Genius Brands International Inc (GNUS)

[derkampfer]

We exited yesterday fully. Last remaining 40K shares. 2020 full year financials revealed too few Q4 revs for the 400+ SKUs apparently in marketplace. Huge disconnect. Very disappointing.

Been here seven years (first buy 2014) waiting for company to make good on shareholder letter “expectations”. And banked nearly 7 figures on Robinhood short squeeze a year ago. (Feel very fortunate about that) But no way this company worth 1/2 to 3/4 Billion $ today. Market cap and stock way ahead of itself with rev numbers like that.
Even with “deals” in making this will take a lot longer than most here are expecting. Stock price already has some sort of deal success baked in. Maybe $3.50 cap upside on actual specifics. Maybe. Sure there can always be another freak Robinhood run but short interest is nowhere near what it was at $.26 back in December of 2019. So highly unlikely.

Absolutely no buyout soon. Way too early.

Will continue to keep an eye and check in but there are other companies like ATOM and CLIR on brink of significant revenue inflection where proceeds grow multiples vs GNUS over next year or two.

Not saying GNUS won’t have its day but this 14 person company and its minuscule revenue is way overpriced at this stage of its development IMHO. Recall just over a year ago at $.26 and a fraction of shares outstanding it was a $20-30M company and market thought “fairly priced”. Today it’s $563M? What? Not that much has changed other than massive [MASSIVE] dilution and we’ve known about the Stan Lee relationship for years. Still don’t have details and admittedly whatever it is has value. But lawsuits around the acquisition and what exactly GBI gets and the massive development costs and time to revenue seems all far out there. Lots of variables. No clear path.

Also thought it strange Andy didn’t even hardly mention Llama Llama and the brand not on presentation deck but somehow SpacePOP was!? SpacePOP is a dead brand and has been for the last couple years. And you mentioned Mattel dropped Rainbow Ranger figurines?! Andy was touting Mattel as a huge deal 12 months ago. Huge! Now that’s dead too? What’s going on?

Too many things not passing the smell test. So we’re out. Still like the “content with purpose” mission but revenue traction just too disappointing after seven years of hyped expectations. GLTU. And thanks for all your DD Rick over the years.