MM sells at over 12 times trailing 12 months revenues. Their margins are 40% and they can't make money on almost $50M in sales. Augme is selling at 2-3X trailing 12 months and are looking at break even around $10M in revenue. Throw in the fact that MM has no IP and is being sued by Augme. Which one is the strong buy.
Think about if what that earlier poster said was true that MM might get bought at 20X sales. It's quite possible considering it is trading right now at 9X. If Augme were to fetch that same premium he suggests MM will, realize that it would be the same as Augme getting bought at $600 if at 20X its trailing 12 month revenues and $800 million if at 20X this years revenues. That's basically $6-$8 with nothing included for the IP. Also remember that MM was exactly where Augme is in May of 2010 and growing at almost the identical 94% CAGR. Both will be acquired, not a doubt in my mind. My only concern is the stock price does shareholders no favors in terms of creating negotiating leverage.
Exactly. That's why I hope we can get at least 1-2 more quarterly earnings releases out before we are in play. If someone like qcom is looking at us, I expect they would move quickly once a decision is made to prevent someone else from stepping in to buy before they do.
That's a very true statement. Adlife is the only true end to end mobile marketing platform. Now they also importantly have their own ad network which is already doing over a million a month in revenue in just its first year. That should be a high growth driver going forward.