|New Threads Only:|
|New Threads & Replies:|
Forum List » Value Ideas and Strategies|
Share and discuss value investing ideas and investing strategies.
Today’s Stock Pick: Mimvi, Microsoft's Newest Partner
Posted by: pamatlarge (IP Logged)
Date: October 1, 2012 01:08PM
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.
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.