Yesterday I looked into a couple John Malone stocks that were being teased by John DelVecchio’s Hidden Profits, and a question popped up about “the other one” — so I thought I’d check on that for you, too.
That ad teased three stocks — two of them were “the billionaire who beats Warren Buffett” ideas, stocks that are connected to John Malone and his Liberty empire, but the third one is something completely different… here’s how the ad teases it:
“FAST STOCK #3: 400% Gains From ‘The Next Facebook’
“If you’ve spent anytime online lately, you’ve seen the flood of digital advertising taking over the internet…
“Pop-up ads, ‘paid content’ at the bottom of legitimate news sites, even company blogs and websites have become virtual billboards.
“This is the revolution going on in advertising and marketing…
“And it costs a lot of money.
“In 2016 digital ad spending hit over $72.09 billion, passing traditional TV advertising ($71.29 billion) for the first time.”
Digital advertising is something we look at a lot here, of course, since it has fueled so much growth for companies that get teased from time to time, or that I own (like Facebook, Alphabet and The Trade Desk), so I’m certainly curious… what’s this “next Facebook” idea?
Here’s how they describe it:
“You see, there are three types of media – owned media like a company’s website or blog…
“Paid media like Facebook or Google ads and other forms of paid advertising…
“And then there’s earned media.
“Earned media is the online equivalent of a referral… or in this case, a lot of referrals from people that others trust.
“For business owners, earned media is about leveraging the things that are already being said about them and their brand to improve marketing and make smart business decisions.
“The problem with earned media is it requires a ton of data and it requires making sense of it all and applying it.
“If a marketing company can crack the code on building trust with earned media and then turning that trust into sales…
“That company could become ‘the next Facebook’ when it comes to digital advertising.”
I don’t think I’ve heard that “earned media” term before, but it sounds like that’s what we used to call “free media” … I guess that term “free” didn’t give enough credit to public relations professionals who “earned” the coverage by pushing stories to journalists or trying to stimulate “viral” stories on social media.
So presumably we’ve got an ‘earned media’ stock here, no? Indeed, here are the other clues…
“The good news is I’ve found a “hidden” business with the solution for earned media… and it’s a FAST stock that pays you first.
“This company has figured out how to mine the data from millions of social media posts and online activity so that companies can use that information intelligently.Are you getting our free Daily Update
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“They’ve already deployed an earned media strategy to their current customers with a highly profitable subscription model.
“And they’ve proven this model in a $3 billion market with a steady stream of contracts and excellent renewal rates.
“Now it’s in prime position to move into new markets that total an estimated $32 billion and $195 billion.”
Anything else? We do get a little hint about the stock price, which might help:
“This is a stock you can get into for less than $17.50 a share and I believe it will grow four fold or more in the coming years.”
So… hoodat? Thinkolator says this must be Cision (CISN), which is a company that I’ve never looked at before. They are focused on providing “marketing software” and, yes, this is yet another cloud/SaaS business where they’ve been trying to move their customers from buying software to renting access to software… with some success, since over half of their customers are subscribers now.
The match is imperfect, to be clear — mostly because there aren’t really a lot of solid clues to tie this one down. Cision