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Tom Shaughnessy is a MicroCap analyst focusing on extremely under-the-radar companies. Tom's focus is technology companies, with a strong emphasis on management teams, the opportunity for viral growth, low institutional ownership, high margins and high recurring revenue. Tom ... more

MicroCap Digest And Portfolio Update: Best In Two Years!

Date: Friday, July 8, 2016 11:11 AM EST

Specific Portfolio Updates:

AtmanCo

AtmanCo released their updated investor deck including information on the Voxtel Acquisition to SecretCaps first. We are very excited as to the possible synergies of the acquisition (namely since Voxtel owns the dating site Atman rolled out its psychometric testing on with 2 million members), since the positive expected $1M EBITDA from Voxtel can propel bloomed.com and since Voxtel's industry relationships can open doors for meetings for Atman.

Granted most M&A fails, nearly 70% to 90% per Harvard Business School. its a known fact. So we are keeping a close eye as to the interest for the private placement. We don't think it will be a hard sell to investors since the purchase price of Voxtel was cheap at 0.25x 2015 sales, or $3.4M CAD.

We already spoke with management when the news broke, but we plan to follow up again next week and we will again update investors. There is a lot to go through on the investor deck, so we welcome all questions below.

We have not expanded our position yet, but we will update investors if we do. Also, the floor price for the PP is 0.075 CAD, which still offers an arbitrage opportunity we penned in our original post from when shares were trading at .04, if the PP closes. We are very excited as to this opportunity and we continue to dig into it. Original Post: AtmanCo: Past Personality Is An Indicator Of Future Results

We checked out Bloomed.com , the company's fully owned dating site, and its pretty interesting. Note, the company has not yet rolled out the service mainstream, so its not heavily used right now.

Regardless, following the 5-10 minute quiz, we we're given our personality and the free option to compare with others, our Facebook friends and more! Beyond the uses for Business, HR and Hiring, this is interesting.

Actually matching with people whose personality you match with is very cool. With the success of Tinder and Bumble, they are great, but once you match and actually talk to someone it falls through if you're not compatible. Thats why we think psychometric testing in dating is very cool.

Remember, Voxtel owns the dating site Atman rolled out their service on. With 2M members (not sure how many are active, but thats a lot of emails), being able to leverage this at will can be synergistic to bloomed when the official roll out begins.

Bloomed is one piece of Atman, but sums of the psychometric aspect on the dating side. The business HR side is proven as well.

We also spent time answering the question on eHarmony.com, since we know their test can take about an hour - and if tons of people were willing to sit through that we know that Atman's 5-10 minute psychometric quiz won't be a deterrent based on time.

We're no experts, but E-Harmony's test looks to match people based on adjectives (how happy / confident are you etc) whereas Atmans' dives into the underlying reasoning for a persons behaviors. We're still comparing.

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Karla Noyola 3 years ago Member's comment

Enjoyed this, thanks.