One Horizon Group Inc (NASDAQ:OHGI) Services Over 37 Million Subscribers Globally… And Growing
Our New Small Cap Stock On The Radar Is One Horizon Group Inc (NASDAQ:OHGI)
There are two important trends in play in the world of financial markets that are undeniable: First, a lot of folks got left behind by this latest breakout higher in the broad stock market. And second, the leader of that market is the Telecom sector.
In basic terms, the Telecoms are leading all market groups so far in 2016 (the Telecom index is up over 20% versus the S&P 500, which is up only about 6.4%), and innovation is a major reason why.
Our newest opportunity is an example of the type of innovation that has captured the imagination of the marketplace.
OHGI is a leading developer and operator of carrier-grade optimized VoIP solutions for mobile telcos and enterprises. The company currently services over 37 million subscribers across 20 licensed brands worldwide. The technology is one of the world’s most bandwidth-efficient mobile VoIP, messaging and advertising platforms for smartphones.
The stock is starting to act extremely well, rallying over 30% off its May/June support point around the $0.61 level. And there are many reasons to believe this could create a lot of excitement over the near term.
Who is OHGI
OHGI (One Horizon Group, Inc.), through its subsidiaries, develops Horizon Platform, a bandwidth-efficient VoIP platform for smartphones and tablets; and Horizon Call, a mobile application, which enables bandwidth-efficient VoIP calls over a smartphone using a 2G/EDGE, 3G, 4G/LTE, WiFi, or WiMax connection.
In other words, OHGI makes software that is directly competitive with Skype, which was bought by MSFT in 2011 for $8.5B.
This alone should have you sitting upright in your chair and paying close attention.
The other exciting point here is this: pre-existing VoIP solutions for wireless networks were based on models organized for wired networks. That creates problems with latency, jitter, and packet loss in real time communications.
OHGI products approach the situation from the ground up for mobile/wireless solutions, reorganizing system priorities to reduce all of these negative factors. That gives their products an intrinsic advantage in this market space.
The company currently services over 37 million subscribers across 20 licensed brands worldwide. The technology is one of the world’s most bandwidth-efficient mobile VoIP, messaging and advertising platforms for smartphones.
The OHGI platform also provides data applications, including multi-media messaging and mobile advertising under the Aishuo brand name; and software maintenance services.
This company also licenses software solutions to telecom network operators and service providers in the mobile, fixed line, cable TV, and satellite communications markets.
One final inherent advantage to consider: The company is based in Limerick, Ireland, where corporate tax rates are among the lowest on the planet.
OHGI had occasion to announce last week (July 21, 2016) that it sold its second software license for its data roaming VoIP solution.
This is huge because it massively increases the overall traction OHGI has in this product line.
The product is specifically branded for seafarers with a higher estimated ARPU due to the longevity of their travels. The service is offered through Smart Communications, the Philippines’ leading wireless service provider with an estimated 55 million prepaid subscribers. (See Full Press Release Here)
A couple days earlier (July 19, 2016), the company announced that its business-to-consumer (‘B2C’) mobile telco VoIP service in China, Aishuo, has surpassed 37 million subscriber downloads and is expanding its offering for travelers with the introduction of a mobile phone SIM card.
The Aishuo application consumes the lowest amount of mobile data as compared to any voice over IP service in China, allowing travelers to make a phone call or SMS for a fraction of normal roaming fees. (See Full Press Release Here).
Research predicts the global mobile VoIP (mVoIP) market to show powerful growth over the next 4 years, with a cumulative aggregate growth rate of approximately 28%. This puts it up with some of the fastest growing spaces in the market.
Our due diligence suggests the sudden omnipresence of 3G communications networks and the birth of LTE service really account for the lion’s share of this growth.
Recent catalysts for OHGI, specifically, have been extremely strong, as noted above, and reflect a huge potential for continued growth in key metrics, with subscriber downloads at the top of the list.
We have seen indications that the company is on an exponential growth curve for this company of late, and that might help explain why the stock is acting so well in recent trade.
Note, as it stands, OHGI already has $1.4M in trailing 12-month Sales.
Shares of OHGI have been running higher with sharply increasing participation among investors and traders. For example, the stock has seen a clear surge in interest, with volume over the last couple weeks tracking 453% above its recent 3-month average levels.
This is especially important given that OHGI has a Trading Float of just 17.21M shares. Anything under 20M generally catches our eye. It doesn’t take a whole lot to propel a stock like this much higher.
In addition, the stock recently blasted through a well-established down trend line on an explosive bullish breakout in the MACD momentum histogram, which makes a powerful statement in terms of establishing a new upward trend bias.
OHGI (One Horizon Group, Inc.), through its subsidiaries, develops, and licenses software solutions to telecommunications operators in China, Asia, Europe, the Russian Federation, and the United States.
OHGI develops Horizon Platform, a bandwidth-efficient voice over Internet protocol platform for smartphones and tablets; and Horizon Call, a mobile application, which enables bandwidth-efficient VoIP calls over a smartphone using a 2G/EDGE, 3G, 4G/LTE, WiFi, or WiMax connection.
OHGI provides data applications, including multi-media messaging and mobile advertising under the Aishuo brand name; and software maintenance services.
OHGI licenses its software solutions to telecommunications network operators and service providers in the mobile, fixed line, cable TV, and satellite communications markets.
OHGI is based in Limerick, Ireland.
Summary of Key Points:
– OHGI has seen subscriber downloads skyrocket to nearly 40 million recently, and just inked a deal that may allow the company to double that number over the near term.\
– OHGI has a small trading float of just 17.21M, which suggests the stock could launch higher on any additional influx of interest.
– OHGI is making real money, with trailing revs already coming in at $1.4M.
– OHGI is showing a clear surge in interest, with volume over the last couple weeks tracking 453% above its recent average levels.
– OHGI just recorded a MACD Bullish reversal, suggesting a technical change in trend.
OHGI is in an extremely hot market segment (telecommunications) with strong valuation precedents and a string of extremely strong catalysts. The company is making real money, with well over a million in TTM revenues and a skyrocketing core metric in subscriber downloads, particularly in Asia/Far East where the growth footprint is inherently more promising.
In addition, the company’s core technology appears to represent a key advance over current competition (innovative solutions to packet loss, latency and jitter in mobile VoIP communications) with their key product lines.
The chart looks very promising, with several indications of near-term change in trend, as well as the extremely advantageous combination of rapidly increasing average trading volume and a very small float (under 20M shares).
Don’t let this one fly under your radar!