After announcing that it was launching an 11.55 million "at the market" stock offering this morning, the stock - as if in disbelief - was initially reluctant to drop. Eventually, however, the reality hit and shortly after the close, AMC stock plunged 20% leading to an immediate halt, after which it was halted again, when it tumbled another 10%, bringing its full day drop to 30%.
AMC wasn't alone, and as it cratered, old school retail-trader favorites including Gamestop, Bed Bath & Beyond and Koss all tumbled after surging in the previous session as the meme stock rally shows signs of fading: at last check Bed Bath was down 21% with Koss down 20% and GME down 7%.
Yet not everything was gloomy in short squeeze land.
As readers surely recall, yesterday we said "Step Aside AMC: Here Are The Most Shorted Stocks Right Now" and listed the new batch of most shorted names which included such names as Workhorse and GTT communications.
Fast forward to today when WKHS, the new most shorted name in the Russell 2000, has exploded 40% higher...
... but it is the third name on the list, the microcap GTT Communications, which we urged readers (and especially subs in our private twitter feed) to pay close attention to, that has nearly doubled today after soaring yesterday, and was last trading at $4.65 after trading just $1.50 at the time of our post.
So to those who heeded our advice, which as a reminder, was the following, "If the performance of our previous most shorted index is any indication, going long a market cap-weighted basket of these names - and especially the smaller, less liquid ones - could turn out to be the trade of the year, if not a lifetime", congratulations: the new most shorted basket is already soaring.
... which is more than we can say about the market where things are deteriorating rapidly...
... as bond yields soar after today's shocking beat in the ADP and subsequent strong Service PMI and ISM prints.