I see anywhere north of .20 as a fair price given the future potential. I would not sell 12 months out from game changing technological changes to the platform.
Today's announcement proved they are growing....there is little to warrant loosing any sleep over, the meaningful larger picture whereby the technology is built into ADJ's platform to enable very large seamless transactions is the main aim of management, and would still appear to be coming together as a well constructed plan.
As we know, ADJ have some most reputable clients already, however the 2 billion dollars of transactions that currently flows through Symphony will 'likely' convert to revenues traded through Adslot. If this eventuates, I'll be rewarded for patience, at such a time whether it be 2 years or 5 years, I anticipate somewhere around 5 times current prices.
A 50% percent return on my investment is there about market average, 10% gain over 5 years however however a 500% gain is another story all together. The probability of this eventuating is increasing as each year passes.
The very nature of how the advertising market still do business, termed now as 'The old Way' means time is not slipping detrimentally away, time is on 'The New Ways' side.
The future plan taken from today's announcement I read to be a sound plan!!
Future Developments In 2015 - the Company will continue to focus on generating growth in high margin Trading Technology revenues via continued execution of the existing strategy, including:
• Continue to build Adslot’s coalition of partners and integrate them into our platform. The Company anticipates launching live integrations with multiple supply and demand partners throughout the March and June quarters (2015);
• Release the Phase 2 integration of Adslot & Symphony (scheduled for March 2015). The release of this integration enhancement will provide the Adslot sales organisation with a good basis on which to compel agencies already using Symphony to start trading via Adslot;
• Continue to grow the forward guaranteed spend captured within Symphony. Scheduled deployments of Symphony under existing multi-market contracts, and new contracts expected to close in coming months is expected grow the media spend captured via Symphony grow to in excess of USD $2b per annum by the end of 2015; and
• Continue to focus our product capability on the end-to-end campaign lifecycle. Further enhancement of the Adslot platform will create features that enhance the ability of both media buyer and media seller, to automate all facets of the campaign life cycle, and not just the media trade in isolation. In particular, effort is being invested to expand Adslot’s unique ability to offer buyer and seller tools that will allow them to optimise campaign performance collaboratively.
The entire industry agrees that the new way is inevitable, yet also agree it may take a few more years.
Encouragingly important did anyone else notice NTA doubled from .34 to .69 cents : )
These are my thoughts only, be responsible for your own research and actions.
ADJ Price at posting:
9.7¢ Sentiment: Buy Disclosure: Held
(20min delay)