Have you ever wondered how those crisp colorful HD graphics are created on your 50 inch flat screen TV or on your favorite website? I asked myself that very question about three months ago and now I’m attending the Art Institute of California San Diego studying Web Design and Interactive Media. The multimedia industry is exploding with opportunity and becoming more widely used by every company, as the shift from brick and mortar establishments to e-commerce becomes more prevalent everyday.
In addition to this I believe that soon you will be able to use your remote control to purchase products from an advertisement your watching without ever moving from your lazyboy. I know this sounds like the last thing us lazy Americans need but think of it from a business perspective. Lets say for argument sake your watching the best team in the NFL the New England Patriots beat up on the choke artists the San Diego Chargers and during a commercial break a Dominos commercial comes on. Now with a few simple clicks of your remote you place an order for a large pepperoni pizza and a side order of buffalo kickers. Thirty minutes later it’s at your door without ever missing Matt Cassel’s touchdown pass to Randy Moss. Now if that isn’t convenient then I don’t know what is.
One company that has positioned themselves to capture the multimedia market is Chyron Corporation (NASDAQ: CHYR). CHYR has recently landed a deal with the Cartoon Network, owned by Turner Broadcasting Systems Inc. (TBS) that will allow the television station to utilize CHYR Channel Box, an HD/SD switchable channel branding and automated promo system. TBS will use CHYR system in conjunction with Pro-Bel’s Media Ball TM that allows them to broadcast any combination of credits, promos and starting segments automatically in real-time without any user intervention.
Ok yeah this sounds great and all but lets take a deeper look into the companies performance and see why I am so upbeat about this stock. First off lets look at their one-year stock chart shown below. CHYR was trading at around $3.50 a year ago and since then has slowly trended upwards to around $5.00. Giving it a return of almost 40% for the one year period beating both the NASDAQ and the AMEX Computer Technology indexes which both have seen a drop of approximately 15%. If that is not enough to pique your interest let us take a look at their income statement over the past two quarters.
What really has me excited about this company is their ability to increase their bottom line from $225,000 to $1,109,000 in just three months. This represents an increase of 392% in net income on just a total revenue increase of about 21%. With the new deal with TBS and potentially many more to come in the near future CHYR has built a solid foundation for success.
Let me wrap things up by saying CHYR is definitely a company you may want to put on your radar as the bulk of the market has seen significant losses over the past year. However like always I recommend doing your own research before making any investment decisions as with any stock there are certain risks and uncertainties associated with investing.
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