Friday, April 20, 2012

KIT Going Cheaply (NOT)

There are many regular readers of this blog who may fall off their chairs at this blog, but I believe that KIT Digital shares are very undervalued.

The company is trading with a market cap of around 1.6x revenues, whereas Brightcove is on a riddiculous 6.2 x (OK, they still have their shares being front-runned after their IPO).

KIT is profitable, which Brightcove is far from being.

KIT has also just launched what looks like an excellent cloud based coding platform, which, like Brightcove, moves then away from their video management system roots.

They also are now owners of the excellent ioko operation in the UK, which is a world leader in Internet TV system integration.

I never thought I'd see the day, but this stock is a buy, especially for anyone taking profits from The Brightcove IPO.

Discolsure: I do not own stock or propose to buy stock in either company.

May 2012 FOOTNOTE: I spoke too soon. It seems that the company has, allegedly, been cooking the books and is still loss making and in a bit of a mess