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 said that it is planning to spin MoviePass off into a separate company. Considering the pain that MoviePass has brought to the company and investors, the news excited the masses, sending the stock screaming for the top. Today, we’ll talk about:
- The spin off;
- what we’re seeing from HMNY stock as a result; and
- what we’ll be watching for ahead.
HMNY Plans To Spin Off MoviePass
As mentioned above, Helios and Matheson Analytics is having an incredibly strong start to the trading session this morning after announcing that it plans on a spin off. According to various reports, the company is considering spinning MoviePass off into its own separate company.
This is incredibly positive news for HMNY and its shareholders. After all, since a few months after the company acquired the majority stake in MoviePass, the stock has seen dramatic declines, falling by more than 99.999%. After all, MoviePass is a very expensive service to run, and even with the measures that the company has put in place to reduce losses, it looks like losses are continuing.
Now, with the spin off news, HMNY and its investors will be less exposed to the losses associated with MoviePass. While the company has alread spun off the RedZone franchise and has little left outside of MoviePass, it is setting itself on a stronger foundation to restructure and rebuild after the MoviePass debacle.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Helios and Matheson Analytics, the news proved to be overwhelmingly positive. After all, the company is spinning off the service that led to dramatic losses for investors. So, by getting the asset off of the table, the move is leading to investor excitement which is causing the stock to run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:50), HMNY is trading at $0.023 per share after a gain of $0.0063 per share or 37.28% 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 restructuring to see what product the company places as its core product after the spin off and how the company does throughout the restructuring process. 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!