- Shares rally after the company reported strong Q3 growth in its core OTT Streaming & Digital segment.
- A mixture of individual, industry- and broader market-related issues have caused the stock to surrender most of Tuesday's gains.
- The low share price is currently limiting the company's ability to pursue accretive, inorganic growth and raise additional capital to fund operations going into FY2023.
- Going forward, cash flows will no longer benefit from legacy cinema equipment sales thus increasing the need to raise additional capital sooner rather than later.
- Expect shares to move lower on poor industry sentiment and market participants remaining in "risk-off" mode. Speculative investors should consider a trade going into the company's Q4/FY2022 earnings release in June as consensus expectations appear too low.
For further details see:
Cinedigm: Niche OTT Streaming Provider Pressured By Poor Sentiment And Overhang From Ongoing Dilution