Remark Media (NASDAQ:MARK) has dipped down to $3.50, after recently surging to $4.50. I believe there are several upcoming catalysts that will allow it to quickly get back above $6, in range of its all time high.
1) New financing - and historical results after financing
The last financing event was April 4th, which covered the latest tranche of money infused by the current CEO, Mr. Kai-Shing Tao, and saw a 50% increase in the share price over the next month.
The Sharecare annual meeting was October 31. The conversion of the note from that transaction was approved, leaving over 20% in the hands of the CEO, who incidentally is not taking a salary at this point. The company is due for another financing event, and there's no reason it won't happen the same way as the previous two, both of which have led to substantial jumps in the stock price. Incidentally, watching the Level 2 ticker, NSDQ has been perpetually on the ask with 5500 shares, which has been enough to put a damper on the price, and likely will depress the price of the next convertible round. With the press of more financing, and that disappearance, another round of financing could boost the price +50% to over $5.
2) Sharecare - with a recent round of $15M in financing, Remark's previous 10.8% stake is now likely 9%. With over $91M in financing, and Jeff Arnold, a CEO who's shown a knack for monetizing previous companies such as WebMD, and HowStuffWorks (sold to Discovery for $250M), this is the crown jewel in Remark's portfolio. If it were to go public, or even have a valuation published, it would become apparent that this stake is likely equal to Remark's entire market cap.
3) New heavy hitter board members - Two significant new additions for a 25M market cap company. Robert Goldstein is President of Global Gaming Operations of Las Vegas Sands Corp., President of LV Sands. William Grounds is Director and President of Infinity World Development Corp., an affiliate of Dubai World. He serves as a member of the Board of Directors of CityCenter Holdings, LLC; Infinity World; MGM Resorts International, listed on the New York Stock Exchange; and Grand Avenue LA.
Meanwhile, the operating business is comprised of a number of websites that have as a common bond, they're held together by the Sharecare technology - Dimespring, Banks.com, Bikini.com. The content has been much improved, and you can see the improvement in traffic when you look at metrics on sites like www.compete.com.
Disclosure: I am 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.