We told you yesterday that Cinedigm Corp. (CIDM) was breaking out as a Genius Brands (GNUS) sympathy play. Well this morning, CIDM is up 256% to a valuation that now exceeds $500 million! GNUS this morning is up another 31% to $10.36 per share and its market cap just surpassed $770 million. GNUS is now trading for 153X revenue and CIDM is trading for over 138X EBITDA.
Network Media Group (TSXV: NTE) is a much higher quality company than CIDM and GNUS yet its enterprise value is only CAD$17 millon! NTE is growing rapidly and extremely profitable. If NTE merely returns to its 3-year median enterprise value/EBITDA ratio, NTE will rise to $1.26 per share!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.