GNUS: Genius Brands Catching Investors’ Attention

GNUS: Genius Brands Catching Investors’ Attention

Did you know that that a study has shown 70% of moms in the U.S. know the Baby Genius brand? Or that Genius Brands’ CDs and DVDs are sold at major retailers all over the U.S. and the company engages in direct-to-consumer sales at the social media level through Groupon (NASDAQ: GRPN) and Living Social?

Those products are made by Genius Brands International (OTCBB: GNUS), a small company with strong growth potential. To this point, it’s not surprising that California-based Genius Brands International has not been at the top of your broker’s “must buy” list. After all, the company is tiny with a market cap of just over $14 million. Then again, that means there are several important things to consider.

First, most brokers don’t know much about small companies poised for growth in the children’s toy industry. They keep recommending the same old large-cap stocks over and over again, but savvy investors are consistently on the look out for what could be undervalued companies with unrecognized potential in the marketplace.

Second, despite being overlooked by the brokerage community, GNUS has a compelling story to tell. The company recently inked a licensing accord with JAKKS Pacific (NASDAQ: JAKK). The line includes Baby Genius(R) Be a Star Sing-Along Jukebox, Baby Genius(R) Be a DJ Bear Jam-bouree and Baby Genius(R) Musical Friends-in-the-Box. Genius Brands toys from the deal with JAKKS Pacific are expected to begin hitting the shelves by the end of summer in national and international retail chains, according to Genius Brands. The deal with JAKKS is expected to start generating sales late this year.

On Tuesday, Genius Brands announced it has signed a licensing agreement naming with Sunscape Eyewear. The two-year agreement will see the companies develop a product line for the 2012 holiday season with the intent of getting those products on the shelves of the largest U.S. retailers, including Wal-Mart (NYSE: WMT), Target (NYSE: TGT), Toys ‘R’ Us, and Babies ‘R’ Us.

The result of these recent successes for GNUS is that the stock is starting to gain traction with investors. When we initially evaluated the stock just a few days ago, the market cap was barely over $11 million. As we just noted, it is now over $14 million.  Today, buyers are starting to take note of GNUS on news of the deal with Sunscape Eyewear, pushing shares of Genius Brands higher by more than 8% on volume that was about 50% above the daily average.

This action is saying something.. What it could say to small cap investors is GNUS could be a genius play at current levels.  Do your research on this Company and keep the stock on your watch list.

For additional information on Genius Brands International, Inc. (OTCQB: GNUS) visithttp://www.stockorange.com/client-profiles/gnus

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