Quarterhill Inc. (NASDAQ:QTRH) Up On Q3 Earnings Expectations

Quarterhill Inc. (NASDAQ:QTRH)

Quarterhill Inc. (NASDAQ:QTRH) jumped 20.5% after providing an update on financial results ending September 30, 2017. The investment holding company says it expects revenues of between $72.5 million to $82.5 million driven by strong results from its patent licensing subsidiary Wi-LAN Inc.

Wi-LAN subsidiary has already entered into a comprehensive licensing agreement with Samsung Electronics. The agreement builds upon patent rights previously granted to the South Korean company. However, the terms of the agreement remain confidential.

QTRH Stock Investor Reaction

Quarterhill Inc. (NASDAQ:QTRH)

Investors reacted to the positive outlook by pushing the stock to $1.59 – close to a key resistance level. The stock is currently trading at levels last seen in January after dropping from April highs of $2.20 a share.

The company also announced it expects adjusted EBITDA to come in between $50 and $56 million. Quarterhill Inc. (NASDAQ:QTRH) will release Q3 financial results on November 9, 2017.

“As we have said in the past, financial results in this segment of our business can be variable from quarter-to-quarter and this is a prime example of the upside potential of this variability. Our expected results for Q3 will provide a significant boost to our cash position, which will assist in the continued growth of Quarterhill,” said CEO Shaun McEwan.

$4.23 Million Contract

Separately, the Oklahoma Department of Transportation has awarded a wholly owned subsidiary of Quarterhill Inc. (NASDAQ:QTRH), International Road Dynamics, a contract worth $4.23 million. Under the terms of the agreement, the subsidiary is to provide installation, repair service, and calibration for Traffic Monitoring Systems across the state.

International Road Dynamics is to be responsible for all equipment, materials labor, and technical expertise. The company is also to install and maintain a Weigh in Motion and AVC systems. All Systems in the state are solar powered and accessible via cellular mode.

The $4.23 million contract builds on a CDN$1.95 million contract that International Road Dynamics was awarded for the supply of Commercial Vehicle Pre-Screening Stations for the Saskatchewan Bypass project. The systems are to be used for screening and monitoring of commercial vehicles based on weight and dimension.

Under the terms of the agreement, the Quarterhill Inc. (NASDAQ:QTRH) subsidiary is to supply and install an integrated system using its Bending Plate Weigh-In-Motion Scales with License Plate Readers.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Tuesday Morning Corporation (NASDAQ:TUES)

Tuesday Morning Corporation (NASDAQ:TUES) – Push For CEO Ousting

Tuesday Morning Corporation (NASDAQ:TUES)

Tuesday Morning Corporation (NASDAQ:TUES) shares jumped 11.1% after the off-price retailer reaffirmed its FY2018 outlook. The retailer expects same-store sales to increase 2% – 5% in addition to a significant improvement in EBITDA. The company expects its first-quarter sales to increase by the same amount.

Disappointing Financial Results

Shares of Tuesday Morning Corporation (NASDAQ:TUES) broke through a key resistance level, on the embattled retailer reaffirming its full year and first quarter sales. The remarks support the uptrend that began last month after the stock had plunged to multi-year lows. However, the stock is still down by more than 50%, year to date.

Tuesday Morning Corporation (NASDAQ:TUES)

The off-price retailer is under pressure to survive at the backdrop of a vicious retail environment that continues to dent its prospects. The retailer has already relocated 52 stores, opened 21 and expanded 13, as it continues to explore ways of accelerating sales growth.

Tuesday Morning Corporation (NASDAQ:TUES) felt the wrath of Wall Street after reporting a severe decline in earnings for the better part of the year. For the fourth quarter, the company says it generated a net loss of (-$17.1) million which led to a full year net loss of $32.5 million.

Management Changes

The underperformance has already led to calls for the resignation of the current Chief Executive Officer, Steve Becker. Jeerddi II LP and Purple Mountain Capital Partners LLC which own 2.4% of the company are pushing for management changes. The two firms are pushing for the appointment of Michael Barnes as the new CEO to replace Becker.

