The answer is very clear. We don’t really know.
Here are the most likely possibilities.
- The company is actually stabilizing, while it is likely never going to be the next Netflix, it may end up being an OK business.
- The market Capitalization of the company had fallen to completely insane levels, around $12 million dollars. Moviepass the name, brand and URL are worth more than that, take into account the MPE total set of assets, it just made no sense for it to be that low. Somebody in the media world could take it over just for the pieces at that level.
- It looks unlikely that the company will be delisted anytime soon. The NASDAQ is actually highly incented to see this mess turn around. Clearly HMNY management is pitching enough new ideas to NASDAQ to give them a bit more rope. Remember NASDAQ makes money on this stuff, so now they see the potential for 2 companies to be listed. I see them granting an extension and allowing MPE to spinoff as HMNY and Farnsworth have requested.
- It is highly likely that Farnsworth will have nothing more than a board seat on the Moviepass new co listing. Lowe or the VP Itum will likely be named CEO.
- Many investors hate Farnsworth and will not invest in any pass through companies. The spinoff solves both problems.
- Itum’s message of Stabalize, Optimize and Grow is working. The press and customers are responding that is helping people get back to the main idea of Moviepass. It actually could work. Moviegoers want to go to the theaters, but they want a better and more convenient pricing and purchasing option.
- A short squeeze is likely also in play. Traders who bet on delisting may be covering, and many were betting on BK. Both could still happen, but there is a better chance the company will survive.
- Too early to say if the company will thrive, but I believe what you are seeing today is that more people think it is worth something north of $20 Million. I agree with that!
Finally, I want to apologize to greenteacup the prolific StockTwits character I highlighted in my last post. Apparently his account was banned from Stocktwits after my post was made public.
As bizarre as his account was, it was actually pretty entertaining at times. He reached out to me and told me that he is not short on HMNY, which I find hard to believe! Given he has been negative is almost all of his postings. But he says he was doing it for entertainment purposes. He also said that his dad is dying of brain cancer, which is vey sad, and I wish him and his father my sincere thought and prayers as I have suffered losses from cancer and it’s a terrible thing to go through.
So Stocktwits if you are actually reading this, and if you think Teacup is within you TOS, please let him back on!
Anyway- we really don’t know what today’s enthusiasm is all about, and as the new usual the company is saying very little.