Hollywall Entertainment Inc (OTCMKTS:HWAL) Is Today's Penny Stock Focus

Today, we will introduce a new name that is becoming very popular on Twitter. It is Hollywall Entertainment, Inc. (HWAL), a media and entertainment company, that has very recently seen a big increase in its share trading volume. As volume is a very good indicator of market interest and with the latest earnings release put out recently by HWAL, we decided to initiate coverage on the stock.SourceBusiness History and Recent DevelopmentsHollywall Acquisition Corp. commenced trading on September 12, 2013 after Acceleritas Corp. acquired all the assets and properties owned by the company. The most important assets acquired included licensed rights to over 17,500 Music Master Recordings. The acquisition was paid by 40,560,513 shares of common stock and 43,000 shares of Series A Convertible Preferred stock. According to what we have seen later on as well as the volume exchanged, the acquisition seems to have been a good deal. At the end of the day, it allowed the company to grow.The most recent news can be found on the company's website. The most recent one is about the "Sutton Scholars Program" run by HWAL. It is a four-week program that operates serving nutritious meals daily and offers "pre- and post-assessment of skills and attitudes, requires parent/caregiver involvement, includes trained teachers and mentors, and follows the scholars from 9th through 12th grades". It is an initiative that may not have significant impact on the share price, but that will help "children succeed in school and life to be contributing citizens wherever they may live."HWAL released the company's latest quarterly report on January 28, 2017. The good news is that the company obtained for the first time a positive operating income. It seems that the company is finally obtaining some cash from the assets acquired by reducing the Sales, General and Admin expenses. HWAL reduced these costs from $288,000 as of March 31, 2016 to $31,000 as of December 31, 2016. The EBITDA was finally positive as well; $24,000. However, the most interesting part of the company is, without any doubt, the balance sheet. The company has large amount of assets and very little liabilities. Have a look at the financial figures for the four quarters of 2016.

Current Assets

Cash and Cash Equivalents14291341Short Term Investments----Net Receivables--1313Inventory----Other Current Assets----Total Current Assets14292654Long Term Investments747462250250Property Plant and Equipment----Goodwill----Intangible Assets----Accumulated Amortization----Other Assets66,61267,54868,49469,430Deferred Long Term Asset Charges----Total Assets67,37468,04068,77169,735SourceNow compare this figure with the other side of the balance sheet; the liabilities:Accounts Payable4343187139Short Term and Current Long Term Debt1,0201,1421,2571,257Other Current Liabilities----Total Current Liabilities1,0641,1851,4441,397Long Term Debt717717717717Other Liabilities----Deferred Long Term Liability Charges17,05817,05817,34917,640Minority Interest----Negative Goodwill----Total Liabilities18,84018,96219,51219,755SourceConclusionThe company seems to be growing at a very fast pace. This is what we could see from the quarterly reports of 2016.The drastic reduction of the SG&A expenses and the increase in revenues in the last part of the year made the operating income and the EBITDA positive in 2016. This is very positive and the market liked what it saw from HWAL. Additionally, the company shows a strong balance sheet with plenty of assets, and little long term debt. In our opinion, these results were responsible for the increase in volume. Furthermore, we believe that once the company starts communicating its more recent initiatives in the industry, other market participants may push up the share price and create a breakout. To sum up, try to stay alert as the company's results have been good so far and we expect further upside as things develop. We will be updating our subscribers as soon as we know more. For the latest updates on HWAL, sign up below!Disclosure: We have no position in HWAL and have not been compensated for this article.