| Good day everyone,
Grom Social Enterprises, Inc. (NASDAQ: GROM) the social media company just for kids, and a creator of media content for animated films and televisions series.
Current price $.485/share (+ 6% at market close 8-17-22)
GROM shares recorded their second day of strong gains in the Wednesday session with a 6% advance. Trading volume was 448K shares.
GROM is currently trading less than half its book value and has closed the past five sessions above it SMA20 and SMA50 averages indicating a trend and a potential swing toward the SMA200 of $1.27/share.
I anticipate revenues may grow for GROM in H2 2022 and I want to take a specific look at developments at all the company’s segments for growth initiatives.
Grom Social – has generated marginal revenues from subscriptions and advertising thus far. The total digital ad spend on kids has grown from $600M in 2016 to over $1.68B in 2021. A kids website safety watchdog group, welivesecurity.com rates Grom Social as one of the top four best websites for children. GROM is currently reworking the Grom Social website with an updated release scheduled for Q4 2022.
Top Draw Animation – currently the top revenue generator for the company. In addition to the $1.4M in contracts awarded to them in June, they’ve just landed a $1.3M contract to begin later in Q3 2022. The addition of Russell Hicks and Jared Wolfson to the TDA C-Suite gives Top Draw access to new Hollywood animation business.
Grom Educational Services – already a revenue generator for the company that offers NetSpective Web filtering solutions, which helps safeguard students K-12 from harmful content and inappropriate sites when on campus or when using school-issued devices or Wi-Fi. The segment also offers a newly updated Digital Citizen Licensing (DCL) course for students that schools rely on to stay in compliance with the CIPA act which ties e-rate funding to schools and districts that demonstrate their students have been taught the importance of digital safety.
Curiosity Ink Media (CIM) – not a current revenue generator but has the greatest potential. Subscription video on demand providers like Netflix, Amazon, Hulu, etc. are scrambling for new subscribers and they have largely missed out on the Preschooler and animation opportunity. CIM has at least eight multimedia content franchises currently in development by a team of creative people with big name hits in their resumes like SpongeBob SquarePants, Dora the Explorer, and Scooby Doo that can be marketed and collaboratively developed by any of those subscription video companies looking for subscribers and wanting to address a market segment they’ve missed.
Santa.com could be a significant revenue producer fir CIM in H2 2022 as its ecommerce storefront begins operating this holiday season. The company has licensing rights to sell the Cats vs Pickles plush toys this season as well as many other holiday gifts and needs. CIM has enlisted marketing professionals including All Court Interactive to drive traffic to the site.
CIM has collaborated with Dynamite Entertainment, a publisher of books and comics, to start exposure to their Thunderous and The Legion of Forgettable Supervillains IP franchises and these books are currently on store shelves. Dynamite will also publish holiday books that CIM has in the works. Books and comics are often the incubators for a hit franchise.
It only takes one or two hit franchises to create the fortunes of a creative content company given the long list of downstream revenues from a hit. Can GROM produce a hit franchise? I’m not going to list the resumes of the GROM team here, you can see that on the company website, but the team has a lot of experience at several children’s media content companies like Disney and Cartoon Network. Noticeably, the team has several members with extensive tenure at Nickelodeon.
The Traders News Group
Original reports below
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News Out Today: Grom Social (GROM) Announces a Major Contract for Its Top Draw Animation Segment
Top Draw gets accolades for being a top-tier animation studio.
Good day everyone,
Grom Social Enterprises, Inc. (NASDAQ: GROM) is the social media company just for kids, and a creator of media content for animated films and televisions series.
Current price $.485/share (+ 6% as of 9:57 a.m. EST 8-17-22)
After closing the Tuesday session at $457/share, with a gain of 7.4%, GROM shares are continuing to gain in early trading today.
In news just released today, GROM announced that Top Draw Animation (TDA) has been awarded an additional $1.3M in animation assignments. Production on the new assignments is anticipated to commence in late Q3-2022.
