Get Shorty! The New Big Squeeze Market is Here (NYSE: FUBO) (OTC US: AXXA) (NYSE: AMC)
February 02, 2021 at 08:53 AM EST
The number one consideration in the stock market over the past two weeks is a single factor: short interest. The genesis of this fixation is the GameStop (NYSE: GME) launch that really took hold last week and continues to drive the lion’s share of major financial media coverage of the financial world.
As traders feast on the volatility inspired by the first wave of connected breakouts, the hunt is on for the next wave.
With that in mind, we take a look at some of the most-shorted promising names out there right now, including: Fubotv Inc. (NYSE: FUBO), Exxe Group Inc. (OTC US: AXXA), and AMC Entertainment Holdings Inc. (NYSE: AMC).
Fubotv Inc. (NYSE: FUBO) has been in the sights of prominent shorts. The company frames itself as the leading sports-first live TV streaming platform offering subscribers access to tens of thousands of live sporting events annually as well as leading news and entertainment content. With FuboTV, subscribers can stream a broad mix of 100+ live TV channels, including 42 of the top 50 Nielsen-ranked networks across sports, news and entertainment – more than any other live TV streaming platform.
FuboTV was the first virtual MVPD to stream in 4K. FuboTV was also the first U.S. virtual MVPD to enter Europe with the 2018 launch of fuboTV España. FuboTV launched fubo Sports Network, the live, free-to-consumer TV network featuring live sports and award-winning original programming, in 2019.
Fubotv Inc. (NYSE: FUBO) recently announced the pricing of $350 million aggregate principal amount of 3.25% convertible senior notes due 2026 in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.
According to the release, the offering is expected to close on February 2, 2021, subject to customary closing conditions. fuboTV also granted the initial purchaser a 13-day option to purchase up to an additional $52.5 million aggregate principal amount of notes.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. FUBO shares have been moving higher over the past week overall, pushing about 28% to the upside on above average trading volume.
Fubotv Inc. (NYSE: FUBO) pulled in sales of $61M in its last reported quarterly financials. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($38.9M against $247.1M, respectively).
Exxe Group Inc. (OTC US: AXXA) is another member of the wildly overshorted stock family in the market right now, and may be ripe for some market insurrection, whether through the Reddit-bro’s revolution or elsewhere. The stock has seen over 50% of its transactions coming from shorts each and every day for the past 10 sessions. The shorts are camping out here, and it might take just a spark to “Gamestop” this stock.
The company frames itself as a diversified corporation focusing on acquisitions in the following sectors: real estate, sustainable and digital technology, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance – accelerating their growth by providing both access to capital and management expertise.
Exxe Group Inc. (OTC US: AXXA) most recently reported last quarter earnings, where it generated $8.2M gross revenues in 2Q2021 surpassing the $7.7M record set in 1Q2021; a 5% sequential Quarter-over-Quarter growth. According to the release, compared to the same period last year, 2Q revenue increased 211% from $2,619,576, while net income was $1,249,894 against a $(831,911) loss.
Eduard Nazmiev, Ph.D., CEO and President of Exxe Group commented: “I am pleased to report $15.9M revenues in 1H2021 compared to $15.3M booked in AXXA’s entire FY-2020. AXXA reaffirms its $30.8 million FY-2021 revenue target.”
The stock has suffered a bit of late, with shares of AXXA taking a hit in recent action, down about -36% over the past week. But the larger trend is to the upside, with shares advancing over 150% since the start of the year.
Exxe Group Inc. (OTC US: AXXA) pulled in sales of $8.2M in its last reported quarterly financials, representing top line growth of 211.3%. That growth stands out given the attack over recent weeks by exposed shorts.
AMC Entertainment Holdings Inc. (NYSE: AMC) is tagging along with GME, BBBY, GSX, BB and other names wrapped up in the most-shorted Reddit-Bro rally. The company trumpets itself as the largest movie exhibition company in the United States, the largest in Europe and the Middle East, and the largest throughout the world, with approximately 1,000 theatres and 10,700 screens across the globe.
AMC has propelled innovation in the exhibition industry by deploying its Signature power-recliner seats, delivering enhanced food and beverage choices, generating greater guest engagement through its loyalty and subscription programs, website, and mobile apps, offering premium large format experiences, and playing a wide variety of content, including the latest Hollywood releases and independent programming.
AMC Entertainment Holdings Inc. (NYSE: AMC) most recently announced that since December 14, 2020, it has successfully raised or signed commitment letters to receive $917 million of new equity and debt capital. This increased liquidity should allow the company to make it through this dark coronavirus-impacted winter.
According to the company’s release, of this $917 million in much-welcomed monies, AMC has raised $506 million of equity, from the issuance of 164.7 million new common shares, along with the previously announced securing of $100 million of additional first-lien debt and the concurrent issuance of 22 million new common shares to convert $100 million of second-lien debt into equity.
If you’re long this stock, then you’re liking how the stock has responded of late. AMC shares have been moving higher over the past week overall, pushing about 201% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 527% in that time on strong overall action.
AMC Entertainment Holdings Inc. (NYSE: AMC) managed to rope in revenues totaling $119.5M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -90.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($428.8M against $1.6B, respectively).
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