| Potential Catalyst: Quarterly earnings are due very soon!
Potential Catalyst: “Thunderous, the debut graphic novel leading the franchise intellectual property (IP) brand of the same name, will hit bookshelves everywhere beginning Thursday, April 26”
Potential Catlayst: All-Star, well connected team of board members and recent additions Russell Hicks, Melanie Bartlett, Richard Manville, Maz Jabroni, and M.L. Smoker, may energize the revenue streams for the company in FYE 2022
Good day everyone,
Grom Social Enterprises, Inc. (NASDAQ: GROM) the social media company providing secure social media just for children under thirteen.
Current price $.87/share (at market close 4-20-22)
GROM has consolidated, I think there is a real opportunity for a near term gain here. GROM did very well for our members with our last report and I anticipate a repeat near term.
Some factors that indicate GROM shares are way oversold:
Outstanding shares 12.6M
Public float 8.75M
Market cap – $10.7M
Total assets $37.8M
Cash (mrq) 6.5M
Book value – $2.07/share
Revenue (FYE 12-31-21) – $6.29M
Trading 95% off 52-week highs
Last week, Grom released their 10-K for the Fiscal year end 12-31-21 (a copy is available on the company website). While FYE 2021 revenues remained flat as compared to FYE 2020, I expect recent partner additions to the GROM team like Russell Hicks, Melanie Bartlett, Richard Manville, Maz Jabroni, and M.L. Smoker, may energize the revenue streams for the company in FYE 2022. To me, the most significant takeaway is the company’s book value of $2.07/share, showing how ridiculously oversold this is.
Let’s examine the subsidiaries of GROM (below) to further emphasize the diversity of verticals they are developing. The company has placed a lot of emphasis on its Grom Social subsidiary which presents with several potential revenue streams. Internetmatters.org, a children’s Internet watchdog group, has listed Grom Social as one of the top five best Internet destinations for children.
Recent company news:
Thunderous, the debut graphic novel leading the franchise intellectual property (IP) brand of the same name, will hit bookshelves everywhere beginning Thursday, April 26. Graphic novels, like comic books, use sequential art to tell a story. Curiosity Ink Media, the GROM subsidiary, noted the graphic novel is the first publishing title to be released from Curiosity’s previously announced collaboration with Dynamite Entertainment, to develop and publish a slate of printed content rooted in the Curiosity’s original IP.
Written by Montana Poet Laureate, M.L. Smoker and Natalie Peeterse and illustrated by Dale Deforest, Thunderous follows the unexpected adventures of a Native American teen’s journey into a magical world where new friends and foes are discovered. The novel for young readers serves as a launching point for future publishing opportunities as well as potential brand extensions from Curiosity, including a recurring TV series, feature film and consumer products. Thunderous will be available wherever books are sold.
I want to look more closely at the GROM subsidiaries as I believe the true value of the company lies in the diversity of its developing verticals.
Grom Social, Inc. – Revenue streams include: Advertising, Subscription Based Premium Content, Online Game Fees, Licensing Merchandise, Publishing and Distribution.
Based on data provided by Google Data Analytics and Joomla Management Systems, in February 2021, GROM platforms have generated approximately 25.0 million users in over two hundred countries and territories since their inception. As of March 1, 2022, there were approximately 1.8 million Monthly Average Users on all GROM platforms.
What can children do on the Grom Social Mobile App?
Record videos of themselves to post in a social environment and use enhanced facial features, masks, filters and more.
Upload videos that are COPPA compliant.
View 1,450 hours of exclusive Grom TV content and a video on demand platform for kids which is free and curated to provide only safe and educational content for children.
Communicate with cartoon characters and cast members.
Communicate with users and parents regardless of where they may be navigating on the Grom Social website. This feature eliminates the need to leave the section of the site in which they are engaged.
TD Holdings Limited – Currently the top revenue generator for GROM. This company contracts with third parties to produce animated films and televisions series, employing four hundred artists. They provide services to high-profile properties, including Tom and Jerry, My Little Pony and Disney Animation’s Penn Zero: Part-Time Hero. Its studio produces over two hundred half-hour segments of animated content for television annually, which makes it one of the top producers of animation for television worldwide.
Grom Educational Services, Inc. – Sells hardware and/or subscriptions for web filtering software to thousands of schools with more than four million children in attendance. Clients pay for hardware within 30 days of delivery and in advance for filtering service ranging between one to five years.
Curiosity Ink Media LLC. – Acquired in August 2021 (80%). This subsidiary is headed by Russell Hicks, formerly President of Nickelodeon Animation Studios, Russell Hicks has masterminded countless iconic franchises like Scooby-Doo, SpongeBob, and Dora the Explorer. Curiosity is a kids and family original content and media company that focuses on building and managing entertainment brands and franchises. Curiosity leverages its creative talent, established media distribution networks, and industry connections to market proven media properties through strategic licensing agreements, partnerships, and original content creation.
1/13/2022 UBS Group Initiated Coverage with a Buy Rating
GROM shares have fallen below all their Simple Moving Averages and the current RSI (14) is an exceptionally low 38.28. This data can be a clear indicator that the shares are oversold. Note the spike to $1.67/share on March 18th, and the double bottom that has formed since.
More coming on GROM very soon,
The Traders News Group |
