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Blue I think some of us been here a long time and I remember we did look at the pipeline at one point and looked at all the competitions out there as well as patents expiring.
I think we looked at the price of each that's selling on the market and cheap pills selling at high quantities means you're going to be producing a whole lot and your cost in production and shipping can go up. That cuts into your potential profit when you have to compete and sell lower price. It would be less desirable for a potential partner.
Metformin Glocophage for example, our partner MNK already producing their own version so there is no point in them picking up IPCI version unless IPCI version offers an advantage. Now, if IPCI had gotten approval sooner, perhaps MNK would be producing IPCI version today instead. That's why I said missed opportunity.
I don't remember all the details of our discussions, but if you really want to get an idea. Go and take a look at each of other generics and search about existing manufacturers out there and you'll get an idea how desirable it maybe for a potential partner to be manufacturing or partner with IPCI.
Fabious, I can't say I'm not concerned that they got a hedge fund involved. That's not exactly the investor type I preferred to see IPCI associate with. All though, there can be potential positives, but it's a double edge sword depends on which way you swing it with these guys.
Need some good news to boost morals and fast.
Yeah, seems like PTIE is still in the race against IPCI now that Rexista is hitting road blocks. While EGLT trying to market their approved morphine version. It proved to be difficult to sell a new product without the deep pocket of a big pharma and their connections.
EGLT is a good example of small company struggling to market a new product with a small sales force. They have put so much money into that and it's far from able to quickly gain market shares.
It's not a simple task to be marketing a new drug generic or not. Even if IPCI do hire their own small sales force, I doubt they have much success in selling anything of significant volume except rack up on expense.
Plus, IPCI don't have a manufacturing facility in the US, transport cost would be high for them to distribute from Canada. It's not a feasible business unless it's a drug that's unique and that there is high demand and no competition.
If anything, IPCI might have an easier time in the Canadian market. But still they got to deal with competition and they have to be able to compete. For IPCI it's all about the delivery tech and overdose prevention . Otherwise, it's going to be tough competition as time goes by.
I mean, if PTIE beats IPCI to market, it be looked at as negative too.
What does it matter? Whole sellers, warehouse distribution point managers, pharmacy chains like Walgreen or Walmart, who cares?
Why should Walgreen suddenly load up on IPCI version when they have been doing business all these years? Or a warehouse manager that sells direct online.
How much does it cost IPCI to manufacture it in Canada and then ship it to various US distribution points assuming these distributors are interested?
A partner would be more efficient producing the pills in US and lower the cost of distribution alone. But, only if the producer don't already have another version of Metformin they are already producing.
When you got too much competition, things gets very difficult for being late to the market. There are over 100 manufacturers.
Yeah, you would think if IPCI version has no issues, FDA would have ok it by now. We have no information why IPCI haven't gotten approval yet. It's not a patent issue since Zydus got their approval.
That's not looking too good someone beat IPCI to the market. Originally we have predicted another approval year end, but it seems to be getting close to missing that window.
Odidi needs to do something to boost the moral.
You have to get the words out there is now this new version of generics. Then you're looking at competing with others, and you're trying to get customers to buy your version.
There has to be a selling point. If IPCI version has no advantage and it's just the same like another generic, then you're looking at cutting the price to compete by selling lower in bulks. That cuts into your profit.
Relying on sales force to call direct and trying to sell it might take a while if you don't do some kind of promotional adds.
So when you add all your cost up from producing the pills to packaging, transporting and any other cost in marketing you would have a good idea if you turn profit or not.
If I was a buyer, I'd think about all my options of generics and which one cost less as well as any advantages of that particular version of the drug? If they are all the same, then all I really care about is who sells lower.
There is typically a good business relationship between a sales rep and a customer. And for the customer to suddenly switch to buying from someone else, there has to be a good reason for that customer. so then the question is what does IPCI has to offer?
We don't currently have the overdose prevention tech yet. That still something of an unproven concept. If overdose prevention was actually developed, that would be a different story. Getting a partner for Glucophage would be a tough one. I think IPCI missed opportunities in the last 4 years, and it becomes increasingly difficult to gain market now compares to years ago.
It's not cheap to market a product Blue. Advertisement cost, and sales are significant investment before the product can turn profit. Then the partner has to share profit with IPCI. Maybe if IPCI sell out right instead of partner up it could work if the price is low enough.
