Replies to post #172 on Remark Media Inc (MARK)

[powerbattles]

MARK technology are startlingly impressive. I thought this was in and out flip away but now I will have to reconsider to park my money here longer until stock hit my first target five dollar. Five dollar is a very conservative number. MARK Market cap should be a lot higher than we trade now.

[powerbattles]

Remark Media (MARK) Minority Investment May Be Worth $4.30/sh - Roth
Roth Capital analyst Darren Aftahi reiterated a Buy rating and $7.50 price target on Remark Media (NASDAQ: MARK) after Privately-held Sharecare announced Quest Diagnostics (DGX-NC) as its preferred laboratory partner. Quest is also making a strategic investment in the company that MARK has a meaningful investment in. The analyst estimates that MARK owns ~4.5% of Sharecare and this announcement signals upcoming monetization.

The analyst stated "We believe this could set the stage for a potential IPO going forward. Based on our current analysis, we believe MARK’s stake is worth ~$150-$175M, implying ~$3.65-$4.31/share, multiples of its current ~$43M value. A liquidity event in Sharecare would help to much better capitalize MARK’s AI business".

https://www.streetinsider.com/Analyst+Comments/Remark+Media+%28MARK%29+Minority+Investment+May+Be+Worth+%244.30sh+-+Roth/15700955.html

[powerbattles]

Buy Sharecare Pre-IPO At A 60%+ Discount With Remark Holdings

Unique Opportunity for Pre-IPO Sharecare Equity Exposure @ Large Discount.
Recent IPOs Highlight Strong Demand For Sharecare Type Companies.
MARK Shares Trading @ Less Than Half Value of Sharecare Stake.
NYSE Listed $14B Quest Diagnostics Investment in Sharecare is Telling.
Dr. Oz and Oprah Involvement Can Drive Retail Investor Interest.

Sharecare's recent hiring of venerable investment bank Goldman Sachs, increasing promotional activity by co-founder Dr. Mehmet Oz and Wall Street's strong reception for smaller Health Care tech companies Livongo (NASDAQ: LVGO) and Health Catalyst (NASDAQ: HCAT) leads many investors to believe that Sharecare will file for an Initial Public Offering very soon. Retail investors may have a rare opportunity to participate in Sharecare's IPO upside due to what appears to be a small cap marketplace anomaly. Tiny Remark Holdings' (NASDAQ: MARK) holds a 4.5% Sharecare equity stake but, based on recent share prices, trades at an enterprise value of less than half the value of its' Sharecare stake even at the lowest end of the likely Sharecare valuation spectrum.

Due to the star studded cast of backers behind Sharecare (including Oprah Winfrey, Dr. Oz, Discover Communications and Sony Pictures) and the broad consumer reach of Sharecare's offerings (Realage assessments for close to 20% of the adult US population) we expect significant retail investor interest in its initial public offering. Unfortunately for most retail investors, their only opportunity to participate in such high profile IPOs is by purchasing shares on the open market when the stock opens for trading. That typically means that they miss the majority of the IPO "pop" that many new issues in high demand see on their first day of trading. With most companies that go public, there is just no way to avoid that because any shares that could be purchased pre-IPO are only available to big institutions or very high net worth accredited investors who can put up many millions to buy in at pre-public market valuations. However, when Sharecare was being developed it hired a tiny company called HSW International (now called Remark Holdings) to lead the build out of its technology platform. For this service Remark was paid in shares of Sharecare stock that amounted to about 18% of the company back then. As Sharecare has acquired complementary companies/technologies and raised capital over the course of its ascendancy to high profile unicorn status, Remark's stake has been diluted to what is now about 4.5%-4.7% of Sharecare. Remark Holdings is still a very small company today but it is publicly traded with shares listed on the NASDAQ, so any investor can buy stock in Remark and benefit from the growth and eventual public marketplace valuation of Sharecare. While Remark also has other businesses that are its primary producers of revenue, the stock has fallen over the last year to levels as of today that we believe are substantially below the value of just the Sharecare stake alone. While this may be due in some part to investor concerns about management execution when the Sharecare stake is monetized (caused by prior asset sales that were completed at prices below what most investors were expecting like Vegas.com), we note that any sale of Sharecare equity will be restricted to prices agreed to by the Sharecare board (who would not want a sale below the last round) or it will be at prices set by market demand as part of or following the IPO.

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Small and micro cap companies that don't have big Wall Street firm analysts covering them are often overlooked. Some would say that many such companies see their shares more than just ignored, some say they are manipulated by short sellers, market makers and even providers of financing. Whether any of that has contributed to Remark Holdings' current valuation is open for debate, but the bottom line is that the stock currently has a market cap as of today's (Friday August 24) trading of $25-$26 million. It has debt outstanding of a little over $10m for a total enterprise value of around $35-$36m.

