AMC Goes for Gold

[The Daily Setup] ADVERTISEMENT March 16, 2022 Good morning traders, Welcome back to The Daily Setup. Markets were up yesterday, but today will be interesting with the J-Pow’s likely rate hike announcement. Here’s what’s on the docket today: - Akanda gets high - Starbucks wants to charge your EV - AMC invested in *checks notes* a gold mine Let’s get after it today. Nick How'd the markets look? Market Outlook [Market Outlook] Akanda, Starbucks, and Intel Biggest Mover Akanda Forever [Activision Blizzard, Inc. ]( Shares of Akanda Corp (AKAN) debuted on the Nasdaq Tuesday and finished the day higher than your favorite budtender. The medical cannabis company brought in [$16M with an IPO of 4M shares]( and listed at the lower end of its price range at $4/share. The stock opened trading at $30, pushed up to $31, but trended lower for the remainder of the session. When it was all said and done, $AKAN closed the day at $10.50, up [162.50%]( from its listing price, despite being up over 350% at one point. - The company said that [initial proceeds will be used]( for property, plant, equipment, and general corporate purposes. - Akanda’s cultivation facilities are located in the Kingdom of Lesotho in Africa, and the company’s goal is to connect their products from these facilities with patients in the U.K. and throughout Europe. - [CEO of Akanda, Tej Virk, said](, "Now, with new capital and increasing patient access across the UK and Europe, we believe Akanda is well-positioned to continue on its mission of helping people lead better lives through high-quality and affordable products.” - With cultivation facilities in Africa, this company should be named Wakanda and offer a super potent strain of cannabis called Black Panther. While yesterday’s wild ride certainly is interesting, let's take a second to temper our expectations here. Its IPO price range was in penny stock territory and while everything looks good so far, there’s also a possibility that it could play out like other low priced, highly volatile IPOs. $TKLF, for example, listed at $4 (hmmm), gained 700% in its debut (ok, halfway there), and less than two months later is trading 950% [lower than its IPO price](. With more regulation of cannabis will come greater profitability for these companies, but until then, cannabis investments appear to be a longer term play. A Cup of Joe & Charge for My Volvo [Cycling Downhill] Starbucks ([SBUX]() and Volvo ([STO:VOLV-B]() announced a partnership Tuesday on a pilot program to determine the feasibility of installing ChargePoint ([CHPT]() DC fast chargers at Starbucks chains throughout the country. [Volvo will start by installing]( up to sixty such chargers at as many as “15 Starbucks locations along a 1,350-mile route from the Denver area to the coffee company’s Seattle headquarters.” Starbucks and ChargePoint stocks finished Tuesday’s trading session in the green, up 4.83% and 3.68% respectively. Volvo, which trades on the Stockholm Stock Exchange finished their trading session down 0.98%. - The chargers, which ChargePoint models, will be fully installed by the end of 2022. The [fastest of the models]( will be “capable of delivering up to 350kW of power. Volvo says it will re-power one of the automaker’s C40 Recharge crossovers from 20 percent to 90 percent in 40 minutes.” - Charging infrastructure throughout the country is patchy at best and partnerships like this one enable companies to test out routes that in the end, will hopefully encourage customers to purchase their EVs. - [According to the Biden administration](, $5B from the infrastructure bill will be put to use to fix the charging problem that many non-Tesla EV users face. I do love the idea of playing a game of “which will be ready faster, my car or my coffee?” As strange as it may seem for a coffee company and car company to partner up, if you go to any mall or major grocery store parking lot, you’ll most likely find a Tesla supercharger, so one of the most popular coffee chains on the planet seems as good of a place as any to install a few more. This ever growing niche sector may be one I’ll keep an eye on. In addition to CHPT, I’ll probably keep a few other EV charging stocks such as Beam Global ([BEEM](), Blink Charging Co. ([BLNK](), and Volta Inc ([VLTA]() on my watchlist. Intel’s Euro spending spree [More like Goldman Sucks] Save money? Nah, we look way cooler throwing it away. Intel said on Tuesday that it plans to pour ~$32B into chip manufacturing in the EU, with roughly $18B of that going to [a “mega fab” factory in Magdeburg](– basically identical to [this $18B one]( coming to Ohio. The plan also involves spending another $13B or so on an existing factory in Ireland. This whole splurge is part of Intel’s efforts to reduce global reliance on Asian chips by making the U.S. produce [30% of the world’s chips]( in the next ten years… just don’t tell them that the EU is not in the US. - A problem with the Magdeburg factory: it won’t actually start producing its advanced two-nanometre microchips until 2027 at the earliest– [two years later than competitors](. That teaches those mfs to sleep on Samsung. - Another issue: the plan is pending approval from European authorities. That matters because many Europeans are unhappy with the 2nm plant, claiming it [doesn’t really serve European industry](– which needs energy efficiency and chips for cars– rather than small low-power semiconductors for devices like phones. Which makes sense, because Intel’s primarily trying to save its own North American-based a*s. Intel’s stock inched up [0.92%]( yesterday. That tempered enthusiasm is probably due to skepticism re: Intel’s enormous spending, especially since the company is clearly no longer at the cutting edge of chip development. This insane ambition smells, just slightly, of desperation. I’m not buying. I’ll hold or sell. ADVERTISEMENT