SNK - Snakk Media - Aussie Stock Forums

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  1. #1

    Default SNK - Snakk Media

    (Copied from another user on a different forum)

    Currently trading at $0.10, Snakk Media is a mobile advertisement company.

    It's the only penny stock company I know that is backed by billionaire and Virgin Group founder Richard Branson, and he even spoke at the New Zealand Stock Exchange (NZX) listing from Necker Island. Key clients of Snakk Media include:

    Pepsi, Intel, McDonald's, HSBC Bank, M&M's, Bioshock Infinite (Video game, not company), MTV, Mad Men (TV Series), Sony etc.

    You can find the case studies here on there YouTube page:

    You can also find other case studies from their website - snakkmedia.com

    The reason why Snakk media are winning such key and reputable clients is because they hold almost an iron grip on the Australian and New Zealand market, no other company can give companies the same service - companies like Facebook and Google have limited advertisement potential, Facebook can only advertise to users on their websites and can't tap into demographics the same as it's too complex, the tech is still in development to handle such a large user base. Google on the other hand depends on advertisement to fund it's other businesses and subsidiaries, rather than move straight into mobile advertisement and search - which would make some sense as an advertisement firm - they built the android operating system, the android phones teaming up with Samsung. They could move into mobile marketing but that would mean they would have to re-develop EVERY Google product to cater for mobile, a costly multi-billion dollar expense.

    In effect, that means Snakk Media doesn't have any serious competition. Otherwise these big Fortune 500 companies would go to other big Fortune 500 advertisement companies and ask to get the job done. Companies like Omnicon Group for instance (19 billion dollar advertising firm), you would think they would of tapped into mobile by now but the technology companies in mobile advertisement - the ones too acquire just aren't there. What happens when these big advertisement agencies and firms go static, too big in their field? They depend on acquisitions, if Snakk Media is the only real mobile advertisement firm winning the big players who aren't interested in short term sell outs then it's safe to say they have little competition in their field.

    Lets look at the value of the company, considering it's a penny stock company it's obviously subject to high volatility and (sometimes) higher volumes in comparison to it's market cap. Market capitalization is roughly 25 - 30 million dollars, they have raised 6.5 million and will have cash flow until 2019. They'll never have to raise money again, they plan to grow organically and have no debt to pay off with little liabilities. The company made a profit this year, it's small but $27,000 - they also had their first million dollar month in December when advertisement is high in demand. This money was re-invested back into the business for growth. They plan to expand into Asia this year and already have connections there through Derek Handley (The chairman himself) from his old advertising firm 'The Hyperfactoy'. He already has a lot of experience in the industry and this is currently his third venture he's been involved with. Asia is where the money is, it's the biggest market for smartphone and tablets and by tapping into it they'll be able to (estimate) make their market capitalization back in annual revenues alone.

    Stock trades at $0.10 with a market cap of $25M as previously stated. If they are able to continue growth at 1/5 of what they are doing now, year-on-year by the time 2019 comes around in 5 - 6 years, based on revenue alone, they will have a market cap of just under $3 billion dollars. Yearly revenues of $300 million, P/E of 10 and still no debt or need to raise new financing. Acquisitions can be done via cash, stock and a combination of the two.

    Recent article this year about Snakk:

    This is a great speculation for those who want a stock with more substance than the usual penny stock, but are also more risk adverse than the average investor. With a predicted market cap of $3B in the future would mean a estimated stock price of around $10 (give or take) in the next 5 years. This of course is a long term speculation, but could potentially be a 100x return on your money if that estimate is correct.

    Usually in most cases, I'm a value investor, the only other tech company that has had huge success that I have personally benefited from was "Xero" (Went from $1 to $40 in the space of around 3 - 4 years | Google Finance - NZE:XRO). In most cases I would say I'm a lot more conservative with my money, I go for long term positions on value stocks that have shown year over year that they have a strong ability to grow and continue to use their brand name as a shield against potential competition. I also like utility and oil companies. In the past decade though after the collapse of the dotcom bubble, I became more and more interested in technology. A shift started that some could call the "Information Age", an new industrial revolution if you will. As technology has matured with the internet, mobile phones and other gizmos and gadgets it's safe to say the future is here.

    I am bias, I own 2,000 share in this company (the bare minimum), but I got them for 7 cents a pop and haven't seen these paper returns since the 80's. I would recommend anyone interested to gather their own data and do their own research before investing or speculating any company.

  2. #2
    Ralph Nelson Elliott Porper's Avatar
    Join Date
    Aug 2004
    New Zealand

    Default Re: SNK - Snakk Media

    Quote Originally Posted by MichealKaw View Post
    I am bias, I own 2,000 share in this company (the bare minimum), but I got them for 7 cents a pop.
    You can say that again. Bias isn't the word.

    This company has no liquidity and is in a long, medium and short term downtrend. Nice advertising though.
    My posts are for educational purposes only and should not be taken as financial advice in any way.

  3. #3

    Default Re: SNK - Snakk Media

    Quote Originally Posted by Porper View Post
    You can say that again. Bias isn't the word.

    This company has no liquidity and is in a long, medium and short term downtrend. Nice advertising though.
    Yeah but you gotta make you're investment of $NZ140 work if you wanna be rich.

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