In Tuesday’s Blitz Daily with Lance Ippolito, we take a look at beleaguered movie theater chain AMC as it moves in a surprising direction coming out of the pandemic… gold mining.
Gold?!
Yep, gold. Silver, too…
In a move that surprised just about everyone, AMC announced it’s buying a major stake in Hycroft Mining Holding, which has a 71,000-acre gold and silver mine in northern Nevada.
While the meme stock craze has faded, AMC still has a war chest of $1.8 billion at its disposal, and is investing nearly $28 million into Hycroft in exchange for a 22% stake.
Will this decision strike gold, or be the next silver screen tragedy?
"To state the obvious, one would not normally think that a movie theater company’s core competency includes gold or silver mining," CEO Adam Aron said.
Well… duh.
Most analysts are indeed baffled, with one even calling the move “bizarre.”
And it seems at least one big-money trader is firmly betting against this move…
Of course, if you’re looking to move on from the meme stock trend, I have a few more trades seeing institutional order flow…
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