Helios and Matheson Analytics Inc (NASDAQ: HMNY) is headed for the top in the pre-market hours this morning, and for good reason. The company announced an acquisition that is clearly exciting investors. Today, we’ll talk about:
- The acquisition news;
- what we’re seeing from HMNY as a result;
- risks associated with investing in HMNY; and
- what we’ll be watching for ahead.
HMNY Heads Up On Acquisition News
As mentioned above, Helios and Matheson Analytics is flying in the pre-market hours this morning after announcing acquisition news. In a press release issued early this morning, MoviePass, a majority-owned subsidiary of HMNY, announced that the company has acquired Moviefone. Moviefone is an entertainment service that provides more than 6 million unique monthly visitors full access to the entertainment ecosystem. That ecosystem including all screens, from movie theaters to streaming services.
Of course, this is a natural acquisition by HMNY. Think about it – the flagship product is the company’s majority-owned subsidiary, MoviePass. However, Moviefone is not only in direct competition with MoviePass, it allows for far more features. So, it only makes sense that MoviePass and Helios and Matheson Analytics would be interested in taking this competition off of the playing field. In a statement, Mitch Lowe, CEO at MoviePass, had the following to offer:
This natural alignment between MoviePass and Moviefone will help us grow our subscriber base significantly and expand our marketing and advertising platform for our studio and brand partners… Moviefone has been a go-to resource for entertainment enthusiasts for years, and we’re excited to bolster its presence and bring this iconic platform into the entertainment ecosystem of the future.
The above statement was followed up by Ted Farnsworth, CEO at HMNY. Here’s what he had to offer:
HMNY’s vision is to have MoviePass support the entire movie theater industry ecosystem– from distribution to exhibition and now, content… Above all, we believe the Moviefone acquisition will serve as another valuable source of revenue for HMNY and MoviePass.
What We’re Seeing From The Stock
Helios and Matheson Analytics is definitely exciting investors today, as can be seen by the massive growth in the price of the stock. With the company announcing the acquisition and competition now off of the playing field, the gains do make sense. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (9:03), HMNY is trading at $3.27 per share after a gain of $0.29 per share (9.73%) thus far today.
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Consider The Risks
While any investment comes with risk, HMNY is one that deserves a bit of extra consideration. The company’s core product, it’s MoviePass subsidiary, is far from profitable and likely to remain that way for some time due to the cost structure of the service. As a result, the company has had to raise funds from the market, diluting shares in the process, multiple times since the acquisition. There is no indication that this dilution would end any time soon. So, be very careful when investing in Helios and Matheson Analytics.
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 their moves with regard to MoviePass and their new Moviefone subsidiary, looking for any chance that the company may generate a profit. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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