The board of directors has remained firm; refusing to cave into pressure from the two stockholders. Two hedge funds have since threatened to publicly nominate Barnes and Purple Mountain founder James Corcoran for the board. Calls for the firing of the current CEO comes on the heels of his appointment to the position.

“It is regrettable that Jeerddi has chosen to disregard the company’s progress and, instead, propose what we believe is an ill-advised director slate while pursuing a disruptive and protracted proxy fight at the expense of all Tuesday Morning stockholders,” said Terry Barman, chairman of the company’s board of directors.

Tuesday Morning Corporation (NASDAQ:TUES) will hold its annual general meeting on November 15, where shareholders are to vote for members of the board of directors.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TUES and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Tantech Holdings Ltd (NASDAQ:TANH)

Tantech Holdings Ltd (NASDAQ:TANH) Issues Shares To Institutional Investors

Tantech Holdings Ltd (NASDAQ:TANH)

Chinese clean energy firm Tantech Holdings Ltd (NASDAQ:TANH) has disclosed that it has signed a securities acquisition deal with a number of institutional investors. Shares of Tantech Holdings consequently fell by 32.94%. Under terms of the deal, Tantech Holdings will receive $6.5 million in a direct placement. Each common share will be priced at $3.45 and investors will be issued 1,891,307 shares. Additionally, investors will also receive warrants which will allow them to acquire 945,655 common shares at $4.25 a share.

Tantech Holdings Ltd (NASDAQ:TANH)

Tantech Holdings Ltd (NASDAQ:TANH) will use the proceeds of the offering for general corporate purposes. It is expected that the placement could be completed on September 29, 2017 if customary closing conditions are met.

Electric vehicles

Tantech Holdings Ltd (NASDAQ:TANH)’s securities purchase agreement comes barely over a week since the Chinese clean energy firm announced that its motor vehicle subsidiary had obtained $20 million in sales contracts for electric buses and vans.

“This new sales contract, along with the recent MIIT approval of two of our EV models, laid a solid foundation for us to gain market share in the fast growing Chinese EV segment,” said the Chief Executive Officer and chairman of Tantech Holdings Ltd (NASDAQ:TANH), Zhengyu Wang.

The sales contracts are for the purchase of 10 electric buses and 450 electric. Tantech also revealed that the buyer had made a deposit in order to lock in the price. The buyer will also be required to pay about 30% of the sales price November 2, 2017. The balance is to be paid upon delivery which is expected before the end of this calendar year.

Leading market

Both the electric van and the electric bus have received the approval of the Chinese authorities. The van, suited for tourist uses and airport transportation, has a capacity of 34 passengers while the bus is suited for urban transportation and has a capacity of 46 passengers. Both the electric bus and the electric van possess a driving range of 155 miles or 250 kilometers on a single charge.

The Chinese motor vehicle market is enormous and growing at a fast rate. Last year more than 28 million automobiles were sold and this number is expected to rise to an annual figure of 40 million motor vehicles within three years. This rapid growth has led to massive air pollution that is associated with internal combustion engines and the government has been keen to respond by developing the electric car sector.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TANH and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Ascena Retail Group Inc. (NASDAQ:ASNA) Jumps on Q4 Financials

Ascena Retail Group Inc. (NASDAQ:ASNA)

Ascena Retail Group Inc. (NASDAQ:ASNA) shares rallied 6.0% after the retailer posted stronger than expected fourth-quarter earnings. The New Jersey-based retailer posted a 4% decline in same-store sales which was better than the 8% decline analysts were expecting.

Ascena Sales Decline Concerns

The stock had initially rallied to the $2.60 a share mark before it dropped to end Tuesday’s trading session at $2.30 a share. The 6.0% rally did little to reverse a strong selling pressure that has followed the stock this year. Ascena Retail Group Inc. (NASDAQ:ASNA) is currently trading in a downtrend at the lower end of $2.24 -$ 2.63 trading range.

