Is MARK’s Kankan Doing a Deal With Coke? Also, Blockchain Incubator Snap Interactive (STVI) Is New Groove Focus Stock

December 22, 2017 at 3:00 pm Leave a comment

Blockchain/Crypto Incubator Play Snap Interactive (STVI) Is New Focus Stock

– First publicly traded “incubator/accelerator” for blockchain start-ups
 Pending Nasdaq uplisting with all criteria satisfied as of Dec. 18
– Public float only 2.1 million shares, smallest among blockchain/crypto plays
– Crypto play from ICO deal w/ Gladius.io and more ICO partners on deck
– Launching Backchannel blockchain secured CryptoID messaging app in ’18
– 179,200 live video streaming subs can trade bitcoin for other virtual currency

Snap Interactive (STVI) is a provider of live video social networking and interactive dating applications in addition to being the first publicly traded blockchain play in the space. STVI’s product portfolio includes Paltalk, TinyChat and Camfrog which offer a collection of video based communities, FirstMet, an interactive dating brand (formerly known as Are You Interested?) and the soon to be released blockchain based Backchannel secure messaging application.

STVI is the first publicly traded company in the live video streaming / social media space to pursue an accelerator/incubator model focused on blockchain development. STVI is leveraging its legacy as a technology innovator (including 26 patents some of which are licensed to Microsoft, Sony and Activision), its significant in-house blockchain development talent and its infrastructure as a digital operator at scale to create joint development collaborations with blockchain startups.  STVI is focusing its blockchain development partnership efforts on areas related to its Social media and video streaming platform including content delivery, digital security, storage, payments and Ad tech. A good working example of this model is STVI’s deal with Gladius.io, a startup offering a blockchain based content delivery network that provides mitigation services for distributed denial-of-service (DDoS) attacks. STVI engaged with Gladius in a two way product development relationship that allowed each to use the technology throughout their own ecosystems and includes early stage ICO participation on very favorable terms. We believe STVI is in a position to cherry pick from among the best operators in each segment to gain cutting edge blockchain technology to adopt for its own platform while banking a diversified portfolio of cryptocurrencies at pre-ICO or otherwise very favorable below market prices. To see a partner’s ICO in progress, click here. We believe there will be many more of these partnerships announced over the next few months as more start-ups seek a “big brother” with the technical chops and experience to help them graduate to the next level.

STVI’s primary internal blockchain initiative is its “Backchannel” blockchain secure CryptoID messaging app that is slated to launch next year. Backchannel will be the first blockchain secured messaging app, making it more private and secure than even the most secure existing apps due to its ability to allow registrations using crypto ids. The most prevalent secure messaging apps in use today offer much greater privacy than standard messaging offerings like WhatsApp, Snapchat, etc. but they still require some information that can be traced back to an individual. We believe the technological advances in big data, artificial intelligence and facial recognition technologies and the applications being developed therefrom will push many consumers to seek greater privacy in many aspects of their lives and we believe their communications will be first and foremost, creating a huge opportunity for Backchannel.

Recent discussions with management regarding the importance of uplisting leads us to believe that the company has already filed to make the move to the Nasdaq Capital Market and it is our understanding that STVI achieved full compliance with all listing requirements as of Monday December 18. We believe that a move to the Nasdaq would do much to raise STVI’s profile with investors and increase the trading in its shares. We think the blockchain development and deals with blockchain startups will likely cause STVI to get much more attention from investors in the weeks ahead as many are increasingly seeking small companies with big potential in the blockchain/crypto space. When that occurs, we believe that the very small 2.1 million share public float available to meet the increased demand for shares will cause the stock to move much higher than its current trading range. We note that some others in the space like RIOT Blockchain (Nasdaq: RIOT) have been considered “small float” plays on the emergence of blockchain technology, but it should be noted that RIOT’s 6 million share public float is over 3x larger than STVI’s public float. STVI has the smallest public float of any publicly traded blockchain company we are aware of and we think that could be a factor driving the shares higher in the weeks and months to come. As of this writing, the stock was trading in a range between $6.50 and $7.50 per share which equates to a market cap of just over $40 million. We believe STVI’s core business is easily worth at least 2-2.5x that much based on industry comparables (see the full due diligence report here) and on the belief that its blockchain initiatives could create significant additional wealth for shareholders over the long term. In the near term, we believe a move to the Nasdaq will significantly increase the liquidity / exposure for STVI and we see the company’s cryptocurrency deals with blockchain startups attracting the kind of interest from investors that could cause the stock to move substantially and possibly exponentially higher.

Is MARK’s Kankan doing a deal with Coke?

Curious tweet from Remark’s official Twitter account today openly teasing about the crew celebrating what we are left to assume is a very big deal –

We found this most interesting considering the foreshadowing that has clearly occurred with prior tweets. Remember the tweeted video clips of the AI/facial recognition technology in action in the weeks prior to Remark’s announcement of a 7 figure contract to use that technology for the Shanghai Municipal Health Agency (China’s FDA)?  How about the virtual reality tweets in the weeks prior to the announcement of the deal with Sina Weibo to use Kankan’s AI as the core technology behind Sina’s augmented reality mobile app?  And who can forget the picture of Remark CEO Shing Tao at the “big boy table” with execs from CDH Investments and CP Group? We posted an article that day titled “Is Remark Selling a Minority Stake in Kankan” thinking that the picture was hinting in that direction. Of course, it was only a few weeks later that they announced the sale of a $10 million minority stake in Remark itself at $12 per share.

So is this tweet foreshadowing a Kankan deal with the bluest of blue chips Coca-Cola? It is widely known that Coke has invested heavily in Artificial Intelligence and Big Data –

https://www.forbes.com/sites/bernardmarr/2017/09/18/the-amazing-ways-coca-cola-uses-artificial-intelligence-ai-and-big-data-to-drive-success/#74a9ab5378d2

From that article – “Coca Cola is known to have ploughed extensive research and development resources into artificial intelligence (AI) to ensure it is squeezing every drop of insight it can from the data it collects.”

Would Coke look to gain every advantage in the fastest growing consumer market in the world (China)?  If so, what would be the best way to do that?  A key argument shorts have used against MARK in trying to further the ridiculous argument that KanKan is somehow not a legitimate company because it does not have deals with big US companies.  If Kankan has a deal with Coke, that will certainly put such talk further into the ridiculous category it already occupies.  Additionally, we are confident that such a deal will push Remark shares to new highs and expose the Remark / Kankan story to a much broader cross section of the investing community.

 

 

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Remark’s New Fintech Deal & CP Group’s $12 Per Share Investment in MARK Groove Update – MARK & STVI

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