Until Sharecare goes public and begins trading, its own valuation could be subject to some debate as the company has been very discreet in its dealings and rarely discloses valuation data related to its funding. The only recent exception of which we are aware was July 2018, when Sharecare raised $20m in a deal with Wells Fargo at a valuation of $2.6B. Some have argued that valuation could be on the high side because it was such a small raise from a buyer with a lending relationship. But others argue that $2.6B is actually low and also stale due to more recent events including a $20m investment from $14B New York Stock Exchange listed business partner Quest Diagnostics (NYSE: DGX) and the overwhelmingly positive response by investors to initial public offerings by several other companies in the Health Tech space. Health Catalyst (NASDAQ: HCAT) and Livongo (NASDAQ: LVGO) are each trading much higher than their initial pricings. We note that neither of these companies is currently profitable and each indicated in their S1 (see Livongo here and Health Catalyst here) that their losses for FY 2018 were almost double the losses they sustained in 2017.

Even if an investor valued Remark's operating businesses at zero, the 46.1m Remark shares outstanding would make the stake in Sharecare alone worth somewhere between $1.46 and $3.90 per Remark share even with the most conservative valuation range for Sharecare (see chart above). Using the last documented valuation for Sharecare of $2.6B in July of 2018, that would equal $2.54 in value per Remark share. Even if you applied a 30% liquidity discount since the shares are not publicly traded yet, buyers of MARK shares in Friday's range of 50-60 cents are getting an ownership stake in Sharecare worth $1.75 per Remark share irrespective of any value that there may be in other Remark assets or businesses.

Some (including the author of this article and the CEO of Sharecare in an interview) believe the value of Sharecare in an IPO scenario are closer to the $4 Billion range, particularly given the $1.5B and $3B+ post IPO valuations for Health Catalyst and Livongo respectively when those two companies put together are still much smaller than Sharecare in terms of revenues, employees, breadth of offerings and consumer reach. Investors can plug in their own numbers for where they see the value of Sharecare, but I think the point is made quite clearly with the most conservative figures above. It is very likely that (at a minimum) there is close to $2 per share of Sharecare value per each Remark share as of today and that value will likely move substantially higher upon the filing of Sharecare's S-1 and with much more upside when Sharecare stock begins trading. With Remark stock trading in the 50-60 cent range, we believe this presents an enormously compelling opportunity to buy Sharecare IPO exposure at pre-IPO valuations that are usually only available to institutions.

Disclosure: I am/we are long MARK. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: My intent in publishing this article is to inform investors about developments related to Sharecare and Remark Holdings. I did not and do not intend to suggest any specific action by any investor or shareholder and strongly suggest that any decision made to buy or sell shares of this stock be made after consultation with an investment advisor as to the suitability of

https://news.futunn.com/stock/8607666?src=3





such an investment. I currently own shares of MARK outright and in some managed accounts. I may buy or sell shares at any time based on market conditions and the trading price of MARK.

[powerbattles]

Remark Holdings Comments on Investment in Sharecare Led by Quest Diagnostics
"We are proud to have been a founding technology partner of Sharecare, supporting Jeff Arnold, Dr. Oz and the team they have assembled in building Sharecare, whose recent round of financing from a key strategic partner further demonstrates the value that has been created," said Kai-Shing Tao, Chairman and Chief Executive Officer of Remark Holdings. "Similarly, over the past few years, we have been steadily building our Artificial Intelligence Business via Remark AI and KanKan AI. The potential monetization of our Sharecare holdings allows us the flexibility to accelerate the development and deployment of our Artificial Intelligence (AI) Technology world-wide, while also strengthening our capital structure through debt elimination, realizing the value we are creating as we continue to monetize and commercialize the proprietary Business Analytics, Demand Analytics and Facial Recognition technology we have developed to service the Retail, Workplace Safety, and Smart City Markets."

With the addition of Quest Diagnostics as a strategic partner and investor joining healthcare leaders such as HCA, Trinity Health, The Heritage Healthcare Innovation Fund and Care First; Discovery Communications, Harpo Productions, and Sony Pictures Televisions, Sharecare has now raised in excess of $400 million of total capital and is becoming one of the most watched digital health companies having been highlighted by digital healthcare venture capital fund Rock Health's 12- Month Anticipated IPO Watch List (https://www.businessinsider.com/10-digital-health-startups-poised-to-ipo-zocdoc-23andme-heartflow-2019-7) and having moved up from 242 to 212 out of 500 fast growing companies on Deloitte Technology's Fast 500 List in 2018.

As a founding technology partner and investor, Remark Holdings congratulates Jeff Arnold, Dawn Whaley, and the Sharecare management

https://www.biospace.com/article/releases/remark-holdings-comments-on-investment-in-sharecare-led-by-quest-diagnostics/










team for their execution and success in achieving 2018 Revenue in excess of $300 Million and a Target goal of $1 Billion of Revenue by 2020. ---- (

).

[powerbattles]

Machine Learning and AI in Food Industry: Solutions and Potential
Machine learning supports manufacturing processes and restaurant businesses at every stage, decreasing expenses and improving quality.
Machine learning supports manufacturing processes and restaurant businesses at every stage, decreasing expenses and improving quality.