** Strong Buy Thesis for Adcore ** (with links/sources)Adcore could be a large
“CAPITAL COMPOUNDER (i.e., multi-bagger”) over the next 1-2 years with the manner and speed in which they are growing. As Jason Donville’s hedge fund has repeatedly stated, they are on the
cusp of exponential growth (link and source below).
However, the future is even more impressive now since the time that Donville Kent put forth their high conviction in Adcore given the investor events that took place on the weekend highlighting
Adcore’s first-mover status in the fast growing field of edtech (projected to be close to 300 Billion in five years) an e-learning (currently a 500 Billion field) through Amphy their new online ‘live’ interactive learning platform (that is growing 340% month over month in size).
With the
only live interaction aspect platform in the world (connecting teachers and students and adopting the business models of Uber and Airbnb) Adcore has
*DIFFERENTIATED* themselves from that entire edtech/e-learning industry. Combine this with the fact that they are ALSO a digital advertising company (a fast growing adtech company experiential growth) means that growth will happen much faster now given their ability to “connect their adtech and edtech sides of the business.” As was clearly demonstrated in the investor presentation, t
heir adtech and edtech are *NOT* two separate verticals but rather they’re interconnected and will lead to larger and much faster growth than the other companies in the field of edtech that don’t have as their parent company a digital advertising company.
As an ‘adtech’ company Adcore can now use the
*FIRST-PERSON COOKIE DATA* (that they now own) contained in the Amphy platform
to design and target specific ads to every class (so if there is a class on guitars the ads will provide guitars and related music products; if the class is on cooking the advertisements will be tailored to food and cooking – at the moment, and it’s growing, there are 80 different categories of class). The amount of revenues that could be generated from the first-person cookie data because of the adtech/edtech combination could be massive. Think 100 Bagger Book (link below) when seeing the potential here. This is BRILLIANT. Think about it.
As a comparison, AcuityAds spent 100 million to design ‘illumin’ which works best with third-party cookies. But, third-party cookies will slowly be phased out and they will rely more and more on contextual approaches with their platform. First party cookies data though will
NOT be phased out and will be what everyone gravitates towards. Creative uses of first party cookie data will become even more important over time in the massive field of digital advertising, marketing and e-commerce.
Adcore is the
FIRST DIGITAL ADVERSTIGING ADTECH COMPANY to create their own first party cookie platform through Amphy which will attract people from all over the world who are interested in many different classes and content (
thus setting up one of the most brilliant first party cookie targeting strategies in the world – given the diversity of people and interests given the different classes the potential here is bigger than I believe anyone originally thought when they first launched Amphy. They now
can use Amphy as a source of targeting advertising and, in my view, as an investor, this is more valuable long-term than a company that really does work best with third-party cookie data.
And, if anyone is able to re-watch the investor meeting that took place Saturday they really should because it was the best presentation I have seen yet by the company. The earlier MoneyTalks show was about 7 minutes and was also very good (link and source provided below).
In the meeting, they talked about (using their words) an
“Unbeatable Business Model” and illustrated that by taking the model of Uber and AirBnB (where drivers, home owners, and now teachers are connected to future customers via the platform) they can make better use of the business model with Amphy.
When comparing Amphy with Uber and AirBnB (using the business model that is the same across all three – a platform that connects sellers (teachers/drivers/homeowner) with buyers (students/those needing a place to stay or a ride) that the ‘cost of revenue’ (for an initial investment for a teacher) is lower for Amphy. While AirBnB and Uber have global constraints, Amphy is globally available (you can take any course on Amphy not matter where you are in the world). While Uber/Airbnb are constrained on the number of people in their cars/hosues, the Amphy entrepreneur teacher can have up to 300 students in each of their single classes (from all over the world). And Amphy is also LIVE and global which means at anytime of the day there is a new live and interactive class on a topic about to begin.
At the investor meeting, it was also noted that in addition to their “
first mover status”, “
crazy growth rate” (already), “
unmatched marketing expertise” (since Amphy’s parent company is Adcore), the “
technological edge” (since Adore has a wide range AI products), Amphy also has (to use their words) “HUGE HEADROOM TO GROW”.
Adcore states that they will use Amphy to expand into very exciting growth verticals (that link both their adtech/edtech) with each representing a new massive opportunity for the brand and growth. In addition to growing their ‘business 2 business’ approach and their ‘ecommerce’ they also plan to start incorporating “
LIVE EVENTS” (so you can watch live concerts in your home instead of going to the arena/stadium) and also
“EXPERIENCE EVENTS” using Amphy for more virtual travel tourism. And, probably most exciting, is a potential
TV app that will appear on smart TV’s which they said will be as easy and normal to use as NetFlix. Also, because they are an adtech company the potential for future
*CTV* revenues is massive (
and this is in addition to the massive revenue potential inherent in their ability to target specific an contextual ads for each individual topic/course on their Amphy platform). The Amphy platform will require very little digital savvy and anyone will be able to use it (similar to how almost anyone can use Airbnb and Uber if it’s available). And, as noted, even though Amphy is just starting out it has now hit 1000 classes and is currently growing 340% month over month.
**** And, it gets better, because on
Sept 22nd Adcore is having a major upgrade to the adtech side of their business with ttheri launch of their new ADCORE MARKETING CLOUD PLATFORM (they talked about this early in the year and it’s finally read to be launched). Here is the link:
https://ca.finance.yahoo.com/news/adcore-launch-adcore-marketing-cloud-120000896.html You can watch the MoneyTalks video now at the link below. It starts at 12:05 and goes to 19:30
https://mikesmoneytalks.ca/entire-show-september-11th Link to last quarter (which showed revenues increasing 250% YOY). This was before the launch of both the Amphy platform and the new marketing cloud platform.
https://finance.yahoo.com/news/adcore-revenue-increases-250-yoy-205000704.html A media article that appeared yesterday on Amphy:
https://www.calcalistech.com/ctech/articles/0,7340,L-3917752,00.html A link to a blog I wrote on Saturday after the investor meeting:
https://stockhouse.com/companies/bullboard/t.adco/adcore?postid=33845441 Link to Donville Kent hedge fug talking about the exponential growth rate to expect from adcore over the next fews (this was ‘before’ the launch of their new marketing cloud platform and Amphy platform so expect it to even greater revenue):
https://stockhouse.com/companies/bullboard/t.adco/adcore?postid=33261124 A link to an earlier blog I wrote on investing with mult-baggers in mind during time the market is grumpy and the value of companies are not aligned:
https://stockhouse.com/companies/bullboard/t.adco/adcore?postid=33745194 A link to the 100 Bagger Book (in which they are literally talking about companies that have the traits and growth mindset that Adcore has:
https://csinvesting.org/wp-content/uploads/2017/05/100Baggers.pdf In a year from now you will wish you took a position when the company is trading this undervalued. Good luck everyone. Happy investing and stay safe.