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Augme Technologies, Inc. Message Board

  • xtj756666 xtj756666 Nov 5, 2012 7:25 PM Flag

    MM quarter over quarter growth 20%, losing money

    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.

    Sentiment: Strong Buy

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    • 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.

    • What some do not understand is that Augme is the ONLY end to end platform in the market that does it all. So we don't need to outsource any part of our process. MM and Velti and P all do.

      Sentiment: Strong Buy