The Value of Moviepass – Something to Ponder

Moviepass even with all of its hassles continues to be a great deal. That much is obvious when considering that for $9.95 a subscriber can save money by going to the theater just one time, and if they use the subscription to the max, they can get somewhere around $30 to $50 in value depending on when and where the pass is used.

I thought it might be fun to compare Moviepass to other ways consumers might blow their cash to entertain themselves. So here’s a short list of of entertainment options compared to the value of Moviepass…

We could go bowling… as Gaffigan says. But bowling these days is generally around $20 or more per bowler. For that you could buy 2 months of Moviepass and go out to the movies up to 6 times.

If bowling is not your thing – how about golf? Apparently the average green fee is around $34 for a public course. But you have to have clubs and the fancy pants and shoes to really get out there. For that you get 3 months of MP or 9 Movies. And you would have some money leftover to buy a popcorn and a drink!

Golf a little slow? How about a day skiing? According to “Snow Online” the average cost of a lift ticket in the US is now up to $94. And if you think movie concessions are expensive, try ski lodge concessions! And don’t forget the 2 hour drive, the expensive equipment rental or purchase. It’s enough to make you want to just go see a movie! And for that price, you could see at least 27 movies or have 9 months worth of Moviepass! With plenty left over to take a friend or two or three!

Maybe you prefer to do something less active? How about a concert? Well we all know that is going to set you back some real money. For good seats at a good show we are talking about $120. Or a full year of Moviepass, or 36 movies! Now that’s a lot of entertainment hours by comparison:-)

Well, how about a Broadway show! Turns out that is going to hit your wallet hard as well. According to statisa that will be $127 big ones!

Do you like Speed? How about a day at the races? NASCAR perhaps? Average ticket there $96.14. Plus parking, plus a LOT of hassle getting in and out. Let’s just call that about a year of Moviepass again. And that is being kind on the hassle charges.

How about an NFL game? Forget about it! No matter where your favorite team plays – it’s more than a full year of Moviepass!

We can talk about other entertainment options that are cheaper than Moviepass. Going on a walk is free! Sex can and should be free! You can share a Netflix account for less. Or you can buy a digital TV antenna off Amazon for about $30 bucks and get your locals for free!

Let’s face it, the cost of Moviepass is super low, and it is a fantastic value compared to just about any other entertainment option.

So as we sit and ponder if Moviepass subscriber numbers will flame out or continue to grow under the new 3 movies a month value proposition. It’s worth considering, do consumers have a lot of better options for the money?

Rats Jumping From Moviepass Ship

3 High Profile Departures This Week From HMNY and Moviepass Saga – Do They Matter?

This week we saw some key people head for the exits from the Moviepass story:

  • Earlier this week Board Member Carl Schramm called it quits – he claimed to be unhappy with disclosure to the board, and felt the BOD was not being consulted for big strategic decisions.
  • CPO Mike Berkley threw in the towel just today. It was not clear if he quit, was fired, or if it was a mutual agreement to part ways.
  • And on the finance side the last standing financial analyst killed off coverage of HMNY. Austin Moldlow from Canaccord Genuity, sent an email to subscribers Friday saying he was terminating coverage of MoviePass. This guy is a ghost on the web now. He even took down his LinkedIn profile. Maybe he fears his life…

Where there is a lot of turmoil, it’s not unusual to see a lot of turnover. Some people, probably wisely, just don’t want to deal with this level of headaches. BOD members see more risk than opportunity at these levels. Employees have seen their stock options implode and may lost faith that any new options or other compensation will make up for the hole they find themselves in.

On the analyst side, it has to be pretty humiliating to have a 99% wipeout on your tip sheet. Hell, this Moldlow guy may be finished after the HMNY debacle. Lawsuits are lined up a mile long, and was bullish recommending the stock almost the entire way through.

Berkley only made it 6 months, and honestly the product delivery seemed stalled or non-existent under his watch. So maybe it is a positive to see him go down the road. It’s rare to see a startup move so slowly with so many obvious things that seem easy to add from the product roadmap. Something is not working well there, maybe Berkley took the hit.

So it’s not surprising that some folks are jumping ship here. Maybe we will get lucky soon and Ted will jump ship, or get pushed off!

Expect a wild ride to continue.

Tomorrow is IT! 8/15 Change Over Day!

