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I'm a full-time investment trader and advisor. I specialize in arbitrage and deeply undervalued potential positions in mobile and technology.
  • On The Billion Dollar Radar: Mobile Entertainment Stocks 0 comments
    Nov 22, 2013 1:34 PM | about stocks: SIRI, ZNGA, NOK, CHAG

    Lets face it, everyone is looking for the next Snapchat, recently valued at $4 billion. As public market investors, similar opportunity may be hidden in mobile entertainment stocks. Today, focusing on mobile entertainment can enable a company's product to attain world-wide mass adoption. If you are a consumer technology company, then your product is your mobile application. The power of mobile entertainment comes in form of mobile apps designed for the smartphone, tablet and more recently wearable devices like Google Glass. Other examples of mobile entertainment offerings include mobile apps like Candy Crush, recently valued at $5 billion and preparing to IPO.

    (click to enlarge)

    The future growth and even existence of many consumer technology companies depends on the success of their mobile applications. Companies today are defined by the mobile apps they offer to consumers. Without a mobile presence in the form of a mobile app, consumers simply shy away.

    Traditional web-only entertainment companies are now adapting to mobile platforms supported by cloud infrastructure. New mobile-first companies are on the rise and on a path to attracting real momentum for savvy investors.

    The Players

    Companies like Zynga (NASDAQ:ZNGA) have shifted most of their strategy to capitalize on the mobile platform. Recently, Glu Mobile (NASDAQ:GLUU) was the first company to create a game for Google Glass, a wearable mobile device similar to Epiphany Eyewear and YouGen.tv. Pimovi, a subsidiary of Chancellor Group (OTCQB:CHAG), is enabling entertainers to live-stream point-of-view (POV) video to their fans with mobile apps.Majesco Entertainment Co. (NASDAQ:COOL) has pivoted toward making their games available for iOS and Android.

    Big Players See The Value

    Nokia (NYSE:NOK) and SiriusXM (NASDAQ:SIRI) have joined the party. Nokia has introduced a mobile music application called Nokia MixRadio and it's getting some great traction as some reviewers are saying, "Nokia MixRadio Is the Easiest Streaming Music Service Yet". SiriusXM understands the value of making mobile offerings a priority as they provide the SiriusXM Internet Radio Mobile App.

    (click to enlarge)

    Any of the mobile applications above have a chance at a super star valuation similar to Snapchat, Candy Crush or other multi-billion dollar apps by maintaining a continued focus on providing consumers with the most entertaining of mobile experiences. This of course, can translate to the most satisfying of investing experiences.

    Disclosure: I am long SIRI, ZNGA, NOK, OTCQB:CHAG.

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