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Will AMC Entertainment (AMC) Be On Your List Of Penny Stocks In 2022?

Will AMC stock become a penny stock in 2022?
The post Will AMC Entertainment (AMC) Be On Your List Of Penny Stocks In 2022? appeared first on Penny Stocks…

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What Are Penny Stocks?

The definition of the term penny stock is one trading for less than $5. Low prices are one of the biggest attractions when finding top penny stocks to buy. Whether the companies are start-ups or have fallen on hard times, there is plenty of reason that a company might see its shares trading at lower levels. The interesting part that some forget is that stocks under $5 aren’t nameless companies either.

Look at one of the most notable banks in the world, Credit Suisse (NYSE: CS). Earlier this year, CS stock was trading above $10. Fast-forward to the first week of October 2022, and share prices have imploded to lows of $3.70. Why is Credit Suisse stock down? Over the weekend, details emerged that the Swiss bank group tried to calm fears regarding its health. The event brought about jitters of a 2008 scenario and the breakdown of the financial system sending shares to all-time lows.

While drops like this don’t happen overnight, they show that penny stocks are more than just early-stage companies. You can view more popular brands that have become penny stocks in the article 10 Top Penny Stocks To Buy Under $5 That Are Household Names.

Best Penny Stocks To Buy

In some cases, even the cheapest stocks can go on to become market heavyweights. We saw it during the pandemic when Novavax (NASDAQ: NVAX) rallied from under $5 to over $300. Who could forget the epic rally that GameStop (NYSE: GME) had from under $3 to over $400 (split-adjusted to $120 now)? But thanks to the stock market crash in 2022, we’re not only seeing well-known companies drop. We’re also seeing former penny stocks revisit their roots.

Over the last few months, we’ve compiled articles discussing several companies that could be at risk of becoming penny stocks, including:

Interestingly, many have hit penny stock levels in recent weeks. With earnings season beginning, more economic data coming out, and a stock market sell-off in full force, some are wondering which company will come within striking distance of $5 next. Today we dive in and see why some traders ask, Will AMC Entertainment Holdings, Inc. (NYSE: AMC) Be On Your List Of Penny Stocks In 2022?

Will AMC Stock Join The List Of Penny Stocks?

There’s no shortage of interest in AMC stock, especially among retail traders. Reddit, Fintwit, and your average retail trader have likely heard about this entertainment company’s trading history.

Gamestop and AMC were the forerunners of the Ape movement thanks to their epic short squeezes. At one point in 2021, shares of the movie theatre stock traded as low as $1.91. They would ultimately rise to highs of $72.62 for a move of over 3,700% within a few months.

I won’t give you the entire history lesson on meme stocks or the Ape movement. But I will say that no matter what has happened since reaching those record highs, thousands of investors remain fixated on AMC. Meanwhile, the share price has steadily declined, even reaching fresh 52-week lows in the stock market today. Now that AMC stock is sitting around the $6.60 level, it’s less than $2 away from tapping that $5 penny stock threshold.

Last week AMC Entertainment announced entry into an equity distribution deal. It may offer up to 425 million of its AMC Preferred Equity Units. These units, also trading as APE stock, have completely died off since making their public debut in August. It reached a high of over $10 but sits well below $3 at the time this article was written.

AMC Stock Forecast

Considering the landscape for AMC stock, some may wonder what Wall Street thinks right now. Are analysts still bullish in the face of a 2022 stock market crash, are they leaning bearish heading into earnings, or are they hopeful with more optimistic expectations for the future of the stock? Here is what some firms see heading into the fourth quarter:

  • Wedbush AMC Stock Forecast: Underperform rating, $1 price target
  • MKM Partners AMC Stock Forecast: Sell, $0.50 price target
  • Goldman Sachs Group AMC Stock Forecast: Neutral, $8.50 price target
  • Citigroup AMC Stock Forecast: Sell, $1.25 price target
  • B. Riley AMC Stock Forecast: Neutral, $2.75 price target

Among analysts, Goldman holds the most bullish price target on the former penny stock. Meanwhile, among the rest of the firms covering the company, the average price target for AMC stock is about $1.38.

Wedbush analyst Alicia Reese raised skepticism when APE shares were issued. “It was a nice way to get around their investors, who weren’t going to let them issue more shares to raise more cash. But investors understand that. Adam Aron does a great job marketing to them, but it was tough sell to sell that as gift.”

penny stocks to buy AMC Entertainment AMC stock chart

Is AMC Stock A Buy?

No analyst has given a Buy rating or equivalent to AMC stock thus far. With a muted tone in the stock market today, some are less concerned about the company’s long-term prospects and more focused on short-term trends. Whatever happens in the future with AMC or APE, these stocks have gained appeal for their dynamic in the stock market.

