Hannover House Inc (OTCMKTS:HHSE) has been steadily advancing nearly doubling in value since December. The stock advanced to $0.01 for the first time since mid-2015. Volume has been expanding with daily volume over the last few days far outstripping its daily average volume. Close to 0.9 million shares traded hands on Thursday.

Tom Sims directing sales into national accounts, the UMG video group rapidly grew to over $180 million per year and into one of UMG’s most profitable divisions. Now Mr. Sim’s is at it again acting as VP of Sales at Hannover House Inc (OTCMKTS:HHSE). He is managing the newly launched Medallion Releasing, Inc. sales venture. Six indie studios, including Hannover House, have combined to elevate the new Medallion sales venture into one of the most prolific media distributors in America, and the title release count has already surpassed several major studios.

The company has gone from 6 new release titles in each year for the last two years to over 90 DVD & Blu-ray releases in 2015. The core business of packaged goods distribution has always been profitable for Hannover House. This new business model takes what has been profitable and what has been working, and escalates it by more than ten-fold. The impact to our revenues has already been profound. In Q3 2015, the company reported a 542% increase in revenues from $0.4 million in Q3’14 to $2.8 million in Q3’15. Net income soared over 150% from $0.14 million to $0.36 million.

The overall USA Market for the sales of physical DVD and Blu-ray units has held steady for the past two years at about $8 billion in revenues. The growth of digital and streaming media delivery platforms is expected to slowly erode the packaged goods industry, but will have little or no impact on distributors such as Hannover House and Medallion that control all media rights.

HHSE is headquartered in N.W. Arkansas, in close proximity to the world’s largest video retailer, Walmart Stores, Inc. Other key customers for HHSE and Medallion video products include Best Buy, Target, Netflix, Redbox, Barnes & Noble, Family Video, dozens of Internet sites and thousands of independent video retailers, schools and libraries. Theatrical customers for Hannover House include direct distribution relationships with (listed alphabetically) AMC Theatres, Bow Tie Cinemas, Carmike Theatres, Cinemark-Century, Harkins, Laemmle, Malco, Marcus, National Amusements, Regal Entertainment Group, Santikos and Wehrenberg Theatres.

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Hannover House Inc (OTCMKTS:HHSE)

HHSE is currently trading at a $6 million market valuation. The company posted a huge Q3’15 quarter and should be announcing its Q4’15 and Full Year 2015 results soon. HHSE has an extremely profitable business model and a seasoned management team that has grown other divisions to tens of millions of dollars. This exciting story may be just getting started.

We will be updating on HHSE when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with HHSE.

Disclosure: we hold no position in HHSE either long or short at the publication of this article and we have not been compensated for this article.

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