Helios and Matheson Analytics (HMNY) Stock: Is It Too Little Too Late?

Helios and Matheson Analytics HMNY Stock News

Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having a strong day in the market today, following up on the strong day that the stock had yesterday. The gains are ultimately the result of a press release, announcing new plans for its MoviePass movie theater subscription service. While this plan could work, a big question that needs to be asked here is, “Is this too little too late?” Today, we’ll talk about:

  • The new subscription plans;
  • why even with the good news, the stock may be in for a rude awakening;
  • what we’re seeing from HMNY today; and
  • what we’ll be watching for ahead.

HMNY Announces New Subscription Plans

As mentioned above, Helios and Matheson Analytics had a strong day in the market yesterday that’s being followed up by gains today. The gains are the result of a new pricing structure that will become effective on the first of the year. Here’s the new pricing structure:

  • Tier 1 “SELECT” – The price of the tier 1 service ranges between $9.95 per month and $14.95 per month depending on geographical region. Subscribers on this plan will be able to see three movies per month. Movie options will be limited, and what movies will be allowed to be seen will be announced one week in advance. This plan includes standard movie formats only.
  • Tier 2 “ALL ACCESS” – The pricing of this tier starts at $14.95 per month and goes up to $19.95 per month depending on geographical region. With this plan, subscribers can see any three movies of their choise per month with no limitations on standard movie formats.
  • Tier 3 “RED CARPET” – Finally, the RED CARPET option starts at $19.95 per month and goes up to $24.95 per month depending on geographical region. This plan also allows subscribers to view any three movies of their choice per month. However, with this plan, members can choose to use one of their three movies per month to view premium movie formats like IMAX 2D, IMAX 3D, Premium Large Format (PLF), 3D formats and more!

Is It Too Little Too Late?

The truth of the matter is that this pricing structure may open the door to a profitable service that consumers would actually want to use for MoviePass and its parent company, HMNY. Unfortunately however, it may be too little to late from both an investor and a consumer perspective. Here’s why:

  • Consumers – MoviePass quickly made a name for itself among consumers. However, the 2018 year has been filled with upset. Between blackouts and consistently changing terms, the MoviePass brand has left a bad taste in many mouths. So, it is going to take some effort to turn consumer sentiment around.
  • Investors – From an investor standpoint, Helios and Matheson Analytics has been a horrible option, seeing dramatic declines throughout the past year. All the while, the company has made horrible financing moves and has done little that would be viewed as in the best interest of investors. As a result of its tumbling price, the company only has a couple of weeks left to meet NASDAQ minimum price requirements before facing delisting. Of course, this would open an entirely new can of worms for the company and its investors to be concerned with.

The bottom line is that if this pricing plan started in January of this year, the company may have been onto something. However, at this point, HMNY is in damage control mode, and even with a strong pricing plan, it’s going to take a miracle for this to turn into a strong investment opportunity in my view.

What We’re Seeing From The Stock

Regardless of the near and long term risks associated with Helios and Matheson Analytics, the news pricing plan is exciting investors and the stock is climbing for the time being. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:01), HMNY is trading at $0.018 per share after a gain of $0.0007 per share or 4.09% thus far today.

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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 seeing what the company does to avoid NASDAQ delisting by December 18th. We’re also interested in following the new plans in January to see if they lead to subscriber growth while positioning the company better in terms of revenue v. costs. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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