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. But it was still losing $7.4 million on $6.8 million in revenue.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. 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." Now whatĪssuming this plan is followed to completion, does it make Helios and Matheson stock a "buy?" 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. ![]() Surprise! Helios and Matheson prepares to toss MoviePass overboard. Cartoon pirate forcing businessman to walk the plank
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