Diversification is a rare attribute in the small-cap space, and shouldn’t be undervalued by investors. While most small-cap investors fixate on stocks that claim to represent a singular pursuit with game-changing potential, most such opportunities fail to live up to expectations and run a high risk of ruin.
At the same time, some companies able to offer strong execution in multiple high-growth pursuits simultaneously present far better overall odds of success.
Hollywall Entertainment Inc (OTCMKTS:HWAL) is a great example of this strategy.
The company has active commercial interests in multiple fast-growing industries and ties to major themes including 5g infrastructure, internet-of-things, proprietary high-value entertainment assets, and potentially NFTs.
In a recent company communication, HWAL was described as a company with a portfolio of operating subsidiaries spanning various industries, including infrastructure development, 5G and telecommunications, broadcasting, education, media and entertainment.
Through Hollywall Development Company, the company builds, restores and creates “smart” cities/communities and fiber networks throughout the U.S. Through its HW Vision subsidiary, Hollywall intends to provide state-of-the-art services in the continuously growing digital marketplace, with offerings expected to be available for purchase later this year.
Hollywall Entertainment also operates the Hollywall Entertainment Digital Music Network, which has been constructed to sell single song downloads, artist album downloads and ringtones, as well as licensing music for commercial use.
One of the company’s areas of focus leverages its telecom infrastructure development and entertainment rights segments in concert to capitalize on, and provide value within, the emerging 5g communications landscape.
Serving Underserved Areas
One of the most exciting facets of the growth of a true 5g network infrastructure around the world is the powerful value that stands to be created and delivered to traditionally underserved areas. Growth can happen through getting a bigger slice of the pie or by expanding the pie.
HWAL appears to be engaged in both.
By commercializing its extensive music library and simultaneously advancing its plans to develop fiber networks throughout the U.S., Hollywall carries the potential to execute at the heart of one of the most important dynamics likely to define the media landscape over the coming decade – delivering content to consumers unable to participate in the media world available to major markets today.
That strategy could open up a disruptive opportunity for HWAL investors as its footprint is established and activated.
To that end, HWAL continues to expand its business enterprise to numerous city and state municipalities and government agencies throughout the country, including Washington DC, New York, Virginia, Massachusetts, Pennsylvania, Texas, and California, as well as within the Blackbelt regions of Alabama, Louisiana, Mississippi, Georgia and North Carolina.
Through this diverse thematic and geographic footprint, the company is leading the way in developing and implementing solutions to work toward closing the broadband digital divide that has been forced upon the most vulnerable in underserved urban and rural communities nationwide.
5G and IoT
HWDC is a key segment within Hollywall Entertainment Inc (OTCMKTS:HWAL).
HWDC’s Smart Cities division aims to provide various services and solutions, such as fiber-optic networking, data centers, smart kiosks, charging stations, security and camera systems, smart traffic monitoring, emergency alert systems, gunshot detection, backup power solutions, smart connected buildings, connected and autonomous vehicles, intelligent transportation systems, advertising and more.
In other words, it’s a large-scale IoT project with traction that leverages the 5G communications infrastructure transition. That’s big news considering that the global 5G market was estimated at $41.48 billion for 2020 and is expected to reach an impressive $414.5 billion by 2027, expanding at a CAGR of 43.9%.
Building out this infrastructure to complement its native content assets has the potential to score on both network and consumer levels.
HWAL is focused on maximizing its ownership and other exclusive and non-exclusive rights, as well as further content acquisition, of music, film, television, home video, and computer game software libraries.
The company is developing a one-of-a-kind, state of the art, digital distribution and verification system- designed to maximize customer delivery, quality control, and revenues for artists, writers, content developers, copyright owners and shareholders.
The company holds exclusive and non-exclusive rights to market, manufacture and distribute over 17,500 Music Recording Masters. Most of the recorded master rights held by Hollywall Entertainment’s consist of all the “Proprietary Rights” including but not limited to the tangible and intangible rights, artist images, likenesses, marks, trademarks, names, trade names, symbols, service marks, logos, copyrights and registrations thereof, designs and drawings, and licenses in respect of the Masters.
The master recordings contain performances by such legends as Ray Charles, The Jackson 5, Frank Sinatra, Tony Bennett, George Gershwin, Marvin Gaye and Duke Ellington. They include songs that have never been or may be released in addition to songs that have been released by other record companies which hold similar licensing rights to market the songs.
Hollywall Entertainment’s current music business is the sale of the music recordings in the form of packaged CD compilation sales, digital downloads and ringtones and licensing for use in motion pictures, television and commercial advertising.
Paired with its ability to provide a delivery infrastructure to underserved areas, HWAL has a foothold on a unique value proposition for both its consumers and shareholders.