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Today’s Stock Pick: Mimvi, Microsoft's Newest Partner
Posted by: Karen Rogers (IP Logged)
Date: October 1, 2012 12:08PM
When the partnership between Microsoft (MSFT) and Mimvi (MIMV) was announced on Sept. 25, Mimvi’s stock price jumped from the morning’s open of $0.25 to a high of $0.58. Volume likewise spiked from a three-month average of 338,652 shares to 5.282 million shares traded that day.
It’s wonderful that Apple (AAPL) and Google (GOOG) offer their users over 600,000 apps and over 500,000 apps, respectively. But wading through the avalanche of apps to find just the right one is an exercise in frustration for smart device users. Seeking to avoid the problem plaguing its rivals, Microsoft has tapped Mimvi to develop mobile app search and recommendation programs specifically for Windows Azure and Windows Mobile 8 platforms.
Mimvi is one of those small fly-under-the-radar companies that needed a boost from a major company like Microsoft to get investor attention. In return for its services, Mimvi gets access to Microsoft’s software, engineers and cash, cash, cash. Mimvi’s market cap stands at $23.95 million, and revenue came in at $19,250. The company reports cash of $10,520, debt of $121,720 and operating cash at -$484,740.
Mimvi has quietly purchased companies designed to enhance their mobile search business over the past few years. Just this past August they acquired Lone Wolf, a privately held social media platform with over 79 million members, for an all-stock deal of 3.8 million shares of Mimvi’s common stock. The two companies are currently developing Mimvi Echo, a new Mobile App Discovery platform that’s designed to make it easier for developers to market their apps and help consumers find and purchase those apps. Mimvi Echo is set for release this month, which should add an additional boost to Mimvi’s sales and revenue figures.
Mimvi continues to develop programs targeting different markets. In March 2011, they launched Mimvi Mobile China to gain a new audience with Chinese smart device users. In 2010, Mimvi launched a new platform aimed at helping gamers locate new and existing mobile games. Mimvi’s also developed app search and recommendation programs used on Apple and Google smart devices.
Microsoft has a habit of investing in and/or acquiring companies that add value to its many platforms as the company did with the more than $100 million dollar purchase of Powerset in 2008. Whether Mimvi moves from partner to acquisition in the Microsoft universe remains to be seen, but the possibility may be intriguing enough to convince investors that Mimvi is worth a buy.
Stocks Discussed: MIMV, MSFT, AAPL, GOOG,