5 Stocks Reddit’s WallStreetBets is Buying in July 2021

2. AMC Entertainment Holdings, Inc. (NYSE: AMC)

Number of hedge fund holders: 19  

AMC Entertainment Holdings, Inc. (NYSE: AMC) is placed second on our list of 10 stocks Reddit’s WallStreetBets is buying in July 2021. The stock has offered investors returns exceeding 1,072% over the course of the past year. The company operates a movie theatre chain spread all over the globe. On July 2, the share price of the firm plunged by more than 10% after a new short bet against the firm was revealed by Iceberg Research. 

On July 6, AMC Entertainment Holdings, Inc. (NYSE: AMC) announced that it would not be increasing share count by up to 25 million. The announcement was made through a filing with the United States Securities and Exchange Commission. 

At the end of the first quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $34 million in AMC Entertainment Holdings, Inc. (NYSE: AMC), up from 16 in the preceding quarter worth $24 million. 

In its Q4 2020 investor letter, Mittleman Investment Management LLC, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE: AMC) was one of them. Here is what the fund said:

“AMC Entertainment (AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”