CMG Holdings Group Inc (OTCMKTS:CMGO) Turnaround Almost Complete

CMG Holdings Group Inc (OTCMKTS:CMGO) has embarked on a restructuring drive as it seeks to revitalize its ailing prospects in the industry. The stock has shed a substantial amount of market share over the past year after initially spiking to highs of $0.02.CMGO Share Price AnalysisA lack of press release as well as updates detailing the company’s plans explains why the stock has remained subdued at all-time lows. Fast forward, the company has started 2019 on a roll with the management reiterating plans to reinvigorate the company’s prospects in the industry.A shareholder update detailing underlying developments explains why the stock has started showing signs of bottoming out amidst improved trading volumes in the market. The stock has consequently bottomed from below the $0.01 level where it remained subdued for the better part of the past few years. CMGO Daily ChartAfter the recent spike higher, the stock is staring at the $0.02 level, which appears to be the next substantial resistance level. A rally followed by a close above the critical resistance level should reaffirm the emerging uptrend, setting the stage for the stock to bottom out from multi-year lows.While the recent spike is a welcome, CMG Holdings remains subdued at all-time lows given the long-term bear trend. Below the $0.02 mark, the stock remains susceptible to further drops in line with the bear trend that began in 2015.What Does CMG Holdings Do?CMG Holdings casts itself as a marketing communications company with operations in the alternative advertising, digital media and interactive marketing space. The company is also involved in the production, promotion, and event design and sponsorship evaluation.Recent DevelopmentsA spike in share price and market activity follows the posting of a shareholder update that indicates CMG Holdings has settled a string of underlying issues that have clobbered it over the past year. The company has confirmed it has settled outstanding issues pitying the company with Hudson Gray and other defendants.According to the Chief Executive Officer, Glenn Laken, the case involving the company and the defendants was aggressively litigated. The case involved recovery and research related to over six terabytes of stolen corporate information.

“In addition to the thousands of hours invested, we financed the litigation personally on behalf of CMG and its shareholders. Without our personal commitment of time and money, the CMG case against the Hudson defendants could never have gone forward. To be clear, this was not a passive investment,” said Mr. Laken.

CMG Holdings Bounce BackDuring the litigation period, the Chief Executive Officer opted to take the company dark something that accounts for the lack of updates into the market. While the actions did hurt the stock, CMG Holdings is ready to bounce back according to the executive. Plans are underway to embark on active reporting starting April 1, 2019.Amidst the litigation, woes the company’s subsidiary XA continued to outperform itself behind the scenes. The subsidiary had initially, been stripped of all its clients as well as digital information dating back to 2014. It was also the basis of the CMG vase against Hudson Gray.The fact that the subsidiary generated gross revenues of about $1.3 million last year, up from $750,000 reported in 2017 is a plus that CMG Holdings intends to build on as part of the ongoing restructuring. Net income from the unit skyrocketed to $170,000 in 2018, more than triple an income of $50,000 reported a year ago.

“This year, XA is projecting $2,250,000 in gross revenues with a net profit of approximately $250,000 - $275,000. We will continue to build XA back into an experiential powerhouse diligently. A new XA website will be up and running in the next few weeks.

In addition to the XA subsidiary milestone, The Chief executive Officer has confirmed the cleaning up of the company’s balance sheet. He has consequently settled lingering debts as part of the latest drive of building a successful holding company with profitable investments.Bottom LineCMG Holdings turnaround is almost complete following the settling of lengthy litigation. The fact that the company’s subsidiary XA is doing exceedingly well when it comes to revenue generation is a plus that should continue to strengthen the stock’s sentiments. All of these factors make CMGO an exciting play.We will be updating our subscribers as soon as we know more. For the latest updates on CMGO, sign up below!Disclosure: We have no position in CMGO and have not been compensated for this article.