Alright if you're just like me you're probably crying in a room or something about how much money you just lost in GME because I am!!! Bought it at it's highs and sold at it's lows. So now you're looking for stocks that could potentially recover your losses while making you so much more! Look no further, because GNUS has such an opportunity!!! Keep in mind that this is just my analysis and isn't actual advice, though it can be interpreted however you like it.
Anyways lets start with some info about GNUS. GNUS, or Genius Brands International, is an industry "dedicated to creating and licensing animated programming that delivers "content with a purpose" for toddlers to tweens." They also are the self-proclaimed "Netflix for kids" although that's quite hard to believe, seeing how people don't really know about it at all.
GNUS itself is doing kind of badly. They actually lost about 92% of supposed third quarter revenue, going from about 3.4m to 274k, and this decline is quite evident, in case you think it happened instantaneously, with their revenue going from 753k to 273k from the 2019 fourth quarter to 2020 third quarter. This is mainly due to as I said before, with no one knowing about it at all!! I mean can you blame them, though, with them being overshadowed by companies like Disney+ and Hulu and Netflix. It's even quite funny how they had the audacity to call themselves the next potential Netflix.
Now let's look on how they're tackling this problem. First off, to tackle their extreme revenue losses, they rely on stock dilution. Stock dilution, in case you don't know, is when a company releases more shares so that they would be funded. This would result in the dilution in positions of existing shareholders (a person who had 20% of the shares before would have like 15% or etc.). Let's be honest though, if someone was considering to buy such a large portion of shares that they would be considered a legitimate shareholder in the company, I don't think they would make the decision based on my analysis, so we don't really have to worry about that.
To tackle their poor media coverage, they recently acquired ChizComm Ltd. and ChizComm Beacon Media, a well known marketing and media agency. ChizComm place more than 100m in annual media spend, but this is because of the fact that they are ranked #1 as the largest media buyer within age groups 2-11, meaning that they buy the most ad and commercial spaces aimed towards that specified target group (like if they were on some kids website, the kids websites which usually has a couple of ads would be bought up by ChizComm so that they could place their own ads, or ads they created for other companies). This is a key factor which could signal a reversal in GNUS and it's constant decline.
Of course, their plans in using this company could have a significant effect on the stock's price; Keep in mind that just by advertising a preview of a new show, Stan Lee's Superhero Kindergarten, GNUS shares sharply spiked to a 29% increase. They are also releasing another (animated) show, Shaq's Garage (yes, it's the Shaq, AKA Shaquille O'Neal), with Shaq playing as the main role as well as becoming an investor in GNUS. this celebrity backing could help give GNUS some free publicity; and, if they are able effectively use ChizComm to help promote both Stan Lee's Superhero Kindergarten and Shaq's Garage, we could be talking massive amounts of profit.
Sorry for that large amount of info, I have to make sure my readers are always educated. Now lets get to what you're all waiting for...my chart analysis!!!
Ok so when presented this chart, the thing that probably stands out the most is their massive increase at June, and then sudden decrease. When I say massive I'm not kidding, we're talking around 2,400% increase. I remember seeing this and feeling my eyes pop out of my head like I was in a cartoon. The reason for this was because of all the hype about them possibly being 'the next Netflix', resulting in a huge amount of buyers flooding in and buying it. Needless to say, once all the hype died down, so did the stock; it was like Gamestop but 2x worse. When there's loss there's opportunity, though.
As seen in the chart, the stock resembles a large U. this is because of them breaking away from their constant decrease from the June thing and implementing new strategies, which positively affected the share price. As I said, though, if it does resemble a U shape, and recovers back to it's spike high of $7.93, then we're talking close to a 1:7 risk reward ratio given that the low is $1.01, which was the lowest price from June till now. Of course it's not as good as its past 2,400% increase, but 700% is 700%, you know?
The circles I placed in the graph are to show the signals of the large incoming spike. As with the June increase, you can see spikes go up sharply and then down, after the ginormous increase. Fast forward to the present, we can see a spike emerge. Although it was from the new show preview, it could be seen as a forewarning of the next giant spike, considering that it's a reflection. Buyers who see the chart and come up with the same conclusion would decisively buy large amounts, explosively increasing the price.
Alright and the yellow lines just outline an ascending channel, and how the large spike up might've signified a bull trap, in a sense. Either way, since it went back in the channel, if I'm correct it should continue to overall increase, and have a higher chance of breaking upward rather than downwards.
Ok I think I covered about everything, from info on the company and future plans as well as the chart and my analysis. Now I'm going to go over the public views on it. I promise this one is short guys so stay with me.
I've been scrounging around to see why people aren't flocking GNUS given it's possibilities. Apparently there has been constant attacks on this stock where people have purposefully belittled this stock in hopes of lowering it's price. This is similar to the GME incident, which is probably why you can see some people from that hype buying up on GNUS in an attempt to combat it. Apparently, Robinhood even restricted it to people only being able to buy 600 shares of it, though I didn't notice, mostly because of the GME overshadowing it. Robinhood restricting it, though, serves as much proof as anything about how some hedge funds are probably eyeing on this companies downfall. There is also some resistance at $2, and people are trying to encourage others to hold to try to break through it.
Alright this is the end of my analysis. I thank you, the few readers who accompanied me through this long journey of explanations. I bought this at around $1.63 so I already have around 15% profit, but I felt compelled to give my analysis in hopes of people viewing this, leading them to make hundreds or thousands of dollars. Please give a thumbs up if you liked it so I know, and most importantly, I wish you the best of luck and hope you make some money.
Anyways lets start with some info about GNUS. GNUS, or Genius Brands International, is an industry "dedicated to creating and licensing animated programming that delivers "content with a purpose" for toddlers to tweens." They also are the self-proclaimed "Netflix for kids" although that's quite hard to believe, seeing how people don't really know about it at all.
GNUS itself is doing kind of badly. They actually lost about 92% of supposed third quarter revenue, going from about 3.4m to 274k, and this decline is quite evident, in case you think it happened instantaneously, with their revenue going from 753k to 273k from the 2019 fourth quarter to 2020 third quarter. This is mainly due to as I said before, with no one knowing about it at all!! I mean can you blame them, though, with them being overshadowed by companies like Disney+ and Hulu and Netflix. It's even quite funny how they had the audacity to call themselves the next potential Netflix.
Now let's look on how they're tackling this problem. First off, to tackle their extreme revenue losses, they rely on stock dilution. Stock dilution, in case you don't know, is when a company releases more shares so that they would be funded. This would result in the dilution in positions of existing shareholders (a person who had 20% of the shares before would have like 15% or etc.). Let's be honest though, if someone was considering to buy such a large portion of shares that they would be considered a legitimate shareholder in the company, I don't think they would make the decision based on my analysis, so we don't really have to worry about that.
To tackle their poor media coverage, they recently acquired ChizComm Ltd. and ChizComm Beacon Media, a well known marketing and media agency. ChizComm place more than 100m in annual media spend, but this is because of the fact that they are ranked #1 as the largest media buyer within age groups 2-11, meaning that they buy the most ad and commercial spaces aimed towards that specified target group (like if they were on some kids website, the kids websites which usually has a couple of ads would be bought up by ChizComm so that they could place their own ads, or ads they created for other companies). This is a key factor which could signal a reversal in GNUS and it's constant decline.
Of course, their plans in using this company could have a significant effect on the stock's price; Keep in mind that just by advertising a preview of a new show, Stan Lee's Superhero Kindergarten, GNUS shares sharply spiked to a 29% increase. They are also releasing another (animated) show, Shaq's Garage (yes, it's the Shaq, AKA Shaquille O'Neal), with Shaq playing as the main role as well as becoming an investor in GNUS. this celebrity backing could help give GNUS some free publicity; and, if they are able effectively use ChizComm to help promote both Stan Lee's Superhero Kindergarten and Shaq's Garage, we could be talking massive amounts of profit.
Sorry for that large amount of info, I have to make sure my readers are always educated. Now lets get to what you're all waiting for...my chart analysis!!!
Ok so when presented this chart, the thing that probably stands out the most is their massive increase at June, and then sudden decrease. When I say massive I'm not kidding, we're talking around 2,400% increase. I remember seeing this and feeling my eyes pop out of my head like I was in a cartoon. The reason for this was because of all the hype about them possibly being 'the next Netflix', resulting in a huge amount of buyers flooding in and buying it. Needless to say, once all the hype died down, so did the stock; it was like Gamestop but 2x worse. When there's loss there's opportunity, though.
As seen in the chart, the stock resembles a large U. this is because of them breaking away from their constant decrease from the June thing and implementing new strategies, which positively affected the share price. As I said, though, if it does resemble a U shape, and recovers back to it's spike high of $7.93, then we're talking close to a 1:7 risk reward ratio given that the low is $1.01, which was the lowest price from June till now. Of course it's not as good as its past 2,400% increase, but 700% is 700%, you know?
The circles I placed in the graph are to show the signals of the large incoming spike. As with the June increase, you can see spikes go up sharply and then down, after the ginormous increase. Fast forward to the present, we can see a spike emerge. Although it was from the new show preview, it could be seen as a forewarning of the next giant spike, considering that it's a reflection. Buyers who see the chart and come up with the same conclusion would decisively buy large amounts, explosively increasing the price.
Alright and the yellow lines just outline an ascending channel, and how the large spike up might've signified a bull trap, in a sense. Either way, since it went back in the channel, if I'm correct it should continue to overall increase, and have a higher chance of breaking upward rather than downwards.
Ok I think I covered about everything, from info on the company and future plans as well as the chart and my analysis. Now I'm going to go over the public views on it. I promise this one is short guys so stay with me.
I've been scrounging around to see why people aren't flocking GNUS given it's possibilities. Apparently there has been constant attacks on this stock where people have purposefully belittled this stock in hopes of lowering it's price. This is similar to the GME incident, which is probably why you can see some people from that hype buying up on GNUS in an attempt to combat it. Apparently, Robinhood even restricted it to people only being able to buy 600 shares of it, though I didn't notice, mostly because of the GME overshadowing it. Robinhood restricting it, though, serves as much proof as anything about how some hedge funds are probably eyeing on this companies downfall. There is also some resistance at $2, and people are trying to encourage others to hold to try to break through it.
Alright this is the end of my analysis. I thank you, the few readers who accompanied me through this long journey of explanations. I bought this at around $1.63 so I already have around 15% profit, but I felt compelled to give my analysis in hopes of people viewing this, leading them to make hundreds or thousands of dollars. Please give a thumbs up if you liked it so I know, and most importantly, I wish you the best of luck and hope you make some money.