Helios and Matheson Analytics Inc (NASDAQ: HMNY) is a company that has been crippled by its own poor financial moves for some time now. Nonetheless, the stock is getting quite a bit of attention as Triton Funds, a student run fund, considers taking the company private. The question is, “Is HMNY worth your time?” Today, we’ll talk about:
- The issues HMNY has seen;
- Triton Funds and their potential take-private transaction; and
- what we’ll be watching for ahead.
HMNY Has Made A Series Of Bad Moves
Helios and Matheson Analytics made it to mainstream news after the company announced last August that it would be acquiring the majority stake of MoviePass. In the first couple of months, incredible subscriber growth led to massive gains in the value of the stock. However, as subscribers grew, so too did losses. After all, the price of the unlimited movie theater subscription was about the same price as a single movie ticket. Therefore, each subscriber visiting the movie theater more than once per month led to losses for the company.
As a result of the losses, HMNY had to make some serious financial moves to stay afloat. Unfortunately, the funding has become increasingly expensive with every offer. In fact, in a conversation, the founders of the student run fund, Triton Funds, explained that the company has been taken advantage of by every institutional investor and every bank they have reached out to for funds. As a result, HMNY has seen massive declines in value.
Trition Looks To Take The Company Private
In a recent conversation with the students that founded Triton Fund, I learned that there were talks between the fund and Helios and Matheson Analytics. While the fund would not confirm nor deny a takeover in the works, they did point to a few things that they enjoyed about HMNY:
- Millenial Focus – Triton Fund is a fund that focuses on companies that either bring a millenial touch to the market or that provide services that millenials would be interested in. Triton believes that due to its majority stake in MoviePass, HMNY falls right in line with what they’re looking for.
- It’s Cheap! – In the conversation, Triton management pointed to the fact that declining values only mean that they will be able to make their move at a lower price. After all, the dramatic declines are nothing to shake a stick at.
- It’s Better As A Private Company – Finally, Triton doesn’t think that HMNY should be a privately tradec company at this stage of the game. The firm believes that by taking the company private, it will be more difficult for firms to manipulate the value of the company through funding.
What We’re Seeing From The Stock
As investors consider the possibility of a takeover, Helios and Matheson Analytics is headed up in the market. After all, an acquisition could mean an immediate return of value for shareholders. So, investors are reacting by pushing the stock slightly higher in the pre-market hours. At the moment (7:34), HMNY is trading at $0.079 per share after a gain of $0.0094 per share or 13.43% 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 seeing if a takeover does happen before the company is forced into dessolution. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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