Probility Media Corp (OTCMKTS:PBYA) is not yet out of the woods despite rallying by more than 150% after one of its division signed a landmark deal with Georgia Public Broadcasting. While the stock did bounce back from all-time lows, it remains engulfed a strong bear trend after feeling the full force of short sellers over the past one year.
ProBility Media Price Action
The stock has continued to edge lower with pullbacks, from lower lowers, emerging as sell-off opportunities from where short sellers have continued to push the stock lower. While the recent bounce back provides a sense of reprieve for investors, there is still a wave of concern as to whether the stock has turned bullish after turning bearish one year ago.
In the short term, the stock appears to be trading in an uptrend. However, the lack of major developments apart from the Georgia Public Broadcasting deal continues to raise serious doubts of further movements in the upside. For the stock to emerge as a pullback, play in the short term it needs to rise and stabilize above the $0.06 mark, seen as a critical resistance level.
Above the $0.06 mark, the stock should be on its way to the $0.10 mark, seen as the next resistance level. On the downside, the stock faces immediate support at the $0.02 mark. A breach of the key support level could attract short sellers who will continue pushing the stock lower on the continuation of the long-term bear trend.
About ProBility Media Corporation
ProBility Media Corporation casts itself as a digital media content provider for classroom offerings. Operating in Georgia, the company strives to provide specific content and streaming services spanning all subject areas for teachers and students. The company’s primary goal is to remain at the forefront of spearheading digital learning by providing necessary digital content.
Why Did ProBility Media Corporation Explode
Investors pushed the stock up the charts after the recent steep bear run, on the digital media company announcing a breakthrough on a new Augmented Reality App. The company through its wholly owned subsidiary, Disco Learning Media, has entered into an agreement with Georgia Public Broadcasting.
Under the terms of the agreement, the company is tasked with the responsibility of coming up with a series of educational augmented reality experiences around forestry. Disco Learning Media is to provide instructional design expertise while Immersive technology partner VISYON provides support for AR product development.
The mobile application under development seeks it makes it easy for students to gain knowledge and insight in matters pertaining to forestry through detailed models of plant and animal cells. The project remains the talk of the town in part because it seeks to improve the effectiveness of digital tools provided to teachers and students.
“We are thrilled to be working with GPB once again, and on this exciting endeavor. GPB is one of the nation’s leaders in providing high quality, educational content and this project will significantly expand GPB’s presence in the digital learning landscape by bringing innovative augmented reality content to more classrooms,” said Juan Garcia, President of Disco.
Investors pushing ProBility Media Corporation up the charts underlines the fact that some of them believe there is some value to be generated as the company moves to provide the tools.
The GBP deal comes three months after Disco Learning Media renewed its contract with Minnesota Historical Society. Under the terms of the new deal, the company is to continue exploring the best practices in online, digital education for modern learners. The company is also tasked with the responsibility of identifying the best tools and techniques for enhancing e-learning.
Double-Digit Revenue Growth
The deals that the company has signed so far have borne fruits in terms of revenue growth. For starters, the company reported a 118% increase in revenue in Q2 that came in at $4 million. Revenue for the six months ended April 30, 2018, was also up by 165% to $7.8 million.
A recent spike in share price is an indication that investors are starting to take note of the fact that the company’s growth plans are bearing fruits when it comes to revenue growth. While the company has been funding its accelerated growth through the issuance of debt vehicles, the big question is whether the model is sustainable.
In addition, a wider than expected net loss of (-$4.4) million compared to a net loss of (-$505, 704) reported last year same quarter, raises serious concerns. While the recent spike is a good thing, it remains it to be seen if the stock will continue powering high, just on recent developments.
That said it might be wise to maintain a cautious approach while waiting for further confirmations to ascertain whether the stock has turned bullish after a steep bear run.
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Disclosure: We have no position in PBYA and have not been compensated for this article.