Russell Hicks, President of TDA said, “When animation veterans like Ant Ward, director of the Netflix film ‘Rise of the Teenage Mutant Ninja Turtles,’ acknowledge the importance of TDA’s role in delivering the story they wish to tell, then we know that we’re at the top of our game.”
The Traders News Group
original report below
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Grom Social (GROM) Has Turned a Corner and is Starting to Generate Higher Revenues that Will Ramp Through 2023
Potential technical bounce toward the 200 DMA at $1.31/share.
Good day everyone,
Grom Social Enterprises, Inc. (NASDAQ: GROM) the social media company just for kids, and a creator of media content for animated films and televisions series.
Current price $.45/share (at market close 8-16-22)
Initiating coverage of GROM and a look at the current operations of the company. I feel that GROM is a tremendous value currently and will generate potential gains near-term.
Darren Marks, CEO issued a letter to stakeholders on July 27th with an update on GROM operations and a view toward the company’s potential. I urge you all to read it.
If you are new to our group, GROM operates four distinct segments:
Grom Social is a web destination for children under 13 and one of the top children’s websites. The company is rolling out an upgraded version with a new look in Q4 this year.
Grom Educational Services offers NetSpective Web filtering solutions, which helps safeguard students K-12 from harmful content and inappropriate sites. This segment could generate $1M in 2022 revenues.
Top Draw Animation has a studio in the Philippines with over 400 artists creating animation content to programmers. This segment has recently begun an effort to provide their services in the Hollywood market. Annual revenues at Top Draw Could be $6-8M in 2022.
Curiosity Ink Media (CIM), a company GROM bought 80% of one year ago, remains the best bet to transform the company into a generator of significant revenues and net income. CIM has spent the past year building their team and developing their IP portfolio of creative content for children.
The creative projects CIM is developing sound exciting, and they are being developed by world-class talent with a proven resume of success. Titles such as Laugh on Lorb, Heston of the Apes, Mr. Zip, Thunderous, and The Legion of Forgettable Supervillains are being developed into multi-platform franchises. The market for these franchises is huge and may include subscription video on demand providers (like Netflix, Amazon, Hulu, etc.), many of which are realizing the opportunity that original content for preschoolers and animation represents.
CIM may likely record its initial revenues in Q-4 this year with their santa.com website. It’s a virtual North Pole with an e-commerce shop where consumers can shop for all their holiday needs. This year the site will feature products from the popular Cats-vs-Pickles franchise.
Recent developments at GROM:
The Legion of Forgettable Supervillains, a CIM creative franchise, made its debut as a graphic novel in comic bookstores on Wednesday, July 27, prior to its wider release wherever books are sold, that began Tuesday, August 9th. The first in a series of planned releases, The Legion of Forgettable Supervillains centers around a group of failed superheroes who inadvertently find greater success and acclaim in villainy.
Thunderous, another CIM franchise with a recently released graphic novel, will take center stage at the 2022 Montana Book Festival taking place in Missoula, September 15-18. Thunderous is a graphic novel about a modern Native American teenager’s journey to understand and appreciate her family’s rich heritage, and first appeared on bookshelves in late April.
Both graphic novels mentioned above have reached the consumer market through GROM’s collaboration with publisher Dynamite Entertainment. Dynamite is a top tier company that primarily publishes adaptations of franchises from other media including top authors with big name creative franchises.
Recent analysts price target:
7/26/2022 EF Hutton Acquisition Corp Buy $2.00 +418.12%
GROM Statistics:
FYE 12-31, MRQ 3-31-22
Book value (MRQ) $1.33/share
Outstanding shares (MRQ) 18.7M
Float (MRQ) 15.5M shares
Cash (MRQ) $6.27M
Revenue (FYE 2021) $6.3M
Market cap (current) $7.9M
GROM is trading above the SMA20 of $.39/share and have been over and under the SMA50 of $.43/share during this week. A sustained move above the SMA50 could trigger a bounce toward their SMA200 of $1.31/share.
We will have more on GROM soon,
The Traders News Group |
