You On Demand Holdings, Inc. (OTC:CBBD) Makes It Right
15 Jun 2011

You On Demand Holdings, Inc. makes things in the right way. Today, the company offering, as they say, “the first national Pay-Per-View and Video On Demand platform in China”, climbed another big, important step towards the implementation of its goals. The near future will show whether this will boost the stock (OTC:CBBD) of the corporation too.

A few hours ago, as published by Yahoo, Warner Bros. Entertainment informed about signing a distribution agreement with You On Demand Media, the company’s joint venture in China. This will allow millions of Chinese people to watch high quality Hollywood films – they will be offered through the You On Demand platform.

Mr McMahon, the Chairman and CEO of the corporation, defined the deal as “a historic milestone” for You On Demand. Rightly so! Besides, this is not the only positive event announced this month. About a week ago, the company closed a private placement, raising almost $11M. Will these developments cause a jump of the stock too?

Still not clear; we shall have to wait a little to see how the shares will perform on the American OTC market. Yesterday, CBBD finished at $0.11, staying close to its 52-week high of $0.13. The stock has been going right over the last several months. Back in April, it was traded in the range between $0.04 and $0.06. Since then, the advance in the price has been remarkable.

However, the latest financial statements filed on SEC reveal not a very lovely picture. You On Demand reported a significant operational loss of $8.92M for the last year. The losses continued in 2011. For the first three months of 2011, the negative income was $2.23M.

Nevertheless, the prospects for You On Demand on the Chinese market look good, especially after the mentioned deal with Warner Bros. Entertainment.

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