The year 2018, especially the last quarter, is one that One Horizon Group Inc (NASDAQ:OHGI) would instead cast to the winds. In the period, the firm saw its stock sink to all-time lows due to various challenges. Notably, the firm had to contend with a misunderstanding with of its anchor shareholders, which ended in court.
Dipping stock price
Although the firm and the litigant, reached a tentative agreement regarding the dispute, the share price was slow to respond. Towards the end of December 2018, the stock sunk to an all-time low of $0.075. This translates to a difference of more than 30% from the stock price at the end of the third quarter of 2018.
Interestingly, the continued stock plunge happened when One Horizon was making positive headlines. In the period of the plunge, the firm acquired Browning Productions & Entertainment. Notably, the subsidiary is having a good year regarding revenue generation. Further, the firm is finalizing various deals that will see it produce much more content this year.
Although the acquisition happened in November, one can see that the stock lost much of its value in the same month. In particular, the stock fell over 40% in almost 60 days beginning very early November. This is after an attempt to breach the 50-day moving average resistance.
New Year with good tidings
However, the New Year seems to bear good tidings for the stock. In the last three days of trading, the sock consistently gained from $0.075 to $0.108. Notably, this comes on the back of some positive developments in the litigation. In particular, One Horizon had to reconstitute the Board of Directors as one condition of settlement of the dispute. Seemingly, investors are beginning to show their confidence in the new Board as well as the firm’s strategy going forward.
Further, investors must be appreciating the significant benefits of the various deals that Browning signed for 2019. Notably, the subsidiary has some projects lined up which involve major television networks like History Channel. According to the official business update on the projects, One Horizon said it expects to earn substantial revenue.
In particular, the firm expects to air ten episodes of its new production in Q1 2019. Another 18 episodes of another production will air over the first two quarters of the New Year. As such, the firm expects cumulative revenue of over $1 million.
Renewed strength in the stock performance
Other notable developments in the last quarter of 2018 include the on-boarding of new partners on the firm’s 123Wish Platform. According to an official statement, One Horizon welcomed one new partner onto the platform. Interestingly, the firm’s Founder and CEO, Mark White, admitted that the process had taken much longer than expected.
“Due to the complexity of these types of deals in terms of tailoring the 123Wish Platform to each specific co-branding partner, it has taken us longer to go-to-market in this area than we anticipated,” White said.
Further, White noted that the firm netted the services of former Apple executive, Spencer Christopher. In his new assignment, Christopher takes on the duties of Chief Technology Officer at One Horizon. Already, the CEO has sweet words for the new hiring noting that the firm has “uncovered additional opportunities to unlock value from our once-in-a-lifetime experience Platform and we are building market-leading features including live-streaming into our capabilities set.”
It is unfortunate that One Horizon’s stock could not respond to such developments in good time. Nevertheless, there is renewed energy in the stock’s performance. Notably, the stock moved out of the long-running bear market, and the RSI reveals more strength in the stock.