I'm not making fun of you.

That's your opinion and you can have that opinion. Another thing that I'm very bullish on is electric vehicles. There's a lot of people that watch these videos that genuinely believe that electric vehicles have nothing to do with the future and it's all just a fad and that your gasoline cars are. They make a lot more sense and those people have respectfully disagreed with me and I'm like, okay, great.

You know we can all have different opinions, but I just want to be clear that my take on this is that hey, this makes sense because it's a manipulated hedge fund play. I think that at the end of the day, this is a play that if you really have a very high risk tolerance and you want to stick it to the hedge funds and you want that potential for a massive squeeze, if retail keeps showing up, then hey, you know what? This is a good point. But I have to tell you that a lot of people at the end of the day whenever this ends are going to end up getting hurt. If you're buying this, make sure you're buying it with money that you can afford to lose.

Make sure that you have a clear intention to be in the position and understand the full situation. You know that's all I can really tell you about that folks that caps off the video. If you have any questions, feel free to reach out to us below. Let me know what you think about Amc down below as well.

Make sure to add me on Twitter at Zip Charlie. If you'd like to learn how to trade, I'll put a link to Ziptreat or you below. Battlefield 75 will get you 75 off. You can go and look on the website to see a breakdown of what we offer.

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