Market Overview

Helios And Matheson's Stake In MoviePass Is Paying Off

Helios And Matheson's Stake In MoviePass Is Paying Off

Helios and Matheson Analytics Inc (NASDAQ: HMNY) is becoming one of Wall Street's most talked about stocks after increasing in value ten-fold. The company that offers predictive analytics recently acquired a stake in the online ticketing service MoviePass for $27 million.

Reuters reported MoviePass' subscriber numbers soared from less than 20,000 to over 400,000 after the stake was announced on Aug. 15.

Wall Street took notice as Maxim Group's Brian Kinstlinger suggested his prior estimate of MoviePass boasting 2.5 million subscribers is a "conservative" figure, Reuters quoted the analyst as saying in a research report on Oct. 2.

Meanwhile, MoviePass is prepping for an initial public offering before the end of March 2018.

Not All Are Bullish

But not all across Wall Street are uber-bullish. On the contrary, notable short seller Citron Research Tweeted that Helios' stock deserves to trade lower to the $20 level as opposed to the mid-to-high $30s it was trading at on Wednesday.

Meanwhile, CNBC's Jim Cramer jumped into the debate and Tweeted at Citron: "a squeeze is a squeeze by any name." Cramer likely referenced the stock's heavily short profile in which 62 percent of the company's float is shorted, Reuters added. In other words, many investors who are short the stock are being forced to buy shares, which exasperates the move to the upside.

Helis And Matheson's stock is up more than 1,000 percent since Aug. 15.

Related Link:

Helios And Matheson: Even Citron's Andrew Left Can't Derail This Rally

Posted-In: Andrew Left Brian Kinstlinger Citron Research Maxim GroupShort Sellers IPOs Movers Media Best of Benzinga


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