A 300% spike in share price is the last thing that investors expected of Stereo Vision Entertainment Inc (OTCMKTS:SVSN), as the stock has been in consolidation for the last 12 months. However, that is exactly what happened as investors were caught, off guard.With the stock currently trading at 11-year highs, the big question now is whether it still has what it takes to continue rising. After initially spiking to a new 52-week high of $0.89 a share, the stock has pulled back and is currently trading at the $0.468 handle. SVSN Daily ChartGiven the strength of the upward momentum, the pullback could act as a minor correction, on profit-taking, which in our view presents a unique buying opportunity. With trading volumes at record highs, the stock could make a run for the 52-week high. Sell-offs on the other hand look set to be limited to the $0.32, which appears to be a key support level.Before we carry out a detailed analysis of the catalysts behind the recent price action, let us have a feel of what the company does in pursuit if shareholder value and growth.Headquartered in Las Vegas, StereoVision Entertainment is a publicly traded company focused on creating, acquiring and developing multimedia content. The development stage company seeks to position itself as a diversified media entertainment company.The company plans to generate revenues by producing new feature films in both 3D and 2D format as well as through the licensing of film rights to the video game industry.In addition, it has sought to diversify its holdings and operations by expanding its footprint into the hemp business.It is the hemp business ambitions, which seem to have captured investor’s interest consequently triggering the recent uptrend in share price.Recent developmentsIn a bid to strengthen its prospects on the cultivation of hemp, StereoVision Entertainment has filed a $50million Real Estate Investment Trust with the SEC, for the listing on the New York Stock Exchange. Pursuant to the filling, the company intends to purchase farmland, which it’s wholly owned subsidiary, CannaVision, is to use for organic hemp farming.
“We’ve retained the California securities law firm Dieterich and Associates and formed a Florida C corporation OrganaCanna Property Management (OPM) to file a fifty-million-dollar REIT with the SEC. To purchase irrigated farmland for long-term favored nation leases for our majority-owned subsidiary CannaVision’s organic hemp farming plan, and to generate management fees for the Company,” stated StereoVision’s CEO Jack Honour.
The $50 million REIT filling follows the announcement that the company will seek hemp cultivation permits in Puerto Rico through its wholly owned subsidiary CannaVision. The Puerto Rico government has approved industrial hemp legislation, which paves way for the company to engage in hemp cultivation activities in its 125, acre farm in Arecibo.Cannabis Medical Clinic Opening In addition, CannaVision has brought back online its Florida Medical Cannabis and Holistic Pain Management Clinic, Coral Gables.
“[...], we’ll be treating Dr. Ellenby’s four hundred plus medical marijuana registry patients along with the surrounding Miami metropolitan area. We expect this to establish a solid foundation for continued growth. We’re currently evaluating a number of locations for our next CannaVision Medical Cannabis and Holistic Pain Management Clinic,” said Steven Previch CannaVision’s COO.
Media Industry FocusWhile the focus in the recent past has been on strengthening growth prospects on hemp cultivation and production, StereoVision Entertainment is also paying close attention to its media business. The company through its family entertainment subsidiary, Inspirational Vision Media Inc. has inked a co-production Joint Venture with actor-producer and writer Dr. Pavana GroverUnder the terms of the agreement, StereoVision Entertainment is to develop IVM’s Legends of Oz 9 book series into a TV series for presentation to Amazon studio. The opportunity to co-produce the Oz series, written by Roger Baum, presents yet another opportunity for the company to strengthen its original programming portfolio.What Next for StereoVision Entertainment After 300% spike It goes without saying that there are concerns that StereoVision Entertainment might have over-ran after the 300% spike. However, taking into consideration the company’s long-term growth prospects the stock price might be valued.The company is on the brink of something big, given its diversified portfolio that touches on two industries with unique opportunities for growth. The company has made important strides as it eyes large-scale cultivation of hemp both in the U.S and in Puerto Rico.That said, the company remains well positioned to generate significant revenue as demand for hemp increases given the growth being experienced in the medical and recreational marijuana markets. In addition, the company is aggressively exploring ways of strengthening its media business through the production of exciting original programming.The diversified revenue of streams that the company has set its sights on, is one of the reasons why we remain bullish about the company’s ability to generate long-term shareholder value.While the company has the potential, it must start delivering on revenue generation if it is to continue to enjoy the hefty valuation.Disclosure: We have no position in SVSN and have not been compensated for this article.
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