I don't disagree, that's why my buy orders are below 10$. Just hope it fills for me before anything good happens again in the coming month.
We do run the risk of being diluted more due to potential additional fund raise before IPO. It's up to the company to secure some sweet deals to boost potential revenue but that stuff is going to take time. MP of course will be in red short term.
Also, gathering support and working out deals with people that hates MP and sees them unwelcome or a threat won't happen any time soon. It's going to need time to build up the company.
I am not expecting too much this year except the deal between HMNY and MP to close. See where the stock bottom out and try to enter. Speaking of the deal between HMNY and MP that is likely to be closing some time in early to mid Nov as projected.
Hoping for a early Nov close and they can focus on signing some deals and boost sales before the holidays. That can help the stock by showing additional support from MP and their business when they sign new deals.
It's not fair though cus private investors are getting share for 3$ why should we pay 16$? Would have been different is the shares were sold for 20$.
Shorts will take advantage of this and then go long again when they take it down as much as possible. It doesn't take much to see that the market is bearish and the stock wants to fall. So just chilling out to see if it goes sub 10. Not about to put too much into this stock just yet since there are still substantial risks including potential dilutions down the road and prior to MP IPO.
Company is growing customer base is a good thing, but they haven't turn that into revenue yet by selling that data or other things they talked about. So the real news that will move this again is the actual deals with movie chains or film makers, or any other interested businesses including advertisement.
I think they are focused on closing the deal right now. With Studio Movie Grill as an example benefiting from partnership with MP, it could generate interest from other movie chains.
AMC can see a jump in revenue too and that's why I said they aren't smart making a big fuss about MP. AMC partner with MP will drive their business too and their stock should rise as well.
I mean, Studio Movie Grill saw 400% increase! what's sharing a bit of profit with MP for that gain in sales? It's a win win for both parties.
Yeah, they are in danger of running into listing requirement issues with NASDAQ. Odidi mess up more and this will be a big problem. Right now is just about crossing the red line. I think he knows he needs to do a deal to save the stock. Get some help to run the company.
Interesting development as we have been talking about back then we don't know who took the 1.10 a share offer. Now a hedge fund got involved. He would certainly have a say in any company development being a 5% owner.
Not uncommon a financial group gets involved in the transaction of companies. They apparently invested in IPCI but a hedge fund can short if things goes south.
With 61.4% in Cerecor, the fund basically owns Cerecor. I see this as a positive because this guys serves as networking between all the company his fund have stakes in.
Sit back with pop corns and watch the show unfold. I'd be happy camper if IPCI comes to some sort of deal with another company though this guy.
This wasn't just an offering to raise money from financial group looking to dump the shares into market to make a quick gain. Because the price was set at 1.10 and it's not some preferred convertible either. The guy owns 5% of common shares.
There are things they can't control much. Financial groups can and do move the stock. Smart traders will follow the moves and that can add to the problem both ways either up or down. Good example was Citron Research, one article and short the stock. Others piles in on it and people started to panic sell to lock profit and reduce loses.
It's not a bad thing though since it creates opportunities. But, the long term prospect is unchanged. HMNY and MP merger and taking MP public as well as future growth is up to the the two CEOs.
So my prediction for the month of October 300k more or double is a bit off, but that 600k report was on 10/18 date. No doubt they can get another 100k by month end, so the prediction isn't too far off.
It would seems like the rate is about 100k per week just like they said that they would be able to ship 100k+ cards with 96% retention. So if you guys want to really calculate the growth going forward, the 96% retention is useful for getting that number more closer to on target.
For the month of Nov and December I don't see why they can't get another 600k customers assuming they are not controlling the numbers. Because holidays is a time for movie goers to take advantage of the upcoming films.
1.2 million by year end is the prediction, but the company actually increased the year long projection to over 3 million by next August.
Current 8k reported an investor converted 2.5 million into 841k shares on August 27.
10/13 exchanged for 100k more share for 300k$ basically 3$ a share and diluted a bit more.
10/23 more exchange resulting that investor in 9.9% company ownership is how I understand it.
