The Penny Analyst Report
The Penny Analyst is proud to highlight a company that has a rare quality among micro cap stocks… profits. Valencia Entertainment (OTCBB: SBID), launched in 1995 by Vince Vellardita, has reached profitability in just a few short years. As CEO, Vince has drawn on his vast experience in the entertainment industry, which began as a top music producer, to achieve success at Valencia in such a short period of time. Vince has over twenty years experience in the industry, including time spent creating satellite networks and developing facilities throughout the country.
Valencia Entertainment is based in the heart of Southern California’s entertainment industry and operates a number of successful divisions, which include Studios, Television, Motion Picture, and New Media.
Studio Division
The studio facility, located in Valencia California is housed on 12 acres of land, has 6 stages totaling 120,000 square feet and is valued at ten million dollars. The complex has 50,000 square feet of furnished production offices, complete video /audio control room, in-house lighting and grip packages, and 24 hour access and security. With amenities such as these its no wonder Valencia’s clients include: Warner Bros., Paramount, Universal, MGM, HBO, NBC, 20th Century Fox, Disney, Saban, ABC, CBS, Sony, Showtime, and USA Network. Valencia also plans to build on their already phenomenal success by adding another facility, located in New York. With such a long list of clients its no surprise that Valencia’s studio facilities have a 95% occupancy rate.
Television Division
In addition to the profitable facilities management business, Valencia is also involved in television production. By partnering with other entities into co-productions Valencia is able to add content to its entertainment library while minimizing risk. Current projects include: Truster (pilot episode), PCH (22 one-hour episodes), Fuhgedabowdit, AJ’s Time Travelers (40 half-hour episodes), Frankie Avalon’s Let’s Do It Again, and NASA: Amazing Experiments in Space.
PCH is based on the movie of the same name. PCH seems to have all the elements of a runaway hit: Beautiful women, sandy Southern California beaches, and characters that are young, rich and famous. Fuhgedaboedit is a comedy series about a Mafia boss who decides to retire and leave his crime empire to an unlikely heir, his daughter. The Truster pilot is based on a new advancement in software that allows users to analyze a speaker’s voice to determine the truthfulness of his or her statements. Other Television programs are in the development stages.
Motion Picture Division
Valencia’s Motion Picture Division, similar to its Television unit, also ventures into co-productions. The main focus of the Motion Picture Division is to operate in a low-risk, cost-efficient manner while producing mainstream motion pictures and made-for-television movies with a worldwide appeal. Current projects include: PCH (the movie), The Life, Jumped In, Officer Down, and One White Lie with many more still in development.
New Media Division
The goal of the New Media Division is to focus on technological breakthroughs while also capitalizing on the potential entertainment value as well. This is evident in the creation of the Truster television pilot, which is based on the Truster truth detection software now available from the Web site www.trusterusa.com. Another project developed by the New Media Division is “Hangin’ With the Boyz.” This is a Web site where fans may learn about their favorite athletes. Fans can read player biographies, download pictures, and even view stats, The web site, located at www.hanginwiththeboyz.com contains profiles of top athletes from different sports.
Profitability with Minimal Risk
Valencia seems to have figured out a very unique way to turn a profit in the highly competitive entertainment industry. The core of their business is in the facilities rentals, which are near capacity and provide a steady revenue stream. However, by becoming involved with partners in the production of various movies and television programs they are in a position to reap huge profits with minimal risk if just one program becomes successful. In addition, by becoming involved in technological advances and its entertainment value, Valencia appears to be taking the lead in aggressively seeking out new revenue sources. With a business model such as this, it should come as no surprise that Valencia Entertainment has grown at such a quick pace and has reached profitability in such a short time. |
