Posted on April 8, 2021 by Brad Steveson
There is a lot going on with DLPN lately, so I wanted to catch up with a timeline recap of happenings over the past few weeks.
3/23/21: DLPN announces that it is Launching Non-Fungible Tokens (NFTs) Creation and Marketing Division; Expects First Partnership in Collectibles. Later that day it is announced that Hall of Fame Resort & Entertainment Company Signs Partnership with Dolphin Entertainment. The stock reacts with a gap up opening from prior day closing price of 5.45 to an opening price of $10.70 and closes at the high of day at $18.33.
3/24/21: Maxim comes out with a buy rating and new PT of $28.00. DLPN stock hits it’s 52 week high of $32.50 before closing back down at $19.16. Yours truly sells all of his shares remaining during the day that I did not sell the previous day with my last sale at $28.00. My average was below $5 per share, so it was a nice win and I couldn’t justify the valuation in my mind to hold any shares with the opportunity to sell in the high $20’s.
4/1/21: The company files their NT 10-k reporting that it could not timely file its fiscal 2020 annual report because it needed “additional time . . . to prepare the calculations to properly record certain revenue transactions.” The Company also stated that it expects to “continue to report material weaknesses in its internal control over financial reporting as of December 31, 2020.” Dolphin also stated that it would discuss its fourth quarter and full year 2020 financial results during a conference call to be held April 7, 2021. The stock trades down the next business day (4/5/21) closing at $11.95, down from $13.40 closing price on 4/1/21.
4/7/21: Dolphin Entertainment Reschedules Earnings Call to Thursday, April 8 at 5:00pm ET. Stock opens the day up at $13.95, but closes down at $12.60 compared to prior day $13.43 closing price.
4/8/21: Dolphin Entertainment announces that H2H Legends Tim Brown, Earl Campbell, and Doak Walker To Kick Off Exclusive NFT Collection. This is about their new NFT division partnership. Then they release a business update Dolphin Entertainment Announces 2020 Business Highlights, and “Dolphin 2.0” Commences with 2021 Launch of NFTs Division and First NFTs Partnership DLPN proceeds to hold their earnings call after hours, which was not an earnings call after all. It was a business update where they went on to talk about Dolphin 2.0 and their NFT partnership and plans. During the call they informed investors that they have an accounting issue that requires a restatement of the Q3 earnings that is about 830k less revenue, but also less expense (a net earnings wash) and that they will soon issue a correct 10k and hold an actual Q4 earnings call. CEO Dowd mentioned they were excited and looking forward to sharing actual results with us. And then, to top if all off, we get this release while the call is ongoing: The Law Offices of Frank R. Cruz Announces Investigation of Dolphin Entertainment, Inc. (DLPN) on Behalf of Investors.
So what do I think about all of this? I am convince more than ever that the company is under valued and has enormous potential ahead of it. Not undervalued when it touched $32.50 in late March, but undervalued now while trading in the $12’s. One only need listen to the replay of today’s call to make up your mind what you think about all of this. For me, I will likely be buying the dips.
Disclosure: I have no position, but I may buy shares within the next 72 hours.