Cinedigm Corp. (NASDAQ:CIDM) Expands Digital Market Footprint

Cinedigm Corp. (NASDAQ:CIDM)

Cinedigm Corp. (NASDAQ:CIDM) is one of the country’s leading distributors of media content. Cinedigm has distribution agreements with retail and digital storefronts such as WalMart, Target, iTunes, and Amazon. The company has a large library that holds over 52,000 films and TV episodes. Today the company announced that they will begin supporting Google’s Chromecast and Android TV platforms as well as Amazon Fire TV. The market responded to the news by sending CIDM shares up over 15% on heavy volume.

Initially the expansion will hit Google’s Chromecast – on April 21st. In June Amazon Fire will begin to receive the new service, followed by Android TV in July. Experts estimate that this expansion will add an additional 60 million devices to the available footprint for Cinedigm Corp. (NASDAQ:CIDM).

Despite its massive available footprint, Cinedigm Corp. (NASDAQ:CIDM) remains a nano-cap stock with around $15 million in market-cap on $94 million in sales. Its 52-week low is $0.90 and its 52-week high is $2.70. CIDM shares do not experience a lot of volatility. The Average True Range for CIDM shares is just $0.10. At the moment, CIDM shares are trading close to their cash/share value of $1.53.

Still, Cinedigm Corp. (NASDAQ:CIDM) is positioned well. The worldwide market it operates in is expected to grow to $65 billion from its current level of around $15 billion. Cinedigm had subscriber revenues of $only $300,000 in 2016 but expects that number to jump to $2 million for 2017. What is unknown is what it costs the company to acquire a new subscriber or retain an existing one. How they are able to execute their acquisition/retention strategy will be key to their future success.

3/31/2017
Ticker Symbol CIDM
Last Price a/o 10:13 AM EST  $                      1.52
Average Volume                    281,650
Market Cap (mlns)  $                    14.91
Sales (mlns) $94.00
Shares Outstanding (mlns) 10.96
Share Float (mlns) 8.31
Shortable Yes
Optionable No
Inside Ownership 19.10%
Short Float 7.04%
Short Interest Ratio 2.08
Quarterly Return -2.86%
YTD Return -5.56%
Year Return -35.24%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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