Dr. John L. Faessel
ON THE MARKET
Commentary and Insights
Faessel Publishing LLC
Miss Universe the Dallas Cowboys & CommerceTel
Show Biz Teamed with New Levels of Fan Interactivity
CommerceTel Corp (OTC:MFON) OTCBB $1.80
The Miss Universe Pageant and the Dallas Cowboys select (OTC:MFON)’s award winning* technology to interact with their fans.
But first the “elevator” version of the (OTC:MFON) story:
Because of recent acquisitions and organic growth this little company will do $8-$10 million in revenue over the next 12 months IMO. They have a terrific cutting-edge software product called C4 that won the Sybase Innovator of the Year Award.** The sector is red-hot with acquisitions at super high multiples because of compelling demand to garner the eyes of the 5.3 billion mobile users that spend $1 trillion on goods purchased from their smart phone. I think it's a slam dunk buyout ― probably within a year. Compute this: $8 or $10 million in revenues X a 10, 20, or 30 multiple like the recent deals in the space and you get big numbers versus (OTC:MFON)'s current market cap of $40 million. Hence it's one of my best ideas for the next year.
· Donald Trump’s Miss Universe Organization offered fan judging through (OTC:MFON)’s on-screen interactive technology prior to and during the recent 2011 MISS UNIVERSE Competition. This interaction with the ‘over’ one  billion pageant watchers increased the intensity of the production in an already great show. The "fan voting meter" on the television screen instantly revealed the contestant most favored by the fans.
Fan vote granted Alyssa Campanella, Miss USA 2011, one of the 89 girls’ automatic advancement to the semifinals. Viewers scored each contestant from their smart phone, tablet or PC thru (OTC:MFON)’s platform managed at “Universe” central. The pageant was telecast live from Sao Paulo, Brazil on Monday, September 12th on NBC. (See the links to the photo spreads of fan favorite Miss USA and the new Miss Universe 2011 below.*)
· Cowboys Stadium, home of The Dallas Cowboys, has upgraded the stadiums capability to interact with their fans through (OTC:MFON)’s Txtstation; a system that allows stadium personnel to create polls, contests, and a lot more. Txtstation provides interactivity via text messaging, and reflects the growing capability of stadium venues to interact with their fans thru their smart phones.
My thesis is that with only 22 million shares outstanding with a 10 million share float even really large multiples.....20x...30x...still could be tip money for the firm with insight that really understands (OTC:MFON). There is a best-case projection here; however I firmly believe that the big picture is most enticing. Factor in the frenzy of numerous completed deals at super high revenue to market-cap multiples, and (OTC:MFON) becomes about as compelling a story as you can find: owning a piece of this emerging company starts to make very good investment / speculative sense.
(OTC:MFON)’s current customers—numbering over 400—include CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal.
Now add the just announced acquisitions by (OTC:MFON) of BoomText that will add over 1,000 new clients and will sharply and immediately build accretive revenue. BoomText’s clients include organizations such as Sonic, Jamba Juice, Dutch Brothers, Dairy Queen, Chick-fil and Pizza Hut.
** (OTC:MFON)’s C4 Software platform won the Sybase Inc’s* Innovator of the Year Award in 2009. 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.
* Link to Miss USA’s 19 photo spread (Wow): http://www.ibtimes.com/articles/211818/20110911/miss-universe-2011-miss-u-s-a-in-the-top-ten-voted-contestants-miss-u-s-a-2011-alyssa-campanella-sao.htm#page1
Link to the photo spread of winner of Miss Universe 2011: Miss Angola Leila Lopes: http://abcnews.go.com/Entertainment/slideshow/miss-universe-2011-winner-miss-angola-leila-lopes-14500377
Disclaimer: I intend to buy shares of CommerceTel in the open market.
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