![]() The stock traded around $2.45 at time of publication. The fate of Helios and Matheson could rest in the market’s willingness to take that growth-over-profits mentality to the extreme.Īt the very least, Helios must continue to hit its growth targets and needs to prove to the market that it can convert those subscribers into cash flow before investors lose their patience with the company’s dilution. ![]() Investors have shown willingness to forgive cash burn in high-growth stocks as long as the companies keep delivering strong sales and subscriber growth. “We are thrilled with our current metrics in-house moving toward profitability, and we believe we will be profitable by the end of the year," Farnsworth said. What’s NextĮarlier this month, Helios and Matheson CEO Ted Farnsworth told Benzinga the company is happy with its business and its progress. "It's not just because you're making losses - it's because you're making losses and your auditor is concerned that you can't continue to finance the operation of the company," Gordon said. Bulls like Canaccord Genuity analyst Austin Moldow argue that there’s a light at the end of the tunnel. Since 2009, information tech company Helios and Matheson Analytics has quietly operated without much outside notice. Why It’s ImportantĪt this point, bulls and bears can agree the current business model isn't a winning recipe. Helios has a 92-percent stake in MoviePass. In a 10-K filing and prospectus, Helios and Matheson disclosed it has been burning through $20 million per month since last September - and the price of its latest offering suggests it may be getting increasingly difficult to raise more money. These factors raise substantial doubt about the company's ability to continue as a going concern," the company said. "MoviePass has incurred losses since its inception and has a present need for additional funding. ![]() The company admitted as much last week in its annual filing. "Whether the economics of MoviePass are viable and whether the business part of it works is a huge question mark." What HappenedĮven after an 8-percent bounce Monday, Helios and Matheson shares remain down 33 percent in the past three trading sessions on growing concerns about whether the company will be able to keep its head above water. If you de-risk the moviegoing experience, people will go and see more films," National Research Group CEO Jon Penn told The Hollywood Reporter. In addition, a new $150 million at-the-market offering allows the company to continue to dilute shareholders in the open market at its discretion. Helios and Matheson announced a $30-million offering last week that valued shares of the stock at $2.75, about 30 percent below the previous day's closing price. Helios and Matheson Analytics Inc HMNY stock has crashed more than 60 percent in 2018 as investors have grown increasingly skeptical of the prospects for the MoviePass subscription service. ![]()
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