Ascena Retail Group Inc. (NASDAQ:ASNA)

Ascena Retail Group Inc. (NASDAQ:ASNA) has come under pressure in recent quarters over growing concerns of declines in same-store sales. Net sales in the fourth quarter totaled $1.65 billion compared to $1.812 billion reported a year ago. The company attributes the decrease to pricing pressures and store traffic.

Chief Executive Officer, David Jaffe, has since warned that challenging marketing conditions could affect the company’s ability to achieve significant sales growth going forward.

“To be clear, conditions remain challenging – store traffic was down mid-single digits for the quarter, and we are planning for this trend to continue for the foreseeable future. While comp sales performance was several points better than our guide, we were not pleased with the results, and we will not be satisfied until we deliver positive sustained enterprise-level comp sales,” said Mr. Jaffe.

The company plans to support top-line growth by increasing investments in cutting-edge planning and marketing capabilities. Ascena Retail Group Inc. (NASDAQ:ASNA) has also embarked on a cost-saving drive where it hopes to achieve $250-$300 million in cost savings.

Q4 Earnings

Gross margin decreased to $951 million or 57.4% of sales in Q4 2017 from $1.041 billion or 57.5% of sales last year. The decrease was because of a decline in comparable sales as well as an extra one week included in last year’s earnings. The company reported a net loss of (-$16) million or (-$0.08) a share down from a net income of $14 million reported a year ago.

Cash and cash equivalent as of the end of the quarter stood at $326 million with $224 million held outside the U.S. Ascena Retail Group Inc. (NASDAQ:ASNA) ended F2017 with a total debt of $1.597 billion.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ASNA and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Helios and Matheson Analytics

Helios and Matheson Analytics Inc (NASDAQ:HMNY) Still Booming!

Helios and Matheson Analytics Inc (NASDAQ:HMNY)

Helios and Matheson Analytics Inc (NASDAQ:HMNY) stock is up over 25% this morning on heavy volumes but without any accompanying news that could affect future earnings. HMYN stock closed Friday at $6.97 and gapped up to open at $7.72 before hitting an inter-day high of $9.60 – at the time of this writing, 11:17 AM CST, HMNY stock is trading around $9.00.

Helios and Matheson Analytics Inc (NASDAQ:HMNY)
One month HMNY stock price chart

On September 18, 2017 Stock News Union reported that Helios and Matheson Analytics Inc. (NASDAQ:HMNY) was a big mover after its latest acquisition, MoviePass Inc., announced it had surpassed 400,000 paying monthly subscribers over the last 30 days. The stock rallied 39.54% to end that week’s trading session at a high of $3.67 a share. At the time of the article, Mitch Lowe, co-founder of Netflix Inc. (NFLX), former president of RedBox, and current CEO of MoviePass said in a press release, “MoviePass is the ‘all-you-can-eat’ movie theater experience. Though expensive for the company in the short-term, it’s a significant benefit and more convenient for customers. With MoviePass, there’s no movie ticket prices to think about — going to the movies will become an everyday experience rather than an occasional treat.”

Clearly investors are in love with Helios and Matheson Analytics Inc (NASDAQ:HMNY). Year-to-date, HMNY shares are up over 111%, and up over 180% for the quarter. While trading well above their 52-week low of $2.20, they are still trailing their 52-week high of $13.15. HMNY shares have a Relative Strength Index (RSI) figure of over 87. Traders would agree that such an RSI level is a clear “overbought” signal for those that rely on such indicators.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $HMNY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Finish Line Inc. (NASDAQ:FINL) Warns Of Further Decline

Finish Line Inc. (NASDAQ:FINL)

Finish Line Inc.(NASDAQ:FINL) shares rallied 5.53% after the premium retailer for shoes, apparel and accessories announced financial results for thirteen weeks ending August 26, 2017 that met Wall Street expectations.  According to Chief Executive Officer Sam Sato, the financial results were shaped by a promotional-oriented marketplace.

