Originally specializing in the entertainment industry, Stargaze Entertainment Group Inc. (OTC: STGZ) has been looking for a merger for a while to venture into a lucrative industry. Despite previously signing an LOI to merge with a telehealth company, the cancellation of the deal sent STGZ plunging and reached a new 52-week low. With the CEO promising updates soon, STGZ could be one of the entertainment stocks to keep an eye on over the coming weeks.
STGZ Stock News
Following the departure of Stephen Brown as CEO, STGZ brought Tony Green – its former CEO and Chairman – to guide the company through its next growth phase. As a result of the agreement, Brown returned his 350,000,000 shares to STGZ and will be reimbursed an undisclosed amount as settlement in full. Brown is also leaving STGZ with the projects he had been in the process of developing such as: Humm Token, Autore Books, Vidnet TV, and other music projects.
The 350 million shares added to the stocks volume on January 19th, as is STGZ has an AS of 900 million with an OS of 681 million. However, 667 million are restricted leaving a low float of roughly 12 million. The OS reduction has given STGZ a boost, but this stock could prove to be a worthwhile swing trade in case the company introduces a new strategy or acquisition under this well-respected CEO.
Green has significant experience in the entertainment industry as an award winning music producer, songwriter and filmmaker. His work has has achieved gold and platinum status, but he is possibly most well known for the film “South of the Moon” which he wrote, produced and directed.
According to Green, his “mission is to take this company into a new direction with fresh new goals, aspirations and well defined plans for its restructuring, growth and success as a competitive player in the international entertainment industry”. He went on to say that this is his “resolute commitment” and he looks forward to bringing these goals to fruition “with dedication, openness and transparency”.
While the company has yet to update shareholders on this new strategy, it appears that STGZ is currently developing a film adoption from the hit stage play “Damn Those Wedding Bells” and a television pilot project for a scripted reality TV comedy show. ”
Whether the company intends to continue pursuing these projects remains to be seen, as does its intended acquisition of Hyvetown Music. In December, STGZ signed a letter of intent to acquire the popular music publishing and administration company. Although the name would likely change to Stargaze Music Publishing, STGZ intended to keep Hyvetown’s experienced staff on board.
Currently, Hyvetown has a roster of artists who have previously received Juno awards, Grammy nominations, SOCAN awards, as well as pop song and rock song of the year. STGZ could also capitalize on Hyvetown’s copyright administration software which offers detailed information about music publishing rights.
Some investors are speculating that this shakeup in STGZ’s management could lead the company in an exciting new direction and are watching for PR as they consider STGZ for a potential swing trade into February.
*Updated August 26th
While the company appeared to be venturing into the telehealth industry after signing an LOI to merge with HealthPoint Plus, STGZ lost its momentum and dropped to a new 52-week low since canceling this deal. However, STGZ could be poised for a rebound in the near term as the company recently shared its intention to release “exciting news in the very near future”. With the company also sharing that it is working on multiple “promising things”, STGZ could be on track to announce a profitable merger which could add significant value to its shareholders. As investors are anticipating the news, STGZ could be one of the entertainment stocks to watch closely this year as the stock could soar if it merges with a profitable company.
Media Sentiment
@AngryRed316 believes STGZ could replicate its run to $.4 earlier this year after announcing its upcoming merger.
@Kanye_Invest expects STGZ to reach $.05 in the short-term.
Technical Analysis
STGZ is currently trading at $.036 and has supports at .03 and .017. The stock also shows resistance near .0482 and .1107. Despite the stock reaching a 52-week low recently, STGZ is becoming one of the hottest entertainment stocks after the company promised to share news in the near future – leading to a 100% run. Considering that the stock previously ran past $.4 on merger news, STGZ could be poised to witness a similar run upon announcing its merger. In the meantime, STGZ is retesting its VWAP support which is a pivotal price target to watch when identifying an entry point. If the stock rebounds off this support, investors could add on pullbacks to realize profits. Meanwhile, if the stock does not hold this support, a better entry could be near $.03.
With investors bullish that STGZ could be on track to secure a profitable merger, accumulation is trending upwards and the MACD is bullish to the upside. However, STGZ is currently overbought with the RSI at 71. In light of this, bullish investors could wait for these indicators to reset for a better entry point on STGZ. As for its share structure, STGZ has an OS of 336.7 million and a low float of 21.1 million.
STGZ Stock Forecast
Although STGZ recently dropped to a new 52-week low, the company could be poised to gain much ground in the upcoming weeks as investors anticipate the upcoming merger’s announcement. With the company’s CEO promising to share news in the “very near future”, this could be an opportunity for bullish investors to accumulate shares before the announcement. Considering the company’s low float, STGZ could be one of the entertainment stocks worth watching for now.
If you have questions about STGZ stock and where it could be heading next feel free to reach out to us in our free alerts room!
Disclaimer
Please visit and read our disclaimer here.
