Seeking Alpha
  • James Sands
    $HIPP.OB moving higher, MoPub purchase by Twitter, Adap.tv, Jumptap, possibly driving buyout speculation
    9/10/13
    Reply (13)
    • buffett222: What is appropriate metric? 3.5 -4x Revs? Isnt MM a double based on that (pro-forma)?
      9/10/13
    • James Sands: Millennial is adding 25 million shares to buy Jumptap... putting them near 110 million outstanding, that puts them over $700 m market cap
      9/10/13
    • James Sands: This is around 2xs 2013 revenue est. If the company has no buyer, then they are probably trading near fair value.
      9/10/13
    • James Sands: If they become profitable and generate positive free cash flow, maybe they become worth more.
      9/10/13
    • James Sands: The premium is only there if a buyer surfaces, who is going to put a premium on Millennial, when there are still hundreds left to buy.....
      9/10/13
    • James Sands: for $400 m or less. Millennial would command upwards of $1 billion....
      9/10/13
    • buffett222: Guidance is $350mm revs + $120mm cash.
      9/10/13
    • James Sands: I want to see how much cash they burn over the next 2-3 quarters.
      9/10/13
    • buffett222: Fortune Capital, recent 13G filer on MM might be interested in buying...they are not exactly shrinking violet :)
      9/10/13
    • James Sands: I was interested in Millennial because they were improving margins and operating cash flow, now things are not clear, I'll wait to see
      9/10/13
    • James Sands: before adding.
      9/10/13
    • James Sands: Yea, I don't have a strong read on this. Management claims that Asia is leading ad campaign growth and that majority is domestic-based.
      9/10/13
    • James Sands: Their revenue segments are not clear, just makes it harder to really see where growth is slowing...
      9/10/13