Photo by: William Hook
In the five years since Apple (NASDAQ: AAPL) launched the iPhone, mobile applications have grown into a multibillion-dollar market. Today, consumers download smartphone apps to play games, manage their stock portfolios, track their workouts, listen to music, and much more. Smartphone users now spend more time per day using mobile apps than they spend on the web. Mobile app revenue is forecasted to reach $54 billion in 2015 and $101 billion in 2017, according to Global Industry Analysts.
MEDL Mobile Holdings (OTCQB: MEDL), a leading smartphone app developer, is well positioned to capitalize on the exploding demand for mobile apps. MEDL has developed apps for some of the world’s most recognized brands, including Medtronic (NYSE: MDT), Taco Bell, Monster.com and The New York Times. The Company also has revenue-sharing partnerships with a number of well-known celebrities and organizations, including Encyclopaedia Brittanica, Cheech & Chong, and MTV’s Pauly D. Several of MEDL’s apps have reached #1 in the Apple App Store.
Between November 2011 and May 2012, downloads of MEDL apps increased 44% from the previous six months. The Company is rapidly expanding its app library. MEDL plans to roll up thousands of quality, underperforming Apple and Android apps via low-cost or no-cost acquisition, paying developers a percentage of future revenues. The Company is also adding new apps through its App Incubator, which allows users to submit their app ideas to the Company. MEDL creates and owns the app, sharing a percentage of post-profit revenues with the developer.
MEDL is much more than just an app developer. Its proprietary, patent-pending app discovery technology will drive the Company’s future growth. The primary challenge facing apps is discovery. Nearly one million apps are available today, and new apps are launched daily. With the immense size of the market, consumers need an easier way to discover new apps and relevant mobile content. MEDL has solved this challenge with the introduction of its MEDL Brain technology, which lets apps find users.
The MEDL Brain gets to know users based on the types of apps they use, where they use them, when they use them, and how often they use them. The MEDL Brain, using scientific algorithms, can then make expert recommendations to the user from the Company’s library. Early tests of the MEDL Brain have yielded extremely positive results. One way MEDL expects to drive growth and revenue is by pushing free apps to consumers and subsequently recommending in-app purchases.
MEDL has an innovative business model with the potential for multiple streams of high-margin revenue. Based on the Company’s total number of approximately 15 million users, at a $25 to $35 lifetime value per user, MEDL Mobile should have a valuation of $375 million to $525 million–representing a near-term upside of 1,400% to 2,000%. Currently trading under $1, MEDL is a great opportunity for investors to profit from the mobile revolution.
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.
