ZDGE

ZDGE

TMT


Presented:12/05/2017
Price:$2.84
Cap:$0.03B
Current Price:$3.36
Cap:$0.05B

Presented

Date12/05/2017
Price$2.84
Market Cap$0.03B
Ent Value$0.02B
P/E RatioN/A
Book Value$1.10
Div Yield0%
Shares O/S9.65M
Ave Daily Vol14,499
Short Int0.55%

Current

Price$3.36
Market Cap$0.05B
Zedge, Inc. engages in the provision of content platforms for smart phone personalization. It enables consumers to personalize their mobile devices with free: ringtones, wallpapers, home screen widgets, app icons and notification sounds. Its users can access content via smartphone app, called Zedge, which offers an easy and modular way to customize smart phones. Zedge was founded by Tom Arnoy in 2008 and is headquartered at New York, NY.

Publicly traded companies mentioned herein: Apple Inc (AAPL), AT&T Inc (T), Alphabet Inc (GOOG; GOOGL), IDT Corporation (IDT), Straight Path Communications Inc (STRP), Verizon Communications Inc (VZ), Zedge Inc (ZDGE)

Highlights

The presenter is long shares of Zedge (ZDGE), and thinks management will be able to better monetize its large user base. Its app, ZEDGETM Ringtones & Wallpapers, is available on Android devices and is “the 300mm download app that nobody has heard of”. With the potential for the app to become accessible by Apple/iOS users, continued growth in the installed user base (from 30mm to 50mm), and an increase the average monthly revenue per user (RPU; from 2.5 cents to 50 cents, annual revenue could jump to $300mm (Zedge’s market cap is just $30mm today). Assuming 50% margins, he calculates a pre-tax share value of $15, up from just under $3 today.

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Idea Discussion

Commentor 1 - 2 weeks ago

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