As interested as I am in the Doomsday Seed Vaults, we seem to have survived the Mayan cult of death. So, I thought I`d repost my YOO blog of a week ago as a starter re a discussion on Yangaroo:
Here is the link:
And here is Yangaroo in the blog:
Yangaroo Inc. (YOO on the TSX-V)
I’m very happy with the way Yangaroo’s fundamentals have roared in the two weeks since my last blog. And the SP gain has been 25% to 37 ½ percent – with more than a threefold gain in daily volume. I attribute the SP and volume changes both to the blog and the tremendous quarterly and material news served up by YOO. Bravo to Yangaroo.
Had it not been for a “wall” of stock at 5 and 5 ½ cents (over a million shares), IMHO, the SP gain could easily have been 50% to 100%. No matter, the bids are strong – and it is crystal clear to me where YOO is headed.
Consider YOO vs. Destiny Media (DSY on the TSX-V), a company that is somewhat in the same space:
The DSY market cap is $34.4 million. YOO’s market cap is $7.85 million.
DSY’s revenue is stagnating. YOO’s revenue is growing 20% quarterly.
DSY in Q3 2013 did $941k in revenue. YOO in Q3 2013 did $753k in revenue.
Going by the 20% growth YOO has been showing, that puts their revenue at an estimated $903k in Q4 2012 and 1.084 million for Q1 2013 – i.e. YOO should surpass DSY’s revenue in Q1 2013, if one goes by the above.
You can read into the above re how it would / will affect YOO’s SP and market cap.
Some more points:
- My numbers tell me that YOO’s high operating income should put YOO in the black in Q1 2003.
- Yes, YOO has 156.9 million shares out. I strongly believe (please see my last point), though, that they will institute a share buy-back program in late 2013 or early 2014.
YANGAROO LAUNCHES MAJOR NEW FEATURE FOR DELIVERY OF TELEVISION ADVERTISING – and gets Horizon Media (the largest independent media-buying service in the world) adoption.
2012-12-11 09:07 ET - News Release
Here is a paragraph from the NR:
“YANGAROO is pleased to announce the release of "Reporter", a significant new feature, described by our Advertising Industry customers as a "game changer". Designed to save time and money, the feature was developed in response to a request from our customers, to automate a largely manual spot delivery confirmation process. This first to market feature gives our customers a benefit not available elsewhere. The enhancement adds another dimension to our state of the art High Definition digital delivery service.”
And here is a link to the NR:
And here is why “Reporter” is such a “game changer.”
- It has features for the advertising companies that nobody else has.
-Horizon Media wanted it…..badly.
- Competitors DG and Extreme Reach can’t do what YOO can now do for their clients.
- If you can believe it, these things were being done by fax – and it’s 2012! As such, it takes a lot of manpower and leads to inaccuracies. The faxes show when commercials are (or going to be) programmed, whether they meet the specs wanted, etc., etc. As the specs are not always the right specs, it means a lot of resending, etc.
- The ad agencies have to employ quite a few people to monitor these fax rooms (See above).
-YOO has a huge advantage over the competition – and therefore, they will get more agencies on board.
-The above will mean more business - and more revenue.
-The competition can build this type of technology, too – but it will take at least six months to a year. In that time, YOO will be servicing their clients and will be building the next state of the art technology for their clientele.
Industry Article on the Reporter Technology:
YANGAROO CLOSES PRIVATE PLACEMENT
2012-12-13 14:55 ET - News Release
Yangaroo Inc.'s recently announced private placement has closed, raising aggregate gross proceeds of $315,000, of which $140,000 was invested by company insiders.
Here’s a link to the NR:
The insiders buying the PP above the SP shows clearly where they feel the fundamentals and SP are going.
An important advantage:
- YOO is fully electronic – i.e. “robots do all the work.” While YOO can and will move instantaneously to gain market share, the competion, IMHO, is burdened with infrastructure.
- Management and the BOD are excellent. Two of the Directors are heavy institutional players. And President & CEO Gary Moss moved from IMAX, where he was the CFO in charge of their $350 million in revenue. Here are links showing the Executive Team and the Directors.
- YOO has proven and innovative technologies.
- The market space is rapidly expanding.
- Barriers to entry are getting higher.
- YOO has few competitors
- YOO has “strong intellectual property rights and defenses.”
It's my considered opinion that fundamentals / material changes (i.e. in technology, customer base and revenue momentum, etc.) make today's SP considerably lower than it should be. I am very enthused for 2013.
My Nov. Blog of two weeks ago had a lot of info on YOO. It’s a good place to start your own DD:
A thought to leave you with:
I was looking at the list of awards shows that now use YANGAROO Awards solution and it struck me that YOO must be the leading company in the world providing this kind of service. When you have The Grammys, The BET Awards, The MTV Music Video Awards, The MTV Movie Awards, The Academy of Country Music Awards, The Soul Train Award, and The Junos, who else can compete with that?
I wonder what they’re working on next?
Please inbox me if you want the articles that did not show up in translation.