My Junk Hauling business has been busy so I have not been able to post here in the past 5 months. I came across this stock idea from my buddies Andy Walker and Essey Tesfay from Augury Research and I couldn’t resist but share it with you guys.
Who is Dolphin Entertainment?
Dolphin Entertainment $DLPN is an entertainment marketing and content development company, It provides strategic marketing publicity services and brand strategies for hotels, restaurant groups, and consumer brands. They work with an array of clients that include: Actors, musicians, influencers and help companies brand and hold events. The firm has a total of five divisions, which are operated by Dolphin Entertainment $DLPN is an entertainment marketing and content development company, It provides strategic marketing publicity services and brand strategies for hotels, restaurant groups, and consumer brands. They work with an array of clients that include: Actors, musicians, influencers and help companies brand and hold events.
The firm has a total of five divisions, which are operated separately throughout. The company has been attempting to add adjacent verticals to its business model as part of its Dolphin 2.0 strategy. Dolphin 2.0 is a huge catalyst for this company and is one of the reasons I think it could blow up in share price. Dolphin 2.0 includes the utilization and creation of NFTs which is a huge industry right now with people like Gary Vee and Mark Cuban making big bets on these non-fungible tokens. With the right PR, $DLPN could have a catastrophic move to the upside, especially when considering its low float. A similar occasion was in late march-early April, as the stock went to 30+ on good news relating to 2.0. On top of this, the company is performing and on the verge of profitability, which brings positive sentiment and improving fundamentals to this trade.
Dolphin and FTX Partnership
$DLPN and FTX.US, are teaming up to create an NFT marketplace for major sports and entertainment brands. The pact will combine Dolphin’s creative and marketing expertise with FTX’s knowledge of cryptocurrencies.
They recently hired a former Marvel visual artist by the name of Anthony Francisco who has designed for several hit movies including the “Guardians of the Galaxy”, “The Black Panther”, “Eternals”, and soon to be released “Thor: Love and Thunder”. Recruiting such credible talent confirms that $DLPN is serious about making this 2.0 phase a hit and lucrative for shareholders.
The marketplace is going to make it easier for consumers to purchase NFTS. The CEO Bill O’Dowd noticed how complicated it is for a lot of consumers to purchase NFTs and quickly wanted to make a change as he stated “To be able to offer a seamless user experience, where the wallet and the product are all in one place; to allow the consumer to pay with crypto, credit card or traditional currency; to have the product available on wholly-owned and programmed online destinations; to have the same product available for purchase directly in-app; and to also have actual customer support, when necessary, are enormous differentiating factors that FTX provides.
Combined with Dolphin’s unparalleled access and relationships across the film, television, music, gaming, eSports, culinary, and sports industries, our joint offerings are distinct from the rest of the market and, most importantly, immediately put NFTs on a level playing field with all other consumer products available for purchase online.”
This is HUGE, Management’s ability to create an NFT market where you can pay for these NFTS using any type of currency adds great value to the company, especially for the nontech savvy people who have no interest in having to buy Ethereum and then transferring it over to another crypto wallet just to be able to purchase an NFT on opensea.io. The Dolphin and FTX partnership is going to be a great way for people to purchase NFTs who don’t want to go through the crypto wormhole.
$DLPN stated in the 10-K “Our stock price has recently been volatile and may be volatile in the future. For example, on March 22, 2021, the price of our common stock closed at $5.45 per share while on March 23, 2021, the price of our common stock closed at $18.33 after a press release announced the formation of our NFT division. Our volume on March 23, 2021, was 174,578,000 which was a substantial increase from the volume of 134,737 and 264,244 on the two days immediately preceding March 23, 2021.
We may incur rapid and substantial increases or decreases in our stock price in the foreseeable future that may or may not coincide in timing with the disclosure of news or developments by us.” With that being said, there are some risks to this name. They include, 1) DLPN’s inability to produce good Q3 earnings and commentary during the call (earnings in November) and 2) PRs don’t create the supply/demand imbalance in share price that we are looking for. $DLPN has 5 subsidiaries (and is looking to acquire more) which therefore makes it difficult to accurately model. Despite this, I believe the business to be mispriced with the downside being $8/share if the Q4 thesis breaks.
An announcement of anything NFT related could create a huge pump in this stock. DLPN is poised for a breakout and on the last pump in march management didn’t sell a single share, which shows you they really believe in this company to grow with their NFT business and partnership.
If management performs well in Q3 (earnings in Nov) and drops the right PR with the FTX launch of NFTs this stock could get a huge intraday move especially because of the low float. Dolphin is planning to announce the news this quarter and I feel that it is poised to blow up by the end of this year to early 2022.
Disclaimer: I own this stock and can buy or sell it at any time. Do your own due diligence. This is not investment advice, just some research I do for fun and invest at your own risk.
Categories: Financial Advice