But then the investor also agreed to:
**terminate the February Exchange Right, terminating the Holder’s right to receive any further February Exchange Notes.
**Release all security interest held by the investor.
**Consent to company obtaining non-convertible senior secured debt financing from qualified bank for 20-100 million. Likely to be used for closing the deal. good thing it's going to be none convertible.
Sounds like they are getting ready to close the deal.
Agree, we have talked about potentially they had to control sub numbers a bit. If they had to control things a bit, then sub number may not be as high as demand would be. That explains why people are still complaining about the delay in getting their cards even today.
Plus the holiday is coming up and I do see people taking advantage of the pass short term. I personally have a few movies I want to watch. So their cost can spike.
It does cost money to issue cards, but I am sure Master Card have some form of discount for large orders of new cards. That's what business man do, and hopefully lowers some of that cost involved in issuing the cards.
Mitch would be out looking for additional funding to get them through until IPO. It's not a bad thing that demand is high, but hard to say if Mitch can sell it to investors early. He partnered with HMNY because he couldn't exactly sell the idea to financial groups. And, we don't see institutions jumping yet.
HMNY moved things ahead giving them additional 6.5 million instead of just 5 supports the idea that burn rate is expected to be high and that MP needs more money for the time being.
But since MP isn't public yet we have no intel on what's all going down these days. We only knew Studio Movie Grill is backing them, and benefiting from the partnership. Another investor invested 10 million, but who knows if Mitch got more funding or not after the recent development?
They are in this rough period until the deal close next month and that they go public next spring. I would think their IPO should be a pretty big one to generate enough funding to really step on the gas. But, there is that risk they couldn't make it through until IPO and it would be very bearish short term if constrained by funding issues.
It could be worst if HMNY dilutes more to generate additional funding to help. That can cause the stock to tank. That's why sub 10$ isn't out of question. But, hopefully they got good news to off set some of that down pressure.
It would help if they sign new deals with film makers or other movie chains or advertisement for example. That would show support for their business model and we could see another big run. I am not personally recommending a big position just yet. But, I want in early with a bit and then adjust as thing develop.
Where did you get that 700k number from? My estimate is also suggesting another 300-450k by now. 700-850k.
Also in the interview Ted said first payment to MP will be in December 30 days after the deal close. So we can expect news in November for the audit and deal to conclude. Still a bit of time for this to head lower to load up by end of October. They could be closing the deal early Nov and we hear about it.
This potentially head lower still. I got orders waiting to fill under 10$ a share. Need to get as many shares as I can. Hoping it plays out as others suggested.
Guys, the recent sec filing is clear. NASDAQ panel will grant continual list only if RS pass or somehow SP goes above 1$ for 10 days before Nov 15. That's very little time from now. So I won't count on SP to go above 1$, it would have to happen by Nov 5th two weeks from now.
So RS result being pushed back to 10/27 determines whether or not company stay on NASDAQ. SK is basically telling you, if you vote no, we all go to OTC.
If vote is still no, we potentially go even lower if we hit OTC. If vote is yes, RS will happen almost immediately. So short term prediction is bearish, but I am not saying long term it will not rise.
There are too much uncertainty such as will SK raise more capital after RS? How soon can NantCell file the NDA and set a PDUFA date for expected FDA approval on STS.
New combo study isn't really news that would add value right away. I'm still watching closely.
No Bob, I don't mean to disrespect but you did not read my post carefully. I sad those are my predictions. I did not say those are the numbers. I also said that's a projection of what the sub number might be by year end.
What they put in 8k and what they project on company presentation doesn't mean that's how reality plays out. A good investor goes beyond what company tells you.
Jward99 suggested 1.4 million, I am at 1.2 million. Both of us thinks they have far more customers than we know.
Agree Jward99, I know they have projections on their presentation but reality is a different story. They haven't release numbers public but we were given some hints.
One, their capacity is 100K plus per week by end of September, but they could have increased that to 150k since we were given the range of 100k to 150k. And it's the 3rd week of October. so add additional 300 - 450k for the month of October isn't out of question. I am basically saying their sub at least doubled again. Tripling would be at the 1.2 million close to your numbers.
Two, recent 8k they amended the purchase agreement that the original Movie Pass notes from 5 million to 11.5 million. They basically doubled the funding to Movie Pass by additional 6.5 million compare to the original 5 million back in August. That also clearly suggested that the subscription number likely doubled to original projected growth and so MP needed that funding.
