SQBG is a high risk stock because it may eventually have difficulties servicing it's high debt load if it's brand licensing revenues deteriorate .... a lot hinges on the Martha Stewart brand name.
At this point SQBG is like a long term stock option .... might expire worthless, but could also be a multi-bagger.
analyst commentary per flyonthewall -
Sequential Brands downgraded to Hold from Buy at Canaccord
Canaccord analyst Camilo Lyon downgraded Sequential Brands to Hold from Buy following weaker than expected Q3 results and its issuance of a soft outlook. The analyst said in light of decelerating business fundamentals, his concerns around the company's capital position has increased. As a result, the company must focus on growing its brands organically and improving its financial position. Lyon lowered his price target to $1.50 from $6 on Sequential Brands shares. :thefl