HELIOS AND MATHESON STOCK 2017 MOVIE
HELIOS AND MATHESON STOCK 2017 FULL

Helios may not have been losing '$146 million a year' before MoviePass, true. First and foremost, even after spinning off MoviePass, Helios envisions 'HMNY retaining control of MoviePass Entertainment upon any such distribution.' Thus, while separated from MoviePass in the public's perception, Helios would presumably still be responsible for MoviePass' continuing losses.Īnd second - to be blunt, Helios and Matheson was never that great of a business to begin with. Helios and Matheson Analytics is a data and social media analytics firm that services a broad spectrum of industries. Its only real product was Red Zone Maps, an app that helped to map high crime areas. But separated from Helios, MoviePass' difficulties would no longer taint the results of its current parent - or as CEO Ted Farnsworth put it: 'The market perception of HMNY might benefit from separating our movie-related assets from the rest of our company.' Now whatĪssuming this plan is followed to completion, does it make Helios and Matheson stock a 'buy?' Before August 15, 2017, Helios and Matheson was a relatively hidden company. as separate public company.' Presumably, absent additional changes to the business model, this would still be a money-losing company. Seeking to correct that error, this morning Helios and Matheson announced it's exploring a plan 'to spin off MoviePass. Helios and Matheson Analytics is looking to push additional capital into its prime and wildly popular asset, MoviePass, by raising money in a new stock sale that appears to be giving Wall Street fits.

HELIOS AND MATHESON STOCK 2017 MOVIE

But halfway through 2017, the company revamped its business model by acquiring a majority stake in all-you-can-eat movie subscription service MoviePass, and by the end of that year, Helios's losses had ballooned to $146 million - which kind of suggests that buying MoviePass was a mistake. In 2016, data analytics company Helios and Matheson reported a $7.4 million net loss on $6.8 million in revenue - admittedly, not a great result. Surprise! Helios and Matheson prepares to toss MoviePass overboard. Read More: 5 Ways MoviePass Could And Should Have Improved Its $9.Cartoon pirate forcing businessman to walk the plank So far all of those bets come with very big question marks. Investors have been betting that MoviePass will skillfully maneuver that debt tightrope, that it will iron out its management and customer service shortcomings, and that it will find a way to make a sustainable profit. As a result, MoviePass expects that its independent registered public accounting firm will include an explanatory paragraph in its audit report on MoviePass’ financial statements for the years ended December 31, 2016, and 2015 with respect to the uncertainty of MoviePass’ ability to continue as a going concern. If MoviePass is unable to obtain sufficient amounts of additional capital, it may be required to reduce the scope of its planned growth, which could harm its business, financial condition and operating results. There are no assurances that MoviePass will be able to raise capital on terms acceptable to it. If MoviePass cannot raise additional short-term capital, it may consume all of its cash needed for operations. For the foreseeable future, MoviePass expects to fund its operations from additional debt or equity offerings and increased revenue from subscribers. These factors raise substantial doubt about MoviePass’ ability to continue as a going concern. MoviePass has incurred losses since its inception and has a present need for additional funding. In its latest 8-K, the company explained the financial risk: But if he’s wrong, the company’s subscriber growth could actually sink it in an ocean of debt. “At $9.95 per month we expect the average subscriber to settle into a pattern of just over a movie ticket per month,” says Lowe. MoviePass CEO Mitch Lowe is confident that most subscribers' usage will drop off after their first few months of enrollment. Though it's unlikely that many subscribers would attend that many movies, it's theoretically possible that MoviePass could wind up paying over $250 in a month for tickets in exchange for a subscriber's $9.95 per month subscription fee.

HELIOS AND MATHESON STOCK 2017 FULL

Some investors may now be waking up to the fact that MoviePass is fraught with risks, and that its big jump in new customer acquisitions could well be financially disastrous, as it obligates the company to pay for as many as 30 movie tickets a month, at full price, for every one of those subscribers. According to, 62% of Helios shares are held by short sellers. Investors Business Daily suggested that the huge run-up in the Helios share price may have been spurred partly by short sellers being forced into covering their positions. On Thursday, HMNY shares plummeted by 37% to $20.40 from the prior day's close of $32.90, and then fell an additional 11% to $18.24 in after-hours trading.

Helios and matheson stock 2017