I know some of you guys are saying to plot the graphs, but reality don't always follow expectations. I would say well over 1 million by now isn't out of question. Keep in mind MP isn't being funded just by us, they have other sources of funding too.
People might get a big surprise when they decides to disclose update on sub numbers.
Yes, institutions aren't jumping yet. HMNY still need to close the deal with MP. HMNY is going to dilute and end up with about 13 million shares out to raise that 27 million to close the deal. No doubt the shares are going to be private placement and owned by financial group.
4 million share additional sounds about right? That's why this will drop is that the offered new shares will be cheap. It's nothing retail can get in on anyway, but the market may bring it down to make it a fair trade for retails wanting in at about the same price.
However, float is low shares are limited and whether or not you can bring this all the way down to 5$ might be a challenge. Keep in mind bag holders all the way up to 38$ a share. If people hold out and don't sell, it could be a tough job to short this all the way down. But still, dilution can hit this and create that big buying opportunity. I'd agree SP short term is down, but no idea how low this will get just before the deal close.
We're not talking about what they had before it went viral. I'll repeat it again.
They disclosed publicly able to satisfy 100k-150k every week by end of September. Word out on the street today is that people are still not getting their cards within the expected time. That's a clear indication that even running at 100k - 150k capacity, they are still not able to satisfy demand !!
100k a week, do your math and you'll see what I am talking about. You don't need them to report the numbers, just ask friends who signed up recently did they get their card on time?
400k in October alone is my prediction. So they be sitting close to 1 million total subs by end of month. They could be hitting their marks of 2 million as early as January. Unless they are controlling it for financial reasons.
Yes, that's the concern for many analysts. They don't currently have that much free cash based on public info we have. With the investments they currently have, they can't really last a few month if the numbers did explode say 10x.
Since MP is still private we don't have that kind of public reporting. But, news sources have said Studio Movie Grill also invested 10 million on top of HMNY. If memory serves, they have one other big investor and I thought Netflex was backing them as well. So MP could have a lot more funding by now that we're unaware. They need to last until IPO next Spring.
I don't think MP will have issues attracting investors to satisfy their funding needs.
Agree, short term the players will want it cheap by shorting it as much as possible to make money.
It ran a little too fast, and needs to slow down a bit for people to catch up and get on the bus.
But, Citron has said that they are out because this is kind of stock that can actually go to the moon over night.
Yeah, working for a company and running one yourself is too different stories. However, I don't think Odidi is going to give up any time soon. He's come a long way to realize his dreams. I keep my holding but not planning to put too much into IPCI as it is right now. I am constantly adjusting my holding depend on the situation.
Unfortunately, people will lose interest without further development and it will likely reflect on the share price short term. But as I said before, There are still number of catalyst on the table here and it may be a chance to break even or reduce your loses in due time.
Just hope no more bad news because it can get ugly and it can really make people uncomfortable watching the SP crash. If anything Odidi should be focusing on getting the ANSDAs under MNK approved and try to fix Rexista based on FDA demands.
Doog, I agree with this. We know Odidi sucks, but forcing him to step aside doesn't really solve any problem if he were to be removed completely. It would conflict with his interests.
You either trust him that he can pull it off eventually or, I would say put your money else where. But demanding CEO to step down probably wouldn't help much at this point. If you think about it, Odidi won't take this lightly, and it will just create chaos within the company.
So I would say it's better of we take our money else where if we don't think he can do a good job. We can sue him and cover loses but I don't think going as far as removing him will serve any real purpose.
Guys, I know IPCI isn't looking like a very good investment right now. So I will share this with you not because I am pumping the stock, but here is something that has real potentials to keep a look out for. As always don't buy until you do your DD and don't just take my word for it.
Recent news is surrounding a company called Movie Pass. Mitch Lowe is the CEO running MP and just joined the company in 2016. Mitch is the co founder of Netflex and CEO of Redbox both very successful companies. Recently MP rolled out a new subscription plan under Mitch Lowe's leadership for $9.95 you get a movie pass that allows you to watch one movie per day.
Crazy deal like this went viral and subscription shot up from 16000 to 400k in one month time. You can imagine how much more that will potentially grown in the next few month.
