AMC Entertainment (AMC) - Get Report shares soared past $70 Wednesday, hitting a new all-time high that worth the planet's biggest movie theater chain at greater than $30 billion, since the newest'meme stock' trend continues to grip Wall Street.
TheStreet's creator, Jim Cramer, nonetheless thinks the stock is now nicely into'overvalued' territory, having climbed more than 2,200percent so far this season at the face of intensifying competition in the home streaming market and the effect of COIVD-triggered restrictions on public gatherings across the world.
"AMC is intriguing, but at $22 billion, with 300 million shares traded from a float of 500 million, it's obvious this can be a stock where the sellers have just had to move away," Cramer told CNBC's Tech Check program. "The meme individuals have two stocks, they have GameStop (GME) - Buy Report plus they've AMC, and they have nothing else "
"They are bent on some sort of competition to ruin the shorts and anyone who says its overvalued is instantly a target, but I do not care," he added.
AMC stocks were pronounced 92.6% higher in mid afternoon trading Wednesday to change hands at $61.70 per year, before being chased from the New York Stock Exchange.
Short interest in AMC stays elevated, however, with current data from Ortex demonstrating bets against the team amounting to around 18 percent of the shares outstanding.
Short positions held as the start of the year, S3 noted, could have theoretically suffered almost $6 billion in mark-to-market losses. AMC short sellers, Ortex noted, lost around $1 billion yesterday as the stock rocketed 22.8percent as hedge fund Muckrick Capital Management flipped an 8.5 million equity stake worth $230.5 million.
"He's growing the company and has shares he can offer to purchase any theatre chain in the world and I think he is going to do that."
Before Wednesday, AMC said it will establish a initiative known as"AMC Investor Connect", a portal site that will allow the its 3.2 million retail investors to'self-identify' as stockholders and get what the company calls'special offers' and updates.
Last month, AMC said its largest institutional investor, he China-based Wanda Group, had sold its stake in the group"through regular open market trading into a widely dispersed array of buyers on the New York Stock Exchange" and that two of its directors -- John Zeng and Lincoln Zhang -- could resign their seats on the board during the next 30 days.
AMC added that no single entity having an ownership stake of more than 10%.