2 Reasons to Sell Genius Brands
Shares of struggling children's entertainment company Genius Brands (NASDAQ: GNUS) have been on a rocket-ship rally lately. On May 6, Genius announced the planned launch of its Kartoon Channel! digital network, a children's educational platform that will be hosted on several major media platforms including Amazon Prime, Apple TV, and Comcast. The news supercharged investor interest in the stock, sending shares soaring 995% from about $0.32 on May 5 to $3.45 at Thursday's close. And that's actually down from a recent high of $7.93 on June 3.
While it is unclear what long-term impact Kartoon Channel! will have on Genius Brands' business over the long term, the optimism looks overblown considering the fundamental weaknesses in the company and questionable managerial decisions. Here are two reasons to sell Genius Brands stock before shares fall back down to earth.
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Source Fool.com
