Averaging down on HMNY

I shared in the @ssg-community discord the other day that I had opened an account on Robinhood and threw some money at $HMNY. I bought at the wrong time, as shares went from $0.10 to $0.18. I FOMO bought in at $0.13 and then places some ladder bids. My final bid hit this morning when prices fell to $0.06.

I now have 1550 shares of $HMNY at an average cost of $0.0908 per share.

So what have I bought myself into?

Helios and Matheson Analytics has been around for 23 years. They have been on the stock market since at least 1997 (which is as far back as Yahoo finance will track it for me, other sites tracked back ten years or 15.) Because of various stock splits over the company's history, it is difficult to peg down an All Time High. What I do know is that the stock traded as high as $39 last year, and was $21 after a reverse 250/1 consolidation less than two weeks ago.

The gamble here is that Helios & Matheson survive the current turmoil and find their way back to something moderately resembling legitimacy.

But... you say... I've never heard of Helios & Matheson. What do they do?

Well maybe you will know them better by a different name:

Helios & Matheson own a controlling interest in Moviepass, the movie subscription service that allowed users to see one movie a day every day, for a low price of $9.95 per month. A couple of weeks ago I wrote So Long Moviepass and if you want a bit of a look in to why the subscription service was unfeasible.

So why am I investing in a service that seems doomed to failure?

A couple of things. They have changed their model to 3 movies per month for the $9.95 a month fee. Their claim is that 85% of their users were already under the 3 movie threshold, so it would not affect those people. They are also removing surge pricing, and blackouts.

These moves, according to MoviePass CEO, Mitch Lowe, will reduce the company's cash burn by 40%. He also claims that the new model keeps them sustainable over the long term.

The Hedge

Here's the thing. Helios & Matheson existed long before acquiring Moviepass. In fact, they only acquired the movie subscription company in August of 2017. So the theory is that even if Moviepass does not survive the parent company will cut it's loses and go back to other business ventures and the stock will recovery and move in an upward direction.

If it's a total failure, and Helios & Matheson is doomed, then I am out like $150.... I've lost more than that on single positions in crypto over the past 6 months. So I'm willing to sit on my hands and see what happens.

If you want to try your hand at investing with $HMNY or any other stock you might like to get your hands on, Head over to Robinhood, where you can trade with Zero fees, instant approval, and invest with as small a buy in as you like! I'd appreciate if you would click on this link: http://share.robinhood.com/mikem702 when setting up your account!

Thanks, as always, for reading!!