Nikolay Tomov
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DHX Media Ltd. (TSE:DHX), (PINK:DHXMF) Children Love Your Programs

by Nikolay Tomov May 17, 2011
"Children like you"! "Children love your programs"! "Children yearn to watch your comedies on TV"! This is the sort of messages that DHX Media Ltd. probably gets these days, I would dare say. Why do I think so? Because of the latest company news released this month. Somewhat disappointingly, they have not driven the company's stock (TSE:DHX), (PINK:DHXMF) upward.

Some words about the shares' performance first. Yesterday, on the Canadian market DHX marked a very large trading activity, beating many times the average from the last 30 days. The volume of 522K shares is something that deserves your kind attention and appraisal. Especially, when we have on the background one hard to notice turnover of 67K, traded in the preceeding session, on Friday.

DHX_Media_-Chart-_17_May_2011_New.jpgAt the same time, DHX went just 3.3% up, to finish at $0.94 on day-close. $0.94 is also a resistance level for the stock. We shall see whether the shares will manage to climb beyond it in the near future, or a decline will begin instead.

The company seems to be doing just fine. DHX Media Ltd. is an international producer and distributor of television programming, interactive and entertainment content with an emphasis on children and youth markets. This month, DHX Media was glad to inform the public that two of its shows for children have been renewed and commissioned for another broadcasting season.

As it seems, children like the company's sketches and comedies and will continue watching them in the months to come. Of course, this will also generate additional revenues. We must add the pleasantly looking data contained in DHX Media's financial reports. The company recorded a rising gross profit and an increased net income for the first quarter of 2011 in comparison with 2010. Revenues have grown by 36% too.

DHX_Media_-_Logo.jpgFinally - at the current price the market value of DHX Media is $58M, which suggests that the company is underestimated by investors. It is hard for me to write negatively about DHX Media. Not only because the facts speak in favor of the company. Mainly because it entertains children and will continue doing so. I will not dare criticize what children seem to love.

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