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By Malcolm Stacey | Thursday 13 July 2017
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.
Hello Share Scudders. What does Taptica International (TAP) actually do? It states it does ‘data-focused marketing solutions’.
I so hate that word ‘solutions’ and I’m not sure I know what the above means, but what the company seems to do is use artificial intelligence and ‘learning’ machines and appliances to pep up advertising and make it more personal. I think we’re talking ads on mobile phones here. I’ve studied its website for more information. And though there is loads of info on there, I’m afraid the language used is not compatible with my techno-light vocabulary.
Never mind, advertising’s new cutting edge technology using apps is becoming really widespread. Even if it drives some of us up the wall. Taptica has some impressive partners, many of which are household names. Think Twitter, Disney, Amazon and Facebook. Together with about 450 advertising outfits at home and abroad.
The current dividend yield isn’t much at 2%, but the dividend should grow as the company digs its toes ever more into the exploding targeted advertising market.
The company is headquartered in Israel with offices in San Francisco and New York. It joined AIM three years ago and at 365p the shares are trading near year highs, but given the impressive way the digital advertising market is growing, the share price could keep on rising.
In 2016, revenues increased by 66% to $125.9 million. Gross profit more than doubled to $46 million (2015: $21.1 million), with improvement in gross margin to 36.5% (2015: 17.8%). And what of future prospects? I suppose it all depends on whether you have faith in advertising technology or not. Personally I think personalised advertising, as much as I rather hate it, will become much more common in the future.
Not all of us are happy about that in the Punter’s Return.
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