Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having a great start to the trading session this morning, and for good reason. The company announced that its MoviePass subsidiary has won a significant industry award. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The award;
- what we’re seeing from the stock as a result;
- risks to consider when thinking about investing in HMNY;
- and what we’ll be watching for ahead.
HMNY Announces MoviePass Award
As mentioned above, Helios and Matheson Analytics is having an incredibly strong start to the trading session this morning after it announced that its production company, MoviePass Films has won an award. The film in particular was known as American Animals, and the movie won awards in two categories at the 20th British Independent Film Awards.
For their work on American Animals, director Bart Layton was awarded “Debut Screenwriter,” and Nick Fenton, Julian Hart and Chriss Gill won the award for “Best Editing.” The film also received a “Best Editing” nomination for the Independent Spirit Awards.
In a statement, Ted Farnsworth, Chairman and CEO at HMNY, had the following to offer:
We are honored to have won two categories in this year’s British Independent Film Awards and for two MoviePass movies to be nominated for Independent Spirit Awards… MoviePass Films has enabled us to directly invest in movies we believe in and contribute holistically to the movie ecosystem. It is incredible to see the same appreciation and support for our independent films reciprocated through these awards and nominations.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Helios and Matheson Analytics, the news proved to be positive. After all, the award shows that the company is doing well with the production of films. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:07), HMNY is trading at $0.016 per share after a gain of $0.0011 per share or 7.14% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
Risks To Consider
While today’s new is leading to strong gains in Helios and Matheson Analytics, don’t let it fool you, this stock comes with a very high level of risk. In fact, over the past year, the stock has given up an extreme amount of value, which is why it trades at just over a penny and a half today.
The big issue is that early on, the company backed itself into a corner financially after acquiring a majority stake in MoviePass and turning it into a service that generated massive losses. Since then, the company has been working to come up with a plan to get to profits, but nothing has worked quite yet.
Now, HMNY is just a short while away from what will likely become a delisting, making matters even worse. At the end of the day, this may be a fun trade, but in my opinion, HMNY is a horrible investment!
What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on HMNY. In particular, we’re interested in following the story surrounding MoviePass films. We’re also interested in how the company plans on bringing its stock price back over $1 per share to maintain compliance with the NASDAQ. However, there’s not much time left for that to happen. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the iWatch Markets mailing list below!