Summary
- Shares sold off following a less-than-stellar second quarter report.
- While the company's core streaming business continued its growth trajectory, cash flow and profitability disappointed.
- In addition, the company resorted to debt financing for the first time in many quarters.
- Major tailwinds from the overwhelming success of slasher movie "Terrifier 2" should result in H2 results outperforming current expectations by a wide margin.
- Upgrading shares from "Sell" to "Speculative Buy" on vastly improved near-term prospects.
For further details see:
Cinedigm - Mediocre Quarter, Terrific Outlook