Hanover House, Inc. (OTCMKTS:HHSE) Keeps Climbing
After yesterday’s market close the stock price of Hanover House, Inc. (OTCMKTS:HHSE) had effectively tripled from its levels just a month ago. HHSE shifted over 14 million shares in the last session and closed 11% up at precisely $0.03.
The company is a pink sheet enterprise engaged in the movie production and distribution business as well as in the publishing sector, with a focus on electronic books. HHSE announced a partnership with NanoTech Entertainment, Inc. (OTCMKTS:NTEK) concerning a video-on-demand website that will feature a content library built from Hanover House movies. This seems to be the biggest claim to fame on part of HHSE and may well be the initial catalyst that sparked investor interest.
The success of this venture may largely depend on the viewers’ interest in HHSE‘s movies and many of the titles heralded as major releases from the company have not been favorably received by their audience, if their Internet Movie Database scores are anything to go by. “Boggy Creek”, “Patient Zero” and “Humans VS Zombies”, listed in a late June press release from HHSE, are all rated below 4 out of 10 on IMDB dot com. The same press release states that HHSE expanded its catalog with several movie acquisitions that, luckily, sport better grades.
On the financial front, HHSE is doing reasonably well, logging net income in both all of 2012 and the first quarter of this year. Here is a condensed look at their quarterly for the period ended March:
- $15 thousand in cash
- $2.5 million in current liabilities
- $525 thousand in Q1 revenues
- $432 thousand in Q1 net income
The announced partnership with NTEK was further expanded to include the distribution of digital books to be read on a television set, with plans to expand the delivery to other ebook reader devices. As of right now those are future plans and attempts to take a slice of a pie that is already divided among a number of larger players. The video-on-demand website, vodwiz dot com, launched by the company is also currently just a static image placeholder that shows what the design will look like. Time will tell when and how smoothly the service will launch and whether the company will be able to leverage its catalog to rake in some additional revenues from the service.
The success of the project may also partly depend on the price performance of NTEK who may have got dangerously high, going from $0.01 as of the first session of June, all the way up to their last close at $0.12 per share. So far the stock has managed to maintain its explosive growth but a sudden retrace to month-old values will hurt a lot.
