Lower Lows for Monster Digital Inc (NASDAQ:MSDI)

Monster Digital Inc (NASDAQ:MSDI)

Monster Digital Inc (NASDAQ:MSDI) shares launched in July of 2016. They hit a high that month of $4.15 but less than a year later shares are trading close to 10% of that high. MSDI shares have broken through their worst ever lows and continuing to make new lower lows. Shares traded sideways to slightly higher for much of the end of 2016 and into January. MSDI shares were over $2 in February but since then have been on a continual slide with the only respite being some short covering. MSDI shares have lost over 70% YTD and over 27% for the past month.

Monster Digital Inc (NASDAQ:MSDI)
MSDI chart

For Q1 2017 Monster Digital Inc (NASDAQ:MSDI) reported revenues of $0.95 million versus $1.07 million for Q4 2016. Monster posted a loss in earnings of (-$2.24) million compared to a loss of (-$1.26) million from the previous quarter.

Monster Digital Inc (NASDAQ:MSDI), headquartered in Simi Valley, CA, designs, develops and markets consumer electronics, mobile products and data storage devices. Its most visible product offering is a line of sports cameras. Also in their product portfolio is ultra-small mobile external memory drive products. Both product lines are sold through retailers and distributors.

The company used to be known as Tandon Digital, Inc. but changed its name to Monster Digital in August of 2015.

Monster Digital Inc (NASDAQ:MSDI) shares have never had a profitable year. In 2013 they reported an EPS loss of (-$0.43) followed by yearly losses of (-$1.37), (-$1.08), and (-$1.13) in 2016. Sales peaked in 2014 when Monster Digital Inc (NASDAQ:MSDI) posted a figure of $11.3 million. However in the following years the company posted sales of $8.3 million and $4.1 million for 2016. No analysts are listed by the NASDAQ as covering MSDI shares.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 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.

Monster Digital Inc. (NASDAQ:MSDI) Banking on Distribution Deals for Growth

Monster Digital Inc. (NASDAQ:MSDI)

Monster Digital Inc. (NASDAQ:MSDI) impressive price run shows no signs of slowing down. Sentiments on the Street have been bolstered by a string of value generating distribution deals in the recent past. The company is fresh from announcing a distribution agreement with Ingram Entertainment Inc. after having signed a similar deal with Petra Industries and announcing expansion plans into Canada.

Ingram-Petra Distribution Deals

Ingram, a distributor of home entertainment products, is now set to start offering Monster Digital Inc. (NASDAQ:MSDI)’s line of action cameras as well as Virtual reality headsets and cameras as part of the deal.

“Ingram Entertainment Inc. is very excited to offer Monster Digital’s products to the retail channel. We feel their cameras and VR headsets will be a great fit for our diverse range of retail partners,” said Ingram Entertainment VP, Tom Blaton.

The deal with Ingram completes a similar deal that Monster Digital signed with Petra industries – also set to make Monster Digital products available in a good number of retail outlets. The deal with Petra expands the company’s distribution channel into independent retailers which has been identified as a key area for growth opportunities.

In a bid to bolster its distribution channel, Monster Digital Inc. (NASDAQ:MSDI) is also in the process of pursuing new opportunities for growth in Canada. The company has confirmed the signing of an exclusive partnership with Curve distribution.

Based in Alberta Canada, Curve Distribution will now start distributing Monster Distribution products. The distributor boasts of a robust distribution channel made up of over 5,000 Canadian retail stores that Monster Digital believes will play an important role in making its products available to the mass market.

Expansion into Canada is part of Digital Monster push that seeks to make its line of action and virtual reality cameras available on the international market. The company is currently working on making its products available in the UK, France, Italy, Finland, and Sweden as it continues to look for ways to bolster sales.

NASDAQ Warning

Separately Monster Digital says it has received a letter from the Nasdaq Stock Market notifying it that its shares not comply with the minimum $2,500,000 stockholders equity requirement. The company has since been given 45 days or until June 1, 2017, to comply with the requirement.

Monster Digital Inc. (NASDAQ:MSDI) is currently working on a number of courses that it hopes will help it regain compliance as required by the NASDAQ requirements.

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: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.