Helios and Matheson jumps as MoviePass exceeds estimates

Helios and Matheson jumps as MoviePass tops 1M subscribers 

Helios and Matheson jumps as MoviePass exceeds initial projections

Shares of Helios and Matheson (HMNY) jumped in afternoon trading after the company said its MoviePass theater subscription services surpassed 1M paying monthly subscribers this month.

MOVIEPASS EXCEEDS 1M MONTHLY SUBSCRIBERS

Helios and Matheson, a majority owner of MoviePass, said this morning that the subscriber base for the movie theater subscription service surpassed 1M paying monthly subscribers, compared to more than 600,000 as of October 18 and approximately 20,000 as of August 14, the day before MoviePass announced its new $9.95 per month subscription price.

In a statement, the company said MoviePass has increased its subscriber base by over 6,500% since the introduction of the $9.95 per month pricing model.

MoviePass shifted to the lower price subscription model on August 15, and noted today that it has reached the 1M subscriber mark in less time than Netflix (NFLX) or Hulu (DIS, CMCSA, CMCSK, FOX, FOXA).

MoviePass CEO Mitch Lowe said:

“Our focus on creating the best movie theater subscription service experience for our subscribers has propelled our growth to date. We believe that growth will continue as we further develop our application, improve customer service, enhance exhibitor relations and fill movie theater seats for incredible films to be released in the future.”

WHAT’S NOTABLE

Helios and Matheson announced plans in November to raise its stake in MoviePass from the 53.71% it held in October. After MoviePass dropped its subscription price to $9.95, analysts predicted the service would hit 1M subscribers by the end of the year.

In October, MoviePass said its continued growth trajectory “exceeded MoviePass’ initial projections, and now MoviePass projects that it will acquire at least 3.1 million additional paying subscribers through August 18, 2018, exceeding its previous estimate of 2.5 million subscribers.

“Earlier this month, MoviePass and streaming service Fandor partnered with Costco (COST) to offer a one-year subscription plan for a flat fee of $89.99.

CITRON CAUTIOUS

Citron Research has expressed cautious comments on Helios and Matheson, saying in October that the stock will “trade back to $20…You might like product but $1+bill it isn’t. Giving away $1 for .90 no biz.” Helios and Matheson has also been mentioned cautiously by TheStreetSweeper.

PRICE ACTION

Shares of Helios and Matheson are up about 5% in Wednesday’s trading to $6.51.


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AbbVie reports positive rheumatoid arthritis data

ABT-494 met primary endpoints in Phase 3 trial

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ABT-494 met primary endpoints in Phase 3 trial

AbbVie (ABBV) announced top-line results from the Phase 3 SELECT-MONOTHERAPY clinical trial.

This ongoing study evaluated upadacitinib — ABT-494, an investigational oral JAK1-selective inhibitor, as a monotherapy treatment in patients with moderate to severe rheumatoid arthritis who did not adequately respond to treatment with methotrexate.

Results showed that after 14 weeks of treatment, both once-daily doses of upadacitinib met the study’s primary endpoints of ACR20 and low disease activity versus continuing prior stable methotrexate therapy. Both doses also achieved all ranked and all key secondary endpoints. Upadacitinib is not approved by regulatory authorities and its safety and efficacy have not been established.”

The positive results from the SELECT-MONOTHERAPY study are encouraging, as they are the first evidence to support the potential of upadacitinib as a therapy without the need for background methotrexate,” said Michael Severino, M.D., executive vice president, research and development and chief scientific officer, AbbVie.

“These findings add to the growing body of data showing the potential for upadacitinib as a meaningful treatment option for patients suffering from rheumatoid arthritis. We look forward to sharing additional data from the upadacitinib Phase 3 rheumatoid arthritis program with the scientific community in 2018.”

The study showed that at week 14, 68/42/23 percent of patients switched to 15 mg once-daily upadacitinib and 71/52/33 percent of patients switched to 30 mg once-daily upadacitinib achieved an ACR20/50/70 response, compared to 41/15/3 percent of patients continuing on methotrexate.

These results were statistically significant compared to patients who continued on their baseline methotrexate dose.

ABBV closed at $97.92.


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Metropolitan Bank invests in bitcoin

Metropolitan Bank discloses $110M in bitcoin deposits

Metropolitan Bank converts deposits into bitcoin. Stockwinners.com
Metropolitan Bank converts deposits into bitcoin.

Metropolitan Bank (MCB) said in its quarterly regulatory filing yesterday, “In response to the recent articles published in certain investor websites regarding the impact of cryptocurrencies on our financial statements, we are providing further details regarding our involvement in this area.

Metropolitan Commercial Bank maintains a diversified approach to generating deposits through a number of verticals including borrowing relationships, retail relationships and debit card issuing relationships.

As a part of this strategy, we also have a relationship with a cryptocurrency exchange.

This customer maintains two different types of accounts with us. One account is for its general corporate purposes and the other account is for settlement activities for the benefit of its customers.

The funds deposited by this customer consist of U.S. dollars, not cryptocurrency.

During the three months ended September 30, 2017, this customer maintained an average balance of $108 million in its corporate non-interest bearing account with us. We use these funds in the normal course of business and realize a net interest margin on them.

During the three months ended September 30, 2017, the customer maintained an average balance of approximately $137 million in its non-interest bearing settlement account with us.

We do not use funds in the settlement account for our general funding purposes. These balances are transactional in nature and are kept in the overnight funds with the Federal Reserve Bank. Income realization on these funds is limited to the overnight Fed Funds rate.

As of September 30, 2017, Metropolitan Commercial Bank had total deposits of $1.5 billion.

Deposit balances related to the cryptocurrency corporate account represents roughly 7% of our total deposit base while that of the settlement account represents 9% of our total deposit base.

Since the settlement account is not used for funding purposes, it does not constitute a material source of income or, we believe, liquidity risk for Metropolitan Commercial Bank.

In addition, in the normal course of its business, we provide cash management solutions to our customers including wire transfers, ACH and foreign exchange conversion which are also offered to the cryptocurrency exchange customer.

These solutions are provided at the normal fee that is charged to all other customers. An increase in transactions results in an increase in our non-interest income.”

ANALYST COMMENTS

Piper Jaffray analyst Matthew #Breese raised his earnings estimates for Metropolitan Bank by 6% after the company detailed its exposure to a cryptocurrency exchange.

Metropolitan’s exposure to a cryptocurrency exchange averaged $245M in Q3, or 16% of total deposits, Breese tells investors in a research note.

He estimate these items aggregate to 7% of net interest income and 9%-11% of earnings. Yesterday’s disclosure is important on both the impact of earnings, the percentage of deposits tied to one customer, and that the bank has exposure to a “controversial industry,” Breese tells investors in a research note.

The analyst, despite raising his earnings estimates, keeps a Neutral rating on Metropolitan Bank shares with a $46 price target. He views the company’s cryptocurrency exposure as a “double-edged sword for the stock.” On the one hand, cryptocurrencies represent a “unique source of potential earnings growth” for Metropolitan, Breese writes. On the other, the volatility and potential regulatory concerns surrounding cryptocurrencies may cause some trepidation for traditional depository investors, the analyst adds.

MCB closed at $44.50.


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