Remark Media Update – Time to Book A Profit

September 13, 2017 at 11:48 am Leave a comment

The recent surge in trading volume and price indicate that the marketplace is finally starting to take notice of the extreme valuation discount with Remark, where we believe that the sum of the parts is much higher than the current market cap. Even with the price increase we have seen over the last week, we still believe that a fire sale of Remark’s assets would produce significantly more than $3.79 per share (the trading price as of the close yesterday). However, we do note that the company’s most recent filings indicate a near term cash crunch that will likely result in additional dilution for existing holders. As such, we think Groove community holders would do well to sell half of their Remark holdings today as the stock is currently trading up over $4. While we think the stock will prove to be worth more over the long term, we think there may be a near term shake out related to the sale of additional shares which may be the catalyst for the exit of the momentum players and a 35% gain since our last buy suggestion is a nice profit for such a brief time frame.

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