Tomorrow will mark the beginning of the end of the Moviepass slaughter. The hogs will be eliminated. The Wall Street crowd will see impressive stickiness to the service, sub numbers will be surprisingly resilient.

It will be a long battle still, but the good guys are going to win. The service will be freed from the socialists who were bringing it down. Cash Burn will dwindle toward zero. HMNY will no longer be hostages to the thieves of Wall Street.

The tables will turn quickly. When you don’t need money, everyone wants to loan you money. The dilution will slow to a trickle. The shorts will cover. The greed of Wall Street will kick into high gear snapping up shares on the cheap.

The snarky nasty media will change their tune as fast as they did the time before. Sins of the MP past will be forgotten.

Theaters starving to get that good Moviepass hit will come to partner. Films looking to buy an audience will come knocking. The platform will grow. Exclusive content and experiences will excite the masses. A new entertainment company will be born.

Mark tomorrow on your calendar.

8/15 Change Over Day!

It shall be remembered by all!

HMNY Naked Short Selling – Walked Down Share Price – Total Manipulation

It is easy and plainly obvious that HMNY has been a victim of a vicious Naked Shot Sell attack. The SEC has been notified- and as of yet has done little or nothing to stop it. Why? The SEC is weak and under-resourced to deal with the 100’s of Naked Short Attacks that happen every year.

Here’s a site that explains in extreme detail what Naked Short Selling looks like. Ask yourself, do you see similarities with HMNY?

Here’s a few quotes if you don’t want to click over.

Only a motivated enforcement agency with subpoena power and an accompanying powerful enforcement infrastructure can prove that naked shorting is at the heart of an extensive stock manipulation scheme. However, I believe that the observational evidence is overwhelming that naked shorting practices are widely used to manipulate the stock prices of emerging biotechnology companies as well as many other small and large companies. Unfortunately, naked shorting is an investment variable that investors must understand if they are going to make investments in the emerging biotechnology space in particular and the equity markets in general…..

….started developing my website and its content about four years ago. As I gained more experience, I was startled to find that there was another very important force at work on these companies that was apart from the fundamentals that I was focused on. One would expect a high level of volatility in the stocks in which I specialize. However, this could not always explain the demoralizing collapse of a meaningful number of stocks that I am involved with following some news event.

Suddenly and without a major change in the fundamental outlook, I would see stock prices cut in half in a short period of time. During this time there was invariably a steady day by day price erosion (naked shorting at work) accompanied by an unending stream of contrived negative news flow that was demoralizing to me and other investors.

In order to give more insight into what a naked shorting attack might look like, I have put the predictable elements of a typical attack based on my experience in living through a number of them on separate companies.

• Shorts like to target emerging biotechnology stocks that are engaged in high risk drug development and are not widely covered by quality research analysts.

• The initial and subsequent attacks are almost always triggered by some news event. Obviously, the shorts seek out negative news or an event that creates uncertainty. However, sometimes an attack can be based on a positive news event which the shorts spin to make it appear negative.

• Using the ready platform afforded by the internet and social media, a blogger associated with the shorts goes to work with a negative interpretation of an event. These are usually not sophisticated analyses and are usually limited to one or two pages of text which is invariably one-sided and unbalanced. These are meant to provide “intellectual” reasons and cover for the short attack.

• The most prominent of these bloggers usually have no backgrounds in biotechnology analysis or expertise in the science. I believe that in many cases, hedge fund employees actually write the articles which are cut and pasted into the comments of these bloggers.

• The heart of the naked shorting scheme involves a group of hedge fund traders conspiring to steadily knock out offers for the stock and to trigger stop loss orders (This is explained later in this report). This is called walking the stock down. The power of these conspiracies is striking and in many cases allows the shorts can largely determine the price that they want the stock to trade at.

• The stock weakness gives legitimacy to the contrived negative blogs. The idea is to create fear and uncertainty among investors by making all news events appear to be negatives and to fabricate new issues that the shorts hope will demoralize investors.

• The first time I came up against this, my thought was that the blogger was someone who was just more cynical about the chances for success and had an opposite point of view from mine. This is understandable and common in research analysis. I wrote a respectful rebuttal to their argument.

• I thought that after their rebuttal to my rebuttal, this would end the discussion. We had expressed our opposite points of view, would respectively disagree and move on. This had mainly been my experience in my Wall Street days as an analyst when I disagreed with another analyst. I was wrong.