Stock Performance

Last week’s rally did little to reverse a strong downtrend that has engulfed Finish Line for the better part of the year. The stock is currently trading near multi-year lows even with the recent rally. It faces immediate resistance at the $10 a share mark, above which it could make a push for the $12, a key resistance level. It awaits to be seen if the stock will continue to edge higher after providing an outlook that hints to a further decline in sales.

For the Thirteen weeks ended August 26, 2017, Finish Line Inc. (NASDAQ:FINL) reported a 3.3% decrease in sales that totaled $469.4 million. Comparable store sales were down by 4.5% as the company’s Macy’s stores sales surged 5.6%. The company has warned that it expects further headwinds which could weigh in on sales and margin expectations.

One month FINL stock price chart

“While we are planning for a challenging retail environment in the near-term, we are confident that the merchandise, digital, in-store and operational initiatives currently in place will allow us to achieve our current full-year outlook and best position the company to deliver increased shareholder value over the long-term,” said Mr. Sato.

The company exited the period with consolidated merchandise inventories of $380.1 million compared to $346.4 million as of August 27, 2017. Cash and cash equivalent as of the end of the period stood at $114.9 million.

Outlook

Finish Line Inc.(NASDAQ:FINL) expects comparable sales for the third quarter ending November 20, 2017, to decrease by between 3% and 5% leading to an adjusted net loss of between $0.32 and $0.40 a share.  Sales in the fourth quarter should decrease by between 3% and 5% leading to an adjusted earnings per share of between $0.5 and $0.58 a share.

For the 53-week ending March 3, 2018, Finish Line Inc. (NASDAQ:FINL) expects comparable sales to decrease by between 3% and 5%. Earnings per share should come in the range of $0.50 and $0.60 a share versus, a previous guidance of $1.12 to $1.23.

Separately, Finish Line Inc. (NASDAQ:FINL) has confirmed the appointment of Faisul Masud into the board of directors. He is expected to provide crucial insight as the company moves into the ever-changing retail environment.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $FINL and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Nova Lifestyle Inc (NASDAQ:NVFY)

Nova Lifestyle Inc. (NASDAQ:NVFY) Investors Anticipate a Robust Q3

Nova Lifestyle Inc. (NASDAQ:NVFY)

Nova Lifestyle Inc (NASDAQ:NVFY) shares rallied 17.5% after the lifestyle product company said increased consumer demand and new product launches should lead to robust Q3 financial results. Investors also pushed the stock higher after the U.S. News Express selected the company’s subsidiary, Diamond Sofa, as one of the top 5 Asian-American brands.

NVFY Stock Performance

The string of positive news helped push the stock to a key resistance level of $1.61 a share, above which it could make a push for the $2 a share mark. The stock continues to trade in a range after dropping from April highs of $2.60 a share. NVFY shares are down by more than 10% for the year.

Nova Lifestyle Inc (NASDAQ:NVFY)
One month NVFY stock price chart

The innovative designer and distributor of modern lifestyle products recorded welcome profits for the summer months. Strong customer demand saw the company generate a profit of $1 million with the growth rate expected to continue to the end of the year.

“We are seeing solid growth trends in our business along with healthy profit margins. We hope to significantly expand online sales by partnering with E-commerce giants such as Amazon.com, Hayneedle.com and others,” said CEO, Tawny Lam.

Business Transformation

Nova Lifestyle Inc. (NASDAQ:NVFY) has completed a milestone business restructuring that began late last year and continues to fuel the current growth phase. The company has successfully transformed itself from a manufacturing-oriented, asset-heavy enterprise into an asset-light operation, focused on efficient distribution and marketing.

Strong ordering activity from leading retailers such as Amazon, Wayfair, and Hayneedle also continues to support the belief that the company will post an impressive third quarter and full year. Its subsidiary Diamond Sofa is also doing business with four furniture subsidiaries owned Berkshire Hathaway.

