Investment and Company Research
Opportunity Research
MICRO CAP HOT TOPICS
 

October 22, 2013

Industry Deal Highlights Deep Value for LifeApps Digital Media

A few weeks ago, The Active Network, Inc. announced it had agreed to be acquired for $1.05 billion.  Given that Active is considered a larger peer to LifeApps Digital Media, Inc. (OTCQB – LFAP - $0.07  Spec Buy), the sheer value of the transaction in turn illustrates the deep value found in LifeApps’ shares as well. Much like LifeApps, Active also combines technology solutions for marketing and branding purposes in the health, wellness, sports, and recreation space with online communities, and real-world events management and product sales.  The Company boasts tens of thousands of organizations and corporations as customers. We believe that LifeApps is akin to an earlier stage version of Active but with an emphasis on effective marketing and branding through digital media services rather than solution-based offerings, which offers greater potential and reach.

LifeApps has won acclaim for its digital offerings and via its recent acquisition of Sports One and the introduction of the Golf Core Grip System, management is gaining real sales traction. As we near the close of the Active buyout, eyes will likely turn to LifeApps and investors may find deep value in LifeApps at current levels, thus, driving the shares markedly higher.

Moreover, in recent weeks, the Company has commenced new initiatives in its wholesale eCommerce sporting goods subsidiary Sports One. In addition to hiring new senior personnel to help manage the subsidiary’s growth, the Sports One has signed on new, key partners, including Champion, BAW, ProTime, Headgear Cap Company, and Boxercraft, which broadly increases and diversifies the Company’s overall product line.  Management has already witnessed solid growth in this segment, as it has increased revenue and its overall customer base.

Clearly, there is much value in both the digital offerings and sporting goods segment for LifeApps. Given that we are heading into the important holiday season, investors can look forward to growth in the Company’s operations along with its market value.

For more information, refer to our previous sponsored LFAP Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com

Senior Analyst: Robert Goldman
Rob Goldman has over 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 Hot Topics article 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. Since May 2013, Goldman Small Cap Research has been compensated $500 per article by a third party and $4,000 for a research report service.  

Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.

This article is the opinion of Goldman Small Cap Research and was written based upon publicly available information and our own due diligence.  The Company has not endorsed or compensated Goldman Small Cap Research for this article. All information contained in this report was provided by the Company or derived from GSCR due diligence. 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, update, article, 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 publication 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 FINRA, 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