Could Schwarzenegger Have The Oprah Effect On Genius Brands?
Genius Brands International Inc (NASDAQ: GNUS) spiked 19% Monday after announcing an investment and production by Arnold Schwarzenegger. PreMarket Prep co-host Dennis Dick said the move was justified.
“Sure, it should get a pop for that,” Dick said on Benzinga’s PreMarket Prep show, conceding that he hasn’t looked into the company’s valuation or fundamentals. “But you think about the Oprah factor with Weight Watchers (NASDAQ: WW) — you get Arnold behind you, I don’t think it hurts. I think the move’s justified.”
Genius Brands ended Tuesday's session down 14.82% at $3.85.
Weight Watchers was highly sensitive to its Oprah Winfrey connection, spiking when she entertained a run for president and dipping when she sold shares.
Schwarzenegger To The Rescue: The Terminator will co-produce and star in an animated superhero show slated for 2021.
“I am honored to help realize Stan's vision of creating a children's cartoon series that not only entertains with superhero adventures, but also imparts valuable lessons about the importance of health, exercise, nutrition, anti-bullying, and diversity,” Schwarzenegger said.
He has decided to receive warrants to purchase shares as part of his compensation — a testament to his faith in the company’s performance.
Genius Isn’t Just About Arnold: PMP co-host Joel Elconin acknowledged that a variety of factors have contributed to Genius’ volatility in the last few sessions, including news that its “Kartoon Channel!” will be available on major platforms like Amazon.com, Inc. (NASDAQ: AMZN), Apple, Inc. (NASDAQ: AAPL) and Comcast Corporation (NASDAQ: CMCSA), as well as a negative report by Citron Research.
“Invest at your own discretion,” Elconin said.
Genius Brands has a 52-week high of $11.73 per share and a 52-week low of 5 cents.
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