Helios and Matheson Analytics Inc (NASDAQ: HMNY) reminds me a lot of the Bermuda Triangle, a space in the ocean that is veiled in mystery. What the two have in common is that once you find an entrance, chances are that finding a good exit is going to be close to impossible! Today, we’ll talk about:
- Why HMNY is likely to see further declines;
- what we’re seeing from the stock today; and
- what we’ll be watching for ahead.
Why HMNY Is Likely To Continue Falling
As mentioned above, Helios and Matheson reminds me a lot of the Bermuda Triangle as it becomes a hex on anyone that gets involved. You see, the company’s claim to fame started back in August of last year, when it acquired a majority stake in MoviePass. From there, the company greatly reduced the price of the service, quickly setting itself up for failure.
Paying the full price for movie tickets used by its subscribers, HMNY is digging itself a deeper and deeper hole with every new MoviePass subscriber. Recently, the company attempted to appease investors by limiting the amount of movies that subscribers could view per month to 3, but the reality is that even with this change, the company simply can’t afford to stay afloat.
Think about it, the average cost of a movie ticket in the United States is around $9. Compare that to MoviePass’ subscription fee of $9.95 and you see that as soon as a subscriber views his or her second movie in a month, losses are generated.
These losses have led HMNY into making seriously bad moves, being taken advantage of by every institutional investor and bank that it has entered into an agreement with. Sadly, it’s not just the company that’s been taken advantage of, it’s the investors as well. Nonetheless, this story isn’t likely to last long. As losses continue to mount, the stock is likely headed for zero and isn’t likely to give the investors currently in the game a good exit point!
What We’re Seeing From The Stock Today
As the bloodshed continues, Helios and Matheson Analytics is losing massive amounts of value by the day. Today is no different. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:41), HMNY is trading at $0.066 per share after a loss of $0.0014 per share or 2.07% 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 following the story surrounding the company’s struggle to stay afloat while it sinks into the abyss as well as the news surrounding Triton Fund and their interest in the stock. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks.
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