Analyze This! – Analytix Insight signs Minimum 10 Million Deal.

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ALY.V

On Tuesday August 4th, Analytix Insight (ALY.V) announced a multi-year licensing relationship with Intesa Sanpaolo S.p.A (“Intesa Sanpaolo”).   Intesa Sanpaolo is among the top banking groups in Europe, with a market capitalization of 54.2 billion euro (CAD $78 billion).  Intesa Sanpaolo is the leader in Italy in all business areas (retail, corporate, and wealth management).  The Group Intesa Sanpaolo offers its services to 11.1 million customers through a network of approximately 4,400 branches in Italy.

AnalytixInsight through its subsidiary MarketWall (“MarketWall”) will provide a custom version of the Marketwall App to Intesa’s approximately 20 million retail customers.

At the same time, the Company will also work with Intesa to closely integrate the Marketwall App with Intesa’s retail banking portals as well as develop seamless trading services. The licensing partnership will comprise a minimum of CAD $10 million over a five year period for MarketWall.

Intesa sees MarketWall’s innovative approach to presenting financial data, especially on smart devices like tablets and phones, as an integral part of its strategy to both engage younger generation of users and to increase trading related revenues from its retail customers.

Intesa has an option to invest and acquire a 33% ownership in MarketWall with the potential of participating in a spinout and public listing of the entity in the future, subject to regulatory approvals.

“We are very excited to offer our customers this additional opportunity and very confident about the increase of trading volumes this will bring.” – Marco Roscio Ricon, CEO of Marketwall.

AnalytixInsight is a publically traded company on the TSX Venture Exchange.  It trades under the symbol ALY.V and they focus on providing investors with “Automated Financial Analysis.” They currently have a Market Cap of 12 million and have only 40 Million shares outstanding.  Over the past year the companies under the “ALY.V” umbrella have announced some pretty significant partnerships – including Samsung, Yahoo, AOL, Dow Jones, Wall Street Journal, Morning Star and Quote Media.  AnalytixInsight’s mobile applications are currently available on Google Play and iTunes.  ALY.V has been showing a 28% revenue increase over the past 3 Years and the recent 10M minimum deal through MarketWall will make the financials far more attractive.

ALY.V also announced in early July that they are entering into a new business vertical – mobile payments – where the Company’s unique technology platform can provide valuable analytics for mobile payment solution providers as well as for merchants.

The Company’s platform is now ready to help retailers and financial institutions create a broader payments loyalty ecosystem and provide the potential to both drive mobile wallet usage and create new consumer retail experiences beyond the point of sale.

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The company is led by CEO Chaith Kondragunta.  Chaith’s past involved corporate finance and strategy advisory work.  Chaith worked for Stern Stewart & Co where he was the CEO of Stern Stewart Europe Ltd, and the CEO and founder of Stern Stewart India. Chaith has frequently written and spoken on corporate performance and analysis with The Economist Group, CNBC, Bloomberg TV, and Euromoney. He has a Masters in Computer Engineering from the University of California, San Diego and an MBA from Carnegie Mellon University.

Check out this VIDEO of CEO Chaith with Larry King.

AnalytixInsight’s biggest subsidiary is “Capital Cube.” It’s an online portal that empowers your investment ideas through in-depth analysis on a company’s performance, accounting and earnings quality, dividend strength and corporate actions such as dividend changes, share buybacks, and acquisitions.  If you go to CapitalCube.com, you can simply input a ticker and it will spit out more data than you can shake a stick at.

“Market Wall” is the mobile platform that offers “CapitalCube” to the mobile space through a seamless App which combines real time stock trading data, company analysis from CapitalCube and a trading platform.  The Company’s partnership with Samsung Electronics is for loading its applications on Samsung’s entire suite of mobile products, wearables and Smart TVs.  Samsung has over 250 million new devices launched every year.  They provide a large distribution platform and potential new subscribers for the Company.

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In addition to Capital Cube and Market Wall, AnalytixInsight also owns “Composer” and “Connect.”  “Composer” is a flexible authoring and knowledge management system for analysts to easily construct and edit complex logical outcomes.  It’s geared towards institutional environments that want to have full control and customizability. “Connect” makes it easy for financial institutions, content providers and media companies to integrate Capital Cube’s catalog of services.  Institutions can use an open standards based API to integrate relevant content to enhance user experience.

Verdmont Capitol estimates that ALY.V will have an EBITDA margin of 40 – 50%, the stock currently trades at an EBITDA multiple of 6.5X and an EV multiple of 5.5X. Multiples for high growth, high margin, technology companies should be between 10X and 15X in our opinion. Read more about AnalytixInsight on Verdmont Capitol’s Website.

It seems as though ALY.V may have a lot to offer retail investors in the near future.  Their management team has a good track record and understands maintaining shareholder’s interest is a priority.  They continue to close deals and sign partnerships with household names like Samsung & Yahoo. Their revenue is continually increasing, and they’re playing in an industry that’s on fire and showing no signs of slowing down.

 

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Disclaimer:  At the time of Publishing this article, Joe Bleackley is a shareholder of Analytix Insight.

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