BALTIMORE, MD--(Marketwired - May 20, 2013) - Goldman Small Cap Research, a stock market research firm focused on the small cap and micro cap sectors, has issued a research update on FAB Universal Corporation (
U.S.-based FAB Universal has undergone a transformation into one of the most profitable and diverse players in the digital media distribution market. FAB owns and operates high profile digital entertainment media wholesale, retail, and franchised kiosk network sales and distribution businesses in China and the largest global network of independent and professional digital media publishers using podcasting.
In the Goldman Opportunity Research report on the Company, analyst Rob Goldman outlines his investment thesis.
"The Company's 1Q13 results were impressive, in our view. Although net income was a little light, cash generation of $10M was double that of our $5M expectation, which is a remarkable figure based on $22.6M in revenue for the period. Clearly, the financial performance is driven by its success in its China-based business, which should result in double-digit percentage net income margins this year. Moreover, in addition to the highly profitable business abroad, we believe that there is hidden value in the FAB/Libsyn podcast subscription unit which, when monetized, could be afforded a substantial valuation in and of itself. Thus, we project that earnings and valuation multiple expansion could occur as the Company continues to execute its business model."
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About FAB Universal Corporation (
For more information visit: www.fabuniversal.com .
Goldman Small Cap Research Rob Goldman Analyst 410-609-7100 rob@goldmanresearch.com