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In early January, I created a Micro Cap Mobile Index consisting of stocks that have market capitalizations under $1B and a price over $1, all in the Mobile space.

That article, 2012 micro cap mobile index, covered the following companies Augme Technologies (AUGT.OB), Elephant Talk Communications (NYSEMKT:ETAK), Glu Mobile (NASDAQ:GLUU), Mitek System, Inc (NASDAQ:MITK) and Velti, PLC (VELT). Let's take a look at how the group has performed year to date versus the NASDAQ composite. Impressively, the Mobile index racked up a 32% year to date gain compared to the NASDAQ which is up 13% year to date. Here is a short recap of some specific news items of relevance to the companies that comprise the index.

Stock

Dec. 30 2011 Close

Current Price

Percentage Gain/Loss

AUGT.OB

$1.34

$1.94

44.78%

ETAK

$2.65

$2.50

-5.66%

GLUU

$3.14

$3.76

19.75%

MITK

$7.25

$11.20

54.48%

VELT

$6.80

$10.09

48.38%

NASDAQ

2605

2951

13.28%

Index Average

32.35%

Augme Technologies

  • On February 16, announced new features and functionality of its AD LIFE™ mobile marketing and advertising platform. The powerful SaaS-based platform is further optimized for customer ease-of-use while adding a number of key updates to Mobile SiteBuilder and the mobile couponing module.
  • On February 14, Augme announced that it had reached a settlement of all issues with Lucid Media, which is one of seven current ongoing lawsuits based on Augme's foundational Intellectual Property. Further details are anticipated to be made public in the near term. Augme® owns 7 patents and it has an additional 13 patents pending with the United States Patent & Trademark Office. Augme® owns 4 International patents pending.

Augme's® first family of patented inventions plays an integral role in technology platforms and services and enables targeting of content to end-users. The patents are foundational to the methods used in two primary types of Mobile Internet operations:

Device Detection and Mobile Content Rendering
Customized Content & Mobile Advertising Delivery

Hipcricket, the one-stop mobile marketing and advertising brand owned by Augme Technologies, Inc., announced that it has been named a finalist in the GSM Association's 17th Annual Global Mobile Awards. Hipcricket was selected as a finalist in the "Mobile Marketing & Advertising Agency of the Year" category from a pool of more than 600 entries.

Glu Mobile

Highlights from the fourth-quarter numbers released on February 7, include:

  • GAAP smartphone revenue of $10.1 million grew 228% from Q4 2010 and comprised 66% of total GAAP revenue.
  • Non-GAAP smartphone revenue of $15.0 million grew 340% from Q4 2010 and was 75% of total non-GAAP revenue.
  • Non-GAAP freemium revenue (micro-transactions, in-game advertising and offers) grew 948% to $13.5 million compared with $1.3 million in Q4 2010.

Mitek System, Inc

On February 7, Mitel announced total revenue for the first quarter of 2012 was $3.5 million, an increase of 151% over total revenue of $1.4 million for the first quarter of 2011. First quarter gross margins hit 91% and it signed 250 financial institutions cumulative through December 31, 2011. The shares have recently been flirting with old highs.

Velti, PLC

In late January Velti announced that it has successfully completed the acquisition of the remaining equity ownership interest of the parent company of CASEE. CASEE is the largest mobile ad exchange and mobile ad network in China and was founded in 2006 by Chief Executive Officer, Xin Ye and a team of successful technology entrepreneurs.

Conclusion:

I've previously written that the mobile space may represent the single biggest technology revolution we see in our lifetimes. Whether it's me, or Kleiner Perkin's Mary Meeker saying it, the mobile revolution is not only going to dwarf the original personal computer movement, but it will forever change not only the way we communicate, but the way business is transacted. The influence and proliferation of mobile devices, not limited to smartphones and tablet devices, may no longer be ignored; they represent the new technology frontier.

While the space continues to explode, there remain only a handful of publicly traded pure plays that give me and you access to investing in this once in a lifetime opportunity. The already impressive YTD 32% that my mobile index has generated speaks to the sizeable opportunity that exists if you know what companies to keep an eye on.

Disclosure: I am long AUGT.OB, ETAK, MITK, VELT, GLUU.

Source: 2012 Micro Cap Mobile Index Off To A Fast Start In 2012