Genius Brands ($GNUS) to Create Stan Lee Universe
Talk About a Genius Brands Letdown
It was yet another infuriating day for $GNUS bag holders left hanging by “exciting news” that involved yes, a dead guy. One of the most controversial penny stocks in recent memory, Genius Brands has had many rookie traders nearly delirious with the potential of the so called “Netflix for Kids”. Today was a rude awakening for many of us.
After going up 50% on Thursday $GNUS was poised for a breakout, but its CEO released the underwhelming news too soon before the conference call and the result was not good. The stock lost 25% of those gains today and is now trading at $2.66. Many online were calling for over $4 and some as high as 8$.
The community of Genius supporters were truly hoping for a breakthrough partnering announcement, a black celebrity or something tangible. Instead the news was a bit of a rehash of assets. In a somewhat baffling move, Andy announced the STAN LEE UNIVERSE will assume worldwide rights, in perpetuity, to the name, physical likeness, physical signature, live and animated motion picture, television, online, digital, publishing, theme park, comic book, merchandising and licensing rights to Stan Lee and his IP creations past, present, and going forward.
Now we love Spiderman as much as the next guy, but Stan Lee’s genius (may he RIP) is certainly the past. As investors, we wanted to know about the future of Genius Brands. So you can imagine our quizzical frustration as this wave of anticipation created even more bag holders.
$GNUS has Become a Nightmare for Bag Holders
It’s become a bit hard to play the $GNUS stock right of late. “Buy the rumor, sell the news” seems to be the case with Genius Brands, but there wasn’t even a spike today on Monday — the highest price was literally pre-market. Then it could peak at just $3.61 upon losing a whole dollar with a conference that featured Andy literally reading the press release with background noise. Not exactly professional, guys!
Press releases would have you believe Stan Lee is some holy grail. This is the Holy Grail: STAN LEE UNIVERSE. No, guys, this is a clever way of making up news, and we aren’t buying it.
The stock was down almost 20% in morning trading after soaring 53% last week following a company teaser that it would hold a conference call today “to discuss an exciting business development.” So here we have a bit of deceptive practices that will make many of this tribe churn from investing in the stock in the future. I know people who lost considerable portions of their portfolios on this, so we’re none too pleased.
I did not grow up with Stan Lee, the comics legend, nor do I know of or case about his various legal disputes. I’m not interested in a Stan Lee Universe, I just want to have some tangible numbers, projections and proof of the ability to scale this startup. These Press Releases by Genius Brands are getting a bit tedious.
So I get it, Pow! Entertainment has partnered with Genius Brands with plans to begin producing a slate of films and and television series based on Lee’s creator-owned properties. I’m supposed to drink the Hollywood kool-aid, right? Stan Lee was the creator of the most successful characters ever made, including Spiderman, Iron Man, Black Panther, The Incredible Hulk, X-Men, Thor, Captain America, Ms. Marvel, Silver Surfer, Antman, Nick Fury, Guardians of the Galaxy, and of course the #1 movie box-office franchise of all time, The Avengers.
Andy, who lives in California, appears a bit too influenced by his own culture. It’s great to have celebrity connections, but what about the needs of the moment? Would it have been so hard to partner with a Lebron James or Colin Kaepernick’s media company to produce cartoons that celebrate diversity and equality and sports? Instead Andy had to go and glorify the past. We’re investors, Goddammit, we care about the future!
The biggest obstacle facing the would-be Stan Lee Universe, obviously, is that most of Lee’s non-Marvel work lacks the sort of brand recognition that would make multiple live-action movies, streaming series and comics immediate successes. We aren’t lining up for a dead man’s autograph, if you know what I mean.
Today I felt like I was reading an orbituary or listening to a euology when Andy said:
“It’s almost impossible to conceive that one mind created all this wealth,” said Heyward. “The spinoffs alone defy the imagination. From animated television, to toys, apparel, video games, and every conceivable licensed product imaginable, Stan Lee characters populate the screens and retail shelves worldwide.”
Something tells me Genius Brands Inc. (GNUS) does a bit too much of living in the past.
Andy, you made the bag holders upset. I hope you realize that! Give us some something really for the kids, not what you think makes yourself look good! Approximately seven properties will be developed every year by the Stan Lee Universe. I really don’t care if he was your personal friend, Andy, how will this make Genius Brands money?