Hey Lexcorp, I don't know what your beef is with Dr. Seuss is and I don't really care. It does sound like you are a bit bitter about something.
I identify the potential in ACU as being a first mover with protected IP, (their platform along with their patents).
Let me start with the facts. There are currently more smartphones and mobile phones than toilets in the world. The proliferation of user interaction through social media for causes (charity or otherwise) is at an all time high. That being said, there are enough channels to disseminate information to appeal for charity but there is no tangible medium to capitalise on donations through an electronic platform. Almost all of the (I believe) $6 trillion is conducted offline through inefficient and archaic methods. There is a real need for this technology in todays environment to deal with the immediacy of today's fast paced lifestyle. Also, this kind of technology breaks the barriers of entry through the use of DCB and transparent transaction and targeted campaigns.
Activate is a company that looks like it is going to revolutionise this industry and change it forever. Everything and I mean all the factors are working in their favour in this point in time. There are a lot of factors to consider when factoring the SP now and forecasting revenues. These are early days and the SP is looking healthy. I think it's about to get re-rated. Why? Because as more and more people will realise what 15% or even 6% of $6 trillion is. Now I know that it is a massive call - cosmic even. But think about this, have you used Uber? Did you know that using a taxi could be that pleasurable and easy? That is exactly what disruptive technology is all about.
In the short term, I imagine that the SP will steadily climb based on the rollout into the US, Europe and Australia. With every new charity they sign up in every market, or with every activation into a new geography it gives them accessibility to an larger base of serviceable users. They said that they only need to have 2m users donating $2.50 per week to make a profit. The serviceable market for the US, EU and Australia is easily over 500m. Just 1% of that will put them in the green. Anything more than that and they are laughing. Then there is Asia.
At critical mass, they could generate revenues of over 500m - 1bn annually and that's just the start. The ultimate potential would be getting closer to that 3-6 trillion mark.
I hope this clears thing up, I'm glad that you are a holder of ACU BTW.
ACU Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
