Helios and Matheson Analytics Inc (HMNY)

[420man]

RS's are generally done to attract new buyers of the stock and/or to fulfill the requirements of the exchange they are listed on. BUT, why would anyone buy at a higher PPS after the company has diluted its share base? It appears that they are unable to find a good private placement deal, therefore once the RS has been completed they will then sell some of their new share increase at a lower PPS than retail in order to make the deal attractive. Meaning, at this point they would have to sell an offering at like .20 in order to attract a buyer, but after the RS the share price will be in the dollars, and thus an institutional buyer will see it as a way to make a substantial profit by selling into retail. jMO