MOBI - You won't often hear me say something like this, especially on a board where finding growth and net income-laden stocks is commonplace, but for a stock like MOBI, it actually isn't weighed-down by earnings expectations. Huh? Did I just say that?
Yep, I believe it's true. It's like the internet stocks circa 2000, where the growth rates were off the charts and investors/traders could use their imagination about how high stocks will go, and at that point then they can start back-filling the story when earnings kick in. I mean, look at LOCM (another stock i'm accumulating a ton of in the low 4's). They are an "internet stock" and got sliced in half because their EPS missed by a couple cents. They have strongly positive EPS but suffer because of it. For stocks without EPS, they just need the trend headed in the right way with their revenues and losses, and all is well.
MOBI doesn't have earnings to speak of yet, but it has an astounding growth rate in a hottttt and sexxxxy sector. When you look at their prospectus, they have a neat one-page graphic that shows the following:
479 million users
3.6 billion downloads
5,600 mobile phone models
Over 61,000 applications and content titles
(#'s are cumulative)
That's pretty enticing stuff, considering they've only been doing this for about 4 years.
So here's the bottom line from a trading perspective: Smartphone apps, mobile payments, games, social network all rolled into one stock. That is why I believe MOBI is on its way to becoming a cult stock.
Edit: Just saw a post on another board promoting the fact that AAPL just had their 10 billionth download from their app store. MOBI had 3.6 billion as of September, and I bet they catch AAPL this year. Just adds more fuel to the cult fire!
Solid DD combined with timeliness and conviction is a recipe for profits.
AI
