The News that no-one understood!!
It’s clear that after 6 days of sell-off, I believe we are close to a bottom from a share price standpoint, if we did not already reach there. We have received many emails and calls from investors that sold thinking that the launch of the website for the YouTube Partners was the major catalyst and that the “Trade is Over”. This however is just the beginning of a relationship between SoMedia and YouTube/Google that will transpire into something way more significant over the coming few weeks and months.
To date, SoMedia only launched the medium that will be used by Google’s Partners when an official agreement with the latter is reached. In my opinion and based on the way on the Google/YouTube Canada event took place last week, we can speculate that an agreement is in the works and could come to fruition within the near future.
Clearly getting an agreement with an anchor like Google/Youtube will be a key valuation driver that could take SoMedia to a valuation north of 100Mcap and even more.
If you want to get a good feel of what this could turn to be, I suggest you Google/Search the number of Google Partners that are available in Canada alone. These are partners that are already using the typical production houses to get their ads done. If SoMedia can penetrate 15% of the ad revenue that Google Canada Partners alone offer, we could be talking about a few million dollars of revenue aside from what the Company has from its reseller network already. This does not even take into account ad spend from the US or any other anchors that SoMedia can now partner with. Again, Facebook is looking at 2.6Bn in revenue from ads, which should tell you something!!
SoMedia is just at the cusp of making itself a brand name for Canada that could be a great take-over target so long as management keeps delivering on their business plan.
I will close off with one note, the level of interest from both the East of Canada and the US of the border will soon transpire into something significant.
SoMedia sits right now where Vanc Pharma was a month ago, when everyone was throwing the towel. The minute we hit 35 cents on Vanc, we never saw the 30’s back. As such, I amongst others in my network will be using this lull to add to our positions as SoMedia’s valuation today is at a significant discount to where it should be, IMHO.
MMN
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