• The situation quickly escalated. In the rebuttal, the blogger accused me of being stupid, deceitful and being paid by the Company to write positive comments.

• In this case, over 20 articles were then written in a period of a year. Usually, they were timed to a press release and regardless of the news and without exception, each was interpreted as a major negative. A major strategy was to argue that management was lying to investors and manipulating the stock.

• The stock would go down on good news, bad news and uncertain news. One of the pillars of stock manipulation is to make good news appear to be bad.

• The blogger was indifferent to truth and actually would make up information that was factually incorrect. When made aware that the information was wrong, he/she would ignore it and even repeat it in later blogs.

• There are a number of bloggers who participate in these attacks. Many of these bloggers appear to work together and coordinate their negative attacks. It is striking that many of these people have connections to one another. Many of them were trained at a well-known blogging site that was founded by hedge fund people.

• Sophisticated use is made of the Internet and social media. Twitter is used to signal that an attack has begun.

• Shorts are well connected to mainstream media and are adept at getting them to unwittingly participate in the scheme.

• Vicious attacks are launched on writers who might have an opposite but hopefully more well-reasoned and balanced view. The usual line is that they are being paid by management to write positive articles.

• Seeking Alpha has become very friendly to articles supporting short selling and is used extensively by the hedge funds. The site actually promotes as one of its favorite authors a person who writes only negative attack article on companies in which he claims that managements are lying and paying authors who have a positive view on the Company. In his disclosure, he states that he shorts stocks, then publishes a negative article on Seeking Alpha and states that he may cover immediately after the article is published. This seems to meet the definition of a pump and dump scheme. He also acknowledges that he is collaborating with other short sellers. I think they contribute the information for most of his articles

• Seeking Alpha allows articles to be published by anonymous authors. These articles are often extremely bearish and are almost certainly written by people at hedge funds.

• Hedge fund create pseudonyms and publish on a daily basis negative comments on message boards like Yahoo and Ihub.

Does this sound familiar to Investors of HMNY? Of course it does! Shorts will bash this article and they will howl that MP never had a chance! The business model was fundamentally flawed. Etc etc. The fact is the shorts have manipulated this stock knowing it would massively harm the proposed business plan. It has worked and the company has been forced to change direction. Something they always had the ability to do anyway. The 8/15 change over to 3 movies a day will start the ticking time bomb yet again. If a moment comes where HMNY does not NEED to dilute the stock to keep up with cash burn, this stock may control its own destiny. And only then can MP and HMNY potentially turn the game around.

But wait there’s more!!! The players in HMNY have done all this before in a well-documented case with a stock called MAXD. Here is a detailed explanation of how it was all done. Don’t want to click – here’s an excerpt:

643,662,180 Knight/Virtu,

154,447,100 Cantor Fitzgerald,

203,762,081 Canaccord Genuity,

769,731,954 Citadel,

<<<<(You should recognize these players!!!)>>>>>>>

247,276,817 Trade/G1

Highlighting these Market Makers abusive activities in-concert with each other for just the one month of May, allows regulators, the SEC, FINRA, the U.S. Attorney as well as the media to easily identify the manipulative trading activity and counterfeiting of MAXD shares engaged in by their traders for the past year and well beyond. When overlaid for the entire year (back to June 1, 2017) the math is shocking. 8,117,878,650 total shares have been shorted representing in excess of 40% of MAXD’s total trading volume and it demonstrates that these market makers have knowingly participated in manipulative trading practices and counterfeiting of MAXD shares.

Again looks familiar…here’s more MAXD is actually trying to fight back.

“MAXD is making this report available to the investment world to create a substantial short squeeze opportunity with the goal to return to its shareholders the massive amount of equity stolen by unscrupulous market makers.”

I encourage all HMNY investors to fight back! Canaccord and Citadel have been colluding to walk HMNY down for almost 100 days now! This is coming from the same company that Ted is using to absolutely flood the market with new ATM shares daily!! This has been an absolute scam on ordinary shareholders. A theft of massive proportions played out by criminal Wall Street bankers who played Farnsworth like a total fool.

Want to fight back call FINRA at 240-386 5105

Or send email to sewall.lee@finra.org who has already begun looking into this case and has an open file. He is aware of Robinhood misrepresentations on Share usage as well.