Now MP is a private company, however HMNY a data mining company bought 53% stake in MP which makes HMNY 53% owner. HMNY stock shot up to near 40$ per share from 2$!! But, it's fallen back down due to short sellers and negative talks about how the business is unsustainable.
Now, the catch with MP is that with the mobile app, they are able to collect data about how often you go to movie or what kind of film you watch most often. That kind of data is valuable to film makers. Also, with the App being so popular, MP is able to influence the viewer and drive customers to particular theaters threw promotion or advertisement.
Movie theaters would love to get on the train with MP because it helps them drive sales when more people are using the pass. MP pays the full ticket price, so the theaters have nothing to lose. This is going to disrupt the movie industry in a big way.
Now, in an interview MP was valued at 50 million with 16000 customer subscriptions when HMNY acquired the 51% percent and later increased to 53%. Now, in the last report MP sub went up 25x at 400k. So MP value basically shot up to 1.25 billion. Citron research wrote a hit piece saying MP is not worth a billion dollar and calling the business being unsustainable. Later Citron admitted they were covering their short position :)
Now with HMNY owning 53% of 1.25 billion value, it's about 630 million with 13 million shares out once the deal close with MP. So the potential value should be around 50$ per share. But as usual, people are skeptical at first and it's fallen down to about 18$ per share, but I personally see a huge upside with this. With in months MP value will shoot up even more because they can hardly satisfy the demand shipping out the movie passes.
So this could potentially be a chance to recover some loses on IPCI. But again as I said, there are always risk and only invest after you do your DD.
Here is my prediction based on the interview on the sticky. We knew they grew customers to 400k in one month. That's great, but what about going forward?
In the interview, Farnsworth said they will be able to ship between 100k to 150k cards per week by the end of September. So that's saying they can sign up 100k to 150k customers in one week time. That's some big numbers.
So just taking 100k per week, for the month of October we should be seeing 400k more customers. Why? Because people are still complaining today that they haven't got their cards.
That's telling us even with the capacity increased to 100k or more they still can't satisfy the demand. You get the picture now?
They need time for all the party to get loaded up plus they need to close the deal with MP on the 27 million investment. When that's done and weak hands sold out, news will drop and the big boys always will make money once again.
I see why Farnsworth is not worried about short sellers. He knows once the deal close with MP, HMNY will be valued at 53% of MP.
My prediction is we will grow at 400k customers per month. For the Q4 October to December we should see 1.2 million more customers because there are numbers of films coming up that many people will want to see before or during the holidays.
I'd be interested to see if my predictions are close, you'd be surprised how quickly this will spread.
The sticky up top, in the interview it said that before the deal movie pass was valued at 50 million and that was with 16000 customers. HMNY invested 27 million just a bit over the 50% mark.
Now they have 25x more customers. 50 x 25 is 1.25 billion / 2 = about 625 million valuation for HMNY. Even after the deal goes through with 13 million shares, this is close to 50$ per share stock.
I don't think people realize this yet. Not to mention they have more than 400k customers by now. This looks like powder kegs on some what of a short fuse ready to explode.
I guess potential news would be update on subscriber and the closing of the deal with Movie pass soon.
Thanks for sharing, it sounds like they have already scaled up their ability issue the card to over 100k per week. This is good news. Plus having banks sponsor the cards is a good move.
The stock is going to about 13 million shares after the deal is done. Other than that, it sounds like big growth is in order and dropping costs. 51% of movie pass will show on HMNY financials.
Thanks for sharing. Keep in mind demand exceeded their expectations by a whole lot. That was from the company directly. So the numbers can potentially be double or more.
One factor you guys want to consider is how quickly Movie Pass can satisfy that demand. Their growth is currently limited to how quickly they can process the orders and ship the cards.
That's what we're seeing here that they can't get the cards out fast enough. Not because they don't have the demand.
Doog, I kind of expected that when the company is run by a couple. It's like their own little baby more private family matter than a public company. That's why most companies have policies that employees to not have any family ties. It should be strictly business.
Odidi does hold a large stake in the company, and that's probably the reason why we manage to hold at 1$. Imagine if he didn't own much and is focused on fund raising to continue development. We potentially be a sub dollar penny stock by now. I am glad the last raise was priced at 1.10.
