![]() My major track focused on Investments and Financial Analysis. ![]() ![]() I hold a Bachelor of Science Degree from Lehigh University, where I double majored in Finance and Accounting, with a minor in History. I have been active in the markets for several years, and am primarily focused on long/short equities. I have been interested in the markets since elementary school, and hope to pursue a career in the investment management industry. I started writing for Seeking Alpha in 2011, and it has been a tremendous opportunity and learning experience. I am a market enthusiast and part-time trader. As investors get diluted more and more, and the company burns through tens of millions in cash, the situation will only get worse. I'd be very surprised if the name opens anywhere near $25 tomorrow, in fact we may see a lot of red after this massive reverse split. ![]() In the end, anyone still holding on to Helios and Matheson should get out before they lose even more money. DryShips now trades for about $5, but the split adjusted price I first started warning investors at equates to around $294,000 per share. I warned investors over a long period of time about that company's multiple reverse splits, with every one taking the stock lower and lower. How many millions more will MoviePass need to stay in business over the next year?įor those that have not followed my writing, take a look back at a similar situation that occurred with DryShips ( DRYS). The company will likely need more and more funds to continue operating, and it doesn't help that AMC ( AMC ) has launched a competition service. Yes, this is a very flawed business, with a more than $26 million net loss in Q1 fueling a cash burn of more than $68 million in operations. It has obviously risen significantly since given nearly 2 million shares will be left after this major reverse split. Just take a look at the 10-Q filing detailing that in Q1 of this year, the outstanding share count went from 24 million to 49.6 million. The company says that 1.7 million shares will be outstanding after this reverse split takes place, but that number will rise significantly moving forward. Fractional shares will not be issued as a result of the reverse stock split instead, the Board of Directors determined to effect an issuance of shares to holders that would otherwise be entitled to a fractional share such that any fractional shares will be rounded up to the nearest whole number. The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s equity, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. There's also likely a lot of accounts that will have fractional shares, to be taken care of as detailed by the following statement from the above linked press release: This means that if you held 1,000 shares at roughly 10 cents a piece currently, tomorrow you will have 4 shares at $25. Unfortunately, the worst is probably not here yet, given the latest set of news.Īt the end of close on Tuesday, the stock will undergo a 1:250 reverse stock split. The Moviepass owner saw its shares surge late last year as subscribers grew significantly, but the terrible business model has sent shares down to less than a dime recently. One of the most fascinating stocks to watch over the past year has been Helios and Matheson ( OTC:HMNY).
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