Entertainment Stocks To Watch This Week
It’s the holiday season so of course entertainment penny stocks are something we’re looking into. The long and short of it is that Netflix (NFLX Stock Report) isn’t the only name in the game when it comes to streaming. Activision Blizzard (ATVI Stock Report) also isn’t the only gaming company to captivate traders right now either. The fact is that we’ve seen so many small cap companies step up to the plate in order to fill gaps unmet by some of these larger industry leaders.
The digital age has opened up plenty of doors for new companies to break in. Whether it’s filling the void of a specific streaming platform or offering a better way of accessing content, emerging growth companies are the ones to follow. While these higher-risk names are, well, much higher risk than Netflix or Disney (DIS Stock Report), for example, 2020 has been proof that penny stocks can grow into something much larger than just stocks under $5.
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So, whether it’s gaming, streaming entertainment, online betting, production houses, or something in between, there are many different facets of entertainment to consider. Here we’ll take a look into a few different names crossing over into a few of these niches. I’ll leave it up to you to decide if they’re the best penny stocks to buy right now or if you should sit back and wait.
Entertainment Penny Stocks To Buy [or avoid]: Cinedigm Corporation
Cinedigm Corporation (CIDM Stock Report) is part of the list of streaming entertainment penny stocks to watch this quarter. Since the start of Q4, CIDM has made a move of over 90% after hitting a high of $1.09 this month. In the grand scheme of things, Cinedigm is a content provider.
It offers access to channels including the Bob Ross Channel (think “Happy Trees”), Gametoon, which revolves around ESports, Fashionbox, WhistleTV, Dove Chennel, CombatGo, and many others. As far as distribution is concerned, Cinedigm has built partnerships with most of the top digital, TV, and retail content companies totalling over 650 partners. It has created a war chest of 52,000 movies and TV shows, and over 80,000 hours of film.
One of the high-points recently was the company’s announcement of decreasing its total debt by $24.4 million (roughly 47%). It also was able to reduce annual interest expense by 37% compared to last December. Cinedigm ‘s Chief Operating Officer, Gary Loffredo expressed a strong interest in continuing to identify more debt reduction opportunities heading into the end of the year.
The company’s debt burden has come up as a sticking point for traders of the stock as dilution risk is always a potential factor. In this case, will this latest initiative build more confidence in the market? If you reference Benchmark and Alliance Global analysts, they’ve both got buy ratings on the stock with $3.50 and $2 price targets, respectively.
Entertainment Penny Stocks To Buy [or avoid]: Genius Brands International
One of the love/hate entertainment stocks this year has been Genius Brands International (GNUS Stock Report). We saw, first-hand, this stock rally from under $0.40 to over $11.70 in a matter of weeks. Just as quickly as it rose, it came back down to earth. However, the recent trend has been much more bullish compared to previous months. In fact, since the start of November, GNUS stock has climbed from $1.10 to highs of $1.92 this week. A Surge of trading action on Monday afternoon helped give the penny stock another jolt of momentum to start the final, full week of the month.
Genius is a content provider that has aligned itself with some of the bigger names in entertainment. This includes franchises like Angry Birds, Stan Lee’s Mighty7, Warren Buffett’s Secret Millionaires Club, Shaq’s Garage, and more. Genius Brands has also added more gaming content, including Minecraft’s Journey to the End and Fairy Horse Quest, Octodad, PixArk, and Big B Roblox Challenge from Tankee. At the heart of it all, Genius Brands’ Kartoon Channel! has built plenty of anticipation from traders. The upcoming comedy-adventure series, Stan Lee’s Superhero Kindergarten is currently in production and stars Arnold Schwarzenegger is planned for its debut in Q2 2021.
Last week, Genius inked a deal with LG Electronics to offer Kartoon Channel! across all LG Smart TVs. This followed the previous deal with Samsung, making Kartoon Channel! available on all Samsung Smart TVs. This week Genius presents at the LD Micro investor conference.
Entertainment Penny Stocks To Buy [or avoid]: Allied Esports Entertainment
Allied Esports Entertainment (AESE Stock Report) has also seen a nice pop in shares heading into the end of 2020. Since the start of December, AESE stock has climbed as much as 46% after reaching highs of $1.52 this week. While the company’s prior revenue was driven by in-person events, this pandemic has put the brakes on that a bit. However, evidenced in its latest quarterly report, Allied was able to weather the storm better than some might’ve expected. That was due to rising revenues from its interactive services and multi-platform content arms.
“As we look ahead, we believe that the strategic pivot we made to focus on our Multiplatform Content and Interactive Services pillars has accelerated our ability to monetize all three pillars of our strategy. Importantly, we believe this has put us in a great position to better serve our customers in the future and take full advantage of the significant growth opportunities as the economy continues to recover and the environment normalizes.”
Frank Ng, CEO, Allied Esports
We pointed out this weekend that there hasn’t been much news from the company lately. However, some insider trading activity has helped build upon the bullish sentiment seen in December. A FORM 4 was filed last week showed buying from Knighted Pastures LLC, an already large shareholder of Allied. Knighted’s form showed stock purchases made on the 8th, 9th, and 10th totaling more than 552,000 shares. Average prices ranged from $1.07 to $1.19 & brought the firm’s holdings to more than 3.59 million shares.
Entertainment Penny Stocks To Buy [or avoid]: Elys Game Technology
Elys Game Technology (ELYS Stock Report) is one of the penny stocks we’ve followed since the first day of the month. Elys gained initial notoriety briefly at the end of November. The company appointed Matteo Monteverdi to the CEO position, which he will assume in January 2021. The significance of this move is that Monteverdi has a long track record of working in leadership roles across the gaming ecosystem.
This month things got off to a running start following news that the company experienced a 44% year over year increase in Q3 sales this year. Elys reported $9.7 million as well as surpassing 100,000 online gaming accounts. This was a goal the company set to hit by year-end. One of the key initiatives of the company heading into 2021 is expanding its offering and including things like betting options.
“We believe that Elys provides the ultimate solution to startup bookmakers in the rapidly growing U.S. market and now potentially in Canada as well. We also completed the process of developing our ELYS U.S. sportsbook platform, certified the retail and kiosk terminals and we are in the formal process of seeking our first U.S. sports betting license in Washington DC.”
Mike Ciavarella, Chairman and current CEO, Elys Game Technology
Similar to Allied Esports, Elys has also seen some insider activity. Monday, a FORM 4 was submitted showing Mike Ciavarella making several purchases in the open market. Ciavarella bought 58,000 shares at prices ranging from $2.966 to $3.08.