Yes, the overall trend in AMC stock is bearish. Shares are now trading 90% lower than they traded at the height of the 2021 breakout. Even with that as the case, daily trends continue prompting attention for high volatility traders, including “the Apes.”

One of the points of interest is AMC’s short interest. Outlets including Fintel.IO and TDAmeritrade put this figure somewhere around 19.4%. It isn’t the highest short float percentage out there right now. But it is something that traders have sunk their teeth into as a reason to keep AMC stock on their watch list.

But will AMC stock actually become a penny stock in 2022? Whether it’s investing in gold mining companies, issuing a new series of shares, or something else, AMC has the attention of retail traders in the stock market today.  Looking at the forecast, only one analyst has pegged the stock in the $5+ territory. As Wedbush’s analyst suggested, however, dilution could become a sticking point for AMC Entertainment. If this is on your watch list right now, leave a comment about your outlook for the company and if you think it will become a penny stock or not in 2022.

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The post Will AMC Entertainment (AMC) Be On Your List Of Penny Stocks In 2022? appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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Spread & Containment

Another beloved brewery files Chapter 11 bankruptcy

The beer industry has been devastated by covid, changing tastes, and maybe fallout from the Bud Light scandal.

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Before the covid pandemic, craft beer was having a moment. Most cities had multiple breweries and taprooms with some having so many that people put together the brewery version of a pub crawl.

It was a period where beer snobbery ruled the day and it was not uncommon to hear bar patrons discuss the makeup of the beer the beer they were drinking. This boom period always seemed destined for failure, or at least a retraction as many markets seemed to have more craft breweries than they could support.

Related: Fast-food chain closes more stores after Chapter 11 bankruptcy

The pandemic, however, hastened that downfall. Many of these local and regional craft breweries counted on in-person sales to drive their business. 

And while many had local and regional distribution, selling through a third party comes with much lower margins. Direct sales drove their business and the pandemic forced many breweries to shut down their taprooms during the period where social distancing rules were in effect.

During those months the breweries still had rent and employees to pay while little money was coming in. That led to a number of popular beermakers including San Francisco's nationally-known Anchor Brewing as well as many regional favorites including Chicago’s Metropolitan Brewing, New Jersey’s Flying Fish, Denver’s Joyride Brewing, Tampa’s Zydeco Brew Werks, and Cleveland’s Terrestrial Brewing filing bankruptcy.

Some of these brands hope to survive, but others, including Anchor Brewing, fell into Chapter 7 liquidation. Now, another domino has fallen as a popular regional brewery has filed for Chapter 11 bankruptcy protection.

Overall beer sales have fallen.

Image source: Shutterstock

Covid is not the only reason for brewery bankruptcies

While covid deserves some of the blame for brewery failures, it's not the only reason why so many have filed for bankruptcy protection. Overall beer sales have fallen driven by younger people embracing non-alcoholic cocktails, and the rise in popularity of non-beer alcoholic offerings,

Beer sales have fallen to their lowest levels since 1999 and some industry analysts

"Sales declined by more than 5% in the first nine months of the year, dragged down not only by the backlash and boycotts against Anheuser-Busch-owned Bud Light but the changing habits of younger drinkers," according to data from Beer Marketer’s Insights published by the New York Post.

Bud Light parent Anheuser Busch InBev (BUD) faced massive boycotts after it partnered with transgender social media influencer Dylan Mulvaney. It was a very small partnership but it led to a right-wing backlash spurred on by Kid Rock, who posted a video on social media where he chastised the company before shooting up cases of Bud Light with an automatic weapon.

Another brewery files Chapter 11 bankruptcy

Gizmo Brew Works, which does business under the name Roth Brewing Company LLC, filed for Chapter 11 bankruptcy protection on March 8. In its filing, the company checked the box that indicates that its debts are less than $7.5 million and it chooses to proceed under Subchapter V of Chapter 11. 

"Both small business and subchapter V cases are treated differently than a traditional chapter 11 case primarily due to accelerated deadlines and the speed with which the plan is confirmed," USCourts.gov explained. 

Roth Brewing/Gizmo Brew Works shared that it has 50-99 creditors and assets $100,000 and $500,000. The filing noted that the company does expect to have funds available for unsecured creditors. 

The popular brewery operates three taprooms and sells its beer to go at those locations.

"Join us at Gizmo Brew Works Craft Brewery and Taprooms located in Raleigh, Durham, and Chapel Hill, North Carolina. Find us for entertainment, live music, food trucks, beer specials, and most importantly, great-tasting craft beer by Gizmo Brew Works," the company shared on its website.

The company estimates that it has between $1 and $10 million in liabilities (a broad range as the bankruptcy form does not provide a space to be more specific).

Gizmo Brew Works/Roth Brewing did not share a reorganization or funding plan in its bankruptcy filing. An email request for comment sent through the company's contact page was not immediately returned.

 

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