Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having an overwhelmingly rough start to the trading session this morning as the stock continues to tumble out of control. As if management at the company was reading our posts and turning them into self-fulfilling prophecies, yet another offering was announced in yet another sign of despiration displayed by the company. Today, we’ll talk about:
- The offering;
- why it’s yet another sign that HMNY is headed to zero;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
HMNY Heads For The Bottom On Offering
As mentioned above, Helios and Matheson Analytics is having yet another incredibly rough day in the market after announcing an offering. In a press release issued early this morning, the company announced a best-efforts underwritten public offering of common stock and warrants to purchase common stock. In the release, HMNY did not offer information as to the price per share it would be hoping for, nor how many shares it would be selling.
Yet Another Sign That Zero Is Around The Corner
We have been warning CNA Finance followers about HMNY for some time now, and this is just another sign that the company is headed to nothing, and it’s doing it quickly. The bottom line is that at the price point of $9.95 per month, the company’s flagship product, MoviePass will never be profitable. After all, the company pays full price for movie tickets that it lets its subscribers use on an unlimited basis. Considering the cost of a movie ticket, this model was destined to fail.
Nonetheless, Helios and Matheson Analytics continues to look for ways to stay afloat. So, it’s looking to the market for even more money, after moving forward with several dilutive transactions already in the past year. At the end of the day, today’s news is nothing more than a sign of despiration by a company that is doomed to fail!
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Helios and Matheson Analytics, the news proved to be overwhelmingly negative. After all, while investors know that a dilutive transaction is coming, they have no idea how dilutive it may be as price and amount of shares was not disclosed. At the end of the day, the company has upset investors just before leaving them in the dark. So, it’s no surprise to see that the stock is making its way further down today. Of course, our partners at Trade Ideas were the first to alert us to the declines. At the moment (9:42), HMNY is trading at $0.17 per share after a loss of $0.018 per share or 9.34% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on HMNY. In particular, we’re interested in learning more about the details of this offering. We’re also watching to see what else the company does in its unrealistic goal of staying afloat with MoviePass as its flagship product. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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