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Dr. John Faessel
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Dr. John L. Faessel is a seasoned and respected Wall Street professional with industry-wide recognition for expertise in market strategy and analysis. He is widely recognized for his insights in public companies. For over 20-years Dr. Faessel’s ON THE MARKET reports have been widely distributed... More
  • Best Idea Update - Projects 40% Q-Over-Q Revenue Growth 0 comments
    Oct 4, 2011 5:33 PM | about stocks: MFON

    Dr. John L. Faessel

    ON THE MARKET

    Commentary and Insights

    Faessel Publishing LLC

    Dr.Faessel@onthemar.com

      

    More Amplification re ‘Simplifying the Complex’

     

    Breaking News of note:

    Facebook’s Mobile Chief: “Within 1-2 Years, We’re Going To Be A Mobile Company”

     

    (OTC:MFON) Projects 40% Q-Over-Q Revenue Growth

    Customer Base Grows to Over 1,500 Customers

    See Wednesday’s press release:  http://www.commercetel.com/news.htm

     

    CommerceTel Corp (OTC:MFON) OTCBB $1.50


    This amazing technology won the Sybase* Innovator of the Year Award

     

    Some metrics to shock you:

     

    This year 5.3 billion mobile subscribers will push out 8 trillion text messages and will spend $240 billion using their mobile device. By 2014 mobile payments will exceed $1 trillion.

     

    (OTC:MFON)’s three (3) recent acquisitions and organic growth could propel this little undiscovered jewel of a company to a $8-$10 million revenue run-rate looking forward 12 months. I believe that the excellent results just announced and “projected” for this nearly completed Q3 will continue to build and a likely buy-out in the not-too-distant future looms. Recent acquisitions in the sector completed at super high multiples make the shares compelling.

     

    No device in the history of mankind has penetrated the global population as fast as the mobile phone. Consider the fact that the eyes of 5.3 billion users will soon be selecting—and spending $1 trillion on—goods purchased from their smart phone. Enter a platform to advertise to mobile handheld devices that is without peer. I call it the Next Big Thing...

     

    And guess who is going there? Facebook’s Mobile Chief just said: “Within 1-2 Years, We’re Going To Be A Mobile Company” http://techcrunch.com/2011/09/27/facebooks-mobile-chief-within-1-2-years-were-going-to- be-a-mobile-company/

     

    Mobile ad spending worldwide is predicted to be $3.3 billion in 2011 and will skyrocket to $20.6 billion by 2015. And it bears repeating: mobile payments will top $1 trillion by 2014.

     

    (OTC:MFON)’s breakthrough technology unifies disparate data input into a single “pipe” combing and coordinating Voice, SMS, MMS, and APPS under one umbrella on a single browser. The software platform is called C-4 and prominently, it won the Sybase Innovator of the Year Award.*

     

    C4 allows delivery of HD-quality graphics and animation to screens, whether broadcast, stadium boards, or digital signage, and connects the advertized company or brand to the consumer via his or her mobile device. Read: a pipe directly into the consumer’s hand. In addition, (OTC:MFON) recently added to its patent portfolio a unique “advancement in authentication” innovation via the mobile device that could be worth a mint.

     

    Also intriguing as regards patents: some time ago (OTC:MFON) bought a patent that converts phone numbers to web site URL’s (and back again). The technology is used by a multitude of web-based companies, and I believe that this piece of code alone could be worth millions.

     

    Let me add that I have met with management and was really impressed; they are steeped in acumen, totally zeroed in on building this company. They also possess a clear-eyed knowledge of “patents in the space” that enables them to quickly carry innovative technology thru the usually time-consuming patenting procedure in a “new” way that “procures” the patent within a time frame that is simply astonishing.  

     

    (OTC:MFON)’s particular sector is red-hot with acquisitions at super high multiples because of compelling demand to harvest the eyes of the 5.3 billion mobile users that are closing in on having bought $1 trillion in goods using their smart phones. I think it's a slam dunk buyout scenario ― probably within a year.

