Small Cap Stock Watch: Motricity

motrMotor-what did you sayMotricity, Inc. (NASDAQ:MOTR) IPO'd last year at $10 per share, it made it up to $30 by November and now its back down to $17.50.   The quick buck has been made, but thanks to traders bailing out, we now see an opportunity.

Motricity delivers a hosted, managed software technology platform enabling the largest carriers and enterprise brands in the world to deliver customized, branded mobile data services to their subscribers. Motricity’s mCore service delivery platform provides the tools for mobile subscribers to easily locate and access personally relevant and location-based content and services. 

Mastery Sponsors - Become one Today

CNBC's Mad Money Jim Cramer mentioned Motricity back on Jan 10th, it was one of seven companies he named as takeover targets, the other six are Arm Holdings Plc, Nvidia Corp., Akamai Technologies Inc., Cirrus Logic Inc., Netgear Inc. and Acme Packet Inc.

Let it be known, Motricity Inc (MOTR) shares can trade with big swings, thus expect volatility if you get into this stock.  Motricity shares have traded between $6.55 and $31.95 since the IPO last summer.  Motricity shares are now trading with a P/E Ratio of 0 and EPS of -3.88, its market cap comes in at $716.54 million.  Friday MOTR shares closed the day at $17.5, down -5.76% or $1.07.

We turn to Ian Wyatt at who talked up Motricity earlier this week, and gives us his 2 cents on why this stock deserves your attention.

Millions of Americans are going mobile with their Internet access. We're increasingly relying on mobile devices for all sorts of activities, but growth in Internet access is downright staggering.

motrLast spring, a survey by the Pew Internet and American Life Center found that 40 percent of adults used their mobile phones to access the Internet, e-mail or instant messaging. This represents an 8 percent increase over the prior year.

Another Pew survey found that before the November midterm elections more than a quarter of adult Americans used a cell phone to find out about, or participate in, the campaign.

In early November I briefly discussed Motricity (MOTR), one of the hottest IPO stocks of 2010. The company provides mobile solutions for the wireless market. 
Early after its IPO Motricity (MOTR) tripled from its IPO price of $10. It rallied to over $30 then fell fast and hard to $18. I chalk up the volatility to a young stock that offered some extremely attractive profit-taking opportunities for early investors.
Still, the stock finished 2010 with an 86 percent increase, not too bad at all.

Motricity went public in June, but the company actually began a decade ago. It has a long track record offering wireless carriers and enterprises the hosting services needed to deliver mobile data. Over the last ten years it has been able to refine its business model several times to pursue opportunities in a rapidly evolving industry.

Motricity is now well-positioned to take advantage of that sometimes esoteric concept of "cloud computing," and it is branding itself as a cloud-based, mobile-as-a-service company.

Content is king, especially for mobile activities. Motricity has you covered, whether you're using Apple's (AAPL) iPhone, a BlackBerry from Research In Motion (RIMM) or an Android-powered device.

The company's services work over networks from AT&T (T), Verizon Wireless (VZ), Sprint (S) or T-Mobile USA (DK). All four carriers are customers, as are content giants CNN, Showtime, the History Channel and the Home Shopping Network...CONTINUE>>


Disclaimer: No positions in any of the securities mentioned in this publication.