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Generally two types of bankruptcies - voluntary Chapter 7 and involuntary Chapter 13. Involuntary is when the creditors come after you. We know they have tons of converts that is debt to equity converts and we don't know those terms. But the holders of the converts normally have rights if they view the value of equity is now in a free fall. But other creditors can be landlords, telephone/internet services, lawyers, accounts etc and business credit cards and so on - including MP MasterCard relationship the minute they get concerned that they cannot cover ticket prices.
The only immediate suggested option you mentioned is to raise subscription prices. As I believe their contribution to data and marketing revenue sources for Q1 was only 31 cents per card holder last - a far cry from the extra $10 a month they need to cover to get to their breakeven number.
This acquisition of 51% EFO provides us some great insight. Not necessarily because HMNY is making the purchase but more important - these kind of deals have due diligence going in both directions. There is no way EFO would enter into such a deal if HMNY was in serious financial jeopardy. Their assets are very valuable - if not necessarily producing income but as a library asset. Should HMNY file for bankruptcy in the near future, it would be the end of the value of of EFO's library. That is, they would immediately be entangled in the ugly process of bankruptcy filings. 51% ownership of EFO generally means that those assets become subject to liquidation assets of the trustee creditors. Thus, in my mind, I think EFO must have had full due diligence exposure to the inner workings of the financials of HMNY. They must have liked what they saw. My only concern is that a smart acquiree would want anti-dilution protection to such a deal - meaning they would be protected on any reverse splits whereas we, the public holders, would not. Time for me to buy more tomorrow morning..
Right now I have no problem if the company is dumping shares for cash. If half of the 24 million shares today was the company selling - 12 million x $0.50 - they just picked up $6 million working capital to sustain their life. They had operating loss of $107 million in Q1, so $6 million gives them about a week of life. We need subscription rates to continue to increase and I'm all for company trading stock for cash with Citadel or any other boiler room operator. They'll just spread the shares to their investors and we'll get less insider control in the end. Cash to the company is paramount right now and outside confidence helps against the shorts. Just doubled my position this morning.
Where do you guys get this shit about incremental $6 per subscriber. Currently it is on $0.31 in added revenue on sub. You need a lot more promotional stuff to get to $6.
The company did not make $50 million. It made $5 million with funny accounting and had operating loss of $107 million.
Wow - again, a disconnect. When I divided the revenue vs movie expenses the for Q1, the ratio was about 2.8 to 1 and now they are saying that 80% attend movies more than 4 times a month. Just how much less than 4 times?? 2.8 vs 4 is a huge earnings loss. That is a big disconnect to prior info from management. Not sure who provided this author with this data?
https://www.cinemablend.com/news/2423051/a-huge-percent-of-moviepass-users-see-fewer-than-4-movies-a-month
Yes Vector - but if you go back to first grade you'll recall there are 12 months in a year or 3 in a quarter - so you left our February for 1.8 million. That adds to 5.6 million x $10 or about $56 million while they only show $47.4 million - seems like a simple mathematics error of nearly $9 million in revenue. Either there is a huge timing issue, overstated paying subscription membership or something else, but $9 million of $47 is close to 20% miscalculation. But I asked you to help me out on their other $92 million of mysterious income of "change in fair market values for derivatives and warrants. That's the funny money I'm wondering about.
no you dates are wrong hence the $10 million revenue difference between consensus and actual by most analysts. And, you cannot record the annual so called annual 100,000+ subscribers as revenue in Q3 or Q4. You can record cash inflow in the cash flow statement, but revenue must be recorded on the Income Statement when earned (GAAP) which means you have to book as deferred income on the balance sheet and only recognize that portion on the month the card is actually used.
Again, I remain suspect of their honesty - recognizing the timing differences we can's see. I just think much of their reporting is a bit misleading and subs are being exaggerated. Again, the issue is all their bullshit vs actual. Acknowledge that they lost $107 million in operating income which is clearly in the P&L and then they used funny money (none cash) credits to enhance there income to a $5 million Q1 profit, meaning $113 million funny money transactions. If you can explain to me what Change in Fair Market - Derivatives for $8.5 million was along with Change in Fair Market - Warrants for $93 million did to make them actually cash profitable - I might be happier.
