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John Burbank Buys 14% Stake in Mobile App Maker Sungy
Posted by: Holly LaFon (IP Logged)
Date: December 3, 2013 06:02PM

John Burbank reported owning a 6.075 million share stake in Sungy Mobile (GOMO) on Nov. 22, the day the company made its initial public offering (IPO) on Nasdaq. The holding represents 14.4% of the company.

The China-based company provides mobile Internet products, services, applications and mobile platform development globally. Sungy owns three business: the global business GO series apps, and two domestic businesses called 3G Portal and 3G Book Market. Its GO series apps partner with companies like Google (GOOG), Baidu (BIDU) and Amazon (AMZN) and have over 210 million users in over 200 countries.

One of the company’s products, the GO Launcher EX, is the most popular launcher app on Google Play with more than 200 million users. The app lets users customize their home screen with its catalogue of themes. Another app, the Next Launcher, is the most popular 3D home screen customizer for Android.

In its IPO last week Sungy sold 7 million American depositary shares (ADSs) each worth six class A ordinary shares, at a price of $11.22 per ADS. The total offering value was $78.54 million.

Since the IPO the company’s stock price has gained 9.7% to close at $14.65 per share on Tuesday.

Sungy brought in $14.89 million in revenue in the third quarter, an increase over $8.25 million a year earlier. It also reported a profit of $4.52 million, up from $900,000 the previous year. Its return on equity was 46.8% and ROA was 59.4%, with a gross margin of 72.4%.

On its balance sheet, Sungry records cash holdings of around $32.6 million, along with $8.93 million in long-term liabilities and no debt.

John Burbank’s Passport Capital manages approximately $3 billion. It applies a strategy that blends top-down macro, fundamental and quantitative tools to choose investment opportunities.

Within Burbank’s 63-stock portfolio, he owns stakes larger than 5% in only one other stock, another China-based Internet company Inc. (WUBA). Earlier in November, he acquired 11.8% of the classified ad company, totaling 3,200,200 shares. The investor has also made China’s Baidu (BIDU) and Qiho 360 (QIHU) his sixth and seventh largest portfolio positions.

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Guru Discussed: John Burbank: Current Portfolio, Stock Picks
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