Helios and Matheson Analytics Inc (NASDAQ: HMNY) has been like a seesaw as of late, with prices bouncing all over the place. However, if you think that now is the time to buy, I’m here to tell you that the concept of buying HMNY is a very risky one. Today, we’ll talk about:
- Why HMNY is so risky;
- what we’re seeing from the stock today; and
- what we’ll be watching for ahead.
HMNY Is A Risky Proposition
Helios and Matheson Analytics has garnered quite a bit of attention over the past year, and for good reason. The company purchased a majority stake in MoviePass about a year ago, making its way to the limelight of mainstream news outlets. However, those of us who have been following the story since then are less than impressed.
Since the acquisition of MoviePass, HMNY has experienced tremendous losses. The losses are ultimately due to the company’s willingness to pay full price for movie tickets used by its subscribers as subscribers only pay an under $10 per month fee. Although MoviePass has seen a drop in utilization, that drop in utilization is largely due to the company taking benefits away from users, which will only serve to drop subscription rates as well. All in all, the company is, and has been, headed for losses.
However, that’s not where the risks stop. The reality is that HMNY has made tons of risky moves in the last year, few of which have been in the best interest of shareholders. As a result, if you search for the company’s ticker on Yahoo! Finance, you’ll see press release after press release of attorneys that are announcing class action cases against the company.
At the end of the day, throughout the past year, the company has thrown its fiduciary responsibility to investors out the window. As a result, not only is it in a poor position financially with a product that’s destined to fail, that failure is likely going to be accelerated due to mounting legal fees and potential settlements to come down the line. All in all, things are looking bad for the company.
What We’re Seeing From The Stock
Investors seem to be unsure of what to do with Helios and Matheson Analytics today as the stock remains flat. At the moment (7:57), HMNY is trading at $0.022 per share after a gain of $0.000100 or 0.46% 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 company’s continued efforts to break into profits. While we don’t think this will ever happen, it’s an interesting one to watch nonetheless. We’ll continue to keep a close eye on the story and bring the news to you as it breaks!
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