Genius Brands International Inc (GNUS)

[rickn23]

response to a pm.

In the absence of any metrics pointing to a profitability (or even greatly increased revenue), I would buy in, at cash value of the company. If the warrants have been completely converted to shares, GNUS should have around $50 million in cash, $9.75 million in debt and around 156 million shares. Subtraction out debt, it's about 26 cents a share.

If GUNS puts out more information leading to better value I will re-evaluate.

I am currently waiting for Q2 results (due around August 15). It should have a couple of weeks of Kartoon Channel ad revenue and whatever GNUS has going on right now.

After that, is the Rainbow Rangers toys at Walmart. I plan to go to several Walmarts to see the variety and quantity of toys, also how fast they sell.

If I see promising revenue I'm willing to evaluate at the time to determine a price to buy in.


You should post your question on the open forum, since this is how I have to respond.

Edit
I expect a loss for Q2, including a large non-cash charge for the stock sales and warrant conversions. I expect this to cause a lot of people to sell and close out their position.

I also doubt the qualified investors have finished selling shares.