So, where did the additional 3 for Seven Arts Pictures Plc (Nasdaq:SAPX) come from? Well, most people out there might point out in the direction of the latest company announcement, and might be right. They, however, might be terribly wrong, as well. 
Indeed, good news came out yesterday. Seven Arts has just signed an agreement with prodigy pictures to finance $60 million budget for Neuromancer – a motion pictures based on science fiction novel by William Gibson. Could this be the catalyst for 2,8 million shares exchanging during the session? A session which closed at $4.49 per share, which is a 235% increase for the day. It is possible. It is, however, highly probable that another catalyst did do well. One, paid for by a third party.
Yes, there has been some promotional activity for SAPX in the last few days. Two newsletters on Sunday, five yesterday. Paid by Legacy Media Group with $40k. Several questions remain, though, one being – what comes next, given that there is no third party to pay for promotional activities during the week?
Another important point to address is budget, budget and financial figures. The above agreement is for co-financing. Both the press release and the promotions, however, fail to mention data from the SEC filings of the company. The 6K, for example, covering the last two quarters of 2010. Among other figures, it includes the following: [BANNER]
A question that might emerge – with $11k in cash, how would SAPX co-finance? It is also important to mention that out of these 29 million in assets, 23 are Film Costs.
Having this in mind, it is still uncertainty that comes along with investing in Seven Arts Pictures. There are, no doubt, reasons for optimism, one being the latest press release, another – the excellent stock performance. Whether it would be a lasting performance, however, is a tough question to answer.