We might slip lower but at least it's a not so bad compare to toxic finance that can drive this to zero in a hurry. So he needed more cash to finish the additional trials if not mistaken he said something about completing the trials year end.
So my expectation at this point is the Q4 numbers and potentially news on Rexista development or an ANDA approval, but not hoping too much with how things have been in the last year.
It concerns me to think that perhaps all the delays with FDA approval might be due to IPCI not meeting FDA requirements. And, due to funding constrains, Odidi could have been holding off the additional studies that might have been requested by FDA. It doesn't make sense for the ANDAs to be stuck even after the deal with MNK.
FDA have mentioned that some of the backlogs aren't because FDA couldn't process but it's because companies not actually responding in a timely fashion. For all we know, Odidi could have been putting things on back burner and trying to work Rexista and Podras with the little money he's got at his disposal.
Pretty much, that's how I feel about IPCI is that everything is moving slowly. But, as I have mentioned in my last post, Odidi don't have the funding to really move anything. He's keeping his 12 million spending per year and trying to develop drugs. I don't know if he tried to cut corners on Rexista and then realized it doesn't work that way which was costly.
In any case, it's just like you mentioned, moving like a snail.
Yes Fabius I can understand the feeling and I know many of you are long time holders are in this with a much higher average than current SP.
It sucks to have money tie up this way, and selling out at a lost is even worst.
True revenue could increase with MNK but the waiting time is what sucked. Plus Rexista is pretty much fallen into who knows what at this point.
Just hope to see the two ANDAs under MNK get approval soon. Otherwise, IPCI will go on for another year of nothing or disappointment you might put it that way.
It took forever to get Flcalin fully into market. Now it seems like expectations for Seroquel is low and that's also taking that time to bring in revenue.
I have said this from the beginning. Odidi and his low cost model may sound nice the company don't have much burn rate. But, without the funding you can't really advance anything in a hurry. And when time pass by you ended up losing a lot of opportunities. I think this is a short fall of IPCI that they are operating at low cost but at the same time not moving anywhere fast that results in lost of opportunities.
But, it eventually gets there is what it seems like. Just like Folcalin eventually gets to the market, and Seroquel will eventually get some nice revenue generated. The other two ANDAs will probably get approved eventually. It just seems like everything was stretched out far longer than it should be. Not looking too hot at the moment.
Yeah, I can imagine some sort of roller coaster short term if earnings report might start out negative. Fear could create that buying opportunity to add more shares. But, I believe they will have financial backing, it's too much involved.
This is not just about Movie Pass selling one product. You got the film maker's, movie theater chains, local restaurants, and everybody else in between including you and me as well as advertisement through the app. I think that is the key here is that this service can potentially benefit many parties, and it would receive the support it needs to get things rolling because it's a good thing for a lot of people.
They should release update on subscriber numbers in the future. Only matter of time. Shares outstanding for HMNY is low, only about 8 million shares. If company value shoots up, SP can run up fast too.
Yeah, not sure if any of you guys were gamers, but back in 1992 or around that time, Blizzard Entertainment released it's first massive multiplayer online game World of Warcraft. It caught attention faster than their tech people could support the game and the game performance was bad for a long time until they finally got the infrastructures to support up to some 12 million subscribers at peak some years later.
I mean, 10$ a month who wouldn't want a pass? We spend 40 bucks on a cell phone plan or more for family plans, some more on internet service at home, netflix, Amazon all sorts of subscribed services. For 20$ wife and I can go to the movie theater pretty much whenever. You can't beat that. We like to go out for dinner and a movie once in a while and we go more often if there is cool films to watch. It's not the same ordering food and sit on the couch. Often time we had to wait for new films to be available online.
They don't need to advertise much just watch. When something good comes along, words spread faster than you know. Plus all the media coverage, it's free advertisement already. One person tells 5 others about Movie Pass, and those 5 other people each tells 5 more.
It might actually be a problem if they grow too fast because their planned IPO isn't until next March. They need funding for the time being until the IPO to generate that money to get through the initial start up.
But, I would imagine they won't have trouble finding investors. HMNY already boosted their stake up to about 53% and other movie chain also invested in Movie Pass too. I could see announcements by Movie Pass on new deals with Movie theaters through out the country.
