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Todd Gordon Weighs In On AMC, GameStop And Support: Only Suitable For Very Nimble Traders

On CNBC's "Power Lunch," Todd Gordon of Inside Edge Capital Management said he doesn't own AMC Entertainment Holdings Inc (NYSE: AMC) and he won't inve

Benzinga · 09/01/2021 18:15

On CNBC's "Power Lunch," Todd Gordon of Inside Edge Capital Management said he doesn't own AMC Entertainment Holdings Inc (NYSE:AMC) and he won't invest in it. He finds it very scary and he thinks investors should not play with it. It's only suitable for very nimble traders.

The company raised money, but it diluted the stock and the short interest has declined from 75% to only 16% since early 2020. Traders who want to trade it should use options, said Gordon.

See Also: Could Support.com, Vinco Ventures See GameStop-, AMC-Style Short Squeeze?

GameStop Corp. (NYSE:GME) is a little bit better than AMC because there is some value in the company, said Gordon. He doesn't know how the company is going to reinvent itself in terms of competitive online retail. The huge short interest that moved the stock higher has declined to only 17%, so the stock needs new longs. Gordon is not bullish on the name, but he thinks a potential return to the S&P 500 could give it a boost. He wouldn't hold the stock.

Support.com, Inc. (NASDAQ:SPRT) has turned into a Bitcoin play, said Gordon. The short interest in the name is massive as two-thirds of the float is short, so there might be more short squeeze juice there. Like AMC and GameStop, Support.com is also not investible, believes Gordon.

Photo: Clay Banks / Unsplash