Why AMC Stock Is Rocketing Higher Today

Written by sidhanta

AMC remains a highly shorted stock, with more than 20% of its shares outstanding sold short. 

What many of those traders didn't expect was for the movie theater operator to zig when they anticipated a zag.

The announcement that AMC was buying a stake in a gold and silver miner threw conventional wisdom out the window and sent its stock off to the races. 

Peter Lynch had a word for when companies went astray and acquired businesses far outside their circle of competence: de-worsi-fication.

Precious metals mining has nothing to do with operating a movie house, but Hycroft Mining ( HYMC 53.12% ) was similar to AMC in one way: 

That was where AMC found itself when hedge funds were betting against it, and small retail investors rallied around the stock and have helped keep shares afloat. 

This isn't over. CEO Adam Aron says based on the reception his deal for Hycroft received, he's going to look for more "transformational" deals on which to spend his $1.8 billion war chest.

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