Genius Brands International Inc (GNUS)

[derkampfer]

Agree on the under-promise at $6.4M.

We’ve been here a long time as shareholders because we believe the GBI content with a purpose message holds value in the kids marketplace and fills a void niche.

That said we don’t understand the entertainment and content creation business and were here as shareholders way too early. Lesson learned.

Yet here we are at an inflection point five years later and looking forward to true value creation in late 2019 and 2020.

Andy Heyward is not getting any younger (now age 70) I’d suspect he tries and sell the company in the next few years. Plus if the Stan Lee property is a hit (or RR or LL blow up into big hits), studios will pounce. Big IFs. But Stan Lee’s passing combined with his Midas touch on exploding Marvel into a multi-billion $$ enterprise will attract buyers.

$500M - $600M for a company like this if the properties gain traction seem like reasonable valuations. Still too early to see fullness of story, but things clear enough for GBI to give guidance.

So that’s pivotal.

Remember Andy owns 1,369,199 shares and the last 640,401 were bought at $3.12. So he’s underwater +30% on those shares. Half his position. Others were obtained at $2.20 or so if I recall.

Point being he has every reason to want to see share price appreciate and not get diluted further.

I’ll report what I hear from IR on rev numbers.

Good luck to everyone.