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Overlooked ASX Mobile Tech Play

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    Shared with many here, my view is that CM8 presents an opportunity for people to profit on a great ASX mobile technology play.

    For all the newbies or investors thinking about taking a position... here is an outline of the company and whats on offer. The longest post i'll ever write...

    CROWD MOBILE
    CM8 listed in January this year. It's essentially a mobile business that allows users to ask experts questions on a range of issues and topics. They can do this in real-time and on any device.

    This is the best description i have found and saved...

    "CM8 is essentially a crowd sourced micro-job system where the platform connects customers with a trained crowd sourced researcher who answers a question.

    Answers to questions are not automatically generated but a real person is allocated the question which they then proceed to answer. The user pays a fee to have the question answered which is then shared between the carrier/telco, Apple or Google, the researcher and CM8"

    The platform incorporates a human element into searching for answers beyond Google which i like.

    CrowdMobile was actually born in 2005 and was originally a text message service on mobile phones... Even with text messages i still think it was innovative. Obviously smartphones changed everything and the CM8 now services the new era.

    THE TEAM
    The company is being driven by a very experienced team. The key player (CEO) is Domenic Carosa. His rap sheet is impressive. He co-foundered Future Capital Fund which invests and raises money for start-ups. He is also the CEO of Dominet, a digital investment group.

    http://dominet.com.au/

    Anyone see the recent run of CL8...? Dom is behind that also as a non-executive director.

    FINANCIAL PERFORMANCE
    First and foremost the business is profitable... crazy right? An ASX tech company that actually HAS cash flow and MAKES A PROFIT...

    Everything in this post is transparent and true. So here are the HALF YEAR results that were completely overlooked by the market...

    Revenue = $5,600,000
    Gross profit = $3,700,000
    EBITDA = $1,000,000
    Normalised EBITDA = $1,400,000

    This was off a based of 2.2million paid messages answered for those 6 months.

    RECENT & ONGOING DEVELOPMENTS
    In April the company gave us an update on the March quarter.

    Remember, the above $5.6m revenue was for the 6 months to December and coming from 2.2m paid messages...

    For the March quarter they delivered a RECORD number of paid messages... 1.45m.

    CM8 is on track to deliver what they achieved in 6 months, in one quarter. That is serious growth. And its a 82% increase on Q3 2014. Phenomenal.

    This should increase as they continue geographic expansion, entering the Asian market and further expanding its European footprint in Denmark and Turkey.

    They also executed a supply agreement to launch CrowdMobile services into Mexico a few days ago.

    Moving forward the company will also be exploring further opportunities in Asia, South America and Africa for the remainder of the calendar year.

    In addition, Dom is presenting white label App (iOS & Android) opportunities to a number of parties around the globe and is expected to announce a number of B2B Licence agreements this quarter.

    Anyone who hasn't been following, one party they are talking to is the Kardashians. Kim's app generates over $1m US per day. Yes... $1m US PER DAY... Google the recent Fobes article.

    The plan here would be for Kims team to white label the platform as another avenue for Kim and communicate and connect with her fan base. How much do you think teens would pay to ask Kim a private question and have her, or her team, answer...

    It's not just revenue, profit and number of messages answered that is growing. This idea is working for the expert network (the ones answering questions) also.

    They have been rapidly growing their crowd sourced expert network that now stands at over 800 people globally (up from 600 in March).

    The concept of micro-jobbing allows the researchers (Experts) to supplement their incomes as they earn 15% of the revenue stream. Win win for all really.

    PRODUCT ROADMAP
    CM8 are planning to launch 50 new apps diversifying its current offering into a number of new sectors. Some of these new apps cater for questions in the medical, DIY, information technology and legal space. Expansion into these areas will broaden the appeal of the platform which will result in a growth in user numbers.

    MARKET VALUATION AND SHARE PRICE
    I believe there is a bunch of profits to be had here...

    Currently the market cap is around $13m...

    The recent ASX tech runners have run well in excess of this without a proven product or any revenue. Some have run upwards of $250m market cap on absolutely nothing.

    But here we have a growing mobile tech business that is on track to deliver well over $10m revenue this year, and profitable, for only $13m...

    And they are nowhere near the addressable market. So many counties come. I can see fireworks upon the launch into Asia.

    Like most backdoor listings the price has been depressed since listing as ex-shell holders dump and sell into any news. Something we are all familiar with.

    The selling has almost all but dried up. There doesn't seem to be much supply under $0.15c. The share price has been consolidating around this area for a while.

    Wise-Owl have a $0.38 target on CM8. However this is conservative and was at the start of the year.
    http://crowdmobile.com.au/wp-conten...-CM8_Initiating-Coverage-3-Feb-2015_Final.pdf

    DJ Carmichael Limited has also produced a report.
    http://crowdmobile.com.au/wp-conten...5_DJC_Emerging_Tech_Sector__Report_p40-43.pdf

    That all. Happy investing.
 
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