Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it has signed an agreement with an exhibitor, showing that it is expanding customer perks surrounding the MoviePass service that’s currently generating massive losses. Of course, the news led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the agreement, what we’re seeing from the stock, and what we’ll be watching for with regard to HMNY ahead.
HMNY Announces Exhibitor Agreement
As mentioned above, Helios and Matheson Analytics is having an overwhelmingly strong start to the trading session this morning after announcing that it has entered into an agreement. In a press release issued early this morning, the company announced an agreement with Landmark Theatres. Landmark Theatres just so happens to be the nation’s largest theater circuit dedicated to exhibiting and marketing independent films. The company is owned by Wagner/Cuban Companies, a group of companies owned by Todd Wagner and Mark Cuban.
According to the agreement, HMNY will benefit from MoviePass being integrated into Landmark Theatre’s ticketing system. This also leads to benefits for users, who will have the ability to take advantage of added perks like e-ticketing, advanced screening reservations, and in-app seat selection. In a statement, Mark Cuban had the following to offer:
We are excited to offer MoviePass customers access to our Landmark Theatres… There’s no better place to watch a movie than Landmark and now MoviePass customers will be able to enjoy all of our theaters.
The above statement was followed up by Bernadette McCabe, SVP of Exhibitor Relations & Business Strategy at the HMNY subsidiary, MoviePass. Here’s what McCabe had to offer:
Our relationship with Landmark represents another milestone achievement in our journey to enhancing the current movie theater ecosystem… It’s another step towards educating exhibitors on how we can work together in a mutually beneficial way to create a valuable and cost effective experience for moviegoers.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news causes movement in the market. That’s exactly what we’re seeing out of Helios and Matheson today. With the news of the exhibitor agreement, investors are excited, pushing the value of the stock upward. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:47), HMNY is trading at $3.31 per share after a gain of $0.25 per share (8.13%) thus far today.
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Don’t Be Fooled, There Are MAJOR RISKS Here!
While the exhibitor agreement with Landmark is great news for MoviePass users, it isn’t necessarily great for investors. Really, for investors, this means nothing if the company can’t create a profit! MoviePass recently announced a new payment structure, reducing the cost of its service to $6.95 per month and forcing users to pay for a year at a time. In a recent article, I pointed out why this was such bad news for investors. I strongly suggest reading it, as it outlines key risks to consider when investing in HMNY.
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 work to turn a profit by signing marketing and data sales agreements. However, we strongly advise anyone considering an investment in this company to do their research (including reading the article linked above) and consider the risks. Nonetheless, we’ll continue to follow the story and bring the news to you as it breaks!
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