The Seven Arts Entertainment (OTCMKTS:SAPX) stock was in the middle of a strong downward trend on Wednesday and ended up recording declines of as much as 42%. In this situation, it might be a good idea for investors to figure out if the sharp decline in the stock is an opportunity to get into the stock or not.
Yesterday, the company announced that its production capabilities were going to be boosted considerably after it completed the acquisition of Muse Media LLC, a film and music studio that is based out of Atlanta. Muse Media is involved in a range of productions starting from documentary series and musical videos to broadcast commercials.
In this regard, it is important for any potential investor to keep in mind that the acquisition of Muse Media is expected to add a revenue model of a semi-recurring nature. In addition to that, this acquisition is also going to add to the cash flow whenever there are any important feature production runs. At the same time, it will help in boosting the capabilities of Seven Arts Entertainment in a big way. The stock may have declined sharply yesterday, but it might still be a good idea to keep an eye on it.
Market Reaction:
On Wednesday, SAPX stock slumped 42.21% at $0.0045 with more than 85.24 million shares, compared to its average volume of 37.52 million shares. The stock had moved within a range of $0.0038 – 0.0094 after opening the trade at $0.0078. Over the past 52-week, the stock has been trading within a range of $0.0000 – 0.0122.
 Stock Slumps On High Volume: But Why?){kind=link}