Update, 10/19/2021: Tapinator Inc (OTC:TAPM) is up 88% since we first took a long position in the stock. We subsequently wrote a deep-dive report on the company.
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History of GeoInvesting’s Tapinator Coverage
- 8/16/2021: Added the stock to our Selected Long Disclosure Model Portfolio at $13.50
- 8/23/2021: Prepared a PodClip to provide a quick summary of our bullish thesis
- 8/24/2021: Published a video pitch
Tapinator Inc (OTC:TAPM) generates revenue through developing and publishing leading mobile games and applications offered on the iOS, Google Play, and Amazon platforms in North America, Europe, and Asia. However, the company’s main focus of publishing social casino games in North America has definitely caught my and my team’s attention.
As a wildcard, the company is exploring developing games on the blockchain and is about to launch a monetization platform where people can list their Non Fungible Tokens (NFTs) for others to display at home (on walls, TVs and Monitors).
Tapinator’s games have racked up 500 million mobile downloads; Since the casino games market has 2.6 billion global players, the market opportunity is massive.
PLEASE NOTE THE STOCK HAS ALREADY RISEN SUBSTANTIALLY
Summary of bullish thesis
- TAPM is being run by a proven management team.
- The company has a history of developing high quality mobile games.
- The company is playing in the higher margin area of the mobile App market.
- TAPM is the early innings of a multi-year growth phase.
- A tweak in the business model has dramatically changed the company’s growth trajectory.
- Shares are selling at a healthy discount to comps, even after rising 66% from when we added the stock to GeoInvesting’s Selected Long Disclosure Model Portfolio on August 16, 2021.
- With only 563,564 shares outstanding, 772,864 all-in fully diluted shares and 390,477 shares in the public float, we could see shares rising dramatically in the short-run.
- Insiders buying stock on the open market.
- The company’s new endeavour into NFT offerings might create a cult following.
- Android and IoS place broad restrictions on social gaming or on marketing tactics. However, the environment for legalized gaming is only getting friendlier.
- Revenues are primarily generated from its flagship casino game launched in 2016. So, it is going to be important for the company to land a second flagship product.
- Investors who buy the stock over an obsession over NFTs could create an issue if this endeavor fails, causing selling pressure on the stock even though failure won’t come at a big cost to the company.
- Limited R&D Spend in recent quarters. However, management claims it is building games using its current development infrastructure culled over the years.
- We have not completed a forensic analysis of some of the company’s impressive stats regarding the popularity and ranking of its games over time.
- Negative working capital and only $96,000 in cash
- Extremely thinly traded
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