2012 Micro Cap Mobile Index

2012 Micro Cap Mobile Index
January 9, 2012 Seeking Alpha includes: AUGT.OB, ETAK, GLUU, MITK, VELT

It’s my belief that 2012 will mark the break out year for Mobile. The year where the marketing medium catches fire becoming a hallmark of every fortune 500 companies advertising efforts. The year where brands are no longer merely testing and evaluating mobile, but they’re requesting it in their requests for proposals while committing substantial portions of their often multi-billion dollar ad budgets to it. The conversion rates and return on investment is like nothing advertisers have seen or witnessed.

Those who fail to leverage mobile will be left in the dust of competitors recognizing that mobile truly represents the most powerful and exploitable marketing technology seen in our lifetimes. At no other time in history has targeting to the power of one been so possible or has so much functionality been available right in the palm of your hand. Whether it’s advertising, gaming, social networking or paying for something with your mobile device, mobiles day has clearly now come.

This illustration of mobile’s coming of age was recently captured in an article, “Mobile-2012 will be a Breakout Year for Mobile,” by Ivan Braiker, President of Hipcricket+Augme Technologies, Inc. (AUGT.OB), recently named 2011’s top Mobile service provider by Mobile Marketer.

In light of what I view as this once in a lifetime investment opportunity, I am creating an Index of stocks that will track companies in the Mobile market against the standard Nasdaq index. These stocks will all have Market Caps under $1B and prices over a dollar. As the year goes on, I anticipate providing updates on the index while making any additions of new Mobile companies such as Millennial Media which is planning to IPO shortly. The areas I am focusing on will be Mobile Advertising, Mobile Payments and Mobile Gaming. Any company that meets the above guidelines and receives a majority of its revenues from the mobile space will be considered. All prices will be based on the first trading day of the year.

Augme Technologies Market Cap $123M

Augme Technologies, Inc. provides strategic services and mobile marketing technology to consumer and healthcare brands. Its platforms, including AD LIFE, provide campaigns for marketers, brands, and agencies the ability to plan, create, test, deploy, and track mobile marketing programs across various mobile channels, including SMS, 2D/QR codes, mobile Web sites, advertising networks, social media, and branded applications.

Elephant Talk Communications (ETAK) Market Cap $319M

Elephant Talk Communications Corp. provides business software and services to the telecommunications and financial services industry worldwide. It offers various products, such as remote health care, credit card fraud prevention, mobile Internet ID security, multi-country discounted phone services, loyalty management services, and a range of other customized mobile services.

Glu Mobile (GLUU) Market Cap $190M

Glu Mobile Inc. engages in the design, marketing, and sale of casual and traditional mobile games worldwide.

Mitek System, Inc (MITK) Market Cap $179M

Mitek provides Mobile Deposit, a software application that allows users to remotely deposit a check using their smart phone cameras; Mobile Photo Bill Pay, a mobile bill paying application that allows users to pay their bills

Velti, PLC (VELT) Market Cap $392M

Velti plc provides mobile marketing and advertising solutions for mobile operators, ad agencies, brands, and media groups.

With the recent merger frenzy going on in the Mobile space it will be interesting to see which of these companies get acquired or continue to acquire both technology and Intellectual Property. A recent article, “Mobile Merger Flurry could become Blizzard,” by Kent Bernard, Jr. recently pointed out all the movement already transpiring in the first week of the new year.

Disclosure: I am long AUGT.OB, MITK, GLUU. I am also long ETAK.
This article was sent to 129,164 people who get the Long & Short Ideas newsletter. Get the Long & Short Ideas newsletter