Helios and Matheson Analytics Inc (NASDAQ: HMNY) has tumbled in the market as of late, and the declines are continuing in a big way today. Unfortunately, the company is looking to move forward with another ridiculous reverse split. Today, we’ll talk about:
- The proposed reverse split;
- what we’re seeing from HMNY stock as a result; and
- what we’ll be watching for ahead.
HMNY Wants To Move Forward With Another Reverse Split
As mentioned above, Helios and Matheson has seen dramatic declines as of late. In fact, it is the worst performing stock that I have tracked this year thus far. Well, due to the overwhelmingly poor performance, the company wants to move forward with another reverse stock split.
Last time, HMNY processed a 1-for-250 reverse split, which was ridiculous in and of itself. This time, the company is seeking approval for a 1-for-500 reverse split, double the size of the first one. The goal here is a simple one. The company needs the price of its stock to get and stay above $1.00 per share in order to maintain listing compliance with the NASDAQ. This compliance is key if the company wants to continue to access funds in the capital market, which, all signs point to another dilutive offering in the future, but that’s a topic for another day… maybe tomorrow!
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, reverse splits are never a good sign and a massive one like a 1-for-500 is something that will upset just about any investor. Sure, it’s just cosmetic on the surface, but digging into the reason for the split will leave a bad taste in any investor’s mouth. So, it comes as no surprise that upset investors are dumping the stock, leading to dramatic declines. As is normally the case, our partners at Trade Ideas were the first to alert us to the drop. Currently (11:27), HMNY is trading at $0.016 per share after a loss of $0.0052 per share or 24.30% 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 proposed split to see if investors approve the move. We’ll also be watching to see what the company does to slow it’s spiral down to the abyss. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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