Helios and Matheson Analytics Inc (HMNY)

[newztanz]

The only consumers interested in signing up for MP are individuals intending on maximizing it's usage opportunity. The moral hazard of subscribers is not deminished simply because of the movie opportunity being brought down to 3 because there has been an obvious subsiquent decrease in subacribers, from 3.2M to an assumed under 2M if not closer to 1M. The high use subscriber is now simple calculated at anything above 1.2 How many people are going to sign up with the thought that they are going to only use 14.4 movie attendance opportunities that year. And quite simple, if that is the working number that MP has calculated why not simply promote that number. "MoviePass 14.4 movies any movie anytime within 12 months for $119.40". The equivalent offer they present is 36 movies for $119.40 The expectation that consumers are going to practice concervative moral hazard in a situation where the presented offer is more opportunistic for liberal moral hazard. This is the optimistic fantasy that MP has self hypnotised itself and investors into believing.