Shareprophets update20 Sep 2014 18:01
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Creator and manager of interactive services for digital TV platforms and broadcasters, Mirada plc (MIRA) has announced “a new, supplementary contract with its existing ‘tier one’ customer in Latin America to provide over-the-top services which will enable its current subscriber, and potentially non-subscriber base, to access its content anytime, anywhere, from any compatible device via a TV Everywhere platform”.
Mirada emphasised that this inaugural ‘over-the-top’ contract highlights its strong relationship with the tier one customer, which is expected to start commercial roll out of the ‘TV Everywhere’ platform at the beginning of Mirada’s next financial year (to 31st March 2016), and that “the subscriber-based license fees for this over-the-top contract could represent additional subscriber-based revenue in excess of $5 million”.
This is in the context of £4.57 million (currently $7.5 million) in total revenue Mirada reported for its year ended 31st March 2014 and it added that also the contract “will serve as a reference point for current and future discussions and negotiations on over-the-top services with other tier 1 and tier 2 broadcasters and operators in Latin American and European regions”. This is significant as references are considered key in the market – whilst “the company continues to explore a number of exciting opportunities within the over-the-top market with a view to building on today's success. We look forward to providing further updates in due course”.
The shares, at 13p-13.5p, capitalising the company at circa £15 million, are ahead of the 11.75p offer price at which they were tipped by us in February. However, with this and other contracts seemingly in the pipeline we continue to see the potential for 24p here. And it won’t take long. Even 24p would be a fairly low PE for a company that will clearly now make at least £3 million PTP next year
What drives that re-rating and soon? Another tier 1 contract. Watch this space. Buy.
- See more at: http://www.shareprophets.advfn.com/views/7895/mirada-contract-news-good-more-to-come-soon#sthash.BN0tbnjB.dpuf