Helios and Matheson Analytics Inc (NASDAQ: HMNY) is flying early on in the trading session with gains near 10%. Nonetheless, there is no good reason for such gains. In fact, in the long run, the stock is likely to fall to zero thanks to an onslought of bad moves made by the management team. Today, we’ll talk about:
- Why this run won’t last long;
- what we’re seeing from HMNY stock; and
- what we’ll be watching for ahead.
HMNY Gains Won’t Last Long
As mentioned above, Helios and Matheson Analytics is having a relatively strong start to the trading session this morning. However, there has been no news released by the company. So, why are we seeing gains? Well, HMNY is cheap! It’s not very often that we see a name that has garnered so much attention with a price of just three cents. Considering the low price and high attention, many believe that it can’t fall much further than this. Nonetheless, I’m here to tell you that it can.
We’ve gone into detail about why HMNY is likely to see massive declines several times in the past. So, we’ll keep this short (if you want more detail, just search HMNY at the top of this page). Essentially, Helios and Matheson Analytics is giving out movie tickets that it is paying for. With a subscription service that covers the cost of about a single movie ticket, the company allows its subscribers to view three movies per month. Even if the average subscriber were to only view 2 movies, losses would be around $5 per month per subscriber. Due to the losses, the company has had to access funds, and has done so through incredibly dilutive moves.
Ultimately, that’s why the price of the stock has fallen so dramatically over the past several months. Nonetheless, the declines are likely to continue. With a business model that will likely never reach profitability and a management team that doesn’t seem to know their head from their ass when it comes to financial decisions and how they effect shareholders, there’s no reason to expect that anything is going to change any time soon. As a result, while the stock is enjoying a pretty strong gain today, that gain isn’t likely to last. The bottom line is that soon, this stock is likely to fall well below $0.03 per share. In the mean time, we’re likely to see another ridiculous 1 for 250 stock split followed by another horrible financial move that greatly dilutes shares. All in all, I believe that this thing is going to spiral out of control.
What We’re Seeing From The Stock
As mentioned above, Helios and Matheson Analytics is having an incredibly strong day in the market today. Nonetheless, the gains aren’t going to last. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (9:10), HMNY is trading at $0.33 per share after a gain of $0.0028 per share or 9.36% 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 fall to bankruptcy! Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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