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.

HMNY Moviepass, Sex Tapes, What’s a Bad Brand Worth?

Moviepass is definitely becoming a candidate for a friendly or hostile takeover. There are many rumors now flying around that different VC companies are taking a fresh look at the company.

Looking at the latest rounds of press and the stock price now at .07 – it would be logical to assume that death of the company and the brand is a forgone conclusion.

An alternative idea is now being considered by VCs that the brand and at least part of the business model for Moviepass has considerately more value than what is represented by the stock at today’s market capitalization. Currently the Market Capitalizing sits somewhere around $2M dollars. That number is difficult to know each day as the company floods the market with more and more shares everyday. Using the 5B share ATM it has available to it.

Obviously there’s some realistic chance that MP will go BK, but I continue to believe that is unlikely, and my updated models show that changes made have seriously reduced cash burn- agreeing with the company’s guidance that they are trending toward financial stabilization.

I am not the ONLY person who sees some value here. We live in an age where publicity, even bad publicity is valuable. Think Paris Hilton or Kim Kardashian sex tape here. When these tapes came out many years ago people thought it was unfortunate and embarrassing for the young ladies involved. Nobody dreamed that the Kardashian’s mishap would have resulted in a billion dollar worldwide brand with clothing lines, makeup lines and so much more. That’s right there was a point where people actually felt “sorry” for the Kardashian’s invasion of privacy! The same holds true with Paris Hilton, who leveraged her naughty deeds into nightclubs, restaurants and all kinds of other lucrative ventures based on her universal name recognition.

As I have mentioned in prior posts, I was part of the original marketing team before Microsoft launched the “Bing” brand to try and compete with Google. At that time we were asked by the CEO to come with various estimates as to what it would cost to create a consumer brand from scratch that could achieve 60-70% unaided brand awareness. This is simply a measure of if consumers have heard of you at all, not of they like you or intend to use your service. That was almost 10 years ago now, and at that time the LOWEST estimate we had for that endeavor was it would take $600 million dollars of Marketing Spend to hit that level of awareness.

Moviepass love it or hate it, is now very well known. It is a brand and it is a thing consumers understand and have real interest in. Many people loved MP before financial trouble hit. The nasty trouble and changes MP is going through now, can be amended, fixed and restored. Like the sex tapes of Hilton and Kardashian – the name is known and the sins of the past could easily be forgiven.

I estimate the publicity of Moviepass to easily be worth $100’s of millions. And to think a crafty VC firm could potentially take a significant position of HMNY for less than $1M today seems like a good value bet.

The obvious risk here is that Farnsworth has Billions of shares at his disposal, and he could dilute any would be acquirer by simply dumping billions more shares on them.

But, a hostile takeover may also be possible. In that case if a firm took a large enough position quickly enough, they could storm the company and get at least a temporary injunction to halt additional dilution, and potentially nab the entire company for a very attractive price.

I expect some action on the acquisition front very soon here. It will be a fascinating next chapter!

70 Million Shares of HMNY Traded so far Today! WTF? Pure Evil Today

Never in the history of stock trading has their been more ridiculous volume than this issue.

How is this possible? Naked Short Selling is going through the roof, combined with Massive ATM Dumping. And NO SEC ACTION!

The SEC, FINRA, NASDAQ officials ALL know that this is happening and some officials have even as much admitted it to tipsters who are writing to me. This is a scandalous fraud and it undermines the integrity of the markets when allowed to continue unabated by all regulators.

That no regulator will comment on public record on a massive highly visible spectacular folly like this is absolutely absurd.

Tipsters have alerted me to the potential that Robinhood is making shares of HMNY available for shorting in dark pools, and investors on the platform are totally unaware that their “investment” in Moviepass is actually being used against them to help naked short sellers have confidence that they can cover their positions at any time.

All of this is being done in brutal effort to purposefully pound the stock down to bankruptcy levels.

Farnsworth and Lowe should be screaming from the rooftops and pressing regulators to investigate every possible violation here.

Why have they done nothing? Are they in on this scam?

Some believe that Farnsworth may be collaborating with Hudson Bay and Oppenheimer Funds, siphoning money out of these short sale gains off to the Cayman Islands. That is a radical idea. But nobody thinks it is radical that Farnsworth would be a crook!

HMNY has turned out to be one of the most bizarre, illegally manipulated stocks ever on the face of the planet.

How can the US Government Agencies and the Public Markets not make any moves to investigate this and offer some kind of explanation!!??

This is a fraud unlike we have seen since Bernie Madoff!

Pure criminal, pure evil going on here!

70 Million Shares and a float of what 5 Million? This is manipulation like we have never seen!