Actually Vector – You got your dates wrong and thus, subscribers are NOT consistent with their published statements. They announced their 1.5 million subscribers on January 9 and hit 2 million on Feb 8, 2018. Then on April 6, one week after the close of the quarter, they announce that they hit 2.5 million. So conservatively, I used the below numbers which also match other third party analyst consensus numbers.
Jan 1.5 x $10 = $15,000,000
Feb 1.8 x $10 = $18,000,000
March 2.3 x $10 = $23,000,000
Total Q1 $56,000,000
That gave me around $56 million vs. claimed their $47.4 true subscription revenue number in their Quarterly report. Likewise, MarketWatch said “The company generated revenue of $49.4 million, up from $1.4 million a year earlier but below the FactSet Consensus estimate for $57.2 million”. In another release, Helios & Matheson said it now has more than 2.7 million (no date tagged to this number that I can find) active members, 1.1 million of which joined in the first quarter.
My point being, there seems to be a disconnect in their claim for members with what we would expect for revenue when you average $10 per subscriber. Further, on March 23, they announced the $6.95 sub plan which really brought them $13.50 per subscriber during the short week of the quarter - the MoviePass $6.95/mo annual subscription plan is paid upfront and they can record the one-time processing fee of $6.55 as revenue. The purpose of that is to pull in $83.40 cash up front, but they cannot recognize revenue until earned. But on cash flow, that plan helps them greatly.
My point is not so much the true subscription but instead, they frekin LOST $107 million in Q1 on operations – so I don’t buy the popular BS that they had a profitable Q1 2018 – except for the funny accounting they did to claim that bogus profit.
Further, I still remain long in this stock but prefer an honest debate. But the above reasons are why we have so much pressure from the shorts on this business model.
The Company losses $107 million in operating losses and not one of you guys acknowledge this loss. You celebrate their funny money "quarterly profit" and now wonder why the stock isn't moving north. Not one person has any disgust of their poor performance and expect some goofy "Gotti" movie to bail this out. If these guys don't get focused on running this company properly, it will continue to sink. There have been a couple hundred posts about "good news" and yet no discussion about my post of them losing money and misleading the subscriptions they claim to have. Those numbers are so simple, divide their quarterly revenue by $10 (monthly subs) and then again by divide by 3 months and we are nowhere close to 2.5+ million subs.
Guys - I'm having problems with their Q1 numbers. I have been long on this biz since last October and love the disruptive business model, but their Q1 numbers do not make sense, nor does their statement of subscribers being 2.5 +million. I put together their P&L on my Excel spreadsheet but realize I cannot post here on the posting. However, please see below the substantial gaps in their statements.
1. They claim 2.5 million subs but if you divide their quarterly subscription income of $47,162,477 by $30 (3 sub payments of $10/mth) you get only average monthly paying subs of 1,572,082. A huge disconnect in numbers recognizing that is a timing difference over those three months. But that gap is simply too big in my mind against their 2.5 million.
2. Likewise, if you divide their Q1 Cost of Revenue (payments to theaters) $135,968,976 by $12.50 (assuming average ticket cost of $12.50) you get 10,877,518 movie attendance over 3 months or an average of 3,625,839/month. Divide that by the 1,572,082 subs above, you get the average subscriber going to 2.3 movies a month (again I recognize that there can be some timing issues)
3. Them claiming a profitable quarter is based on “funny money”. Their operating loss – including management overhead for the quarter was a $107 million loss. They recoup that loss with one time funny money add backs of “Change in fair market value – derivative liabilities for $8.5 million plus Change in fair market value – warrant liabilities for $93.6 million and Gain on Extinguishment of debt for $15 million. I’m not even sure what that means, but clearly those are not true cash recoveries on their income statement. That’s $117 million of soft non cash accounting games.
I am and have been a CFO of numerous high tech companies for over 30 years and understand financial statements. I love this business model and concept and Mitch Lowe’s experience in this industry, but am truly cautioned by the financial statement s they have been putting out. And, as the nay sayers keep saying, they are paying 2.3 times money out against their subscription revenues coming in. To assume they are profitable is folly. I remain long on 25K shares but wake up every morning wondering how powerful the shorts will be against such numbers.
