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IMPORTANT NOTE: This is a “bonus idea” to start off your week with. If you are a premium Bullseye member, please check your inbox near the market open for the details on my “Bullseye pick.”
*Sponsored by Lifewater Media
When you think of “media juggernauts,” you probably think of Netflix, Disney, or maybe the Wall Street Journal (hopefully, RagingBull is on your list too!).
While those are huge, mature businesses, they are nowhere close to delivering triple-digit sales growth anymore.
If you want to find mega-growth opportunities, you need to look at small companies that are dialed in on a certain niche – and own it.
And that is exactly what I found when I did my homework on today’s “Bright Idea ?.”
This idea is the perfect balance of hyper-growth, an easy-to-understand business, and a company that is dominating its sector.
The company you need to start your own research on immediately is:
Kartoon Studios, Inc (AMEX: TOON)
As most parents would guess, Statista reported that children 5-8 years old spend over an hour of TV time per day. Yes, TV is still alive and well.
All of that time isn’t spent watching the shows that you might imagine.
There is a growing trend of shorter, engaging TV that is well-produced, celebrity endorsed, and exciting to watch.
And kids are eating it up.
For TOON, it is leading some sizzling sales growth ?…
I read a lot of financial data all of the time, and I find this kind of growth really staggering. I actually had to stop and go look at multiple sources to verify it was actually correct.
Sure enough, everywhere I went had the same info.
Just like this great chart showing TOON’s revenue growth over the last few years from StockAnalysis…
Simply amazing stuff. Who knew there was this kind of money in cartoons? It makes me wish I had some artistic talent, lol. ?
I usually think Wall Street analysts are late to the party on their recommendations, but I think this one is actually ahead of the curve.
James McIlree, CFA, from Dawson James Securities, just issued a report a few weeks ago, calling for a $10 price target on TOON.
In case you’re wondering, “Genius Brands” changed their name to “Kartoon Studios” when they uplisted exchanges around a month ago. It is the exact same company.
Here is a chart from TipRanks showing the same price target and how it could look in the future…
For some background, TOON is a leading global media company developing, producing, marketing, and licensing branded animated entertainment properties and consumer products for media and retail distribution.
TOON’s IP portfolio of family-friendly content features the Stan Lee brand, Stan Lee’s Superhero Kindergarten, starring Arnold Schwarzenegger, on Kartoon Channel!; Shaq’s Garage, starring Shaquille O’Neal, coming to Kartoon Channel!; Rainbow Rangers on Kartoon Channel! and Netflix; Llama Llama, starring Jennifer Garner, on Netflix and more.
Recently, TOON entered into an agreement to acquire Canada’s WOW! Unlimited Media, which includes over 2,000 channels under the Channel Frederator Network.
TOON Media Networks is a globally distributed entertainment platform with 100% penetration in the U.S. television market and is now being seen in more than 60 territories worldwide via satellite, cable and terrestrial, as well as streaming in Europe, the Middle East, Africa, Latin America and Asia.
Toon Media Networks consists of Kartoon Channel!, Frederator Network and Ameba – heard of any of these?
Kartoon Channel! is a globally distributed entertainment platform with penetration in a vast majority of the U.S. television market and international expansion with launches in key markets around the world. It is available across multiple platforms (name one, and I can pretty much guarantee it’s on there!).
Frederator Network owns and operates the largest global animation network on YouTube, with channels that boast over 2000 exclusive creators and influencers, garnering on average over a billion views every month.
And Ameba is a children’s video streaming service that is full of active, engaging and intelligent programming.
As you can see, there is a lot happening with TOON right now.
They are a global powerhouse producing many shows you probably already know about, you just didn’t know what company was behind it all!
On top of all of this, I really love the stock chart right now. ?
As I mentioned earlier, TOON uplisted exchanges at the end of June. That was likely a big contributor to the run-up we saw above $3 at the time.
But since then, the stock has lost over 40% of its value from its peak, just over a month ago.
That discount sure gets me interested, but it is the “wedge pattern” I am seeing right now that I think could really be the spark.
After testing the $1.80 lows several times in July, the stock has started to make lower lows, and it is creeping up.
I drew the wedge lines on the chart below so you can see what I am looking at.
A pattern like this will typically resolve itself either much higher or lower once it breaks out of this tight range. I think that a breakout move could be imminent…
Which direction do you think the next move will be?
Overall, TOON is an exceptional opportunity to look at right now. I love low-priced stocks that have a great catalyst, amazing charts, and jaw-dropping fundamentals.
What else could you really ask for?
Just because I like a stock doesn’t mean it is going to work out like I think it could, it might do better, or worse. If you decide to trade it, make sure you understand all the risks involved and have your own game plan in place. A good place to start is by visiting the company’s website and getting to know more about the story. I am simply showing you something that I think is an outstanding opportunity to look at right now.
Best of luck to you! Let’s have a great week of trading!
To Your Success!
P.S. Text “RAGE” to (888) 404-5747 to get all of my latest HOT STOCK ideas!
*This investment involves substantial risk. Please see full disclosure below, and detailed discussion of risks and atypical results.
Questions or concerns about our products? Email [email protected] (C) Copyright 2022, RagingBull
*PAID ADVERTISEMENT. RagingBull has currently been paid twenty five thousand dollars by ach bank transfer by Lifewater Media for advertising Kartoon Studio, Inc from a period beginning on July 31, 2023 through August 1, 2023 of the same year. Previously, RagingBull has been paid fifteen thousand dollars by ach bank transfer by Lifewater Media for advertising Kartoon Studio, Inc (formerly, Genius Brands International, INC) from a period beginning on June 21, 2023 through June 22, 2023 of the same year. As a result of this advertisement and other marketing efforts, RagingBull may receive advertising revenue from new advertisers and collect email addresses from readers that it may be able to monetize. As of the date of this advertisement, the owners of Raging Bull do not hold a position in Kartoon Studio, Inc (formerly, Genius Brands International, INC). This advertisement and other marketing efforts may increase investor and market awareness, which may result in an increased number of shareholders owning and trading the securities of Kartoon Studio, Inc, increased trading volume, and possibly an increased share price of the Kartoon Studio, Inc securities, which may or may not be temporary and decrease once the marketing arrangement has ended.
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