Keubiko
Long/short equity, deep value, value, special situations

Destiny Media's Problem Child

February 5, 2015 Update:

The short thesis on DSNY has played out exactly as I expected, if not slightly better, with the shares down over 70% from when I authored this article ($1.34 to $0.36 currently).

I originally wrote that I expected the stock to get back to the $0.50 to $0.60 range, which is where the shares traded before the Clipstream hype began. However, the execution and performance have been so dreadful that the market has taken the shares down even more.

Despite the $0.36 share price, DSNY is by no means cheap. It still trades at over 5x revenue, and has lost money the last two quarters as the company continues to pour money into "Clipstream".

Despite the...

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