Hopefully, all this talk about some “big news” is real and not just more of Farnsworths typical BS.
Yea - I picked up another 10K this morning but it all came in in small trades of 100-300 shares per trade. As said before, I'm not a day trader or penny stock guy, but I was surprised to the slow response on my buys this morning. I'm not surprised by their revenue number but was really pleased that they made money - I was not expecting profitability for a long time. But the comment that Helios & Matheson also said that the company is seeing significantly reduced usage over time as its subscriber base "matures." I have purchased 7 cards for myself and my grown kids and collectively since last October, I don't think any of us use it more than once every two months. Certainly, they are making money on my cards. It's not different than my Netflix account or my cable pay channels. I have the preferred pay channels I want and really don't worry too much if I making money on that convenience.
Kazorchian or someone else? Can you explain technically how after hour trades are made. I'm simplistically assuming that it means I "buy or sell" a stock and my "buy" then ques in with the thousand of other "buys" vs "sells" and they all get executed in the morning when the market opens ahead of those who start trading with the bell?.
Or, are their active trades during the night that are actually being recorded in real time. I'm not a trader and buy and sell only during the market hours in the USA. So, what would be the value of me placing a buy tonight on HMNY? Simply, I get in line and my trade is executed before the others who trade only during hours?
Thanks to anyone who can explain.
Yea - I'm curious about the "guest free email" I got this morning. Either there is are disconnect with management and reality or the remain confident that there $21 million in the bank has ability to withstand and more financing is in place. Especially after they made the comment a few days back that people are sharing their cards with friends to get them in for free. The cheaper stock price makes easier for a big investor to play if they can see the subscription numbers and operating costs they are not being shared with the public. I keep staying long in this sucker - love the idea, but a bit confused how they can blow through so much money from the $105M investment a few months back. I do not like the idea of them paying for movie properties yet as that has a heavy up front cost and high risk of return. But at current pricing, a bit of confidence next and I'm back in buying more cheap stock to accumulate.
That's standard boiler plate "going concern" language any auditor will give to a start up entity that financially looks difficult to overcome with such substantial losses. As a disruptive biz, we are not investing in its current P&L but rather our belief that in the long run, MP can change a dying industry - movie theater attendance.
And Verizon got a million dollars for a "dead pony" and a long shot upside with 9% of HMNY cheap stock - why not take that freebie. MovieFone went from a valuation of over $330 million a few years back to now a value of, frankly, only $1 million plus cheap shares. Why not take that deal? I doubt Verizon has any serious plans for MP - other than a hopefully lucky additional hit for their poor investment of MovieFone a few years back.
If nothing else - MP remains aggressive as hell in this space. Purchasing a 6 million + movie biz
https://www.cnet.com/news/moviepass-joins-moviefone-through-takeover-from-verizon-oath-by-parent/
Ross - That is a very perceptive point. Why have a card if I barely go once a month. In my mind, I think I'm going to go more often, but in reality, I don't. I'm guessing I go about .75 times a month - thus being their perfect customer to make money on. Raising prices will not encourage me to buy a pass. Their toughest task is to access other sharing arrangements from concessions, uber and restaurants/bars to cover the cost of the outliers who cost them money by multiply visits to the theater.
Told you guys a month ago this would drop to the mid $3s and I'm buying in now to get my average well under $4. This will play out positively in the long run.
HELIOS AND MATHESON ANALYTICS INC. (NASDAQ:HMNY) Files An 8-K Entry into a Material Definitive Agreement
Item 9.01 Entry into a Material Definitive Agreement.
On March 14, 2018, Helios and Matheson Analytics Inc. (the “Company”) entered into a letter agreement (the “Lock-Up Agreement”) with Theodore Farnsworth, its Chief Executive Officer and Chairman of the Board of Directors, to which Mr. Farnsworth agreed that he would not sell or transfer any shares of the Company’s common stock (the “Common Stock”) held by him for a period of 24 months from the date of the Lock-Up Agreement, subject to certain permitted transfers as gifts, by will or intestate succession or to a family trust, provided that any such transfer is not a disposition for value and the transferee agrees to be bound by the Lock-Up Agreement. Mr. Farnsworth entered into the Lock-Up Agreement upon receipt from the Company of the Bonus (as defined below in Item 9.01 of this Current Report).
