Firing on all cylinders
​Being able to consistently deliver out-sized investment returns, is all about managing risk and finding high quality, growth stocks at the right price. We’ve seen this already in 2016 with many such smallcaps, like Keywords Studios, Fevertree Drinks, Boohoo, GW Pharmaceuticals and Tristel. Another stock that in due course could join this select band, is FastForward Innovations (FFWD - up 100% since mid Oct’15) which invests exclusively in rapidly expanding technology firms. Today FFWD holds non-controlling positions in nine such privately owned businesses, which we understand are all either meeting or exceeding their internal plans. Yesterday the company provided updates in relation to three of them:
Firstly Yooya (15% stake), a Chinese online content streaming platform, is currently generating >1bn monthly video views (vs 700m in August), up 600% YoY – and importantly now offering the scale necessary to attract major international advertisers.
Next Schoold (12.3% owned) - which is already the market leader with regards to the number of US student downloads of its innovative university career counselling App - has just launched its first commercial product (Viewbook) and is gaining significant media exposure.
Finally it was reported that Moon Active (5.9% stake), an Israeli developer of social multi-player casual games, had almost doubled revenues (YoY) for the 3 months ending Sept’16. What’s more the Board has decided to substantially increase its marketing and personnel to support global expansion, namely in support of its latest and most popular title Coin Master.
Interims are scheduled to be released in December, albeit we estimate that the proforma Net Asset Value (NAV) as per Sept’16 was around £10m, equivalent to 7.5p/share post forex movements, YTD investments and normal cashburn. Whilst this is below today’s price of 11p, the NAV could rise quickly, reflecting the quality of FFWD’s M&A pipeline and the significant headway being made by its exciting investments.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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