MOBI gets a $20 PT from Wedge. Their reasoning is interesting
Sky-Mobi from Wedge Partners - their next Top Small-Cap pick. Thinks next $20 stock.
Same analyst Jun Zhang gave us CCIH at $8 some months ago and HIMX at $2 and SPRD at $7.
* Sky-mobi is a Chinese android based pre-loaded app store. The company is in the middle of a transition from a feature phone model to a smartphone model and they became profitable this quarter.
* In 6 months, the smartphone revs went from 0 to 35% of total revs, and we think this will increase to 70% next quarter. Then to 90%, eventually becoming their entire business.
*Strong partnerships with China’s top 3 carriers, largest partnership with China Mobile.
*The company has $3.40/share in cash
Solid DD combined with timeliness and conviction is a recipe for profits.