The above discussion does not purport to be a complete description of the Lock-Up Agreement and is qualified in its entirety by reference to the full text of the Lock-Up Agreement, which is attached as Exhibit 10.1 to this Current Report and incorporated herein by reference.
Item 9.01 Unregistered Sales of Equity Securities.
From December 29, 2017 through the date of this Current Report, the Company has issued an aggregate of 704,668 unregistered shares (the “Consultant Shares”) of its Common Stock to various consultants for services rendered to the Company, all of which consultants are business entities not wholly-owned by a single individual. The Company relied on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”) for the issuance of the Consultant Shares, inasmuch as the consultants were accredited investors and neither the Company nor any person acting on its behalf offered or sold any of such securities by any form of general solicitation or general advertising.
As previously disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on August 15, 2017, the board of directors (the “Board”) of the Company, on August 10, 2017, approved the grant of 500,000 unregistered shares (the “Gadiyaram Shares”) of Common Stock to Muralikrishna Gadiyaram, a non-independent director and consultant of the Company, subject to (a) completion of the transactions contemplated by that certain Securities Purchase Agreement, dated August 15, 2017, as subsequently amended on October 6, 2017, by and between the Company and MoviePass Inc. (“MoviePass”), and (b) stockholder approval in accordance with Nasdaq Listing Rule 5635(c). As previously disclosed in a Current Report on Form 8-K filed with the SEC on October 31, 2017, the Company’s stockholders approved the grant of the Gadiyaram Shares at a special meeting of stockholders on October 27, 2017. In February 2018, upon entry into a grant letter documenting the lock-up and other applicable restrictions on the Gadiyaram Shares (which restrictions were set forth in the Company’s Definitive Proxy Statement on Schedule 14A filed with the SEC on October 3, 2017), the Company issued the Gadiyaram Shares to Mr. Gadiyaram. The Company relied on Section 4(a)(2) of the Act for the issuance of the Gadiyaram Shares inasmuch as the recipient is an accredited investor and neither Helios nor any person acting on its behalf offered or sold any of such securities by any form of general solicitation or advertising.
Item 9.01 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On March 9, 2018, the Board, upon recommendation from the Compensation Committee of the Board, granted Theodore Farnsworth, the Company’s Chief Executive Officer and Chairman of the Board, a one-time cash bonus of $1,500,000 (the “Bonus”) in recognition of recent extraordinary efforts on behalf of the Company, including his role in the Company’s completed offerings of its securities for a total of $190,000,000 in gross proceeds since December 15, 2017 and his ongoing role in the acquisition of MoviePass and the integration of the MoviePass business with the Company.
On February 28, 2018, the Company satisfied all of its obligations due under its Senior Secured Convertible Notes issued to an institutional investor on August 16, 2017 (the “August Notes”); therefore the August Notes have been extinguished. In addition, as of the date of this Current Report, the Company has no unrestricted principle outstanding under the Senior Convertible Notes issued to institutional investors on November 7, 2017 and January 23, 2018.
Accordingly, as of the date of this Current Report, the Company owes no debt principal under any debt instruments.
As of March 14, 2018, the Company had 43,299,563 shares of Common Stock issued and outstanding. This includes 9,100,000 shares that the Company issued to the exercise of the pre-funded Series B-1 Warrants issued in the Company’s underwritten public offering of Series A-1 Units and Series B-1 Units, as previously disclosed in a Current Report on Form 8-K filed with the SEC on February 13, 2018.
On March 15, 2018, the Company issued a press release announcing that it plans to spin off its wholly-owned subsidiary Zone Technologies, Inc. (“Zone”) as a dividend distribution to the Company’s securities holders, following which Zone would become an independent publicly traded company that the Company expects to also be listed on The Nasdaq Stock Market.
From Yahoo News.
Whether the comparison is apt or aspirational depends on MoviePass's success over the next year; Lowe said "We are 100 percent confident that we have the committed funding... to get to the cash flow break even point, which we believe will be early next year."
