Moko Social Media's (MKB) Nasdaq listing is scheduled for late April 2014, and we believe this can provide a significant re-rating
Moko Social Media's (MKB) Nasdaq listing is scheduled for late April 2014, and we believe this can provide a significant re-rating. Platforms that have successfully monetised their user bases (Facebook, LinkedIn) trade at multiples > $100 per subscriber. Applying the same metric would imply a valuation of >US$500m solely based on Moko's flagship product, REC.IT. Management have confirmed that the rollout of the REC.IT application is on track. A pilot phase to commence in March, and then full rollout of the application to 600 schools by mid 2014. Under our 'base case' scenario we forecast profitability in CY14 with NPAT growing from $1.4m in FY14 to $50m in FY15. Facebook and Twitter trade on revenue multiples of >20 times. Applying this multiple to our FY15 revenue estimate of $98m (based solely on RECIT) demonstrates MKB has Billion-Dollar valuation potential. Full report here: (VIEW LINK)
Haris specialises in researching small and mid-capitalisation resource and industrial stocks. Specifically, he has experience developing our expertise in the potash, phosphate and specialty metals sectors. Harris? background in business strategy...
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