Cinedigm (NASDAQ: CIDM) stock surged 38% at the close of the market on Thursday. The reason investors were so excited is that the company announced that it has reduced its debt balance to zero from almost $49 Million at the end of the last fiscal year. Cinedigm said that its strong debt-free balance sheet will support its rapidly growing streaming business and accretive acquisition. 

In addition, the company also reported its preliminary fourth quarter fiscal 2021 results on the prior day. The company had an increase of 197% YoY in its streaming channel revenues for the quarter, and Ad-supported streaming channel revenues increased 331% over the prior year quarter.

Cinedigm also said that it will continue to execute its streaming asset roll-up acquisition strategy. The company believes that it will help drive revenues from its digital streaming businesses at an even more accelerated growth rate.

The company's total consolidated revenue was $8.3 million in the quarter, which is a bit less compared with its current market value, but the company has the potential to drive substantial growth in its revenue in the future. Therefore, this is a penny stock that investors should consider watching closely.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.