In a story that broke minutes ago on CNA Finance, a source suggested that a firm is considering a hostile takeover of Helios and Matheson Analytics (NASDAQ: HMNY). The tip came from an anonymous source who apparently overheard a conversation. Here’s what’s going on:
A Tipster Says HMNY Will Be Taken Over
In the story published on CNA Finance, the provider of the tip is said to be a student of University of California, San Diego. According to the report, the source overheard a conversation being had by Triton Funds founder, Nathan Yee. Triton Funds is a funds management firm started by a group of Southern California undergraduate students.
The source suggests that Triton Funds has already made an offer to acquire Helios and Matheson Analytics. However, this offer was rejected. Now, the conversation is rumored to be one surrounding a hostile takeover.
Nonetheless, there are some concerns to consider here. First and foremost, not even CNA Finance has the real name of the tipster. In the report, the outlet said that the name on the email changed during the conversation. Also, the source admitted to owning shares in Helios and Matheson Analytics. So, this tipster has an immediate opportunity to gain from rumors spreading that are associated with the takeover of HMNY.
Nathan Yee Responds
After receiving the tip, Nathan Yee responded to a request by the news outlet for comment stating simply:
Unfortunately, we are not allowed to comment at this time.
All the best,
TRITON FUNDS LLC
Joshua Rodriguez, the writer of the orignal post, pointed out something interesting about this response. Yee said “we are not allowed to comment at this time.” The big question is, “Why is Mr. Yee not allowed to comment?” If a conversation were not happening between Triton Funds and Helios and Matheson Analytics, why would Mr. Yee be sworn to silence? Although this is still nothing more than a rumor, the response is interesting at least.
Is A Takeover Likely?
In my opinion, the answer is no. Sure, there are some points in the story that provide at least some signs of validity, but there’s also that small issue of a vested interest held by the tipster who has no name.
I Wouldn’t Touch HMNY With A 10 Foot Ugly Stick!
Helios and Matheson Analytics is one of those stocks that should be the center of investigations, not positive news. In a matter of less than a year, the company has managed to lose massive amounts of value through dilutive moves that have brought down the hammer on investors who have lost learly everything.
The company invested in MoviePass, transforming it from a viable small business to a massive loss generating machine, and digging into the pockets of its investors all the way down the line. If a takeover does happen, it would be great for investors, but I wouldn’t count on it. What you can count on from Helios and Matheson Analytic is continued losses, continued bad moves, and possibly bankruptcy if the company doesn’t smarten up and divest its stake in MoviePass.