Embark Value

What attracted me to XTD is that I am getting a business with huge global growth potential with a few wins overseas and a fairly fixed cost base. This means that the revenue gained from overseas expansion will mostly drop to the bottom line, making XTD worth much more.

The other part of XTD, which I believe the market has overlooked and is not priced in at all, is the Contact Light business and their Embark App. While it is almost impossible for me to value, as it doesn't make money at this stage, others may see great value in it. The Moovit App, which does the same thing as Embark, but doesn't have Embarks additional features, has an implied value of $450m, see articles below. In other words there are large investors out there, that are prepared to pour money into this technology, as they can see the value, as their user base in now in the millions. Transport apps are used more than a lot of other apps as they have a use, but there doesn’t seem to be any one app capitalising on this space very well.

Embark is different to Moovit, as it not only tells you how to get to where you want to go, but it has news, advertising and entertainment content and the ability to connect and engage with the XTD screens (see XTD announcement dated 27th of January). So its much, much better and unlike Moovit should be generating revenue much sooner.
I found Embark on the app store for anyone who is interested in taking a few seconds to download it. Just look for Embark by Contact Light when you search the App Store.

Here are a couple of interesting articles on Moovit -
http://techcrunch.com/2014/09/21/wi...o-follow-in-wazes-footsteps-for-mass-transit/
http://techcrunch.com/2015/01/14/mo...-public-trans-app-goes-up-against-citymapper/

Mike Boyd is the CEO of Contact Light and headed up the team that built the mobile applications for the TAB, now a $2 billion plus sales channel for them. Mike understands the advertising industry inside out, is well connected and has great expertise in the mobile space. They certainly have the right guy heading this business and it is great to know that XTD own over half of it and its not priced in at present.

Its early days for Embark. That said this is a very fast moving space and it could gain momentum very quickly. After all, Uber was tiny just 6 years ago. Lots happening behind the scenes and it will be very interesting to see how they go now that they have announced the launch of Embark

Embark actually has the potential to be worth more than XTD itself in my opinion, all be it speculative at this stage. Reading the Phillip Capital report they tend to agree with me. I will be watching this space closely.