The steps in that plan:
Get users to an average of 1.1 movies per month
Get average monthly cost of goods (i.e. what MoviePass provides the user) down to $9
Generate $6 per user in revenue from advertising and data plays
"Obviously we're not there yet," he concluded. But he pointed out that "the cash required is coming down dramatically from what it was even a few months ago." He later specified in an email that this is from "a combination of revenue from studios and brand partnerships, lower costs of tickets, lower member churn and lower usage." However, the road to getting a share of concessions — famously the most profitable part of the business — will be a bumpy one, especially given the antagonistic stance MoviePass has taken with industry leaders like AMC.
https://www.yahoo.com/finance/news/moviepass-ceo-backpedals-location-tracking-225615489.html
Maria Stipp, CEO of Lagunitas Brewing Company, has been elected to its Board of Directors. “Maria has an excellent track record in the business world, and we’re thrilled to welcome her to the MoviePass board of directors,” said Mitch Lowe, CEO of MoviePass. “We believe her strong experience leading teams and expanding various programs will be invaluable to MoviePass as we continue to scale the company.”
I like the move. I associate MoviePass with beer now. I love going to the theater and am surprised by the variety of quality beers they offer at my local AMC. The notion of having a beer vs coke appeals to me but I do wonder about alcohol control as booze could be easily be slipped to underage kids by friends jeopardizing their liqueur license. Also, last week I noticed how long the booze line was as the ladies were ordering lots of mixed drinks slowing down the process. Hence the model of MP - bring people into the theater for low cost while selling them high margin concessions.
Wow - and not a single mention of MoviePass in this release. Now that is what I call a bullshit report. HMNY at best, historically was a marginally useful "little" data company and its only redemption is their link to MoviePass. Reading that article would suggest that those investors bought stock on the magic of their data management. The win or loss in this play is simply the on going argument of whether their subscription revenue can out last their expense outflow. That's why there are honest discussions about this by the various analysts. But to have an article on HMNY and not mention that the stock is moving because of the underlying value of MoviePass is very misleading.
Whats wrong - it's two independent Analysts having different views on HMNY as does this board. Not much different than the Bulls and Bears in the market. There is no contradiction. Seeking Alpha is not a monolithic organization but simply, different analysts expressing their honest opinions. Both articles have logical sense - the risk is strictly on the buyer believing one side or the other. I find their articles very insightful and helpful.
I repeat - this thing can't go above $5.50 as that is what the next offering is coming out at. Why would anybody pay more than $5.50 today when they can buy all the stock they want in a couple months on the offering at $5.50. The ceiling is locked in at $5.50 until then. This is the time to get your average basis of your holdings as low as possible. My average buys are at about $4.85 and every time it drops below that, I buy to continually buy down my average - making me an immediate winner against the pending offering. If you believe in this business model, let this sucker drop for the next couple months and slowly buy into the opportunities under $5.
Keep slowly buying guys. The future pegged price of the offering is $5.50. I am working carefully to get my average basis well below the $5.50. When and if they get the funding at that price, you will have the lower cost basis and the big guys will then help push this price to reflect the great multiple we all expect on this play. I still suspect this thing will get down in the high $3s but buying on the down is good. We haven't had a chance to buy in on these prices since last October.
Nobody is missing the point on the data. Thats why everybody jumped on to this deal. What is missing is how they are fu*kin the ordinal investors - like earlier this week with the bonehead announcement of the $105 million round at $5.50. Every investment banker knows that if the market price is $8 and you announce the next round of funding at $5.5o - the market will respond immediately. Thats a 32% hit on my $75K position - or a drop of $25k. Why? We are the ones supporting the stock. They only way I make up for that is to sell everything at $5.50 and buy back at $3.80 to make up that loss. Yea, I know it might not drop as low as $3.80 but it will get damn close to that as they have pissed off too many holders. When it bottoms in the next couple weeks, I'm coming back in hard as the price will be as low as I bought in October and remember the run up to $32 in December. Thats when we made money.
