D-BOX Technologies (DBO) was up 9% after getting a foot in the door at Marcus, America’s 4th largest circuit with 975 theatres across 77 locations.

While we assume the initial six screens represent roughly 0.5% of top line, the strong bid reflects expectations for future penetration - which would show up in entertainment, royalty revenue, and DBO’s unit economics…

… as the company grows beyond its fixed overhead and adds recurring high margin royalty streams with each installation.

The 9% move implies an expansion into another ~100 screens, but investors are likely expecting more than that…

… with DBO’s multiple testing new highs and the stock up nearly 300% over the past year.

About Bullpen: Bullpen Finance Inc. publishes content on Canadian markets and provides paid research coverage of select Canadian issuers. Bullpen is paid in cash by covered issuers, does not accept stock or options, does not hold positions in covered securities, and does not conduct investment banking business. Bullpen and LodeRock Advisors Inc. are affiliated; LodeRock provides investor relations services to issuers, some of whom are covered by Bullpen Research. When a post discusses a covered issuer, a specific disclosure appears at the top of the post. This post is published for general information purposes. It is not personalized investment advice and is not tailored to any individual reader’s circumstances. Bullpen is not a registered investment adviser or dealer. For full disclosures, including analyst certification, jurisdictional statements, and conflict of interest policies, please see our Legal & Disclosures section on our website.

You might be interested in…