Replies to post #26631 on Helios and Matheson Analytics Inc (HMNY)

[420man]

Well, it really wasn't a "challenge" as much as an encouragement to discuss facts as opposed to everyone just continuing the Bear vs Bull spat.

I like the detailed analysis of the patent litigation between Sinemia & HMNY/MP, but my priority concern is with the financial stability of HMNY going forward. Patents mean nothing without future profitability that doesn't require dilution of shareholders.

1. If they theoretically stopped dilution as of tomorrow, would they "still be standing" in a few months from now?
2. Yes, they've adjusted the sub model to 3 movies a month in order to stop the heavy usage by some members, but how many will be retained, and how many will sign up for a new model that is no longer "Any Movie, Any Time"?
3. They are definitely going to have extra legal costs due to the several Class Action Lawsuits, so where does that money come from, and what if they have to pay a significant settlement?
4. The PPS is currently @ .02, so how would they find a lender willing to finance them once they've burned up the money they made from dilution? Do "we" really expect HMNY/MP to all of a sudden become profitable with little to no burn rate within just a couple months?
5. IF they do get a buyer, will the offer be substantial enough for current retail to benefit?


Bottom line is that they will certainly need to require funding for at least a few more months. Where does that funding come from....a buyout of their MP position, a lender, more dilution, and how do those potential variables effect the current shareholders? The OS was 600+ when they released the recent 10Q and trading volume spiked really high since then, which leads me to caculate a current OS of at least 900- 1Billion. Have you ever seen a .02 stock with a Billion OS run up huge?


I'm honestly really tired of all things HMNY related at the moment. It's been a wild ride the past several months and I'm in need of a break.

Trying to put together a puzzle with only half the pieces and both arms tied behind your back is exhausting! I know how the markets work, but it just burns me up to no end that Ted & Mitch knew, and have known, exactly that which they want to do while watching so many suffer extreme losses.