1. What Happened?

Convergence Partners, a major shareholder of Blitzway Entertainment, reduced its stake from 5.88% to 3.33%. This could simply be for investment recovery, but considering the company’s unstable fundamentals, it could be interpreted as a negative signal.

2. Why Did This Happen?

While the official reason for the sale hasn’t been disclosed, Blitzway’s recent poor performance may have played a role. The sluggish figure business, continuous operating losses, and high debt ratio are all factors fueling investor anxiety.

3. So, What Will Happen to Blitzway’s Stock Price?

Short-Term Impact

  • A major shareholder selling their stake typically puts downward pressure on the stock price.
  • Weakened investor sentiment could lead to a short-term price decline.
  • Given the stock has already undergone significant correction, a sharp drop is less likely than sideways movement or a gradual decline.

Long-Term Impact

  • The divestment itself doesn’t directly impact the company’s fundamentals.
  • However, the actions of other major shareholders and market reactions could influence the long-term stock price trend.
  • The company’s ability to improve its fundamentals will ultimately determine the long-term stock price direction.

4. What Should Investors Do?

  • Monitor Fundamental Improvement Efforts: Closely observe the company’s performance improvements, including a turnaround in the figure business, reduction of operating losses, and securing financial soundness.
  • Track Major Shareholder Trends: Continuously monitor the remaining stakeholdings and the possibility of further stake changes.
  • Identify Growth Drivers: The stable profitability of the management business and the success of the drama production business are crucial investment points.