The score will take care of itself ~ Bill Walsh

11ish Investing

Why GNUS is back stronger than ever in 2021

 

You know when the market goes into uncertainty, I tend to start looking back into speculative trades instead. In this video, let’s talk about why I favor them a bit more than usual right now, a couple of them that I’m looking at and why my favorite one is still Genius Brand. 

 

I have long and swing trading portfolios, which means I tend to look at investment opportunities that involves holding 2 months or more. This strategy has helped me consistently beat the S&P year over year, but when I’ve noticed through trading that when the market gets volatile, more predictable stocks are actually the ones that are more speculative.

 

The reason is that speculative trades dont’ usually move with the market. Big firms aren’t invested in it because it’s too much risk, and retail investors are less likely to make knee jerk reactions due to market conditions because market conditions are not the reason why they invested in speculative stocks in the first place.

 

 so when market adjustments happen,  the amazons, and googles, and walmarts they all move in relative unison. In the meanwhile, most worthwhile speculative investments usually in future tech or speculative pharma, they’re doing their own thing on their own news cycles and volatility curves.

 

So that’s why. Now at the end of this video I’m going to talk about a handful of speculative companies I’m currently looking at. There aren’t that many because ultimately I’m very careful with my money and for the most part, I’d rather park in cash than to spray and pray. But in this video, I want to talk about GNUS again. First and foremost, this COVID delta variant can easily manifest into a shut down again, so that can help stocks like remote productivity, digital streaming, and home exercise (ie. PTON) explode again. 

 

 Since I last talked about them, the stock, for my intents and purposes, haven’t gone anywhere, and in the meanwhile they’ve done a shit ton of equity gathering and value building. 

 

GNUS is essentially a one of its kind children’s network with educational content backed by star power, through and through. Not only do they have veterans RUNNING the company, they also have veterans doing the shows too. 

 

For example, their CEO was part of the management that powers thousands of shows on all the grandfather children networks. They’re brought in nationally recognized psychiatrist with 40 years of experience to their board so that their children’s content has the correct focus. They hired the same content writer that did spongebob to their team for obvious reasons, their executive president is the bloody president and founding member of FOX kids for fucks sake. I grew up on FOX kids!!!

 

Then you have a show staring Arnold, a show starring Jessica Biel, one starring Shaq, and one starring THE Warren Buffett. If it sounds like I’m in love with this company, I truly am. The fact that the management team can pull this much star power together as a unit and face the same direction is a feat in itself, impressive. Now GNUS Brand just recently announced that they’ve been making great progress growing both revenue AND viewership AND they’re joining the RUSSELL 3000. Slowly and surely they’re building up their foundation and cementing legitimacy. 

 

One of the biggest reasons I think this company has hidden value is because regular adults are are investing in a stock that’s about children’s content. I dare say, most regular adults don’t understand children’s content and find that stuff annoying as hell. But the fact of the matter is regular scheduled TV content for children is the business model of the past. Content streaming, whether it’s for adults or kids is the future. You pair that with content that educates your kids on financial freedom, STEAM, self empowerment, and diversity… I truly believe they have the right team to carry out what the future of children’s content should be. Best case scenario, GNUS brand becomes a brand name. Worst case scenario, they eventually get bought out by Disney. Win win for us investors.

 

Now the biggest risk I keep highlighting in my videos about GNUS is that this is still in fact a penny stock. The swings are humongous so what I’d tell you is invest in GNUS they way you might invest in Cryptocurrency. Like it’s a believable gamble but if you lost the money, you aren’t going to be pissed.

 

The 2nd risk I want to highlight is that this company is known to capitalize on stock price growths. They start raising money like crazy when the stock price goes past what it should be and they’ve done this enough to have acquired a very very juicy cash position. I think it’s a good thing for the company, because it gives them equity to hire, develop, and build partnerships. But for us stock holders, you better be willing to sit tight cause that can very well temporarily tank the stock price.

 

The 3rd risk is that this stock is flagged by a lot of reputable brokerage firms. This means you need an additional layer of authentication of ARE YOU SURE?!?! before you can invest in GNUS. This is naturally a turn off for retail investors and thus don’t expect crazy actions on this stock.

 

The final thought I want to share with you about this stock is that this stock is so undervalued, I think the reward is very high, but so is the risk. So do NOT put all your eggs in one basket.  

 

Some additional speculative companies i’m looking at are e-gaming companies like Allied Esports Entertainment (AESE), Royalty Pharma, Nokia, and of course GNUS

 

If you’re interested in me making videos on any of them or you have your own stocks in mind let me know and I’ll see what I can do.

 

Thanks for watching and I look forward to working with you next time

 

~Steve

Have any Question or Comment?

Leave a Reply

Your email address will not be published.