Sofas beds and Coffee table sales accounted for a huge chunk of the company’s net sales for the quarter ending June 30, 2018. In a bid to remain competitive in the business, Nova Lifestyle Inc. (NASDAQ:NVFY) has introduced a number of new products, including the Chateau and Crawford lines, as it continues to explore ways of diversifying its revenue streams. The company has also met with a number of large global buyers as it looks to expand its footprint on the international scene.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NVFY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Ocean Rig UDW Inc. (NASDAQ:ORIG)

Ocean Rig UDW Inc. (NASDAQ:ORIG) Craters after Court Verdict

Ocean Rig UDW Inc. (NASDAQ:ORIG)

Ocean Rig UDW Inc. (NASDAQ:ORIG) shares fell 47.89% after a U.S. bankruptcy court issued an order granting comity and ordering implementation of Cayman Islands Schemes of arrangement in the U.S. The Schemes affect the financial indebtedness of the company and its subsidiaries. Implementation of the schemes will result in the conversion of the firm’s $2.67 billion debt into distributable value.

Ocean Rig UDW Inc. (NASDAQ:ORIG) fell on huge volume after reiterating that the court verdict will not in any way affect its operations. The company also sought to avert a further slide of the stock by reiterating that creditors and vendors will receive their dues as they are not affected by the schemes.

Investors continue to push the stock lower amidst growing concerns over the impact of the ongoing restructuring. The stock is already down by more than 70% for the year as it continues to trade at multi-year lows.

Reverse Stock Split

In what is seen as an attempt by the company to shore up the stock price that continues to trade at all-time lows, Ocean Rig UDW Inc. (NASDAQ:ORIG) has announced a new reverse stock split. The company is to implement a 1-for-9,200 stock split, approved in April.

The reverse stock split is to come into effect on September 21, 2017 and will result in the conversion of 9,200 issued common stock into one share of common stock. No fractional shares will be allowed once the split is complete. Any shareholder with a position of less than 9,200 shares will receive a cash payment.

“As of the date of this press release, the Company had 82,586,851 common shares issued and outstanding. Effecting the reverse stock split will reduce the number of issued and outstanding common shares to approximately 8,976 shares (as may be adjusted due to rounding),” Ocean Rig in a press release.

Extraordinary Shareholder Meeting

Ocean Rig UDW Inc. (NASDAQ:ORIG) has also announced plans to hold an extraordinary shareholders meeting on November 3, 2017. Top on the agenda at the meeting will be discussions on the ongoing restructuring. The company also plans to discuss authorized share capital reduction in addition to redesigning issued and unissued authorized common shares as Class A, which will trade under the symbol ORIG. Class B shares, on the other hand, are to be used to reduce the number of unissued authorized preferred shares.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ORIG and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Staffing 360 Solutions Inc. (NASDAQ:STAF)

Staffing 360 Solutions Inc. (NASDAQ:STAF) Rallies 48%

Staffing 360 Solutions Inc. (NASDAQ:STAF)

Shares of Staffing 360 Solutions Inc. (NASDAQ:STAF) rallied 48.28% after the company announced a number of transformative developments including the refinancing of its balance sheet. News of two acquisitions also fuelled investor interest.

The stock gapped higher on the news and touched highs of $1.15 a share before it retreated to end Tuesday’s trading session at $0.86 a share. The rally helped reverse a downtrend that had pushed the stock to multi-year lows. It awaits to be seen if the close above the $0.80 mark is the catalyst that will help push the stock to test this year’s highs of $1.30 a share.

Staffing 360 Solutions Inc. (NASDAQ:STAF)
One month STAF stock price chart

Acquisitions

Staffing 360 Solutions Inc. (NASDAQ:STAF) has executed a comprehensive refinancing of a 12% senior note worth $40 million. The $40 million refinancing provides the company with a sufficient financial platform which it plans to use to drive further improvements.

The company has also renegotiated terms of its existing receivable facility of more than $25 million, which comes with lower refinancing cost and increased availability.

