Genius Brands International Inc (GNUS)

[rickn23]

People need to remember Andy is in for the long haul. I do believe he is trying to build value into the company (for an eventual sale). But, I think Andy doesn't care how much it costs to build that value. The money comes from the market and Andy has a low cost basis for his shares.

If GNUS makes good "accretive" acquisitions, it could help build value into the company. Despite not liking increasing the share limit, now, while the company has a high valuation, is the time to acquire.

A good acquisition could be a catalyst to the upside. I'm thinking an animation studio or what I would find exciting is Archie Comics. Less interesting would be the joint venture, The Stan Lee Universe.

I think GNUS's current business of solely producing "content with a purpose" can build the company to multi-billion dollar levels.

I doubt Disney will buy GNUS, now or in the future. GNUS is unlikely to have anything that Disney needs. Disney purchased a lot of good IP that appeals across the range of age groups, GNUS is in a niche market.

I wouldn't use Arnold's warrant price as a indication of trading range, GNUS is all too willing to lower conversion prices, to help out their investors.

On the lawsuit, I think it could be a huge liability or it could amount to nothing. I think it's a valid lawsuit, especially considering the neophyte traders from Robinhood. GNUS"s behavior looks like they ran a classic "pump and dump".

1) GNUS stopped doing press releases mid November 2019
2) GNUS sold convertible debt March 2020
3) GNUS started doing a lot of press releases (some with old information), conference calls, and shareholder letters
4) share price starts rising
5) GNUS does share offerings
6) warrant holder convert and sell
7) GNUS still does press releases and conference calls
8) debt converts
9) share price collapses
10) press releases become less common

I'm sure most experienced shareholders recognized the pattern, neophyte traders probably did not.