SOURCE: Goldman Small Cap Research, Inc.

May 20, 2013 09:00 ET

Goldman Small Cap Research Issues Research Update on FAB Universal Corporation

BALTIMORE, MD--(Marketwired - May 20, 2013) -  Goldman Small Cap Research, a stock market research firm focused on the small cap and micro cap sectors, has issued a research update on FAB Universal Corporation (NYSE MKT: FU), a global leader in digital media entertainment sales and distribution.

U.S.-based FAB Universal has undergone a transformation into one of the most profitable and diverse players in the digital media distribution market. FAB owns and operates high profile digital entertainment media wholesale, retail, and franchised kiosk network sales and distribution businesses in China and the largest global network of independent and professional digital media publishers using podcasting.

In the Goldman Opportunity Research report on the Company, analyst Rob Goldman outlines his investment thesis.

"The Company's 1Q13 results were impressive, in our view. Although net income was a little light, cash generation of $10M was double that of our $5M expectation, which is a remarkable figure based on $22.6M in revenue for the period. Clearly, the financial performance is driven by its success in its China-based business, which should result in double-digit percentage net income margins this year. Moreover, in addition to the highly profitable business abroad, we believe that there is hidden value in the FAB/Libsyn podcast subscription unit which, when monetized, could be afforded a substantial valuation in and of itself. Thus, we project that earnings and valuation multiple expansion could occur as the Company continues to execute its business model."

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About Goldman Small Cap Research: Led by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces small cap and micro cap stock research reports, daily stock market blogs, and popular investment newsletters. For more information, visit

A Goldman Small Cap Research report is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed. Please read the report's full disclosures and analyst background on our website before investing. Neither Goldman Small Cap Research nor its parent is a registered investment adviser or broker-dealer with FINRA or any other agency. To download our research, view our disclosures, or for more information, visit

About FAB Universal Corporation (NYSE MKT: FU): FAB Universal Corp. is a global leader in digital media entertainment sales and distribution. FAB delivers media to its customers worldwide through Intelligent Kiosks, Retail Stores, and Retail Licensees and online through Apple iTunes and Google Android through three business units: Digital Media Services, Retail Media Sales and Wholesale Media Distribution. FAB distributes billions of movie, music, podcast, TV show and other digital files to consumers in 240 countries. Sales of digital media are generated through kiosks networks, subscription sales for mobile devices, smartphone Apps and Netflix-like subscription models. In 2012, FAB distributed billions of downloads of copyrighted music, video games, ringtones, ebooks, movies and podcasts to over 50 million people worldwide through iPods, iPhones, iPads, iTunes, BlackBerrys, Windows Phones, Androids and many other devices and destinations. 

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