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Medient Studios Inc MDNT



GREY:MDNT - Post by User

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Post by Favoredon May 30, 2014 9:11pm
256 Views
Post# 22617311

Risky play... but the upside is huge.

Risky play... but the upside is huge.
Do your own DD, but this is what I see:

Medient is a movie studio and they plan to build the largest movie studio in the US.

The Risk:
Dilution is pretty strong right now. My strong hunch is that they are negotiating with a bank for financing the first phase of the studio and the bank wants to see less debt on the books.
That's right, they don't have much cash right now.
If I'm wrong about the motives for dilution and have misread the CEO, this could go to no bid.

The Positives:
If they get financing for the first phase of studio construction, the final two phases already have backers.
Revenue is coming. The movie Yellow is coming out in August and should bring in at least 20 million. It's been well recieved at film festivals.
Their book value is in the pennies and the stock price is less than a quarter of a penny.
The studio will allow them to do the same film in three languages by switching casts throughout the day.
In my opinion, this is the bottom. You won't get a price like this again. The moment they announce financing it will quickly head towards 10-20 cents.in a few months.
The volume is off the hook. Dilution just has to let up a little and it will run. If dilution disappears, it will skyrocket.

Don't bet the farm. Use money you can live without, but I have a strong feeling this is going to make a 100% gain feel tiny by comparison.
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