Colorchip New at 5% LC
Colorchip New Media has been in the news almost entire of last week. This small cap company operating in the consumer discretionary sector, with a market cap of Rs.250 crore, had announced a stock split in the ratio of 1:5; this means the face value of the stock will now be subdivided from Rs.10/share to Rs.2/share. This led to the stock hit a new 52-week high on Friday at Rs.160.05.
But today, profit booking came in big time and the stock opened itself at its 5% LC of the day at Rs.152.05. On Saturday, the company announced that its wholly owned subsidiary, Vega Music, a digital media player, is in advanced stage of negotiation with a leading media content aggregator in the US to acquire over 1,000 titles of content in English Languages as a first step towards catering to North American and other Western Markets. The content consists of biographies of several world celebrities such as Barrack Obama, Bill Clinton, Bill Gates, Princes Diana, Franklin Roosevelt, Angelina Jolie, Britney Spears etc., just to name a few. The list encompasses all notable names in various fields.
It is also negotiating with other players for acquiring different forms of entertainment and education content. The currently owned content in English Language is restricted to about 300 episodes of animation some of which was co-produced by it caters mostly to the kids segment.