Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having an overwhelmingly strong start to the trading session this morning. However, if you go to the company’s investor relations website, do a search on Yahoo! Finance, or search Google, you’ll see that no news has been released by the company. So, what’s the deal? Why is HMNY making a run for the top. Today, we’ll talk about why I believe the stock is headed up, what we’re seeing, and what we’ll be watching for ahead.
Why HMNY Is Headed Upward
As mentioned above, we’re seeing dramatic gains in the value of Helios and Matheson Analytics today. However, the company hasn’t released any news, and we haven’t seen anything from analysts or stories from mainstream news outlets. So, what’s going on? Why is the stock trading up today?
The answer is actually relatively simple. At the end of the day, HMNY may have reached the proverbial bottom. Unfortunately, the stock has seen some dramatic declines as of late. In fact, over the past month, the stock has lost around half of its value. While there are concerns with regard to the company and its MoviePass product, there is definitely value in HMNY.
As a result, investors are looking at the massive declines we’ve seen on the stock over the past 30 days and thinking to themselves, “This thing can’t fall much further.” Ultimately, the idea that Helios and Matheson has reached a key psychological support level is the reason that we’re seeing gains in the value of the stock today.
What We’re Seeing From The Stock
With many believing that Helios and Matheson Analytics has found support in the market, investors seem to be trying to get in at the bottom. So, it’s no surprise that we’re seeing strong gains in the value of the stock today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:24), HMNY is trading at $4.89 per share after a gain of $0.39 per share (8.67%) 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, and there’s a lot to watch for. First and foremost, we’ll continue to watch subscriber growth on the MoviePass service. Recently, the company announced that its subscriber base has reached more than 2 million and is growing quickly. We’ll also be watching the company’s plans to sell data and marketing services. After all, with the MoviePass service priced at just $9.95, more subscribers simply means larger losses at the moment. However, by using MoviePass as a data mine, the company could find its way to profit. The only thing is, it is going to need to make strong products out of this data. We’ll be watching to see what they do there. Nonetheless, we’ll continue to follow the story and bring the news to you as it breaks!
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