Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having yet another strong start in the pre-market hours this morning. However, if the past is any indication, we’ll start seeing declines when the bell rings. Nonetheless, we did some digging, and it seems as though the gains are the result of an announcement surrounding MoviePass’ involvement in a film starring Bruce Willis. Today, we’ll talk about:
- The coming film;
- why HMNY is likely still headed for zero;
- what we’re seeing from the stock; and
- what we’ll be watching for haead.
HMNY Subsidiary, MoviePass, Announces Production Of 10 Minutes Gone
As mentioned above, Helios and Matheson Analytics is having a relatively strong start to the trading session in the pre-market hours as news breaks that the company’s wholly-owned subsidiary, MoviePass Ventures, is moving forward with the production of a new film. The new film is called 10 Minutes Gone and will star Bruce Willis.
Why This Won’t Change The Fate Of MoviePass
At the end of the day, the claim to fame at HMNY is MoviePass, a movie theater subscription service. However, as it quickly became clear that MoviePass would become a failure, the company went on to acquire a film studio and Moviefone. Nonetheless, losses associated with MoviePass are likely to drag the whole lot downward.
Recently, HMNY announced changes to its MoviePass service, but I fear that these changes aren’t enough. Moving forward, the company will limit viewings to three per month under the $9.95 service fee. However, considering that MoviePass pays the full price for movie tickets used by its subscribers, it is setting itself up for more losses. After all, the national average price for a movie ticket is $8.97. Even with non-subscriber revenue of between $1.33 per month and $2.00 per month, once a subscriber visits the movie theater for the second time in a month, losses are generated. So, the real question isn’t, will the 10 Minutes Gone film save HMNY, it’s more like, “Can HMNY afford to even make it through film production.” Nonetheless, regardless of how the film goes, as it stands, Helios and Matheson is likely to see further declines as losses only grow!
What We’re Seeing From The Stock
One of the first things that we learn when we start to invest is that the news moves the market. In the case of HMNY, the news was relatively positive. After all, the company is headed into the production of a new product. So, it comes as no surprise that excited investors are pushing the stock toward the top in the market. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:21), HMNY is trading at $0.073 per share after a gain of $0.0031 per share or 4.43% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
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 following the story surrounding the company’s new plans to limit use of the MoviePass service and finding out whether or not these plans delay the innevitable. We’re also interested in following the production of 10 Minutes Gone. Hopefully the company can afford to make it through it. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!