     

    Compute this: If 12 months out (OTC:MFON) begins to achieve a $8 or $10 million revenue run rate, times a 10, 20, or 30 multiple (similar to the recent deals in the space), you get fat numbers compared to CommerceTel’s current market cap of only $34 million. Yes, this is admittedly a best-case projection. However, I firmly believe that the big picture is that enticing given the frenzy of completed deals within the space—again, at super high revenue to market-cap multiples—which presents a context wherein (OTC:MFON) becomes about as compelling a story as you can find anywhere.  Owning a piece of this emerging company begins to make very good investment / speculative sense, and for all these reasons it’s one of my best ideas for the next year.

     

    (OTC:MFON)’s growing list of over 1500 customers include CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal. Count in addition the distributed brand organizations such as Sonic, Jamba Juice, Dutch Brothers, Dairy Queen, Chick-fil and Pizza Hut. And just last Thursday the NBA basketball franchise Orlando Magic was added to the list: http://www.marketwire.com/press-release/Orlando-Magic-Select-CommerceTel-Txtstation-as-Their-Mobile-Technology-Partner-OTCBB-MFON-1566971.htm

     

    Of Note: For a terrific overview of the Mobile device growth thesis and some detailed (OTC:MFON) metrics with an overview of their financial model and patents etc., check: http://www.commercetel.com/deck/CTEL%20Investor%20Deck%20PUBLIC-Sept2011-DB.pdf

     

    * Sybase is a world leader in delivering enterprise and mobile software to manage, analyze and mobilize information for business intelligence. Sybase is owned by SAP, the world's largest business software company.

     

    Visit (OTC:MFON)’s comprehensive website: http://www.commercetel.com


     

    On The Market’s safe harbor statement, disclaimer and compensation details: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made.  On The Market is a wholly owned subsidiary of Faessel Publications LLC and provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. Faessel Publications LLC has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, or experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources believed by Faessel Publications LLC  to be reliable, but Faessel Publications LLC  provides no assurance, and none is given, as to the accuracy and completeness of this information. Disclaimer: ON THE MARKET / Faessel Publications LLC is not a registered Investment Adviser or a Broker/Dealer. Readers are advised that the information in this report is commentary issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy. The opinions and analyses included herein are based from sources believed to be reliable and written in good faith, but no representation or warranty, expressed or implied is made as to their accuracy, completeness or correctness. Owners, employees and writers may have positions in the securities that are discussed in the newsletter. Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report should be independently verified with the companies mentioned. Readers are cautioned that small and micro-cap stocks are high-risk investments and that they may lose all or a portion of their investment if they make a purchase. Certain of the statements in this commentary may be considered forwarded looking statements. ON THE MARKET/Faessel Publications LLC makes no representation and provides no assurance or guaranty that such forward looking statements will prove to be accurate. Statements of opinion and belief are those of the authors and/or editors of this report, and are based solely upon the information possessed by such authors and/or editors; no inference should be drawn that such authors or editors have any special or greater knowledge about the company or companies profiled or any particular expertise in the industries or markets in which the profiled company or companies compete. The reader should verify all claims and complete his own due diligence before investing in any securities of profiled company or companies. ON THE MARKET / Faessel Publications LLC makes no recommendation that the purchase of securities of company or companies profiled in this report are suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the company or companies profiled and the lack of an active trading   market for their securities, investing in such securities is highly speculative and carries a high degree of risk. An investor in such securities should be prepared and able to bear a loss of his or her entire investment. Nothing in this report should be construed as an offer or solicitation to buy or sell any securities of any profiled company. ON THE MARKET / Faessel Publications LLC undertakes no obligation to inform readers about the ownership or trading activities of it or its employees or affiliates in the securities of the profiled company or companies. We encourage you to review the investing information available at the Securities and Exchange Commission ("SEC") website (http://www.sec.gov) and the National Association of Securities Dealers ("NASD") website http://www.nasdr.com. You can review all public filings by the companies mentioned at the SEC's EDGAR page. The NASD website includes helpful investor awareness and educational information. The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report should not be used as the basis for any investment decision. Faessel Publishing LLC is receiving a monthly fee from third parties of three thousand five hundred dollars and a provision for stock as compensation for the distribution of this commentary and other advertisements. Since we are receiving compensation in the advertised company there is an inherent conflict of interest in our statements and opinions and such statements and opinions cannot be considered independent.


     

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