Very interesting! Joel Achramowicz, Managing Director of Equity Research, initiated his research report with a buy rating and a $0.40 target price.
"Investment ConclusionSitoa Global Inc. (or,"SGI") has structured an e-commerce cloud platform for supporting niche vendors on the Web. The company has struggled before, but is now enjoying ramping revenues that could lead to profitability in 2-3 quarters. Therefore, we're initiating coverage of this equity for aggressive accounts with a BUY rating and a 40-cent target price. Our price target is obtained by applying a 2-times multiple of our projected sales for FY2013 of $8.4 million."
"Investment Summary
SGI currently provides a powerful cloud-based e-commerce platform for vendors who wish to have a leveraged sales and distribution model on the web while benefiting from other merchandisers with related offerings. We call these collections of related vendors e-commerce ecosystems. Generally these varied niche ecosystems have sales franchises with long-tail opportunities, but often with significantly lower sales volumes. Five hosted thematic ecosystems are currently supported by the company; and the portfolio is expected to grow rapidly in the quarters ahead. SGI has a strong R&D development and systems group in Nanjing, China with strong connections to the community. Currently, the company has 10 developmental personnel in its facility there. New opportunities are arising with multiple Chinese firms looking to find a strong merchandising position on the Web, and SGI can help them get there. Acquisitions are expected to bolster the company's position in the months ahead as the company looks to grow inorganically in the fragmented online merchandising community. The outlook for e-commerce remains very exciting--particularly in Asia--as people worldwide look to the Web for productive ways to shop, do business, and recreate. Growth opportunities are also particularly strong in the explosive mobile shopping arena, and SGI is planning to develop effective applications to tap this huge and growing market. The global market for e-commerce and online shopping is now more than $2 trillion, according to MasterCard Worldwide. Asia in particular is fanatical about shopping on the Web, and this augers well for the company's position there."
"Though risky and only for aggressive investors with high RISK thresholds, Sitoa Global may be an interesting play. Sales have recently been ramping and we expect the growth to continue on a secular basis. As such, we're initiating coverage today with a BUY rating."
Please note that any opinions, estimates or forecasts regarding Sitoa Global's performance made by analysts covering the Company are theirs alone and do not represent opinions, forecasts or predictions of Sitoa Global or its management. The Company does not, by its reference above, imply its endorsement of or concurrence with such information, conclusions or recommendations.
About Merriman Capital, Inc.Merriman Capital, Inc. is an investment banking firm providing equity and options execution services, market making, and differentiated research for high growth companies. The firm also provides capital raising, advisory and M&A services. Merriman Capital, Inc. is a wholly owned subsidiary of Merriman Holdings, Inc. ( MERR) and is the leading investment banking firm for OTCQX companies. For more information, please go to http://www.merrimanco.com/.
Merriman Capital, Inc. is a registered broker-dealer and member of The Financial Industry Regulatory Authority (FINRA) http://www.finra.org/ and the Securities Investor Protection Corporation (SIPC) http://www.sipc.org/contact.cfm.
http://www.thestreet.com/print/story/11697118.html
|