Photo by: William Hook
The total number of available mobile apps surpassed the 1 million mark last December—a major milestone for an industry that hardly existed five years prior. According to Anindya Datta, the founder and executive chairman of Mobilewalla, a mobile analytics firm, “The growth of apps is the fastest growing consumer segment in the history of commerce.” Forrester Research forecasts that mobile app revenue will reach $54 billion by 2015.
The proliferation of apps has created a challenge for consumers: how can they find the apps they want in such a crowded marketplace? MEDL Mobile Holdings (OTCQB: MEDL), a leading smartphone app developer, has developed a proprietary technology that lets apps find users. The MEDL Brain gathers data on the user’s mobile preferences and makes intelligent recommendations from the Company’s large, growing app library. As consumers download more MEDL apps, the Brain gets smarter and makes better recommendations. Early tests of the MEDL Brain have yielded extremely positive results.
In addition to recommending apps for purchase, the MEDL Brain is expected to drive growth and revenue by pushing free apps to consumers and subsequently recommending in-app purchases. According to the Wall Street Journal, “For many developers, getting their free app downloaded is only half the battle toward making some money — the real key is getting consumers to make in-app purchases and to view advertisements.” With just a single MEDL app installed on a userʼs device, MEDL has the potential to generate revenue from a variety of sources, including advertising and corporate sponsorships.
MEDL’s consumer app library includes nearly 150 mobile applications, several of which are Apple App Store bestsellers. The Company is rapidly growing its library through acquisition, adding new apps through its App Incubator and Alliance program.
Led by technology and marketing industry veterans, MEDL has attracted top-tier clients such as Taco Bell, The New York Times Company, Medtronic and Monster.com. MEDL also has revenue-sharing partnerships with a number of well-known celebrities and organizations, including Encyclopedia Britannica, Pauly D, Rampage Jackson, and Cheech & Chong. The Company recently teamed up with Real Madrid, the legendary European soccer club, on the “Journey to Real Madrid” app. A trailer for the app is below:
Based on MEDL’s current base of approximately 15 million users, at a $25 to $35 lifetime value per user, the Company should have a valuation of $375 million to $525 million. Currently trading under $1, shares of MEDL could reach substantial new highs as the Street takes notice of this dynamic, fast-growing company.
To learn more about MEDL, watch the Company’s presentation from our June 2012 Small-Cap Virtual Conference. You can also sign up for our weekly newsletter, The RedChip Money Report, which delivers the latest updates from MEDL and other small-cap companies directly to your inbox.
Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.
