nyHelios and Matheson Analytics Inc (NASDAQ: HMNY) is having a relatively strong start to the trading session this morning, following up on the nearly 200% gains the stock saw yesterday. While the gains come for good reason, it’s only a matter of time before investors realize that it’s all the same story and the stock tumbles yet again. Today, we’ll talk about:
- Why HMNY is climbing again and why it will fall;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why HMNY Is Climbing And Why Gains Won’t Last
As mentioned above, Helios and Matheson Analytics had an incredibly strong day in the market yesterday, followed up by a decent start to the trading session in the pre-market hours this morning. The gains are ultimately the result of comments made by Ted Farnsworth, CEO at HMNY, with regard to funding. According to Farnsworth, the company raised $65 million in new funding last month.
The funding announcement comes amid massive declines that we’ve seen from the stock over the past several months. The declines are ultimately the result of losses associated with MoviePass. As the company continues to lose, it seems to be reaching for straws in an attempt to bring its head above water.
The $65 million funding announcement made by the HMNY CEO is great news, right? Well, it is, but it’s not likely to last long. Remember, in the last year, the company has raised hundreds of millions of dollars through dilutive transactions. Unfortunately, it didn’t take much time to burn through that funding. Once investors realize that this funding will likely be set on fire just as quickly, the stock is likely to tank. So, don’t get too excited about the gains.
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 was positive. After all, $65 million is not a small amount of money. So, it comes as no surprise that gains are continuing in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:19), HMNY is trading at $0.39 per share after a gain of $0.0024 per share or 6.58% 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 seeing how quickly the company burns through this newly announced funding. While there is a chance that the company could prove to be a phoenix and rise from the ashes, we believe that this chance is a slim one. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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