IDW is selling as a Ben Graham net-net. $17m in cash, no debt, at a market cap of $17m. Are the IP worth nothing? The business model has changed to a less risky asset light model. 2023 revenue is unknown because there has been no production deals. The market hates uncertainty and the $1.30 share price is crazy...
1. I am a bit concerned that they have not made any more announcement other than there 9 new graphic novels. They have changed out 3 or 4 examples from their page that shows how many shows are being pitched. I think that is why the stock has sold all the way down to cash value. The longer it takes the more cash they will burn. I am assuming they will burn $2M-$3M this year. They should get paid for L&K 3 and hopefully Surfside girl.
2. I think that the strategy is the best they can do. They are way too small to produce their own shows. I do own Thunderbird and Wildbrain which do produce some of the shows.
3. I think eventually Thunderbird buys them. Ezra knows the independent lead director at Thunderbird. If they can build up their library, it becomes more valuable to someone like Thunderbird because they can accelerate the timeline of production of IDW IP.
IDW is selling as a Ben Graham net-net. $17m in cash, no debt, at a market cap of $17m. Are the IP worth nothing? The business model has changed to a less risky asset light model. 2023 revenue is unknown because there has been no production deals. The market hates uncertainty and the $1.30 share price is crazy...
2 questions...
1) Are you concerned that there has been no production deal announcement since Surfside about 6 months ago? No deals = no IDWE revenue in 2023...
2) What do you think about IDWP's strategy to produce original IP to become profitable?
https://deadline.com/2022/08/idw-five-series-development-graphic-novels-comics-1235087796/
1. I am a bit concerned that they have not made any more announcement other than there 9 new graphic novels. They have changed out 3 or 4 examples from their page that shows how many shows are being pitched. I think that is why the stock has sold all the way down to cash value. The longer it takes the more cash they will burn. I am assuming they will burn $2M-$3M this year. They should get paid for L&K 3 and hopefully Surfside girl.
2. I think that the strategy is the best they can do. They are way too small to produce their own shows. I do own Thunderbird and Wildbrain which do produce some of the shows.
3. I think eventually Thunderbird buys them. Ezra knows the independent lead director at Thunderbird. If they can build up their library, it becomes more valuable to someone like Thunderbird because they can accelerate the timeline of production of IDW IP.