Yaz - you'll have all the time in the world to buy this shit cheaper. They are now at 78% - there will be another dilution for the next round money advance. They have no alternative but to buy 100% of MP which will cause more dilution. As I said before, the wrong guy is taking control (publicity) of this opportunity. Farnsworth, a failed big data guy is overshadowing Mitch Lowe, who is the primary reason everybody got excited about MoviePass. I'm still concern that Lowe may walk out of this deal as the insiders of HMNY are selling stock and walking out with cash. There easily could be a power struggle between the two characters. Unfortunately, the tail is wagging the dog. Regardless of the dilution - eventually, this model will settle down and you'll have all the chance to buy as many shares as you want at $3.50. Catching the upside on this deal will be easy - but right now, she is still sinking. They should have had more than 2 million subs in their last announcement - that's a deceleration over prior periods. Also, for all the people who see multiple movies a month, I'll bet close to half of their subscribers are still like me who has only seen two movies since I bought my card in October. Shit, with all the money I've made off the HMNY stock - I don't even care about the $9.99 they are charging me monthly. Be patient and you'll have a chance to recoup your basis at $3.50.
Sorry, but this sucker is going down to $3.50 before it heads north. I've made a ton of money on this since I bought back in at $4 in October but the underwriters are totally blind to what they are doing. HMNY has just created up to 26.5 million new shares of its stock to flood onto the market. HMNY just told investors to expect more than 50% dilution of their ownership stakes in the company. I'm only surprised at how slow its going down to reflect the 50% dilution. I'll be back in when this thing hits $3.50 but right now, it will continue to slide and no amount of PR will correct this bonehead Investment banks stupid announcement.
https://www.fool.com/investing/2018/02/13/why-moviepass-stock-helios-and-matheson-just-sank.aspx
Excellent article on HMNY/MP from the negative perspective - particularily on the recent $105 million offering. I disagree with his premise on the business model, but his comments on all the foolish announced financing schemes are what I too am bitching about.
See article:
https://seekingalpha.com/article/4146061-helios-matheson-fools-gold
Because I explained to you the dumb ass thing HMNY did - they assured you the price will not go over $5.50 for a couple of months and most likely, when the light bulb in you head lites up, you too will sell for your profits knowing you have 2-3 months to get in at the offering price of $5.5o in the future. They have put an artificial ceiling on the stock and it will not move over $5.50 until the offering sometime in Q2. In the meanwhile, take your profits now and buy back in when it drifts south.
"Canaccord Genuity is acting as sole book-running manager and Maxim Group LLC is acting as co-manager for the offering. Palladium Capital Advisors, LLC is acting as a financial advisor in connection with the offering."
Now let me see if I understand. Maxim Group is part of the offering syndicate at $5.50 yet on Dec 17 Maxim predicted the stock would be worth $25. Whats the saying, "put your money where your mouth is". Shit, they won't even put their money on 22% of their mouth. Nor do they have the balls to sell the offering at $25????? Sell now, buy back twice the volume at half the price in a couple of weeks and you'll be winner. This ain't going above $5.50 and if it continues to drift south, amateur Maxim will take the offering out at less than $5.50. The only quality guy in this play is Mitch Lowe and he's letting the losers run the show. Sad.
HMNY is screwing their loyal investors – we have been behind them since October not only supporting their stock, but I bet, to a man/woman, we have probably all gotten a dozen subscribers for then through our personal connections. Now, this second tier investment house places the value of the company at $5.50 with heavy dilution. I have nothing against raising more money and issuing more shares – but they have converts out there for $6.50 and $11 which allowed for stability of the HMNY stock for the last 10 days. Whist the market was crashing since Friday, Feb 2 – the HMNY stock was stable in the mid $8 reflecting the balance of the above two convert averages. Now these boneheads issue a new offering at $5.50 out in the future – giving us loyal investors the royal shaft - a huge drop in value yesterday. I sold 90% of my stock yesterday and today. Why not? I’m better off taking the money off the table and making money on the blue chip resurgent stocks for a couple of months than being frozen in at their f**kin $5.50 value. What they told us yesterday is sell and take your profits and come back into HMNY at $5.50 any time over the next couple of months until the public offering on the $105 million. The idiots just locked in the future stock value for two or so months. I suggest we all sell and show management our respect and we’ll drop this sucker back to about $2 and get back in to recover yesterdays loss. We can likewise f**k Mr. Farnsworth, because if we drop the price back below $3, his second tier inexperienced banks will have to reprice it a the lower of market. Idiots!!! We are the ones giving this stock support in the mid $8s and they simply screw their loyal players. I love MoviePass' disruptive biz model and will be a heavy buyer again – but for now, they have essentially assured me that the price will stay at $5 for a couple of months and I can go make money elsewhere and am protected to always get back in at about $5 until the offering. Then, I will come back to HMNY again when they put this stock back into play.
