ONSM $1.65 +$.30 Next ZVUE MAMA:
ONSM + 25% TO $1.65 today but going WAY higher heres why:
1) Online video sector has been RED HOT. ZVUE and MAMA have rosen 200% recently with their on line video search services.
2)ONSM market cap $22 MM vs. $65 MM for MAMA and $50 MM for ZVUE. ONSM has much faster sales growth than either of those companies.
3)ONSM used bu more than HALF of Fortune 500 companies.
4)Small 12 MM float 4 MM held by institutions.
5)AMERICA ONLINE subs out video search to ONSM, and continues to do repeat business
6) the industry is exploding and small companies like ONSM are being acquired regularly at 10 X sales ONSM trading at 2 x sales
7) just signed a partnership deal with Akamai, who is referring small and medium sized businesses to ONSM and working together on those deals. Akamai is far and away the largest company in the content delivery network space. We are on Akamai's radar screen.
8) recently signed Rodale Publishing as a customer. Its one of the largest media companies in the world.
9)Discovery just chose ONSM to do the video digitization and other services for their major new web site Cosmeo.
9) hedge funds are accumulating the stock in significant amounts, see recent 13G or recent posts
10)the stock is much stronger in the last few weeks, and it seems sellers are drying up
11) the company is growing revenues again and profit margins are very good, over 60% and growing
12) ONSM is trading way below the acquisition and trading multiples of comparable companies. As soon as the growth from recent deals starts kicking in on the 10Q's , or maybe earlier, this stock should approach the 10 times sales mutiples of others in the industry
- I predict the big growth to come in the March or June quarter, based on ramp up time from recent contracts.
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