Helios and Matheson Analytics Inc (NASDAQ: HMNY) is headed up in the market again today. It’s no surprise, after multiple sessions of declines, traders are seeing an opportunity. Nonetheless, in my view, this opportunity isn’t an investment worthy one. Over the next several sessions, I’m expecting that HMNY will take yet another deep dive into the red. Today, we’ll talk about:
- Why my opinion on HMNY is a bearish one;
- what we’re seeing from the stock today; and
- what we’ll be watching for ahead.
Why I Have Such A Bearish Opinion Of HMNY
I’ve been following Helios and Matheson Analytics for some time now. Like most, when the company announced the acquisition of the majority stake in MoviePass, I was excited. This incredible opportunity would surely lead to gains, and it did. That is, until everything fell apart.
Soon enough, we learned that Movie Pass and its parent company, HMNY, were paying full price for movie tickets used by its subscribers. Charging only a $9.95 monthly fee for unlimited access to movie theaters (at the time), the company was losing massive amounts of money. In fact, the losses were so large that the company quickly ran out of money and had to move forward with dilutive offering after dilutive offering just to stay afloat.
Recently, it was announced that the company got the utilization rate on MoviePass down to 0.9 movies per month per subscriber. That sounded great, but when you looked into why the usage rate was so low, it became clear that the company was still headed for the bottom. To bring usage rates down, the company has greatly limited its subscribers’ abilities to use their MoviePasses. As a result, I’m expecting that subscribership is going to fall dramatically, leading to a whole new set of problems for HMNY. All in all, while the stock is gaining today, there’s no reason to expect that it will see gains in the long run.
What We’re Seeing From The Stock
While I hold a bearish view of Helios and Matheson Analytics, in any long-term bear run, we’re going to see some short-term bullish moves. Today, I believe that we’re seeing one of these short term bull moves. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:35), HMNY is trading at $0.022 per share after a gain of $0.0014 per share or 6.83% 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 story surrounding the company’s continued fall into the abyss. Nonetheless, we’ll keep an eye on the news and bring it 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!