Three Distinct Management Responses to the Surge of Short Squeezes: A Tale of Irresponsibility, Pragmatism, and Self-Interest！
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In the context of the past few years of overflowing liquidity, we can observe three types of management teams within the short squeeze targets:![]()
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1. The first category is the irresponsible ones, such as Bed Bath & Beyond (BBBY), which saw its stock price soar from $3 per share to $27 per share during a short squeeze. However, the management team did not take any responsibility; they continued with their path towards bankruptcy protection, leading to a sharp decline in stock prices.
2. The second category consists of responsible professional managers, such as AMC Entertainment (AMC). When the stock price was driven up, they opted for additional share issuance to delay the company's bankruptcy timeline. Without Adam Aron's leadership, AMC's equity would now be worthless.
3. The third category is the self-interested major shareholders, such as Carvana (CVNA). Despite high valuations, they did not opt for additional share issuance, claiming that "we want to leverage our own generated cash flow to deleverage" (although the free cash flow is still essentially non-existent). Meanwhile, these major shareholders sell tens of millions of dollars' worth of stock every few days to the bulls.
$AMC Entertainment(AMC.US$ $S&P 500 Index(.SPX.US$ $NASDAQ 100 Index(.NDX.US$ $Carvana(CVNA.US$
$AMC Entertainment(AMC.US$ $S&P 500 Index(.SPX.US$ $NASDAQ 100 Index(.NDX.US$ $Carvana(CVNA.US$
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