Cinedigm Corp (NASDAQ: CIDM) is heading up in the market this morning in a big way. However, the video entertainment company hasn’t issued any news.
So, what’s the deal?
There’s speculation surfacing that the company may soon get into the non-fungible token, or NFT, market. Here’s what’s happening:
Cinedigm Rumored to Get Into the NFT Market
As mentioned above, there has been no news released by Cinedigm this morning, but rumors are beginning to surface, exciting the investing community. Those rumors suggest that the company is going to get into the NFT market.
NFTs are units of data on a blockchain that represent digital items. These items include art, audio, video, and other creative works. Even Jack Dorsey’s first tweet on Twitter has become an NFT worth a massive amount of money.
Moreover, NFTs have recently led to investor interest in several publicly traded companies, leading companies like Kuke Music, Dolphin Entertainment, Takung Art, and Hall of Fame Resort & Entertainment on dramatic runs for the top.
What Is Cinedigm?
NFTs would fall right into Cinedigm’s wheelhouse. After all, the company is focused on content as it stands.
At the moment, the company has a library of more than 52,000 films and episodes of television shows. Moreover, it recently announced the acquisition of Films Around the World, giving it rights to more than 150 feature films.
The company also recently acquired Screambox, giving it the upper hand in the horror genre.
This Could Be the Next Big Short Squeeze
Rumors often lead to big moves in the market, and in some cases, can trigger short squeezes. Cinedigm seems to have the potential to squeeze the shorts, which means that the gains we’re seeing this morning could be far from over.
At the moment, Cinedigm stock trades with short interest of 25%. That’s incredibly high, and as the stock ticks up, those who have shorted it will be forced to cover their positions. This means that they will race to buy shares in order to close out their short positions and stop the bleeding.
Short squeezes have the potential to yield gains in multiples, and given the high level of short interest when it comes to Cinedigm stock, that’s a real possibility here.
What Analysts Think About CIDM Stock
According to TipRanks, there aren’t many analysts covering the stock, but those that do seem to love it. In fact, there are two analysts that have weighed in on the stock recently, both of whom rate it a buy.
Moreover, price targets range from $3 to $3.50, bringing the average price target to $3.25. Comparing the price target to yesterday’s closing price suggests that there’s potential for gains in multiples here.
All in all, CIDM stock is one for the watchlist. Cinedigm has done a great job of building out its content library, and regardless of whether or not it gets into NFTs, it represents an exciting opportunity.
Of course, if NFTs are indeed on the table, the opportunity is even more compelling.
Nonetheless, in the short-term, there’s a huge potential short squeeze on the horizon. In the long term, there are plenty of reasons to be excited, considering recent acquisitions leading to the expansion of the company’s content. All told, the stock is one to keep a close eye on.