The acquisition of CBS Butler Holdings, a UK-based firm specializing in engineering and IT staffing services, is a milestone that underscores the company’s push for new growth opportunities. The group joins Staffing 360 Solutions Inc. (NASDAQ:STAF) with a wealth of management talent and client relationships.

Staffing 360 has also completed material acquisition of FirstPro Georgia, a U.S.-based company offering IT staffing and finance and accounting.

“We believe this refinancing of our balance sheet and simultaneous closing of two acquisitions will help us unlock significant value, especially as we leverage our projected positive operating cash flow from these transactions to drive additional organic and acquisitive growth,” said Brendan Flood, Executive Chairman.

According to the executive chairman, acquisition of the two companies and balance sheet refinancing should vault Staffing 360 Solutions Inc. (NASDAQ:STAF) to a $300 million a year business.

Staffing 360 Solutions Q2 Financials

Separately, Staffing 360 Solutions Inc. (NASDAQ:STAF) reported a 9.1% increase in second quarter revenues that totaled $42.1 million. Gross profit in the quarter remained flat, year-over-year, after coming in at $7.9 million. Net loss in the quarter more than halved to (-$0.6 million compared to $2.6 million generated in Q2 2016.

“During Q2 2017, we continued to improve the quality of our Balance Sheet. In addition to our improvements in efficiencies and Adjusted EBITDA, this has been a significant quarter from a capital raising perspective,” stated David Faiman, Chief Financial Officer.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $STAF and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Helios and Matheson Analytics Inc. (NASDAQ:HMNY) 400,000 Subscribers

Helios and Matheson Analytics Inc. (NASDAQ:HMNY)

Helios and Matheson Analytics Inc. (NASDAQ:HMNY) was a big mover after its acquisition target MoviePass Inc. announced it had surpassed 400,000 paying monthly subscribers over the last 30 days. The stock rallied 39.54% to end last week’s trading session at a high of $3.67 a share.

The stock is currently trading at a key resistance level, above which it could surge to highs of $4.50 a share, levels last seen in June. However, the stock continues to trade in a downtrend in a tight $2.70 – $3.80 trading range.

Helios and Matheson Analytics Inc. (NASDAQ:HMNY)
One month HMNY stock price chart

Renewed investor interest in the stock comes on MoviePass movie theater audience rising from less than 20,000 as of August 14, 2017, to current highs. The two companies attribute the viral subscriber growth to innovative and disruptive technology that has come into play as well as the impact of the new $9.90 monthly subscription plan.

Price Reduction

The company recently slashed the price of its monthly subscription from $30 to $10. MoviePass is confident of acquiring at least 2. 5 million paying subscribers over the next 12 months.

MoviePass’ $10 a month deal has however not gone well with some industry players. AMC Entertainment Holdings Inc. (NYSE:AMC) has already said it plans to block the usage of MoviePass cards in its theaters across the U.S.

It awaits to be seen how AMC will make god on its threat, given that Mastercard powers MoviePass cards, which operate just like any other credit card. Mastercard Inc. (NYSE:MA)’s rules also require all merchants to accept all cards it powers without discrimination.

Targeted advertising

MoviePass is currently using Helios and Matheson Analytics Inc. (NASDAQ:HMNY) analytics resources to analyze consumer parents as part of an effort that that seeks to enhance targeted advertising and concessions based on experiences. The company expects the new technology to transform the movie-going experience in addition to creating value for both companies.

The technology is designed to learn individual movie tastes and in return make recommendations based on recorded preferences.

Helios and Matheson Analytics Inc. (NASDAQ:HMNY) has already started to incorporate advertising models with the MoviePass application in a bid to provide studios with precise data that they can use to attract huge audiences

“Though expensive for the company in the short-term, it’s a significant benefit and more convenient for customers. With MoviePass, there are no movie ticket prices to think about — going to the movies will become an everyday experience rather than an occasional treat,” said MoviePass CEO Mitch Lowe.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $HMNY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.