Today, we are bringing a new profile, Social Reality Inc. (NASDAQ:SRAX), an advertising technology company, which seems to have drawn the attention of the market recently.
The share price jumped in September from $1.25 to close at $2.50 in less than ten days. The move came on the back of strong volume with millions of shares changing hands.
Social Reality, Inc. was formed on August 2, 2011 and is headquartered in Los Angeles, California. As explained in the company materials, SRAX sells digital advertising campaigns to advertising agencies and brands.
The company’s developed technology allows brands to monitor online campaigns. But, it is not only that. The company has a platform named SRAX Social platform that allows website managers to market their media services.
The company noted that the most significant revenue sources are the sale of digital advertising campaigns, the sale of media inventory from websites to brands through real-time bidding, or RTB, exchanges, and the sale and licensing of the company’s platform and the development of new custom platforms. Additionally, several pricing options are available including cost-per-thousand-impression as well as monthly service fee.
Finally, we need to note that SRAX is a Facebook Inc (NASDAQ:FB) advertising partner.
On September 7, 2017, we received word that Ms. Colleen DiClaudio had been elected to the Board of Directors. The company decided to increase the board’s size to nine members and Ms. Colleen will fill the new vacancy.
We checked her business expertise and appreciate that she co-founded 340B Software Solutions, a healthcare technology company, in the past. We appreciate her entrepreneurial business profile, as she fits best to the culture of the company. Furthermore, she possesses interesting academic reputation. She holds a Master Degree in Public Health from the University of Medicine and Dentistry of New Jersey and a Bachelor Degree in Public Health from Stockton University.
On September 25, 2017, Social Reality, Inc. released a presentation regarding its BIGtoken.com project, which we believe could cause a lot of market volatility. Our readers know that a new project brings new potential revenues and the market will push up the share price when such type of announcements are released.
The new project aims at recovering consumers information targeted by online operators and putting it back in the hands of the consumers.
According to the presentation, clients are paid with tokens when they share their information with the system. Additionally, if the information is purchased, more tokens are received in return. Furthermore, customers are able to monitor those who are acquiring the information and most importantly how it is used. On top of it, the system helps customers block ads and advertisers while giving access to those appreciated by the user.
The project is quite ambitious and if everything that is promised is delivered, we believe that the company could show outstanding growth in the future. In our opinion, more information about the system will be appreciated by the market; most importantly, what’s going to be the value of the tokens given to the customers and if an ICO is planned.
The following market participants declared the following stakes:
|Holder||Shares||Date Reported||% Out||Value|
|Virtu KCG Holdings LLC||31,029||Jun 29, 2017||0.39%||42,820|
|PanAgora Asset Management, Inc.||13,475||Jun 29, 2017||0.17%||18,595|
|Millennium Management LLC||11,557||Jun 29, 2017||0.14%||15,948|
|UBS Group AG||5,854||Jun 29, 2017||0.07%||8,078|
Additionally, following insiders of the firm have been buying shares in 2017:
|Individual or Entity||Most Recent Transaction||Date||Shares Owned as of Transaction Date|
Acquisition (Non Open Market)
|Jan 18, 2017||
|Aug 20, 2017||
Financials and Conclusion
Currently trading with a market cap of $20 million, SRAX is an exciting story among small cap. With $35 million in revenues in 2016, $1 million in cash and $26 million in total assets, the company seems to be properly financed. Additionally, given that the book value per share is approximately $0.96 and the revenue per share is $4.49, we believe that the market is expecting large growth in the future. Furthermore, with the excitement surrounding ICOs and investors looking for stocks in the space, SRAX could be a provide that exposure.
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Disclosure: We have no position in SRAX and have not been compensated for this article.