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Single Touch (SITO): Heroic To Hideous in Two Weeks, But NBC In Dallas Loves Them

My great one week 20% short term win with Single Touch has turned rather disasterous in the short term- at least as the price is concerned. Today was absolutely insane- the stock completely crashed in a big one day swoon. Problem or opportunity? No question about it. Read on McDuff.

This one was controversial from the get go. People love the concept, but as investors we realize the market is pretty stingy with regard to paying for upside. Trailing numbers are important to today's investor, and Single Touch doesn't have the history.

The market loved the idea that SITO has been engaged to provide the back end data delivery for 2.5 million subscibers of Nextel Mexico. The stock ran up to $2.50 on huge volume relative to historic levels, and then started coming back down. 

It would appear, at least from my eagle's nest bird's eye view of experience, that a bunch of the early participants were only interested in renting this stock for a few days, and are now retuning the rental car in a very damaged state. In my view, that's insane. They haven't even given this stock a couple of weeks. I don't get this- if they liked it at $2.50 on the Nextel Mexico news, why would you sell it at today's levels?

The stock has now settled out in the $1.25 range, and I believe it is a great opportunity for investors and those with more a a trading mindset. It's sold off big time on light volume, bounced, and stabilized at half where it was when everyone was excited about the Nextel Mexico relationship.

And, speaking of today's levels, did you happen to see where this stock traded to on almost no volume? Did you guess it?- $.55. 3350 shares traded at $.55 today. I wish I had bought those shares. I have no idea who would be insane enough to sell that stock at that depressed price after just buying it a week or two ago at a much higher level. I wish I had bought those shares. Within 20 minutes they could have gotten twice the price- it's just insane. 

In the meantime, lest you think there's no substance here, this WalMart relationship is very much for real, and is going to grow dramatically over the coming months and years. 

Here's some recent publicity for you to review. This is from the NBC affiliate in the Dallas/Ft. Worth area. I captured the video report for investors, and it gives you some idea of where Single Touch (SITO) is headed.

The report only mentions AT&T as the service provider for WalMart (NYSE: WMT). AT&T is only the marketing arm for this service on behalf of Single Touch. All the calls being placed, and text messages being sent, flow through the SITO network, and SITO is collecting a small fee for every single call or text.

There's going to be lots more publicity of the kind you will now see. Check it out. Just click and watch. It's going to be mind boggling huge. 

There's no telling how big this could get, but certainly this is just the beginning. Here's a link to the news report, and the article that appeared on their web site. 

NBC News Report Video: www.otcjournal.com/video/fp/company/SITO/
Full article: www.nbcdfw.com/news/business/Wal-Mart-Shoppers-Save-With-Cellphones.html
Content of Article:
 

Wal-Mart Shoppers Save With Cellphones #WMT Service Developed By Dallas-based AT&T

By  KEVIN COKELY

Updated 8:50 AM CDT, Tue, Apr 14, 2009
Related Topics: Wal-Mart Stores Inc.

KXAS

Free mobile service at Wal-Mart provides savings alerts & product information. 

Wal-Mart wants you to use your cell phone inside it's stores.

Walmart Wants to Help Shoppers Save Some Green

New service helps shoppers look for bargains on their cell phones.

A free mobile service called #WMT allows Wal-Mart shoppers to learn about deep discounts, and read product reviews right there in the store.

"Everything we do at Wal-Mart is to help our customers save money," said Dennis Arnold with Wal-Mart.

Shoppers who sign up for #WMT get up to three text message alerts a week about Wal-Mart's "Rollback Prices" and other store specials.

"Getting the email on what's on sale and stuff, I think it's great," said Melissa Jandal of Dallas.

Jandal, the mother of five children added its "time saving" because the alerts will let her know when to stop by the store.

Dallas-based AT&T developed the free mobile service, the first of its kind in the retail industry.

Wal-Mart shoppers with a working cell phone from any one of the major U-S wireless service providers can sign up for #WMT.

"Wal-Mart wanted to make this available to all of it's customers," said Sarah Andreani, AT&T spokesperson.

#WMT started last year as a pilot program called "Simple Meal Ideas".

Developed in partnership with Kraft, #MEALS offered Wal-Mart shoppers recipes and other information.

"It tells you what exactly is needed in that recipe, the items, where to purchase it, where to find it in the stores" said Arnold.
The #MEALS service is currently off-line, while AT&T and Wal-Mart work on future enhancements to the program.

With #WMT, Wal-Mart shoppers can get information and product review on virtually anything in the store, just by entered the item's Universal Product Code or UPC.

A mother of two, three year old boys, Taylor Schmidt of Richardson likes the product review feature.

"If you were gonna buy a blu-ray player or tv, or a big ticket item, i think it would be a great idea," said Schmidt.

A recent survey conducted by Wal-Mart found 44 percent of #WMT users purchased something based on the price alerts.

"I think it would get me to come back to the store more also if they sent me a text that something, you know, was on sale," said Schmidt. "Especially something that I use more."

You can sign up for the free service by dialing #WMT on your mobile phone, or by registering here. 

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