In October of last year, HMNY's stock was at $20.00
Today....it is at 0.31 CENTS....!
We could have all made a fortune shorting the stock and Company behind the distribution of Gotti!
I think there are two (2) things going on with that stock. . .
The massive and sudden crash in their stock price is related to a major movie industry company (AMC MOVIE THEATERS) announcing their "subscription plan" where movie goers can pay $19.95 per month and see any three (3) movie they want each week (12 a month). That is why Movie Pass' stock crashed 30% in one day this week.
As you say, it didn't help that Gotti was a miserable bomb and that Movie Pass compounded their horrific miscalculations by investing a low 7 figure number into Gotti's production budget. So Movie Pass is revealed to be in deep trouble as reflected by vanishing market confidence and people dumping their stock.
But wait. . . . . it gets worse, lol.
Movie Pass actually LOSES money on each movie attendance they sponsor.
In other words, Movie Pass has to pay cash out of pocked on each transaction, not earn any profit!
And behind all this the parent company has issued massive numbers of new shares of stock (I think a billion shares in all) so they can KEEP SELLING STOCK IN ORDER TO FINANCE THEIR MASSIVE LOSSES ON THE FACT THAT THEY HAVE TO PAY FOR EACH MOVIE ATTENDEE IN THEIR MARKETING PLAN.
Their theory is that if they can reach critical mass with enough subscribers/clients, they could turn the corner and begin to break even and then go on to realize large margins (profit) and leverage within the industry as a force that can dictate (to some degree) the distribution of movies---because of their ability to bring customers into theaters.
None of that is happening and now the stock has crashed out. It doesn't appear they are long for the world, unless some billionaire or mega-player comes in to save them with a monster cash infusion--and the willingness to suffer massive cash-loss until it "turns around".
The ill-conceived ideas of Movie Pass are epic. They are in the business of bringing movie theater customers in. But suddenly they fancied themselves as a movie studio (financing movie production budgets). That's craaaaaazzzzy. And they obviously had no freaking idea whatsoever that there is such a thing as a horrible movie that bombs, no matter how "brilliant" your marketing schemes are. None of their high-flying formulas work if customers hate the movie.
This is what happens when "bean counters" and self-proclaimed marketing geniuses assume that they are also able to win at the high stakes game of gambling on what movies to invest in. It's a fools game, especially if you can't sit in a screening of Gotti (before investing) and easily realize that the movie is an amateurish nightmare. They hyped themselves into losing biggggggg because they can't tell the difference between a blockbuster and a disaster.
Honestly, virtually everyone outside the movie industry could figure out that GOTTI was going to be a bomb a long, long time ago. Movie Pass is rapidly becoming a joke in the industry, same as Gotti and Travolta.
