Noblecon 18 highlights. Tom Rogers, Executive Chairman, and Lou Schwartz, CEO, outlined the new strategy of the company at Noblecon18 following important recent developments, considered to be shareholder friendly. To view this fireside chat which provided detail on its plan to streamlined operations and swing toward positive cash flow, click here.New strategy. Recently Engine shifted its focus towards media and advertising, with a special focus on social influencer marketing. Importantly, the sector trends appear favorable, with the influencer marketing industry expected to grow at a 30% CAGR from 2021 to 2025. Management identified its differentiation from competitors in the growing live-streaming platforms and social media platforms.Shifting away from Direct-to-Consumer. The company is moving away from direct-to-consumer platforms in order to focus on controlling its cash burn. Additionally, management noted that the company is reducing personnel and marketing expenses, while focusing on B2B business operations with higher margins. All these initiatives have the goal to break cash flow positive in the near term.Cash-sufficient business. Following the sale of Eden Games, the company will increase its cash position by $15.3 million. As of the most recent quarter end, cash was at $5.3 million while long-term debt is $5.3 million. Management reiterated the advantages of the new lower-cost business model and expects to have sufficient cash to fund its business for the foreseeable future. Attractive valuation levels. Currently, the GAME shares trade at a modest 0.3 times enterprise value to our 2023 revenue estimate. The new initiatives presented by management plus the favorable industry trends appear to justify higher multiples. Our $5 price target reflects a multiple more in line with the peer group, near 0.9 times. The shares are rated Outperform. Read More >>