Acorn International Up 26.55% Following Increase in Short Interest

Destiny A. Lopez  |

Difficult periods can strike any business; however, the sign of a lasting organization is one that works and pulls through those difficult times. Acorn International (ATV), an integrated multi-platform marketing company based in Shanghai, is one company that is working through a challenging period by making key changes that have begun to reap major benefits.

Acorn International’s divisions include a direct-sales platforms and a nationwide distribution network.

According to its official website, the company develops, promotes and sells proprietary-branded and third-party products. Among others, product categories offered include:

  • Collectibles
  • Household
  • Cosmetic
  • Mobile phone

Today, the company is up 26.55% today after, according to Franklin Independent, Acorn International “registered an increase of 4.71% in short interest.”

The company also saw a sharp increase back in January following the announcement that the company would, according to Seeking Alpha, “buy back about $2 million worth of ADR’s over the next year using existing cash balances.”

Recently, the company announced its preliminary Q4 and 2015 year end results. Highlights from these reports include:

  • Robert W. Roche, Original co-founder, Chairman and majority shareholder, returned as CEO in order to to restructure the company’s operations.
  • Second half of 2015 gross margin improved by 22%.
  • Second half of 2015 operating and administrative expenses decreased by 10%

While there are signs of improvement, the company’s work is not yet done. The preliminary reports also revealed that 2015 net revenues totaled $46.8 million, a decrease from 2014’s $94.8 million. However, with the return of Roche, the company is beginning to return to its position as a contender in the e-commerce and marketing sector through reduced operating expenses and stabilized net revenues. The investment community looks forward to future developments from the company.

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