Really smilie - Cost of advertising a movie is big time to reach an audience of 1.5 million who care or listen. Direct response to your subscriber base reminds them of their options for Friday night vs all the other entertain options - and very cheap. You try to reach 1.5 million on your start up biz. I get multiple emails from the local play houses in town to remind my wife and I of an entertainment oftion for the weekend and it works real well. Good luck.
Just received my second - two days in a row. I think that is the result of hiring this marketing lady. Nice. Personally, I think we are stuck in the $8 range until the next subscription numbers come out. With two dilutive converts at $6.50 and $11 - it puts their average value right about where we are now other than daily trade movements.
Instead of being confined to my house six days a week to only watch TV and have daily sex with the wife, yesterday Movie Pass targeted me and other card holders direct with a movie promotion to get off my ass and go out to the theater to see these targeted movies. You realize how cheap this direct advertising is with an email targeted to my likes vs. broad TV advertising on the networks. I believe this is the first email promo they have done and only an example of what big data will do to directly target cardholder likes and movie preferences. The studios will pay big promotional money to MP for this perfectly matched advertising. Another source of revenue for them to cover the loss on the card usage. Love this biz model!!!!!!
I bought my MP card in October and used it last night for the first time to see The Post at the local AMC. Perfect process. Made reservation at my house on the App at 6:30 and sitting in the theater by 7:00. Flawless process. As an investor, the $40 I have spent vs the $12 they paid AMC did not bother me. I used to go to movies almost weekly and now I, like many others, have dropped my viewing to about once every other month. There are about half dozen new movies I want to see on the big screen in the next few months and will enjoy - just as I don't pay attention to the $10 I spend on Netflex every month - its just simply a cost of living. The theater was great. Bought a bag of popcorn and low and behold - they served beer. First time I enjoyed a movie at the theater with a beer. And, I totally enjoyed the MoviePass experience. I'm sure someday they will know that I'm a Fat Tire beer drinker and make use of that data to better serve all customers in the future.
announcement on new CMO
http://variety.com/2018/film/news/moviepass-3-1202664935/
They can't afford it and one ad for a new biz is not enough to impress an audience. NBC Sports said that the network will average more than $5 million for a 30-second spot for the Super Bowl.
Got you. I thought it was announced at the Costco Stores back on December 12, but upon reading more carefully, both options are online only. Here is one of the press releases:
Less than a month ago, movie theater subscription service MoviePass announced an annual plan: rather than paying $9.95 a month, members could switch to an annual plan at $89.95 a year. I wrote about it at the time, but what I didn’t know then was that it was a very limited time offer, and after only a week, MoviePass pulled the plug on the annual deal. And, ironically, even though I wrote about the plan and told lots of my friends to switch, I missed out on it.
Today, however, MoviePass announced another new annual plan that is in some ways an even better deal than the last one. The cost is essentially the same–$89.99 for one year. But now, rather than switching to the plan via the MoviePass app, you will need to purchase the plan from Costco online. But, in addition to allowing you to see unlimited movies over the next year for only $90, you will also get a one-year subscription to Fandor, a movie streaming service.
Has anybody yet seen a MoviePass card available at CostCo? I have gone to three CostCos in the San Diego area now since their announcement and have yet to see a MoviePass available at the card rack. I see Regal and AMC discount cards there but no MoviePass as of yesterday.
No problem. They have sent a few promotional movie reviews and you most likely will receive much more over time - the purpose of their Big Data relationship is to promote movie going, restaurant specials and your viewing habits. And, yest they need your phone number which I believe registrats your attendance to the movie. I find none of this intrusive.
Hope you are right but I think its gonna take more than just good PR. Look what happened a day after the good Costco PR.