Meme stocks like Nokia (NOK), Blackberry (BB), Naked Brands (NAKD) and Workhorse (WKHS) are surging to new highs as the reddit frenzy continues.
NOK shares currently saw a high of $5.67, with BB at a high of $20, NAKD at a high of $0.96 and WKHS at a high of $17.
These stocks surge after AMC Entertainment (AMC) CEO decided to file and sell shares causing AMC stock to decline in price.
On Wednesday, the company announced a new shareholder platform that will offer investors perks at actual movie theaters, including free popcorn. As we know, a company’s stock is its currency and AMC is currently using a sharp rise in the value of this currency to improve its actual business.
In general, selling stock is something companies would rather not do as it punishes existing shareholders by reducing their ownership stake. By doing nothing but watching the internet get interested in AMC memes, however, the company can now raise an additional $575 million and inflict no more pain on existing shareholders than it would have in early May. For a management team, this move is a no-brainer. The market is basically begging you to issue more stock at these prices.
And this shrewd move from AMC to sell stock into a wild market and then list caveat after caveat offers a clear blueprint to the teams over at companies like Bed, Bath & Beyond (BBBY), Express (EXPR), and BlackBerry, all of which saw their share price rise more than 30% on Wednesday.