MIMV: Stock Can Triple from Here

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MIMVI, INC.

eBay News Great for MIMV; Stock on Sale

 

Rob Goldman                                                                                                                           November 23, 2011

rob@goldmanresearch.com

 

MIMVI, INC. (OTC:QB – MIMV - $0.06)

Price Target: $1.50

Rating: Speculative Buy

 

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

 

 

Headquartered in Sunnyvale, California, Mimvi, Inc. is a pure-play Mobile Apps and Mobile Content search and recommendation technology company. Using its proprietary search and intelligent recommendation algorithms, Mimvi‘s powerful search engine provides an industry-leading 6 million searchable results for Mobile Apps and Web Apps and has indexed more than 1.2 million Mobile Apps.  Mimvi’s search engine is used across multiple mobile devices and platforms, including: Apple's iPhone, RIM’s BlackBerry, Google’s Android, and Web Apps. Services for iPad, Windows Mobile platform and Samsung are in the Company’s pipeline

The News:
In the November 13, 2011 edition of The Goldman Guide we noted that eBay (NASDAQ – EBAY) was circling the wagons on the M&A front, particularly as it related to the payments and mobile payments business. 

To that end, eBay just announced that it has acquired privately-held Hunch.com to add technology that recommends products and services to shoppers. Although terms weren’t disclosed, it is believed that eBay is paying $80M for this recommendation technology firm. 

Validation for Mimvi and Future Basis for Valuation:
One of the key features of Mimvi’s mobile app search engine technology is the Amazon-like recommendation format, combined with Google-like search results. This is significant as the deal itself illustrates how important a recommendation engine is to consumers. Furthermore, with an estimated $80M price tag, the deal highlights the underlying practical value of Mimvi’s signature offering and should enhance the Company’s current and future valuation.

Stock Can Easily Triple From Here:
As noted in our initiation report, management has been laying low, building the Company and is only now just starting to generate visibility of its shares. As a result, it was vulnerable to stock swings due to liquidity issues. At the rock-bottom price of $0.06, the stock is an incredible bargain relative to MIMV’s prospects. We expect that MIMV will return to the $0.25 – $0.30 range, with no liquidity issues, as news is released in the coming weeks.

Investment Thesis:
Buying MIMV in 2011 is akin to buying into a privately held Google in 1998. We liken this rare situation to buying Web search engine stocks in the mid-1990’s that were later acquired for huge premiums and deem that MIMV will emerge as an M&A target.  In the short term, the stock is set to soar as major traffic comes on line and new products and financing are introduced before year-end. Our $1.50 price target is based upon 30x FY13 our low-end net income estimate. We rate Mimvi Speculative Buy.    

 

KEY STATISTICS

 

Price as of 11/22/11

$0.06

 

52 Wk High – Low

$1.00 – 0.06

 

Est. FD Shares Out.

41.6M

 

Market Capitalization

$2.5M

 

3 Mo Avg Vol

5,800

 

Exchange

OTC:QB

 

 

COMPANY INFORMATION

 

Mimvi, Inc.
440 N. Wolfe Street
Sunnyvale CA 94085
www.mimvi.com
contact@mimvi.com

Investor Relations:
Wall Street Resources
Sean Marconi
772.219.7525
ir@thewsrgroup.com

 

Analyst: Robert Goldman

Rob Goldman has 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell-side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification

I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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