Wallstreetbets

In the recent market pullback, we have seen ex-SPAC smallcaps take a particular hard hit. One that stands out that looks on the verge of a massive turnaround is Helbiz (HLBZ). HLBZ has dropped from a September high of $41.88 to as low as $2.80 a few days ago. We think that it was manipulated downwards by funds on purpose in order to make a  convertible debenture eligible for a floor reset to $2.50 . Now that this has been done, the funds are ready to push the stock back up to make major money.  Looking at the price history, HLBZ is usually very seldom traded. But on February 2, 22 million shares were traded and the stock rose 25% from $3.06 to $3.82. These pump and dump patterns often see a stock return back to its low price on lower volume in the following days. However, the opposite happened for HLBZ. The stock saw a significant drop off in volume in the two days that followed, but the price actually rose another 5% to $4.03. All of that gain was achieved in the final hour o...

 AMC released preliminary quarterly results yesterday. The highlights include a slight beat on revenue and $216.5 million in operating cash flow generated for the quarter. The stock initially spiked on this great news but has since pulled back to close at $15.42, actually lower than it was before the news.  The same narrative of the shorts is back. That these results weren't good enough, that the company is still going to go bankrupt. There is a data point we can use to understand that this narrative is clearly wrong. Bond pricing.  If AMC was going to go bankrupt, or otherwise do poorly financially, this would be reflected in the bond prices. Bonds are mainly held by institutional investors who won't be tricked into selling like retail shareholders can be. AMC has several sets of bonds. Some of the senior debt is trading above par at very low yields, other bonds are trading at a discount because they are junior to the senior debt. I'm going to focus on three junior bond ...