The Tunji Letter, Edition #50
Save and Invest First || AMC's Stock Surges || Summer Travel Credit Card Mistakes to Avoid
Welcome to the Tunji Letter, Edition #50.
// Quote of the Week
“Do not save what is left after spending but spend what is left after saving.” - Warren Buffet
When it comes to saving money, it should be a priority. Once you have allocated money towards savings, you should then look to allocate money towards investing. Once you have allocated money towards investing, you can then spend your money on whatever you desire. Once you have established your consistent habit of saving and investing your money, you will start to realize that you do not need to spend your money on certain things anymore.
// AMC’s Stock Surges
Over the past month, AMC has surged over 600% from a low of $9.39 to a high of $72.62 in the past month. As of the market close on June 4th, 2021, AMC is at $42.11. What has caused the major surge in the movie theater chain’s stock price? There are two key events.
First, short-sellers started to get squeezed out of their short positions on AMC last week. That means that the short-sellers had to cover their positions by repurchasing shares they had borrowed and sold and return them to their owners. Short sellers are estimated to have lost $4.5 billion, according to data from S3 Partners.
Second, AMC executives have embraced new investors. On Wednesday, the company made a special effort to communicate with the new investors by offering free popcorn and the promise of exclusive movie screening to those that held its stock. Even though on Tuesday AMC had sold 8.5 million newly issued shares to Mudrick Capital, which then turned around and sold the shares for a profit, a massive sell-off did not occur. AMC was able to raise $230.5 million from the newly issued shares.
Retail investors inspired by Subreddit wallstreetbets deserve credit for the major push in AMC’s stock price, but it would not be right to state that there are no institutions in the mix that contributed to the massive gain in stock price. Will AMC sustain its newly achieved stock price, or will investors continue to take more profit, causing it to fall even more? We will have to wait and see.
// Summer Travel Credit Card Mistakes to Avoid
If you are traveling this summer, the following are two key credit card mistakes you want to avoid: booking flights or hotels on the wrong credit card and not capitalizing on sign-up bonuses.
When it comes to booking flights or hotels, you want to make sure you use the credit card that contains the rewards points you want to use. That may seem quite simple, but it is a mistake that can occur.
Not capitalizing on sign-up bonuses is a mistake you want to avoid, especially if you purposely got a credit card earlier this year to utilize its sign-up bonus to reduce your cost of travel. Saving money is always great, so in making sure you earn and utilize your sign-up bonus, you are not leaving any savings wasted.
If you are still in the process of considering a travel credit card to get for the summer, check out my article 3 No Annual Fee Travel Credit Cards to Know About for Summer 2021. Yes, there are travel cards without annual fees that offer great benefits to those that do not want annual fees.
// Latest Articles
Check out my latest articles:
· A Website That Further Simplifies Long Term Investing
· 2 Quick Points to Simplify Expense Ratios
· 2 Reasons Why You Should Consider Dollar-Cost Averaging
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Thank you for reading!
Tunji
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