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VāRinging the Profit Bell: Again- With A FaceBook AP |
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Ever feed a stray cat? What happens? The cat shows up again for a repeat. Cats know how to survive and prosper anywhere, and I know how to survive and prosper in the world of small and microcap stocks.
So, like the cat who shows up for its next meal, Iām hungry, and going back to the same stock for another meal of profits.
Vringo (AMEX: VRNG) was very good to us the first time around, had a couple of tough months, and now appears to be ready to pounce to higher levels once again. These mobile stories are just growing like weeds, and VRNG is right in the middle of the content revolution finding its way to your cell phone.
I first featured VRNG back on Sunday, May 1st. I called it the company that allows you to "Watch My Cell Phone Ring". VRNG has spent years developing video technology that allows callers to "push" unique video content to other smart phones when they call. The video content becomes the ring tone the recipient hears and sees.
For example, your daughter could record a short video message- something like "Hi Dad, itās your daughter Laura calling". When she calls, the video/audio message becomes the ring tone. Clips from movies can be pushed as well. Itās the first technology Iāve even seen that allows the sender to set the ring tone, and the ring tone can be video/audio. Fantastic stuff.
Obviously, it doesnāt work on every cell phone. It has to be a more advanced hi-tech phone. The company has teamed up with major cell carriers and content providers all over the globe- especially in the Far East and on the India sub continent where smart phone use is far advanced as compared to the US.
The service is now available to millions of users through multiple mobile carriers in India. Their APs are being rapidly adopted in Malaysia. Adoption is starting to gain momentum.
The major marketing push for VRNGās visual ring tones started over the summer, and in Malaysia, where users have limited access to computers and tend to rely more on the Smart Phones and their excellent networks, VRNGās product has already been downloaded by 300,000 users.
As their technology started being adopted, there have been a couple other corporate developments- VRNG recently closed a $2.5 million financing with Silicon Valley vc firms Benchmark Capital and DAG Ventures, and received an extension through year end from the NYSE AMEX to meet their requirements for continued listing- all good stuff. But hereās the really big news:
VRNG is starting the deployment of a new killer ap: The "Facetone", which of course integrates with a Facebook Page. Read onā¦ā¦ā¦
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Enter "Facetones"- the Killer VRNG AP |
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VRNGās Facetone is one very cool product, and I wouldnāt be surprised to see this one become highly viral- in fact- it already is.
It was just released last week for U.S. users through Verizonās V Cast store- it now works with many Verizon phones, and VRNG is working on the iPhone version right now. Click Here to check it out.
Hereās what this AP does. When you load the AP into your phone, it goes into your contact list, and matches all of your contacts with their Facebook Page.
Now, when you are talking to one of your contacts on your Smart Phone, all the most current pictures and postings from their Facebook Page scroll by on your screen. Vice versa- all of your latest Facebook Content scrolls by on their screen even if they donāt have the AP loaded into their phone.
Delivering the content is pretty cool, but the technology side of this is more difficult than you think. Almost all Smart Phones go into a shut down mode of all other applications when youāre speaking on the phone. FaceTones overrides the shut down, and allows this content to appear on the screen.
This new form of social media now allows you to catch up with someoneās latest Facebook entries while youāre actually talking to them from anywhere. Thatās what I call cool stuff. Verizon is advertising it as a $2.99 AP, or $.99 per month if you prefer.
Most other carriers are also offering a free version with advertising content embedded.
The first 100,000 of these APs have already been downloaded, and this is going catching on very quickly. With each call, the other party receives a solicitation to download the AP, so as it becomes more widespread, it will be become highly viral. VRNG reports 30% of the downloads are coming from completely unidentified sources, which makes them users who experienced the AP elsewhere.
Last week, VRNG announced the AP was available on Verizon, and now youāll see why I believe we might be in for a repeat of the 50% return we experienced on this one back in May.
As you can see from the chart, on the news the stock gapped up from $1.32 to $1.90 at the open.
And, what do I keep saying about gaps in a chart? Gaps are a vacuum, and nature always tries to fill a vacuum. Therefore, VRNG becomes a buy again when the gap from last week gets filled.
As you can see from this chart, the stock has come back and nearly filled this gap. Time to start climbing again, and I expect the stock to do so on the heels of todayās pre open news. Read on againā¦ā¦Ā
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Vringo (AMEX: VRNG) Doubles Down in Malaysia |
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Celcom is Malaysiaās biggest mobile service provider, and the one VRNG didnāt have. VRNG has Celcom now, as was announced just before the market opened today.
Celcom is the biggest in Malaysia, boasting 11 million customers, and its network reaches 98% of the population. Celcom is part of the Axiata Group of Companies that reaches 160 million customers across 10 Asian nations.
Hereās what I find interesting. VRNGās APs get marketed by the second largest mobile carrier in Malaysia. 300,000 downloads later, all of a sudden Celcom, the largest carrier in Malaysia, is offering their APs as well.
Whatās next? Well- thereās two distinct and not totally separate possibilities. Since Celcom is part of a group, how about the possibility of expanding to the other 10 mobile service providers in the group, and reaching 160 million customers instead of 11 million?
Also, now that Verizon has picked up the VRNG AP, could other US based carriers be far behind?
The New York Times called VRNG "the next big thing in ringtones". USA Today said their service has "to be seen to be believed".
Hereās how I see this. VRNG has a lot of momentum. Revenues are starting to climb. Their APs are highly creative and in demand. Thereās already be 500,000 downloads of their services combined just since I started covering the company. Volume is coming back into the stock. Market conditions are improving. Everything you could ever want in a stock is happening here.
Mobile and Social are two of the hottest growth areas in the market. This company has combined them both.
VRNG closed at $1.42 yesterday. I donāt know where it will open today. The highs are now starting to get higher, and the lows are also getting higher. Thatās known as an UPTREND.
I suspect the stock can easily get back to last weekās high, and possibly push on from there if thereās more news behind todayās.
Accumulate up to $1.60. Short term target: last weekās high or $1.90. Longer term look for the former high of $2.60 (83% higher than Mondayās close). Looking a year down the road? $5 is possible. SSL: $1.30.
This one could really rock.
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