IZEA, Inc. (OTCQB: IZEA), the pioneer of the growing social media sponsorship (“SMS”) space, traded record volume today as news about billionaire investor Dr. Philip Frost’s investment in the Company made it around the Street.
In a 13G filed with the SEC on February 4, 2013, Frost disclosed his acquisition of 9.1% of the common stock of IZEA. To have a noted small-cap investor like Dr. Frost getting behind IZEA is a solid endorsement of the opportunity this stock holds for investors.
Here is a brief list that highlights some of Dr. Frost’s wins (originally compiled by Seeking Alpha contributor Rohit Thapliyal):
- Continucare (invested $16.8M that became $170M) +900%
- Dreams (invested $2M that became $15M) +650%
- Whitman Education (invested $6M that became $175M) +2800%
- Key Pharmaceuticals (invested $5M that became $180M) +3500%
- Rolapitant (invested $29M that became $190M) +580%
- Ivax (invested $100M incl. open market purchases that became $1.5B) +1400%
- ChromaDex (combination of personal and corporate investments) all up at least +200%
- North American Vaccine (invested $10M that became $140M) +1300%
IZEA connects advertisers with social media influencers, helping them monetize their social media presence. Since launching, the Company has completed more than 3.5 million SMS transactions for customers ranging from small local businesses to Fortune 50 organizations.
The Company’s network boasts 750,000 registered influencers and thousands of brand partners. Its platforms take the concept of product placement and endorsements, commonly found in movies, television and radio, and applies them to the social web, allowing a wide variety of influencers, from college students and stay-at-home moms to celebrities, an opportunity to monetize their content, creativity and influence in social media.
IZEA has produced solid year-over-year sales growth, with revenues up 38.5% for the first nine months of FY2012. The Company’s gross profit margin has more than doubled since inception, reaching 59% in 3Q12. Its sales pipeline of $12 million is expected to have a significant positive effect on the Company’s fiscal 2013 results, providing a strong catalyst for continued share price improvement.
To learn more about this exciting opportunity, watch our recent interview with IZEA’s founder and CEO, Ted Murphy.
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.