Stonk O Tracker has become a web application of interest among meme-stock enthusiasts, drawing attention from users on popular social media platforms like Reddit, Twitter, and YouTube. Created by an unidentified developer who claims to have a true passion for stocks, this tracker has been playfully dubbed “a laugh website, created for and by apes,” by its users.
AMC Stonk – Countdown to Stock Exchange Opening
When visitors access the Stonk O Tracker website, they are immediately greeted with a simple orange bar displaying the message “Stonk time in 7 hours 19 minutes and 54 seconds.” This countdown signifies the time remaining until the New York Stock Exchange (NYSE) opens for the day’s trading. Just below the countdown, the NYSE heading indicates the price of AMC’s stock, which stood at $12.78 during the time the NYSE was closed.
The website also provides information on SSR (Short Sale Restriction), a protective measure against relentless short-selling. When a stock’s price declines by 10% or more from the previous trading day, SSR restricts further short-selling activities. In the case of AMC, the SSR threshold is approximately $11.50, which is notably lower than the NYSE closing price.
FRA and Calls ITM Expiring
Moving further down the Stonk O Tracker website, users will find the “FRA” heading, which denotes the cost of AMC stocks traded on the Frankfurt Stock Exchange (FRA), Europe’s largest stock exchange. The cost is displayed in Euros, providing valuable insights for international investors looking to track AMC’s performance on the European market.
Another significant feature on the website is “Calls ITM Expiring.” This section presents the number of call options in the AMC inventory that are “In The Money” on a specific date. A call option grants an investor the right to buy shares at a fixed price on or before a specified date. If, on that date, the stock price is below the fixed price, the investor can purchase the shares at a discounted rate.
Borrowable Stock Quantity
One of the essential metrics provided by Stonk O Tracker is the quantity of each company’s stocks that can be borrowed quickly. Short sellers use these borrowed stocks to sell at a higher price and then buy them back at a lower price to profit from the difference. The quantity of borrowed stocks available is a crucial factor for short sellers, as it directly impacts their ability to execute short-selling strategies.
Direct Registration System (DRS)
To safeguard their GME and AMC stocks without involving a brokerage house, shareholders can use the Direct Registration System (DRS). This method allows them to hold the shares directly and prevents quick sellers from gaining control over the stocks. Widespread adoption of DRS by GME and AMC buyers can create challenges for market makers, making it difficult for them to manipulate stock prices.
How DRS Works
When an investor purchases shares of a company, the traditional process involves the shares being held in a brokerage account under the broker’s name. The investor becomes the beneficial owner of the shares, but the legal ownership lies with the brokerage firm. This process is known as “street name” registration.
On the other hand, with DRS, the investor can choose to have the shares registered directly in their name on the company’s books. This direct registration makes the investor the legal owner of the shares, eliminating the intermediary role of the brokerage firm.
Advantages of DRS
- Cost Savings: DRS can be a cost-effective alternative to traditional brokerage accounts. Investors can avoid certain fees associated with holding stocks in street name, such as account maintenance fees and statement fees.
- Elimination of Counterparty Risk: In a traditional brokerage account, the investor is exposed to counterparty risk, meaning the brokerage firm holds the legal ownership of the shares. In case the broker faces financial troubles, the investor’s shares could be at risk. With DRS, the investor holds direct ownership, reducing counterparty risk.
- Simplified Record Keeping: DRS consolidates all shares owned by an investor into one record, regardless of the number of companies they have invested in. This makes it easier to manage and track their investments.
- Dividend Reinvestment Plans (DRIPs): Some companies offer dividend reinvestment plans, allowing shareholders to reinvest dividends to purchase additional shares. DRS simplifies the process of participating in DRIPs.
- Proxy Voting: Shareholders with direct registration have the right to vote on corporate matters and participate in annual general meetings.
Disadvantages of DRS
- Lack of Brokerage Services: With DRS, investors do not have access to certain brokerage services, such as margin trading or options trading. Additionally, they might not receive research and analysis reports provided by brokerage firms.
- Transfer Restrictions: Some companies may impose transfer restrictions on DRS shares to prevent frequent trading or speculative activities.
- Transaction Delays: The process of transferring shares between DRS and brokerage accounts might take longer than traditional electronic trading.
Additional Metrics on the “Tits-Up-Tracker”
In addition to the aforementioned information, Stonk O Tracker monitors other critical metrics, including “Reverse Repurchase Agreements” (RRP or Reverse Repos) and the “US Daily Treasury Statement.” The Reverse Repurchase Agreement metric reflects the utilization of the Federal Reserve Bank of New York’s Overnight Reverse Repurchase Facility, enabling the bank to borrow securities to increase money circulation in the system before returning them the following day.
The “US Daily Treasury Statement” provides insights into the Federal Government’s coin and debt operations on a “modified cash basis,” offering a comprehensive overview of the government’s financial activities.
Funding and Donation
The creator of Stonk O Tracker claims that the website operates without seeking financial gain. Instead, the developer relies on user contributions to cover operating expenses. Donations can be made through PayPal, and any funds received beyond the operating expenses will be directed to charitable causes.
Conclusion
Stonk O Tracker has emerged as a popular web application among meme-stock enthusiasts seeking real-time information and critical metrics related to AMC and GME stocks. However, users should approach the information provided with caution and conduct thorough research before making significant investment decisions. It is crucial to remember that debates exist regarding the accuracy of Stonk O Tracker, and users should utilize it as a supplementary tool in their investment strategies.