![]() Helios is a speculative investment but has the potential to reward shareholders handsomely. But by taking on more debt and paying high-interest rates, risks go up for existing HMNY shareholders. Sure, Tesla Inc (NASDAQ: TSLA) and Netflix raised significant sums (relative to company size) early on. On January 12, the company raised $60 million in total: $25 million through a convertible debt offering and another $35 million through an investor note. Helios will need more capital in supporting the business that is taking on millions of subscribers. At most, the company would only consider in passing the prospects of blockchain in its business. Thankfully, investors may assume the ICO association was taken out of context. Not only is the technology straying away from the MoviePass core business, it looks more like a distraction for investors and for the company. Helios’ hint of an ICO (Initial Coin Offerings) last week is still a disturbing announcement. We’d be very interested in that.” HMNY Stock Red Flag “And they’ve made no secret that their goal is to mine data from subscribers. If this succeeds in driving attendance, it will pay for itself,” said Chris Aronson, head of distribution at 20th Century Fox. “The deal from our side and why we’re excited is we still get paid the full price of admission. This would let movie theaters pitch more suitable advertising to the movie-goer. The app will collect useful user data that the company may then mine. Having a massive user base will inherently increase the value of MoviePass, not only for the subscription revenue. MoviePass may still have the first-mover advantage, building its brand-name awareness ahead of the competition. Already, Cinemark launched Cinemark Movie Club in November at a competitive price. Helios probably has the same ambitions as an early Netflix: Grow the user base in the hundreds of thousands monthly and then worry about revenue later on. These days, Netflix may raise monthly subscriptions without its customer defecting. It pivoted its business by selling online streaming subscriptions. The online TV and movie streaming giant started its business by renting out DVDs. Helios may be borrowing the money-losing gameplay from Netflix, Inc. The obvious question is: How is losing money from each movie-goer sustainable? Unless the company collects more revenue from subscription fees than the cost of movie tickets, MoviePass will not survive for very long. But MoviePass then pays theaters the full price for a ticket. Subscribers may buy one movie ticket a day for a flat monthly fee. Over 500,000 signed up to the movie-ticketing service in under a month, giving MoviePass over 1.5 million paid subscribers. And word is spreading fast just how good a deal subscribers get. Consumers who sign up for the service save significant sums of money. ![]() MoviePass is a potential money-maker for Helios. ![]() To even consider investing in HMNY stock, astute investors must look at Helios’ key product: MoviePass. When it unveiled cryptocurrency, its stock rallied from $3 to over $12 a share. ![]() Helios is not the only company doing this: Eastman Kodak Company (NYSE: KODK) did the same thing on January 9. 10, it gave the stock a strong lift, at least in pre-market. But when Helios and Matheson Analytics Inc (NASDAQ: HMNY) did such a thing on Jan. Something should not sit right with investors when a company hints at blockchain technology getting incorporated into its business model.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |