Genius Brands International Stock Analysis

Genius Brands International is an entertainment company founded in 2013 and was founded in Beverly Hills, California, United States. This global brand management company creates and gives a license for multimedia entertainment content for children. The stocks were at 6 months high price on 3 June 2020 at $7.93 and went at a low price of $1.46 on 31 July 2020. This falling of price was very negative for the analyst minds. GNUS saw many ups and downs in June and July. The expectations got higher with the investors made speculations about the potential partnerships of the company with major giants of the media industry. The issue became bigger when the company did the licensing deal with a much smaller company than the projected bigger brands (Stan Lee’s POW!). Hence, the stock fell 36% in two days and kept on deteriorating in July.

Robinhood Investors playing with GNUS

Robinhood investors have taken GNUS stock for playing. The stock prices bounced between $0.05 to $11.73 in 52-week and there has been no excelling news from the company in its ten years of operating history. Genius Brands might appear good on financial grounds but it is giving content licensing without any profitable value. It would be a gamble to choose Genius Brands rather than making a conversant investment. It would not be recommended to buy shares of Genius Brands due to the volatility of the company’s stock prices.

Q2 brought many exciting developments at Genius Brands. There were two Kartoon Channels announced with the many proven executives. There were many new shows launched in the channels with broadcast selling rights. During the pandemic, many entertainment-based companies have turned off their operations. GNUS raised equity levels for enhancing the balance sheet levels along with retarding the secured convertible debt. The company is now debt-free and has subsequent cash levels for a better future.

Strong Financial Position of Genius Brands

The company is debt-free and there is ample cash in hand. So, there can be an opportunistic approach for the same. The aim is strong to keep the Genius Brands a leader in children’s entertainment section and there is a creative and human power able to do so. Many corporate initiatives are being announced by the company and they will tend to make all of the public in the months ahead. Q2 results didn’t reflect any cash losses and the company has been doing efforts to improve the balance sheet. At present, there is $52 million in cash reported.

The shareholders have been informed that the capital position can go up with providing the company with the continued financial flexibility support for taking benefits of the valued growth opportunities in the segment. The future of Genius Brands could be lucrative but the volatility of stocks in the market is giving a dual thought to the minds of the analysts.

About Travis Garlick 1812 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.