Eros STX Global (ESGC) Stock Slips To a New 52-Week Low: a Good Buy?

Last year, the Indian entertainment and streaming company Eros merged with the American television and film producer STX Entertainment to form Eros STX Global (NYSE: ESGC).

Over the past month, the stock has been in the middle of a downturn and tanked by as low as 45%. While that may be the case, experts also believe that the small-cap stock could also prove to be a long-term winner if investors are willing to be patient with pitfalls in the short term.

The company is quite small and commands a market cap of only $478 million at this point. Additionally, it is primarily dependent on fresh share issuance and debt in order to fund its operations. Operating a streaming service that produces original content is not the easiest business in the world. Hence, it might be argued that the Eros STX Global stock is a high risk but potentially high reward play at this point.

Richard McEntire

Finance and Entertainment ReporterRichard is a bottle of wine - the older the sweeter. He has already found the sweetest hobby in writing entertainment and finance news for Own Snap. Readers get the updated posts regularly from him searching for real-time news.

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