AMC Theaters recently acquired a stake in a small gold miner.

$AMC Entertainment (AMC.US)$ will pay $27.9 million in cash for the purchase, with $Hycroft Mining (HYMC.US)$ getting around 23.4 million shares and an equivalent number of stock warrants. AMC would hold around 22% of Hycroft due to the purchase. Some analysts gave the different opinions about the significant equity investment.

"Taking valuable cash and investing it into a high risk business outside of its core competency," said Eric Handler, media and entertainment analyst at MKM Partners. "I don't get it.”

Eric Wold, a senior analyst at B. Riley Securities, said he could see why the theater company made the investment – and that it could help AMC find additional opportunities for growth.

As an equity investment that has no relevance to its core business, does AMC consider return on equity?

What do you think? Please leave ur lovely comments!