Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having a strong start to the trading session this morning, following up on the strong gains that we saw on the stock last week. However, if you go looking for news that was released this morning, you’re not going to find anything. Nonetheless, there is a good reason for the gains. Today, we’ll talk about:
- Why HMNY is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why HMNY Is Headed For The Top
As mentioned above, Helios and Matheson Analytics is having an incredibly strong start to the trading session this morning, following up on yesterday’s gains. While the company hasn’t released any news this morning, there’s a good reason for the gains.
It all starts with the coming 1-for-500 reverse stock split that the company is hoping will bring the value of the stock over the $1 per share minimum requirement to remain listed on the NASDAQ. This action requires a shareholder vote, but a vote for approval now seems pretty likely.
Recently, two trusted firms, Glass Lewis and Institutional Shareholder Services both weighed in on the HMNY reverse split. These companies advise shareholders with regard to proposed actions by the company. Both of these firms suggested that the plan outlined by the company is a positive one.
ISS pointed out that the HMNY reverse stock split would not only allow the company to maintain its listing on the NASDAQ, but the increase in authorized shares would help the company satisfy reserve requirements under certain convertible notes.
Glass Lewis also weighed in saying that it is in the company’s best interest to reduce the number of shares outstanding in an attempt to raise its share price.
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 firms weighing in seem to be reversing some negative opinions about the stock. So, it comes as no surprise to see that excited investors are pushing the stock toward the top in the market this morning. At the moment (8:19), HMNY is trading at $0.02 per share after a gain of $0.0007 per share or 3.63% 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 following the story surrounding the reverse stock split and how the company works to drive further growth and hopefully reach a profit. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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