Chanos Trolls Meme-Stock Traders, Calls Them “Greedy” And “Entitled”

Chanos Trolls Meme-Stock Traders, Calls Them “Greedy” And “Entitled”

One of the world’s most well-known short-sellers, Jim Chanos, tweeted Thursday that meme-stock traders are immature and greedy. Chanos has spent the summer trolling “AMC SuperApes” on Twitter for their outlandish statements about the zombie movie theater company. 

The veteran short-seller boss of Kynikos Associates tweeted from his WallStCynic account that “$GME is up 780% and $AMC is up 1,470% this year. $AMC has tripled in the past three months.” 

“This is not outrage, it is greed,” Chanos said. “The newest generation of the entitled retail newest generation of entitled retail investors must win all the time, or they cry and blame them.” His tweet quoted another Twitter user who called out hedge funds for rigging markets. 

This is not the first time Chanos has mocked meme-stock traders. He routinely points out “AMC SuperApes” and says, “Gotta love the apes that whine about HF’s shorting companies for spite.” 

$AMC SuperApe is confused about how FTD’s could drop with declining trading volume in the stock. More evolution needed.

— Diogenes (@WallStCynic) August 2, 2021

He calls out others on Twitter who make insanely optimistic forecasts for AMC.  

A King of Business “fights” passionately for a $50 trillion valuation on $AMC. This is larger than the current $47 trillion valuation of the entire US stock market. Surprisingly, His Royal Highness(#58) also likes $GME and $TSLA.

— Diogenes (@WallStCynic) July 16, 2021

Newer Rule: Don’t take relative value advice from someone named Truffle. $AMC

— Diogenes (@WallStCynic) July 16, 2021

Besides trolling meme-stock traders, Chanos does what he does best and provides a dose of reality for anyone who listens: 

“What is much crazier now is that the concept and fraud-y stocks are 5-10x the market cap today, than in early-2000. And burning much more cash now. Also, no crypto/housing speculation in 1999-2000. Finally, there were no $20-30B “short-squeeze” plays then.” 

Chanos has also been critical of Tesla. In December, Kynikos trimmed its 5% short position in Tesla to a smaller size, even though Chanos still “takes issue” with its business model and valuation.

He believes that the Federal Reserve’s policies of opening up the spigot of liquidity have produced a “golden age of fraud.”

Chanos trolling meme-stock traders is very suggestive that he’s frustrated retail mania has yet to end.  

JPMorgan quant Nick Panigirtzoglou told clients this week that retail monthly net flow for July increased to a new record high of $15bn, surpassing the previous record high of $10bn in June by 50%.

There’s no telling how long the meme party will last as long as the Fed provides liquidity. Hawks like Chanos are circling above, waiting for the moment the party ends to make a move. 

Tyler Durden
Fri, 08/06/2021 – 14:43

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