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May 30, 2022- by Steven E. Greer
Top Gun 2 Was a huge box office success. Earning $151 million, it was Tom Cruz’s best film ever. This is what I predicted two years ago when it caused me to buy AMC stock. It is actually an interesting story.
Back in 2021, I was looking for stocks that would do well when the COVID lockdowns were over. I thought for sure that they would end as soon as Joe Biden took office. I knew that the theaters had been beaten up and that a few blockbuster films were on the way. Top Gun 2 was one of them.
I bought AMC stock for fundamental reasons. It was $2.9 on January 31 when I first bought it. I purchased more at $4.5, and more again at $8.8. On March 19, I bought more still at $14. I then sold my shares thinking I had done well by more getting several hundred-percent ROI.
Well, I was wrong. The next day, the Reddit meme-stock phenomenon happened with GameStop, AMC, and others that were heavily shorted getting massive short squeezes as daytraders destroyed the hedge funds that were short. AMC went up 500% from where I sold it. After I first bought at $2.9, AMC peaked at $62, or more than 2000% higher.
When the stock came down from the squeeze, I traded some more and doubled my money again. But I am still upset that I missed that Reddit meme-stock spike. I left $3 million on the table.
Looking back, my fundamental thesis for getting into AMC was right. It was just timed incorrectly.
Top Gun 2 and other big movies were postponed an entire year. The COVID lockdowns did not ended after Biden took over. Nevertheless, I was right on the catalyst. People did start to go back to theaters in 2021 and Top Gun was eventually a hit.
Greer knows. Greer always knows.