It's just like Pokemon Go driving people to public places, only Movie Pass is driving more viewers to the theaters. The theaters got nothing to lose and more to gain. They would be dumb not to take advantage of Movie Pass. Pretty soon advertisements on Movie Pass App or site could also generate that extra income to help sustain the business.
When you have 20k users using the app, it's not much for advertisement. But, when you got millions of people using the App on regular basis, that's a different story. Companies are always spending money on advertisement, through TV air time, Youtube, Face Book, all sorts of social platforms. Movie Pass could benefit from advertisements too.
Yeah, the CEO is not on TV for pumping stock. This is just like many others before. Last Summer we Pokemon Go. It was cool, because it got people to go out side to visit different locations. It drove people to parks, coffee shops. Even Sprint signed up to help drive customers to their local stores.
I've told a number of people about Movie Pass and the first thing they did was pick up the phone and sign up for member ship. Because you get to see the movie as soon as it's on big screen, no wait. So I believe the word will spread and fast. They can't keep up with issuing the card is clear indication that demand was through the roof.
Nowadays, you got app right on your phone that can tell you which theater accepts the card. It can collect information like what movie you watched, and how often you went to the theater. What kind of movie people watch most often can help filmmakers a great deal.
Driving people to theaters will benefit not only the local theater, but potentially restaurants near by. On slow days a movie room might not even fill up half the seats, and it still cost the same for the theater to show the film. Increasing viewers have no additional cost for the theaters. It's something that the theaters would welcome because it boost sales and revenue.
Because of this, I see opportunities where the theater will cut deals with Movie Pass to offer a discount for driving more viewers to the theater. So the cost should go down for Movie Pass.
The business model is basically investing into acquire customer base at a cost. But, once you get that customer base, you have that leverage to deal with other people involved. In a way it helps the entire film industry right down to local restaurants. It's beneficial for the film makers and theaters to actually support this. And, I think this is the important part. Obviously the film makers wants more sales too.
AMC deal is a bad move on AMC management. AMC made itself looked like a sore loser. Just not the way to present the company image to the public. AMC stock is down for a reason. Imagine if AMC were to welcome this change and state that they will work with Movie Pass to drive business it would actually increase their stock price because Movie Pass will likely help them generate more revenue on tickets and other sales.
Threatening to block Movie Pass just makes Movie pass members feel unwelcome. It's like saying we don't want your business at AMC. AMC is going to hurt bad if they keep this up, it's just a very bad move by AMC management.
Now we know why AMC was so pissed at Movie Pass lol. After the news AMC was planing for the same subscription model only Movie Pass beat them to market and Movie Pass works with credit card company that basically makes the pass a credit card that you can use at just about any theater that accepts credit card.
This blows AMC out of the water and totally trashed their plans. Even if AMC came out with their own movie pass who's going to buy their pass that's only good for the AMC locations? This stuff is too funny.
AMC have no rights to block Movie Pass since it's a credit card. They would basically be like we won't accept master card anymore. lol.
There is nothing AMC can do to block this, it will make ACM looked bad and potentially impact their business all together. AMC being stubborn is not a smart move. Because, I can tell you right now, I don't feel like going to AMC anymore because my movie pass and I aren't welcome. So then I simply don't go to AMC theater.
Lol Possibly down the road. Anyway, market data is more valuable than most people realize. There are too much focused on how the business model can't sustain or that Movie Pass would lose money.
A lot of people don't realize when you ended up with millions of customer base, you can collect all sorts of information that the film industry would kill for.
Info like how often people use their pass per month tells the potential sales as well as the type of movie people watch more would give film companies an idea what movie sells, and what don't sell.
Movie Pass is going to go public soon because they need the capital to make the business work. Potentially their IPO could be in a billion dollar and HMNY owns 51%.
Don't forget there are a whole lot of bag holders at this level. They are stuck. It would be nice to see institutions go long on this in the coming month.
But indeed, if more shares are exchanged into strong hands this won't fall much any time soon, but it's risky long terms because you never know if the growth can sustain or not.
So how long can HMNY last with the funding they have currently assuming 1 million subscribers by year end. No body knows how many movies an average person would watch.
I personally signed up as well and frankly I don't feel like going to the theater right now but there are definitely movies coming up that I want to see in theater.