Monday, August 13, 2012 10:57:07 AM
http://seekingalpha.com/article/803181-remark-media-earnings-call-review?source=yahoo
August 13. 2012 10:43 am ET
Remark Media (MARK) held its quarterly earnings conference call on Friday 8/10, the day after it released its' 10-Q. Some panicked selling greeted the 10-Q with nearly 30K shares being dumped near the open, and the stock getting as low as $1.86.
The stocked rebounded after the call on Friday, trading as high as $2.30. There were a number of key takeaways from the call.
Carrie Ferman, the Remark CEO, went over their current plans. They've launched Dimespring.com in beta, and intend for it to go into a full launch in September. They also intend to relaunch Banks.com in September.
They're going to be relaunching their tax centric sites - IRS.com and Filelater.com in Q4 to be ready for tax season.
Remark owns a 10.9% stake in Sharecare. Sharecare is best known as the site started by Dr. Oz, Jeff Arnold (WebMd), Harpo (Oprah), and Discovery. As a founding tech partner, Remark aquired the stake about two years ago.
Ferman was very excited about the metrics and growth of Sharecare, although understandably tight lipped. For the first time, they were able to disclose that Sharecare's revenue hit $8M in Q2, a significant jump from the $3M in the year ago quarter. That kind of growth, even without hitting profitability, helps to justify the reported $350M valuation of Sharecare. In addition, that growth provides a template for the launch of Dimespring.com, as Remark is using the same technology that they used to build Sharecare.
From the bear perspective, there are several significant questions. There are a) the cash flow position, b) the relative illiquidity of the major assets and c) the future business model.
The most significant of these is the cash flow issue, which is also mentioned in the 10-Q as an issue. During the call, it sounded like plans are well underway for Remark to raise funds to take the company well into 2013. Hopefully, those will be asset-based loans, as opposed to an equity raise at what seems like a temporarily depressed stock price.
In the next few days, we'll be able to see reports from the major holders, and I suspect we'll see that a continued liquidation from one of the previous major holders in Banks.com is nearly finished up, which should set the stage for a nice rally into September.
The other major question mentioned above is the business model. It's encouraging Sharecare seems to be succeeding with it. Additionally, there's now such a gap between the projected value of the Sharecare stake and the market cap, that if the stake was monetized, there's enough runway for 3+ years of funding operations, which should be enough time to settle on a model, or find an exit event.
Disclosure: I am long MARK.
Fave Manhattan bar: There's No One Here. Just Poets and Artists.
Recent MARK News
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 04/15/2024 08:54:29 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 04/15/2024 08:34:50 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 04/12/2024 08:09:38 PM
- Remark Holdings Sets Fiscal Year 2023 Financial Results Call for April 15, 2024, at 4:30 p.m. ET • PR Newswire (US) • 04/08/2024 01:00:00 PM
- Form NT 10-K - Notification of inability to timely file Form 10-K 405, 10-K, 10-KSB 405, 10-KSB, 10-KT, or 10-KT405 • Edgar (US Regulatory) • 04/02/2024 10:04:11 AM
- Remark AI Launches its Large Multimodal Model (LMM) AI-Powered Aviation Safety Platform (ASP) • PR Newswire (US) • 03/27/2024 01:00:00 PM
- OTC Markets Group Welcomes Remark Holdings Inc. to OTCQX • GlobeNewswire Inc. • 03/08/2024 12:00:00 PM
- Remark Holdings Enters into Cloud Services Agreement with Microsoft • PR Newswire (US) • 02/29/2024 02:01:00 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 02/16/2024 09:05:59 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 02/15/2024 05:15:33 AM
- Form POS AM - Post-Effective amendments for registration statement • Edgar (US Regulatory) • 02/14/2024 08:51:35 PM
- Form POS AM - Post-Effective amendments for registration statement • Edgar (US Regulatory) • 02/14/2024 05:04:40 PM
- Form S-1/A - General form for registration of securities under the Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 02/14/2024 03:51:56 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/14/2024 02:22:41 PM
- Form PRE 14A - Other preliminary proxy statements • Edgar (US Regulatory) • 02/09/2024 10:10:46 PM
- Form S-1/A - General form for registration of securities under the Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 02/08/2024 02:56:42 AM
- Form S-1 - General form for registration of securities under the Securities Act of 1933 • Edgar (US Regulatory) • 02/02/2024 09:13:13 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/30/2024 10:22:11 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/25/2024 09:54:06 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/22/2024 09:11:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/16/2024 09:02:09 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/08/2024 09:19:18 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 12/29/2023 07:28:59 PM
- Remark Holdings Adjourns Annual Shareholder Meeting UntilJanuary 8, 2024 • PR Newswire (US) • 12/29/2023 06:39:00 PM
FEATURED Cannabix's Breath Logix Alcohol Device Delivers Positive Impact to Private Monitoring Agency in Montana, USA • Apr 25, 2024 8:52 AM
Bantec Reports an Over 50 Percent Increase in Sales and Profits in Q1 2024 from Q1 2023 • BANT • Apr 25, 2024 10:00 AM
Kona Gold Beverages, Inc. Announces Name Change to NuVibe, Inc. and Initiation of Ticker Symbol Application Process • KGKG • Apr 25, 2024 8:30 AM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM