Helios and Matheson Analytics Inc (HMNY)

[BobDoleYahoo]

Right. The problem is, has, and always were: dilution. That's what caused the tankage for the past 9+ months.

The solution? Stop the dilution.

How? Stop the money lost. Losing money in itself isn't always viewed as negative for a company that's in a growth stage. What is negative is HMNY isn't using an actual debt /credit line (i.e. $500 million) to fund operations. He's using shareholders, thus diluting shareholders. So yes, this thing can NEVER go back up with continued ATM dilution. It can't. No way. No how.

However, if they can get rid of the 15% that abuses the service or those that uses heavily, and leave the 85% that are closer to break even, and THEN gain revenue from ad sales, along with using an actual debt / credit line so they don't have to keep diluting shareholders to death, then I'll see it run.

I know MoviePass' strategy right now is to limit usage to:

1. Lower the expense.

*AND*

2. Force heavy users to quit. Casual users rarely go to the movies so they don't even care. It's the heavy users who are whining and complaining online and canceling. This is exactly what MoviePass' strategy is. I know it after observing how the app behaves and what Mitch was saying in the interviews. They finally learned their lessons.

If ATM dilution continues, HMNY is NOT undervalued. It's valued at future market outlook, which is: shareholders will die from continued ATM dilution.

If ATM dilution stops, again, because of future market outlook, HMNY is VERY undervalued.

So, when the 10-Q comes out, or when any of the next SEC filings come out that gives us any details on the share count, that total outstanding share number is going to be absolutely critical. It is the ONLY thing that matters now because it reflects cash deficit directly.

I believe outstanding shares might be in the 70-100 million range by now. However, if they surprise us by saying it's only about 10 million, this puppy will probably rip and skyrocket. 70-100 million obviously means they're still burning cash. 10 million means they're burning MUCH less.