Research Note: Speculative Buy on Crowd Media (ASX: CM8)

The Advisors at Emerald Financial recently released a Speculative Buy report on Crowd Media (ASX: CM8).

The Company has benefited from the growth in online-specific retail, something that has thrived through the COVID-19 pandemic due to isolation restrictions. Just look at a few of the more well-known ASX-listed retail companies that sell solely online have thrived due to this change in attitudes;

Kogan.com (ASX:KGN) went from $4 to $15 – 275% gain
Temple & Webster (ASX: TPW) went from $1.55 to $6.20 – 300% gain

Why will this likely continue? People value ease-of-use, cost, convenience, and variety. Something brick-and-mortar retailers simply can’t match.

Crowd Media have a unique strategy that allows them to combine this growth areas with another – influencer marketing. An area no other ASX-listed company specialises in.

Key highlights in the report include:

• Personnel appointments with extensive commercial success in influencer marketing, inc Steven Schapera, Founder of BECCA Cosmetics;
• Extensive network of 10,000+ social influencers & localised millennial knowledge of individual operating markets;
• Four high-margin brand partnerships secured in first 9 months of business transformation;
• Financial turnaround from $4.7m loss to positive underlying EBITDA for H2FY20;
• A.I chatbot development to potentially revolutionise global influencer industry;
• Takeover Target: Low to Medium

This is only a brief excerpt of the report. To download it in full, simply register for free below.

*Owners of this website are CM8 shareholders

**CM8 has engaged Principal IR on retainer to assist with Investor Communications

Alfred Chan is a Director of Principal Investor Relations (Principal) (ABN: 51 633 750 928) and an Authorised Representative of Emerald Financial Group ABN 85 106 823 741 which holds Australian Financial Services License number 241041.

Any advice contained in this presentation is general advice and does not consider your objectives, financial situation or needs, and you should consider whether it’s appropriate for you. The information we are giving you is for educational purposes only.

“Investing is about understanding your risk” and every time you invest in the share market there is a risk of loss. If you are thinking about acquiring a financial product, you should consult our Financial Services Guide (FSG) at www.emeraldfinancial.com.au and the relevant Product Disclosure Statement first.

Please note past performance is not a reliable indicator of future performance.

All Figures in this report were correct as of 29th June 2020.