MIMV: Stock Can Triple from Here

icon Download This Report in PDF

MIMVI, INC. eBay News Great for MIMV; Stock on Sale
Rob Goldman November 23, 2011 [email protected]

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 [email protected] Investor Relations: Wall Street Resources Sean Marconi 772.219.7525 [email protected]

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.

Disclaimer

This Opportunity Research report was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports. It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. While stocks in the Opportunity format may have a higher risk profile, they typically offer greater upside as well. Goldman Small Cap Research has been compensated by the Company in the amount of $8,000 for a research services subscription. The Firm does not accept any equity compensation. All information contained in this report was provided by the Company. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.

The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small Cap Research report or note is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.

This report does not take into account the investment objectives, financial situation, or particular needs of any particular person. This report does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission or with any state securities regulatory authority.

ALL INFORMATION IN THIS REPORT IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.

For more information, visit our Disclaimer: www.goldmanresearch.com.