Hi speculator,
I anticipate the market cap somewhere in the vicinity of $200 to $300 million, possibly higher depending on how quickly revenues increase.
In all honesty, it's a matter of how quickly display add buyers and sellers switch from the traditional means of phone, fax, email, to automated buy/sell add display. The overall market they are targeting to be leaders in is worth 14 - 40 billion.
As they stated, they anticipate the revenue to increase substantially over the coming years.
Excluding the impressive array of companies already using ADJ's platform, such as Mail online who recently reported that ad revenue was up 51% year on year, how much did Adslot contribute to the increase? Carsales, Watif they all say ADJ technology increases their profitability.
What is very much in their favor, is through Symphony, which gives them 'Direct access to an additional USD $1 billion of premium online display ad spend, which will grow to $2 billion as contracted new deployments of Symphony occur. This ad spend comes from the growing list of agencies already using Symphony to automate back-office process.' as quoted from their report today.
If over the next 12 months ADJ capture a quarter of this, that's $250 mill of transactions. the market will be pricing them at being able to capture half of it, which would generate 30 mill of revenue for ADJ this is how I come up with a assumption of a share price of .30
Keep in mind the depth of the team on the board, particularly so, the latest member being Quentin George, and what they all have to offer.
Aside from Symphony there is still a massive market to capture in small/med business. Not to mention what is driving the 1.6 million quarterly revenue currently.
One of the board members had a view that was similar in meaning to that of small cap stock finder Motleys Fool, who both were of the belief that this company could go anywhere if the market keep coming to them .30? within next 6 months? $1? $2?? In 5 years?
No one know's of course, however the set up for growth is sensational, every article on Programmatic Direct aligns to a view that Programmatic Direct is a very new space, with plenty of room to make considerable profit.
This stock is definitely not for anyone with a low appetite for risk, however for those that do like a punt, this stock could be precisely what they are looking for when small cap resources are still floundering.
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