HMNY, you are beautiful!
Even at $0.26 cents you’ve given people a chance to make 50% on their money shorting your stock!
Last November, you went truly supernova, now you are imploding into you’re own black hole.
Only July 25, 2018, HMNY initiated a 1 for 250 reverse stock split which brought the price as high as $22 per share pre market.
Since then HMNY has faded $21.86 or 99.36%
It seems inevitable that they will do another reverse split in the coming months.
They will have to, if they want to remain in the game.
It’s either that or they have to turn the business around, quickly.
At least that’s what it looks like to me. By no means am I an expert. I am a total noobie with less than 1 year of trading experience.
But I found a guy on Twitter who’s posts gave me my first real insights into this game. In this brilliant article, Auspex Research, breaks down the the simple rules that are dictating HMNY’s actions
A+B = D
It’s a great article, go read it because I won’t be able to do it justice.
What an amazing run you had at the end of last year,
Thank you for getting me into the game!
Last fall when I was toying with the idea of becoming a trader, I casually watched HMNY’s epic run. I knew the basics of their business Movie Pass, for $9.99/ month, HMNY would pay for you too see unlimited movies at the theater. I, like many reasonable people, noted that the more popular they became, the faster they would loose money.
Here is a overview of their trials and tribulations written by Kevin Roose at the New York Times.
The plan was to get the movie companies to subsidize Movie Pass and use the platform to advertise to movie goers once their fan base was large enough but they had to do it before they ran out of cash.
Today HMNY is bouncing between $0.12 and $0.15,
It’s 52 week split adjusted high is $9,715.
Auspex writes that “Through detailed research, I will ensure to the best of my ability that the positions I take are against companies that can do me the least amount of harm in the long run.”
Aside from a short squeeze when HMNY reverse splits down to a 1 million share float, I don’t see HMNY doing much harm to any one.
HMNY seems to be in a downward spiral, as they raises fees and limits ticket availability, competitors like AMC are moving in with their own subscription services. The vultures are taking nips at the dying animal and all the dying animal is concerned with is staying in the zoo.
If HMNY gets delisted and sucked into the black hole of the OTC markets, it’s lights out.
That’s why HMNY has to keep their stock price above $1.00 and their market cap above $35 million
At the moment HMNY ‘s share price is $0.13 and their market cap is $242,000 according to Yahoo Finance
The pull of the black hole is strong, and it explains charts like GEVO, TOPS AND DCIX
That’s why I would like to thank you HMNY.
You can read all the theory, reports and stories about a setup but you’ll never truly understand it until you’ve experienced it play out in real time.
HMNY is my A+B=D
8/2/2018 – No position but interested in shorting HMNY in the future