Kernels of optimism

Before considering the catalysts that could potentially get AMC stock back on track, let's review some of the company's recent moves that have thus far failed to do so. Everything that management has been touching lately hasn't exactly turned to gold -- and that includes touching actual gold.

The theater operator turned heads in March when it announced that it had invested $27.9 million to purchase a 22% stake in tiny Hycroft Mining $Hycroft Mining(HYMC.US)$ . The deal also included an equal amount of shares in warrants exercisable at a price of $1.07 a share. AMC investors initially applauded the move, and the market briefly sent shares of the cash-strapped gold and silver miner above $3 on the second trading day following the announcement. But the market's enthusiasm for this unusual pairing has since dissipated. Hycroft closed at $0.64 on Wednesday, well below the warrant exercise price.

AMC's move to create and distribute units of AMC Preferred Equity $AMC Preferred Equity Unit(APE.US)$ has also failed to generate sustained excitement within the investing community. Initially, some retail investors were hoping that the unusual stock dividend would smoke out holders of fake or synthetic shares. AMC itself saw the vehicle as a way to raise money despite the dilutive ramifications. But for investors, AMC Preferred Equity has been a dud -- the shares have lost roughly half their value. The new units have the same economic and voting rights as the original common shares, but are trading at a 56% discount to them. The market isn't buying it -- literally or figuratively.