![]() Rich Smith has no position in any of the stocks mentioned. The author(s) may have a position in any stocks mentioned. *Stock Advisor returns as of August 6, 2018 and Walmart wasn't one of them! That's right - they think these 10 stocks are even better buys. After all, the newsletter they have run for over a decade, the Motley Fool Stock Advisor, has tripled the market.*ĭavid and Tom just revealed what they believe are the ten best stocks for investors to buy right now. ![]() When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ![]() I see little reason to expect it to become a great company after spinning off MoviePass. Simply put, Helios wasn't such a great company before buying MoviePass. But it was still losing $7.4 million on $6.8 million in revenue. Helios may not have been losing "$146 million a year" before MoviePass, true. First and foremost, even after spinning off MoviePass, Helios envisions "HMNY retaining control of MoviePass Entertainment upon any such distribution." Thus, while separated from MoviePass in the public's perception, Helios would presumably still be responsible for MoviePass' continuing losses.Īnd second - to be blunt, Helios and Matheson was never that great of a business to begin with. But separated from Helios, MoviePass' difficulties would no longer taint the results of its current parent - or as CEO Ted Farnsworth put it: "The market perception of HMNY might benefit from separating our movie-related assets from the rest of our company."Īssuming this plan is followed to completion, does it make Helios and Matheson stock a "buy?" as separate public company." Presumably, absent additional changes to the business model, this would still be a money-losing company. Seeking to correct that error, this morning Helios and Matheson announced it's exploring a plan "to spin off MoviePass. ![]() But halfway through 2017, the company revamped its business model by acquiring a majority stake in all-you-can-eat movie subscription service MoviePass, and by the end of that year, Helios's losses had ballooned to $146 million - which kind of suggests that buying MoviePass was a mistake. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.In 2016, data analytics company Helios and Matheson reported a $7.4 million net loss on $6.8 million in revenue - admittedly, not a great result. to issue and sell shares of its common stock and warrants to purchase shares of its common stock." But management doesn't know "the actual size" of its offering, how much it will sell the shares for, or any "terms of the offering" at all.įor that matter, Helios and Matheson management doesn't know "whether or when the offering may be completed."Ībout the only thing investors can be certain of is that, as bad as today's news sounds, there's still another shoe (or two) to drop when Helios eventually (1) confirms that the issuance will happen and (2) firms up the details of how little money it will get for selling another batch of shares and how much existing shareholders will be diluted when it does so.ġ0 stocks we like better than Helios and Matheson Analytics How bad is this news for stockholders, and how much should they expect to get diluted this time? No one knows for sure - not even Helios.Īs described in its press release on the issuance, Helios will use its "best efforts.
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