Heavy trading today in Helios and Matheson $HMNY as the stock tumbles to new 52-week lows.The NEWS: Helios and Matheson priced a secondary stock offering at $2.75 today causing the stock to plummet over 33% downwards on very heavy volume.The problem: Well this is not the first or last DILUTIVE stock offering for this company. This company has a record of losing money and then relying on selling new shares to stay out of bankruptcy.The business is growing extremely fast if you go by new subscriber growth. BUT, the business model is extremely flawed. The more subscribers they have the more money they will LOSE.Example of how they LOSE money: Their 'Movie Pass' biz sells memberships to moviegoers for let us call it $10 a month. With their Movie Passes, let us say their average subscriber goes to see 1 movie a week or 4 a month. Let us say the average cost of those movies is just $10 bucks even. So doing the math, the company takes in $10 for the subscription and pays out $40 for the used Movies Passes. For a loss of $30 a month per subscriber! There plan is to make up this loss by selling their subscribers DATA! OH man, doing that after all the privacy issues and data issues in the news lately? Will that make up the business loss and turn it into a profit?My Take: "NOT A CHANCE"! In addition, this was a news story from last Tuesday questioning if the company can "continue as a going concern".Helios and Matheson says auditors expressed 'substantial doubt' about future.In its annual 10-K report released prior to the open this morning, Helios and Matheson stated in its section regarding risks: "The report of our independent auditors on our consolidated financial statements for the year ended December 31, 2017 included an explanatory paragraph indicating that there is substantial doubt about our ability to continue as a going concern. Our auditors' doubts are based on our incurring significant net losses and our working capital position. Our ability to continue as a going concern will be determined by our ability to obtain additional funding in the short term to enable us to continue the development and integration of our MoviePass business."Read more at: https://thefly.com/landingPage...OUCH! RUN! $HMNY, HELIOS & MATHESON ANALYTICS INC / M15 This stock reminds me of Dryships, which I wrote about just over a month ago.https://whotrades.com/people/9...Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal. If you liked this article, please click the LIKE (thumbs up) button. Feel free to leave any comments, question, or opinions. Follow us and check back occasionally for additional articles or comments.