Anastas Gegov

Genius Brands International Inc (OTCBB:GNUS) Gets Corrected

by Anastas Gegov April 6, 2015

The stock of Genius Brands International Inc (OTCBB:GNUS, GNUS message board) doesn't usually receive a lot of investor attention and is thinly traded, while making miniscule percentile movements. More recently, however, we saw the ticker make a serious run up the charts, crossing the $2 mark and aiming for the $3 per share mark.

 

Needless to say that this attracted a bit more investor interest and we saw the volumes increase. The reason for the upward run is most probably an investor update conference call that took place on March 26 which might have proven to be encouraging for shareholders and traders. Meanwhile, we also got to see how GNUS has fared throughout 2014.

 

  • cash: $4.3 million
  • current assets: $4.73 million
  • total assets: $17.32 million
  • current liabilities: $2.22 million
  • total liabilities: $3.6 million
  • annual revenues: $925 thousand
  • annuan net loss: $3.72 million

 

Those are some pretty serious numbers for an OTC markets company. On one side, we see a significant increase in cash positions, which were only $527 thousand in 2013, while in the same time we see a decrease in liabilities. The net loss has also been reduced by nearly 50%, but in the same time the revenues have dropped by more than 60%.

 

It seems, however, that the report wasn't that exciting for investors and the upward run came to an end on April 1, a day after it was filed. The ticker didn't lose a lot of value and slipped a mere 1.79% in last Wednesday's session, but made a bigger drop the following day, losing 9.09% and closing at $2.50. The total amount of shares that was traded in the last session of the week came at 47 thousand and generated $112 thousand in daily dollar volume.

 

Overall, GNUS has some pretty decent financials to show and it appears that the market cap of just over $15 million might be a little small compared to other OTC entities with far less to show. This, however, doesn't mean that you should skip on doing your due diligence and weighing out the risks before putting any money on the line.

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