June 3rd, 2021 | 08:56 CEST
GameStop, AMC, Bitcoin Group, Triumph Gold - Chaos is the order of the day!
Now the stock market must show how much steam is still in the boiler. Again, the DAX could mark a new ATH the day before yesterday; it was at 15,687 points. Here the air was then somewhat thin, and the afternoon brought a correction to below 15,600 points. The investment community has taken a rest here for the time being. The volatility as a fluctuation indicator even came back strongly in the last few days but then fell back below 20. This indicator shows that the need for hedging is probably dwindling, i.e. the interest of the investment community is instead directed upwards. Some stocks are worth keeping on the radar.
time to read: 3 minutes
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Author:
André Will-Laudien
ISIN:
US36467W1099 , US00165C1045 , DE000A1TNV91 , CA8968121043
Table of contents:
Author
André Will-Laudien
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
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GameStop and AMC - The second squeeze-wave is underway
Whether Reddit or other platforms - the madhouse is perfect. While analysts warn of the overvaluation of the titles GameStop and AMC Entertainment, the traders, fueled by social media amounts, continue to buy blithely. Again, this leads to significant premiums for both stocks and, at the same time, triggers further short of hedge funds. Earlier this year, an angry mob of amateur investors tried to bring hedge fund Melvin Capital to the brink of bankruptcy. Big investors ultimately had to bail out the hedge fund - but even a bust would have been nothing out of the ordinary for the stock market, with liquidity at an all-time high.
GameStop has risen again by 80% in the last two weeks; the cinema operator AMC even brought it to over 200% plus. Pending losses from short-sellers have recently added up to more than USD 9 billion. The clock can therefore be set according to when the next hedge fund bankruptcy threatens. Whether long investors will have their fun with the two stocks is also not clear because, from a purely analytical point of view, both stocks are highly overpriced. According to an executive at analytics firm S3 Partners, AMC's short sellers have increased their exposure by about 3 million shares in the last month. In contrast, GameStop's short sellers have slowly unwound their positions over the same period. About one-fifth of the shares available for trading in each of the companies remain short. Exciting.
Bitcoin Group - Staring down the line
Cryptocurrencies are slowly calming down after bitcoin corrected more than 50% from the top. Now the comments of market participants hold the balance. Only sporadically, price targets above USD 50,000 are still mentioned. Of course, there are also the prophets who continue to conjure up a rapid rise.
One of them is Mark Yusko, the CEO of Morgan Creek Capital. He sees even more potential for the No. 1 cryptocurrency after the correction than ever before. He boldly predicts a price of USD 250,000 per BTC within the next 4 to 5 years. Bitcoin, in his opinion, will relentlessly chase the monetary value of gold (currently around USD 4 trillion) and soon reach a capitalization of USD 5 to 7 trillion.
Bitcoin Group's stock is a profit driver of the whole digital currency revolution. As an investment company and trading platform, the Company benefits from both the processes and the general market development of the entire asset class. The Bitcoin Group share price has settled at around EUR 40 after a 50% crash. Currently, investors are staring at the line because it will certainly go up again with the next BTC rally.
Triumph Gold - A good opportunity in the Yukon
Those who doubt the value of cryptocurrencies should turn more to gold. Here, there was most recently a chart breakout above USD 1,830. Now the USD 2,000 mark is in the picture. Parallel to this, silver and platinum are also running upwards.
It has recently become somewhat quieter around the share of Triumph Gold Corp, formerly known as Northern Freegold Resources Ltd. But since one week the value increased without warning a good 25%. I wonder if some are already suspecting the next gold find. Triumph is a Canadian-based explorer focused on a few properties in the Yukon Territory. The flagship project hosts three world-class mineral deposits in the extensive section of the Big Creek fault zone.
Newmont is a well-known shareholder of Triumph Gold and operates its Coffee Creek project in the immediate vicinity. The existing infrastructure also benefits both companies. In 2021, Triumph secured the Big Creek property, which is expected to host gold and industrially recoverable copper. Drilling is currently underway in both areas, and the potential of the Dawson Range copper-gold district has already been historically proven. As a result, we expect timely surprises.
Triumph's stock has a current capitalization of just under CAD 30 million at a price of CAD 0.21 per share. Triumph Gold is a very promising addition given high inflation figures and rising precious metal prices.
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