MoviePass: How Existing Investors Can Get Another Chance

|
About: Helios and Matheson Analytics Inc. (HMNY), Includes: AMC
by: General Expert
This article is exclusive for subscribers.
General Expert
Event-driven, long/short equity, long-term horizon, special situations
Summary

Fundamentally MoviePass was a success, financially HMNY was a disaster.

The management made poor decisions by taking on death spiral financing and going against AMC without the necessary funds.

Volume suggests that the company is dumping increasingly higher amount of shares on the public market to obtain cash.

Fixing the problem would require the removal of the current management, which would be difficult given the ongoing dilution, making it hard for a shareholder to build up enough votes.

A private group has approached HMNY, and if it is willing to pay good money to the management, perhaps current investors still have a fighting chance.

Like many investors I had hoped that MoviePass and its parent’s stock (Helios and Matheson Analytics, Inc. (OTCPK:HMNY)) would be a smashing success. In fact, the Core Value Portfolio invested a small