hihihi. kining maajo tang tawo boynason ta. naa koy gi palit nga bag-ong company. they are building the states largest movie studio in georgia
Initiating Coverage: Medient Studios, Inc. (MDNT)
Short Term Target: $2
Current PPS: 0.60
Share Price 5/5: 0.21
Shares Outstanding: 36,481,551
Free Trading Shares: 2M
Float: Approximately 2,000,000
Estimated True Trading Float: 300,000 DTC registered shares
We are initiating sponsored research coverage of Medient Studios, Inc. (MDNT) with a $2 short
term target based on DCF of a 5 year proforma of 6-8 films per year and average annual $50M
EPS fully diluted primarily derived from uncapped 30% Georgia State tax credits for in-state film
production.
Our Investment Thesis: Because of the explosion of demand for multi-language digital
entertainment content worldwide, we believe creating a low-cost 100% digital production
studio in the United States located OUTSIDE of NYC and LA creates a compelling and defensible
competitive advantage for Medient Studios, Inc.
Our belief is that Medient Studios’ plan to build and operate the largest and lowest-cost
entertainment production studio/complex in the world (outside of Asia) in Savannah, Georgia
USA is very
1) Feasible
2) Financeable
3) Timely
4) Competitively Advantaged
With the uncapped 30% tax credits guaranteed by the state of Georgia Medient Studios should
become the highest margin/lowest cost multi-media production company in the United States. It is our belief that this mega-production facility will translate into $hundreds of millions in
production, box office and ancillary/residual revenues for Medient and create $hundreds of
millions in shareholder value over the next 18-24 months.
With the major studios focused on big budget “tentpole†productions (i.e. Tom Cruise’s
“Oblivion†opened this week with a $120 million budget), Medient’s “genre†movie making
approach (action/horror/sci-fi fantasy/thriller) combined with their high efficiency/cost
reduction production strategy means MDNT can actually LOSE money on a film produced in
their system (box office/DVD/VOD/foreign distribution rights) and still make 20-30% PROFIT
and cash flow from the sale of its unlimited tax credits provided by Georgia to Georgia tax payers.
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