I'll take a look at that one at some point, but I'm a bit backed up on work. You mistakenly are using the IPO issue size (C$36mil) for market cap. The actual market cap, post the IPO, will be around C$135 mil.
I believe the reason's are that the company has a very highly regarded management with long term ties to children's entertainment industy around the world, they have a production process that is very efficient, hence they can animate relatively inexpensively and quickly --two keys to making money with entertainment-- and they have impeccable strategic venture partners in the likes of IMAX, Paul Allen, Henson Int'l, Polygram, Irwin Toys, Hasbro, Playmate Toys, Electronic Arts etc...
Also, the profitability improves with episodic TV the more seasons one has. Also, they own parts of everything they work on. Most animators are just production shops and they are not building up any future equity. Mainframe will not work on anything they can't get some ownership rights on. |