EI. Ventures Invest in The Golden Age of Psychedelics First, it was cannabis. Now, psychedelics are entering their Golden Age. Research has shown the incredible [potential of psychedelic medicines]( to help improve mental health and investment capital is pouring into the industry. The numbers are shocking. Nearly 1 billion people worldwide struggle with mental illness. Of these, 284 million suffer from an anxiety disorder. Rather than relying on expensive pharmaceuticals to solve the problem, nature may already have an answer: plant-based treatments. That’s where [Ei.Ventures]( comes in. As the first Psychedelic Medicine company in the world to qualify for a Reg A+ Tier 2 offering, Ei.Ventures could be your ticket inside this burgeoning industry. Their flagship product [‘Psilly’]( is a Psilocybin-based formulation with natural properties that have the potential to help millions of people who struggle with mental illness, from anxiety and depression, to PTSD or alcohol and nicotine addiction, and more. Be a part of healing the world while potentially capitalizing on a growing market. [Learn more about Ei.Ventures and how to invest]( here. The Reg A+ Pre-IPO Equity Round closes March 22. [INVEST NOW!]( This is an advertisement by a party that is unaffiliated with Raging Bull. Raging Bull does not in any manner recommend or endorse any stock, investment or service that is the subject of this advertisement. Raging Bull has been or will be paid $2,500 in cash indirectly by the issuer EI. Ventures through publisher Ridge GrowthX to run this advertisement and expects to be paid an additional $2,500 in cash indirectly by the issuer through publisher Ridge Growth X each time it runs the advertisement Where’s Putin going to spend his Doge now? Token Talk Didn’t know Japan had such long arms for STUFFING. Following in Uncle Sam’s footsteps, yesterday Japan formally ordered its crypto exchanges [not to process any transactions]( that have either Russia or Belarus as targets. New strategy: exploit Putin’s dark web drug habit to end war? This comes on the heels of last Friday’s [G7 announcement]( wherein Western nations promised to punish Russia for any illicit transactions made using digital assets. - This is happening because many fear that Russia may try to [use cryptocurrencies to circumvent sanctions](. According to Chainalysis, though, [that outcome is unlikely](, both thanks to blockchain transparency and the relatively new and unstable nature of the crypto network. - If anyone is caught, [punishments]( range from a fine of up to 1 million yen ($8,500) to– for exchange executives– up to three years in prison. And a lifetime invitation to a Russian oligarch’s yacht. Decisions, decisions… While one of crypto’s uses is certainly money laundering, it seems like most of its volume is used for other purposes (whatever tf those are), so these restrictions probably won’t devastate cryptocurrencies or exchanges. If anything, a successful effort by Western nations to choke Putin out will probably lead to increased trust in crypto by the world’s wealthiest nations. Stonewalling Russia will probably be good for crypto in the long run, if the exchanges can accept and manage it. AMC’s a gold mine– no, literally Deals and Rumors [Deals and Rumors]( Your favorite memestock, AMC Entertainment Holdings, has, uh… pivoted. In what CEO Adam Aron called a [“bold diversification move,”]( the theater company announced yesterday that it bought a 22% stake in Hycroft Mining Holding, which owns a 71k-acre gold and silver mine in Nevada. AMC paid Hycroft [$27.9M for 23.4M warrants units]( (= shares + common purchase warrants), plus the right to appoint a member to Hycroft’s board. Hycroft’s stock more than doubled during premarket trading but leveled off at a [9.35%]( boost, while AMC’s rose [6.86%]( by markets’ close. - That’s not all. Investor Eric Sprott has matched AMC’s venture with a $27M purchase of his own, giving Hycroft a [whopping $56M]( to work with. - – Which is good, because [Hycroft is in dire straits.]( Since 2013, the company’s sustained a pump-and-dump scheme, changed hands several times, seen its stock fall over 90%, laid off half its employees, and shut down the mine. So it’s going well. - In answer to the obvious question (WHY???), AMC claimed to see Hycroft’s situation like its own last year– bad, but with serious turnaround potential. What AMC neglected to mention was that [movie theaters have really been suffering]( and so it’s probably using its $1.8B memestock windfall to jump ship from that industry. I guess it’s better than panning. Though analysts are surprised across the board, they’re basically neutral on the announcement, probably because a gamble has better odds than a sure decline. But for this to pay off– for AMC to turn the quick profit it’s most likely looking for– the company will have to have guessed correctly that the memestock boom can move into gold. That doesn’t seem all that likely to me, since crypto and gold are competing alt investments and this purchase feels like a pure publicity stunt. I wouldn’t buy– but I will bring popcorn to the show. Link Roundup Other News Other News Link Roundup - Wait Until You See March’s Numbers - February Wholesale Inflation Up 10% YoY ([link]() - Don’t Worry, The LME Has Everything Under Control - London Nickel Trading to Resume Wednesday ([link]() - We’re Doing It For Our Shareholders *wink* - Stock Buybacks on Course for Another Record ([link]() - Hey Fall Back, Go F Yourself! - U.S. Senate Approves Bill to Make Daylight Savings Time Permanent ([link]() - The Volatility Index was too… volatile - Barclays Suspends Issuance of Volatility ETN ([link]() Meme Of The Day Thanks Putin, [via @markjeffrey]( 62 Calef Hwy #233 Lee, New Hampshire 03861 United States Questions or concerns about our products? 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