If you have lost money on this stock and want to see it properly protected from illegal manipulation, do your part! Take some action!

A Very Interesting New Investor Has Taken a Stake in HMNY

(Updated to clarify position -and date of SEC filing 8/12 9:21 AM)

An alert reader of this blog sent me an interesting SEC filing tip this week.  Giri Devanur a very respected business leader has taken a substantial position in HMNY – The SEC filing shows Devanur personally took out a position of over 5% of the company dated August 2nd.

(Obviously this position has been diluted from HMNY’s ATM action and shares dumping into the open market daily – it is possible that Devanur has bought more shares since the filing as he is not required to update the filing immediately after the initial filing of his large position)

Devanur is the former CEO of NASDAQ listed  Ameri100 – and he is now the CEO of a well-funded blockchain startup company called Runs.com.  Devanur has an impressive resume and has built prior companies from the ground up to over 1000 employees.

Very interestingly– Devanur’s Ameri100 company was in a similar line of business as HMNY, prior to the Ted  Farnsworth takeover of HMNY and their subsequent risky investment into Moviepass.

Ameri100 does high-end consultancy IT work, they are mostly focused on SAP installations- but the also do other work – including big data analytics like HMNY was doing on a consulting basis prior to Farnsworth merging Zone Technologies into HMNY, and then going after Moviepass.

This is important because there is a very interesting link between Devanur and the current CIO of HMNY, Pat Krishnan 

What you may NOT know is Pat Krishnan was the CEO of HMNY prior to the arrival of Ted Farnsworth.  Krishnan actually takes credit on his linked in profile for acquiring Farnsworth’s RedZoneMaps company.  Stating on his profile that as CEO of HMNY he:  Provided strategic direction for the company by acquiring a crime mapping and navigation company called RedzoneMaps. Provided technology and marketing direction for RedzoneMaps.Ran the analytics and AI team for RedoneMaps to provide Predictive capabilities for CrimeMapping.”

The RedZoneMaps and Farnsworth mashup with HMNY is likely a decision Krishnan may be regretting now that HMNY’s value has been obliterated by Farnsworth’s big gamble on Moviepass.    Hard to say for sure, as we don’t know yet how this story of HMNY and Moviepass will end.  But it can’t look good to Krishnan’s stock holdings of HMNY at the moment.

Krishnan and Devanur happen to be “connected” on LinkedIn and have very similar overlapping experiences and resumes.  Both now reside in New York/ New Jersey area.  It’s pretty obvious that these two individuals are very likely to know each other.  These circles are actually pretty small, particularly at the CEO levels.  There is almost zero chance that these guys don’t know each other.

I am not suggesting any insider trading here.  I am simply suggesting that it is quite possible that Krishan and Devanur know each other, and there is at least a strong possibility that Devanur’s due diligence when taking a large position in HMNY included reaching out to his old colleague Krishnan to see how things were going with HMNY.

And I would say it is at least possible that Krishnan explained to Devanur that the stock of HMNY has been beaten down, but that Krishnan still believes in the company, and feels that the stock represents a good value.   All of this is speculation on my part here of course.

All we really know for a fact is that a respected business leader (Devanur), who has a terrific resume and background and is connected to the CIO and the xCEO of HMNY has decided to make a big buy in HMNY with his personal fortune.  That in it of itself is an interesting move.   Devanur is an important and very busy guy, I seriously doubt he is trolling stock boards looking for investment opportunities like a normal retail investor.  To go through the hassle of filing with the SEC, and buying a big stake in the company, there has to be more than a simple retail buy of the stock going on here.

When a prior CEO of a publicly traded company, who is now a respected leader of a newly funded startup, takes a big position in a 3rd party company, something is up.   What exactly it is, and why he did it, we don’t yet know.

I have reached out to Devanur to find out what his interest is here in HMNY, and why he took the large position he did in the company.   I will let you know what I hear-  if I get any comment back at all.

Here you can see the screenshot showing Devanur and Krishnan connected on LinkedIn –  I am connected with Krishnan – and Devanur is also connected to Krishnan – Making us a “mutual connection”.

Standard disclaimer- this article does not mean HMNY is a buy here. This is a very risky stock. You could lose all your money invested here. This stock and company could go BK. Do not invest more than 2% of your net worth here.