Meme traders are addicted to scouring Reddit, Discord, and WhatsApp for undervalued, easily manipulated stocks.
First, GameStop and AMC led the charge in 2021, tapping into a whole base of new investors.
Next, investors flocked to Bed Bath & Beyond after the news broke Ryan Cohen owned a significant stake in the company, sending the stock soaring 300% in 17 days, which then fell sharply in the days that followed after documents revealed the activist investor had sold his entire stake.
Now attention has shifted to a stock that’s down 90% year-to-date but is up 150% over the past month.
Continue reading: Kevin O’Leary Welcomes Activists’ Holdings in Wix Stock: “You’re Preventing Idiot Management From Making Stupid Mistakes”
What happened: Avaya Holdings Corp AVYAa company that specializes in products and services to improve business communications issued $600 million in new loans and convertible notes back in June, then missed earnings guidance and revealed uncertainty about its ability to continue as a company.
This led to an investigation on September 8th Schubert Jonckheer & Kolbe LLP whether Avaya violated state and federal laws and used misleading business information to attract investors.
The company replaced its CEO in August Alan Masareka SaaS-Advanced veteran who intends to leverage his Vonage experience to create a new talent-centric organization with a culture of agility and technical innovation.
That’s not all, the company — much like Bed Bath & Beyond — has an activist investor on its doorstep.
Avaya Board of Directors received a letter dated August 22nd out Theodor Koenig, a 35-year-old software entrepreneur who acquired a 15 percent stake in the company and set out a turnaround plan.
“Between now and October 1st,” King wrote, “when the 8% 2027 Notes become convertible — before that date, if there is any strong upward movement in price, there would likely be significant short coverage of the current 14, 98 million shares give short, that would be…
