MIMV is strongest stock from pre mkt newsletter mentions at www.greenbackers.com
In earlier articles at Examiner we discussed runs back to .50 or so in last qtr.
Expanding some more on them as more then one source thinking they are-increasingly a takeover target.
Reasons are actually growing quite convincing.
0.22 0.07(46.67%) 11:43AM EDT
Day’s Range: 0.16 – 0.22
52wk Range: 0.04 – 0.75
Avg Vol (3m): 22,648
Market Cap: 9.54M
Top 5 Takeover Targets In The Mobile Internet Space
July 10, 2012 | 5 commentsby: AppHead | includes: AUGT.OB, GLUU, MIMV.OB, MITK, VRNG
The mobile space continues to heat up every day. Mobile apps, mobile transactions, mobile advertising and mobile devices are playing a key role in determining the value of the next trillion dollar company. Sometimes in order for a company to rapidly adapt and compete, acquisitions much take place and at a rapid pace. Google made 50 acquisitions in 2011 and continues to do so in 2012. Facebook (FB) recently made plans for “massive acquisitions” this year and most in mobile. Facebook has already purchased a single mobile app company for $1 billion and plans many more. The most valuable company out there, Apple (AAPL), has recently acquired a mobile app search company. Below are 5 companies that are well positioned as takeover targets in the area of the overall mobile Internet.
Vringo is a company that provides mobile apps and a video ringtone product platform that allows users to create, download, and share mobile entertainment content in the form of video ringtones for mobile phones; and Facetones, which allows users to create social picture ringtone and ringback content in the form of animated slideshows sourced from friends’ social networks. In relation to a patent dispute with Google (GOOG), Vringo has received some attention based on receiving a positive Markman ruling. At that time the stock was at $3.70 per share and went to $5.45 a few days later. This was a 45% gain in 5 days driven by the favorable court ruling.
These Markman rulings determine what language the jury will hear when determining whether or not the patent has been infringed. They have a significant impact on the potential outcome, in this case of Vringo vs. Google. A company like Google, which is used to making defensive acquisitions, will no doubt look at a company like Vringo as a potential takeover target if uncertainty continues related to this potentially significant patent ruling. A price target for a Vringo takeover could easily reach $7.00 per share.
Mobile apps are making or breaking the successful shipments of smartphones and mobile devices. Mimvi knows this. Mimvi, also known for being “the Google of mobile search platforms” that helps people find and discover mobile apps, is succeeding in becoming the leading platform for providing search and recommendation services to the consumer and enterprise on the mobile front. It’s essential to note that Mimvi competitors, Chomp and Quixey and now Facebook, have drawn quite a bit of attention. Chomp was recently taken over by Apple while Quixey recently raised a total of $24.2 million, part of which was raised by Google’s Eric Schmidt. This places a valuation close to $100 million on Quixey, which in turn translate to a stock price of over $2 per share on Mimvi.
Meanwhile, Facebook, like Apple, is looking to take over companies to help its mobile app initiatives. Mimvi has also attracted top executives from Google to smartly position themselves as an attractive target. The mobile search space is white hot and shows no signs of slowing. Just as with web based search engines, the revenue opportunity for mobile based search engines is tremendous. This is exactly why Mimvi remains as a prime takeover target as they lead the mobile search space in terms patentable algorithms, of number of search results and relevance. A takeover price target for Mimvi could reasonably be in the $5.00 per share area.
Mitek Systems (MITK)
Mikek Sytems has strategically positioned itself to be part of the mobile payments and transactions revolution. Mitek Systems offers the sale, and service of software solutions related to mobile imaging solutions and intelligent character recognition software. It provides Mobile Deposit, a software application that allows users to remotely deposit a check using their smartphone cameras; Mobile Photo Bill Pay, a mobile bill paying application that allows users to pay their bills; Mobile ACH Enrollment, an application that enables consumers to enroll their checking accounts as funding sources for mobile payments; and MitekONE, an enterprise platform that addresses various deposit types.
Many are saying that the next trillion dollar company will be one that is front and center when it comes to mobile transactions. Interestingly, Mitek Systems has suffered a decrease in its stock price. Combined with being in the right place at the right time, Mitek Systems, can be an attractive takeover target at its current levels. A target price of $8.00 per share could be in order for a company like Mitek Systems.
Augme Technologies (AUGT.OB)
Augme Technologies has been described as a “Patent Gold Mine With Buyout Potential” by others in the past. Augme focuses its technology on providing strategic services and mobile marketing technology to consumer and healthcare brands. The company offers mobile marketing, and advertising technology and services to brands, advertising agencies, media companies, and enterprise customers. It provides AD LIFE, an interactive software-as-a-service platform for marketers, brands, and agencies to plan, create, test, deploy, and track mobile marketing programs across various mobile channels, including SMS, 2D/QR codes, mobile Web sites, advertising networks, social media, and branded applications. The company’s patented device-detection and proprietary mobile content adaptation software provides a solution to the mobile marketing industry problem of disparate operating systems, device types, and on-screen mobile content rendering.
The revenue opportunity for a company like this is clear. Largest competitors of Augme have to make that age old decision to either buy or build. The competitive landscape for mobile advertising is changing rapidly. Large over-sized competitors in this area such as Microsoft, Google, Apple, Samsung or Facebook may not have enough time to innovate and build in-house mobile advertising solutions. This is the reason Augme Technologies can be viewed as a potential takeover target. Augme is currently trading at about $1.50 per share. A target price of $4.00 per share would not be out of the ballpark for them, considering the value of the this space.
