Mall-based retailers Express Inc. and Build-a-Bear Workshop Inc. were among day-trader favorites to soar Wednesday after reporting fourth-quarter results. The look under the hood at financials for both companies gave investors a fundamental reason to dive into the stocks, which had generally been riding optimism from amateur traders looking to strike it rich.
Express surged as much as 46 per cent to US$4.95 while Build-a-Bear rallied 23 per cent to US$8.80. The strength across Reddit plays leaked over to companies such as AMC Entertainment Holdings Inc., which is set to report results this evening.
The speculative rallies for companies being touted on social media platforms like Twitter and Reddit have come alongside the gamification of investing and a surplus of consumers looking for entertainment during the pandemic. While Wall Street has warned the swings come without respect to stock fundamentals, the flow of earnings reports may give investors something to tether their bets to. Read more…..
Chart of the Day
Today we do a full tutorial on how investors like Warren Buffett, Benjamin Graham, Charlie Munger, Seth Klarman, Peter Lynch and Mohnish Pabrai calculate the intrinsic value of a stock. Specifically, we look at the Discounted Cash Flow Analysis to see what we should be paying for the businesses we invest in.