Wall Street's Oldest Newsletter Covering Internet Stocks
Internet Stock Review, Friday 3/31/2017
Los Angeles, CA 58..70F Sunny.
Chicago, IL, 42..46F Rain.
Port Jefferson, NY, 35..51F Sunny.
Delray Beach, FL, 52..68F Sunny.
1. MoneyOnMobile (MOMT) $0.47 and Yamuna Power.
2. Three New Videos Featuring MOMT, Including McKelvey Commercial.
Money OnMobile (MOMT) and Yamuna Power.
This is the future of money in India.
This is a seemingly simple press release, but we would nonetheless like to point out the obvious, which is that this is not a one-time contract/agreement or one-time revenue generator.
Any one of Yamuna Powers customers (1.5 million) who downloads the free MoneyOnMobile app to their phone, can now pay their electric bill using their cell phone. No longer do they need to trek down to the bill payment office.
Meaning a commission will be paid every month, every time one of these customers pays their utility bill (600-800 million people in India do not have credit cards). Month in, month out, the cash register rings.
While not everyone has a credit card, they all have mobile phones. While the fees earned by the typical FinTech company are modest, the fact that it can touch every single consumer and their recurring nature is why companies like Square (SQ) are valued at hefty multiples (price to sales, book or earnings).
Square whose co-founder is on the board of MoneyOnMobile is valued at $6 billion versus sales of $1.7 billion in 2016.
MoneyOnMobile is a grossly undervalued company in our opinion.
This is also incremental revenue to the retailer, which they didn't have before - which is in part why MOMT has been able to quickly sign up 335,000 retailers. The customer no longer has to drive to the utility company and get in line, to pay their bill. This is how it works.
1. Log into MoneyOnMobile account. If not a member, create a new account.
2. Choose electric utility company or other utility company to pay.
3. Enter account number you wish to make payment.
4. Enter amount in Indian Rupees.
5. Confirm the details and send.
Now how does the money get into the MOMT wallet in the first place? The customer gives cash to the retailer - right there on the spot. The Indian population loves it. It's truly a win-win for everyone. The retailer, the customer, the utility, and MoneyOnMobile.
Here is the press release:
1.5 Million Consumers in India Can Now Pay Their Electricity Bills With Their Phone Thanks to BSES Yamuna Power Limited and MoneyOnMobile.
DALLAS and MUMBAI, India, March 29, 2017 /PRNewswire/ -- MoneyOnMobile, Inc. (MOMT) announced a Bill Collection Agreement with BSES Yamuna Power Limited, to provide its 1.50 million customers the ability to pay their electricity bills through any of MoneyOnMobile's 330,000 retail outlets or through MoneyOnMobile's mobile wallet app.
"Many consumers in India pay their bills in cash. We offer them a solution so that they can make payments at a convenient retail outlet or through our mobile wallet. This enables our retailers to earn commission from MoneyOnMobile on every transaction done," said Harold Montgomery, Chairman & CEO of MoneyOnMobile, Inc.
"MoneyOnMobile has helped 100s of millions of consumers across India with their financial transactions, and now through this partnership with BSES Yamuna Power Limited, we can help even more," Ranjeet Oak, President, and COO of MoneyOnMobile, commented.
BSES Yamuna Power Ltd supplies electricity in Central and East Delhi, the capital of India, covering an area of approximately 200sq km. The power distribution of the following areas are served by the BSES Yamuna Power Ltd: Paharganj, Patel Nagar, Daryaganj, Yamuna Vihar, Karawal Naga, Laxmi Nagar, G T Road, Mayur Vihar, Chandni Chowk, Krishna Nagar, Jhimil, Nand Nagri, etc. The areas under the power distribution scheme of BSES Yamuna Power Ltd has a population density of almost 4203 persons per sq km. The electricity company caters to about 16 lakh consumers. For more information about BYPL, please see http://www.bsesdelhi.com/
2. Three New Videos Featuring MOMT Including McKelvey Commercial.
MoneyOnMobile has posted three new videos, including a commercial on the new MoneyOnMobile ATM featuring James McKelvey, one of the most famous FinTech operators in the U.S., whose personal stake in Square (SQ) was worth an estimated $246,106,080 - the day it went public.
Square went public at $9 in November has risen 66% and now trades over $17.
You can't make this stuff up. Nice day.
Video Commercial: James McKelvey and MOM ATM.
The point being his position on the board is more than the typical 'advisory board member' you may see on the board of most technology or biotech-type companies. He's actually pitching the service. It's unbelievable.
All three videos can be found on the company YouTube page, including one where McKelvey highlights the similarities between MoneyOnMobile and the early days of Square, which again went from zero in 2009, to a $6 billion market cap today. This of course also made for a lot of happy shareholders.
One of the largest shareholders, Vinod Khosla, made $454 million. In 2009, Vinod Khosla's venture firm led a $10 million investment round, valuing shares at 22 cents each. The $10 million investment gave the company a $40 million valuation before it had even launched its square-shaped mobile credit card swipers to the public.
Coincidently, MoneyOnMobile is valued under $40 million.
DISCLAIMERS. Past performance is no indication of future performance or even inkling into future performance.
MOMT: This release and releases linked to do not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This release contains certain forward-looking statements based on their current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Their actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with their business, which include the risk factors disclosed in their Form 10-K filed on August 19, 2016. Forward-looking statements include statements regarding their expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise. Client, Institutional Analyst was compensated with one-hundred thousand shares and five-thousand dollars, from the company for ongoing coverage in this newsletter and others.