Stargaze Entertainment Group Inc. (OTC:STGZ) is a company specializing in music publishing, artist management, digital books, Broadway shows and concerts, and other entertainment productions. Recently taken over by entertainment industry veteran Stephen Brown, STGZ is potentially becoming one of the most promising entertainment stocks. After reaching its lowest value this month on September 17th, STGZ is witnessing a resurgence with an upward trend driving it to $.2250.
In a recent press release, STGZ announced its chairman and CEO – Tony Green – will be stepping down from his duties and assuming the role of President at STGZ . Stephen Brown – a renowned executive music producer with decades of experience – has taken over the role of CEO. Brown is known for running an independent record label in the 90’s, as well as developing a pioneering video streaming company called Vidnet. Under his management Vidnet reached a market cap of $500 million demonstrating Brown’s success with entertainment stocks. Brown is also the CEO of HPIL Holding (OTC: HPIL) a diversified tech holding company.
Recently updating their information with the OTC Markets, STGZ currently has a market cap around $153 million, with 681 million outstanding shares and only 11 million unrestricted. This leaves STGZ with a notably small float of only 10 million. Now, investors are speculating that it became current with the OTC due to a potential merger and are waiting for new details.
This theory appears to be supported by STGZ’s new website and official twitter account – @StargazeEntGrp. The company is expected to deliver a press release soon and investors are keeping a close eye on STGZ’s twitter account for any updates. Given that the account follows only @ASCAP – the American Society of Composers, Authors and Publishers. This has led many investors to speculate that upcoming projects may occur in conjunction with the music mogul ASCAP.
It appears that STGZ’s CEO regularly engages with shareholders thanks to a number of email exchanges shared online. One such email explains that there are “substantial asset(s) being vended in”. If correct, these assets could supplement the $600 thousand of intellectual property laid out in STGZ’s attorney letter.
@stockballa and other shareholders are waiting to see what STGZ’s new website may have in store for the company.
Currently trading at $0.2250, STGZ has a resistance line at .3002. Its first support line is at .2103 and a secondary support formed at .1901. Accumulation witnessed a downward trend since the beginning of September, but recovered on the 20th and has trended upwards since. The MACD recently had a bullish crossover and after becoming overbought, the RSI has settled at 57.50.
Should You Buy?
Given Brown’s involvement in HPIL Holdings (OTC:HPIL), shareholders of either are occasionally caught in the middle. However, STGZ is expected to have a press release come out this week which may provide details regarding its potential merger or business strategy. Considering its very low float, STGZ could be set off by this week’s press release and return to September’s high of $0.3002 making STGZ among the best entertainment stocks to watch for.
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