Glu Mobile (GLUU)
Glu Mobile is an intriguing company, as it had a pure focus on mobile gaming apps long before companies like Zynga (ZNGA) ever did. Glu’s games are gaining traction ever quarter and their games stand to have the same opportunity for consumer adoption as some of the world’s most popular titles like Angry Birds or Draw Something. Glu also has the potential of ousting old traditional gaming companies like EA (EA) or Take Two (TTWO). This introduces a unique and powerful value that Glu Mobile retains that could be very attractive to those companies.
Of course, at the same time, Glu remains a threat to these companies which could trigger defensive acquisitions. Mobile gaming apps are one of the most popular segments of mobile content that consumers are searching for and downloading. Glu is certainly executing in one of the most exciting spaces since the dawn of the Internet. It can be expected that Glu Mobile will be an attractive takeover target as the mobile gaming area is one of the main reasons many consumers purchase mobile devices and tablets.
It’s clear to see the attraction that Glu Mobile holds with companies that are battling it out for consumer adoption of their devices. Some are now considering Glu Mobile to be “The Biggest Acquisition Target In The Gaming Market” Glu Mobile is a fair target for a takeover as many are seeing and while it’s trading just over $5.00 per share, a takeover price target in the range of $8-9.00 per share seems reasonable.
Diversification is important when positioning investment in takeover targets. It can be anticipated that more takeover targets will arise in the future as the mobile Internet begins to take over the lives of most every consumer on Earth.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Notable recent article.
Extending Coverage of Mimvi, Inc. (MIMV) with Strong Buy $1.25 Target = 5-6X Upside from the current $.25-.30 price-per-share
By Tobin Smith | June 27, 2012, 11:56am GMT Last Week
NBT Equities Research has extended coverage on Mimvi, Inc., a proprietary mobile app search and recommendation engine technology company. Our $1.25 2013 target represents a blended valuation of the recent $50,000,000 acquisition price of competitive rival Chomp.com by Apple and post-round valuation of @$70,000,000 for the mobile app search engine. Quixey.com.
The Investment Thesis: Mimvi.com is the LAST Man Standing in Advanced Mobile Search & Recommendation Technology
As we and others have pointed out over the last 24 months:
#1 the move toward the mobile Internet/mobile applications and the mobile app economy and the move AWAY from the static websites is the most powerful and disruptive force in technology.
#2 Apps have become one of the strongest weapons Apple and Google have for marketing their mobile technologies to consumers. 46 million apps are downloaded from the Apple App store every day…with the Google App store closing the gap every day and now up to 30 million a day.
These two secular disruptions means that App Search & Recommendation has become as important to the 6 Super Giants of Consumer Technology—Apple, Google, Microsoft, Facebook, Samsung & Amazon—as browsers, email and search was during the age of the web page.
Missing the switch to mobile apps has super-charged the demise of mobile platforms like Research In Motion, Nokia and hurt Facebook, Microsoft, and PC players Dell and HP with the rise of Apples iPad as a mobile alternatives to laptop PCs. Indeed Mark Zuckerberg is quoted as saying his greatest fear is Facebook becoming just another app on other mobile platforms.
In short, Mobile App & Recommendation is Now TOO Big to Fail for The Internet Super Giants.
ALL of this strategic opportunity and carnage has led the majors to BUY their way to results—too much time is required to build from scratch. Apple bought mobile app search & recommendation engine Chomp for $50 million and immediately shut down the service to apps outside its app store. Google’s Eric Schmidt just invested $20 million in Quixey (an @$70 million valuation) to secure its mobile app search and recommendation for the Google Economy.
The next logical acquisition?
Mimvi (MIMV)—it’s now not a matter of IF but WHEN.
Mimvi is a search and discovery or recommendation engine for all mobile apps. It has been described in the tech press as “Google for Mobile Apps.” In other words, Mimvi’s proprietary technology is an agnostic mobile apps search and recommendation platform.
Our guess is they do NOT remain agnostic for long—there ARE no agnostics in a world war, which is what we are witnessing on a daily basis from the Web Super Giants. Of the remaining players in mobile app search, Appoliscious is closely associated with Yahoo and Appsfire is mostly a marketing platform with no technological edge.
This leaves Mimvi—with its proprietary contextual app search and recommendation technology, as the NEXT mobile app player to be brought up to the “major leagues” via acquisition. Most likely buyers are Microsoft and Samsung with Sony, Facebook and Amazon in the hunt.
Mimvi’s revenue opportunities are similar to Google: auctioned search words like AdWords and sponsored search ads. They also are working on a contextual search system like Google’s AdSense called MimviLink where they match mobile apps to content. Perhaps NOT coincidently, Google’s financial controller recently joined Mimvi and likely to focus on revenue and partnerships.
Here is pretty good summary of the space “4 Companies Poised to Control the New Mobile App Economy.
The Windows Phone Marketplace reportedly hits 100,000 applications with 313 new apps added daily. Apple and Google’s app stores have millions of apps. ALL media products (TV shows, Movies, Videos, Books, Magazines) are now (or will be) mobile apps. 50% of all mobile phones will be smart phones by 2015—around the world. The iPad will sell 200 million units next year…and close to a billion iPhones and iPads will be in the hands of consumers by 2020.
Mobile App discovery and recommendation is still mostly pathetic—with the support of a major player Mimvi has a real shot at becoming a major player.
At .30 a share, it’s a steal as we shareholders wait for the inevitable.
Other recent bullish news:
Game-Changers: 5 Mobile App Search Leaders To Watchat Seeking Alpha(Wed, Jun 27)
4 Companies Poised To Control The New Mobile App Economyat Seeking Alpha(Thu, May 24)
Mimvi Inc. signs a non-binding letter of intent to acquire social innovator Smash NetworksPR Newswire(Wed, May 23)
Technically with a history of jumps back above .40 in the last qtr, it would seem .20 range constitutes a fair amount of risk taken out….Notice how it held .15 or so back in early May also representing potentially a double intermediate term bounce…..