Affinity Mediaworks to Produce "Traces of Danger"
Affinity Mediaworks Corporation (AFFW) shares jumped more than 60 percent this week after it signed a production contract for the action thriller “Traces of Danger.”
Affinity Mediaworks Corporation [[AFFW.OB]], a provider of visual and production services to independent and small films, announced a production contract for the action thriller “Traces of Danger.” Production and casting will begin in the first week of July 2009 and the film will be ready for domestic and international release in December of 2009.
Investors are hoping that this and other films that Affinity is producing will provide steady returns and improve its acceptance within the film markets. However, the company has reported no revenues to date and may have a long way to go before it achieves profitability. As a result, this stock may be one for speculators to play now instead of long-term investors.
Last quarter, Affinity reported no revenues and a net loss of $11,354 with 50,166,000 shares outstanding. Meanwhile, the company’s balance sheet showed $2,223 in cash and $3,405 in liabilities. With an accumulated deficit of just $60,352 and expenses of just $11,354, this company could quickly turnaround its fortunes with a hit movie.
In the end, Affinity may face a cash crunch and be forced to raise capital via debt or equity in the near-term. However, with low overhead expenses and a miniscule accumulated deficit, the company does have the potential to turn around its fortunes pretty quickly. As a result, this is a stock that investors should put on the radar going forward.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com