Mobile Marketing or Cloud Computing Stocks? MDAS

Cloud computing and mobile marketing are two hot industry buzz words however should you invest in cloud computing stocks like MedAssets and Active Network or mobile marketing stocks like CommerceTel Corporation? For investors interested in cloud computing, it should be noted that Gartner is predicting that the size of the cloud computing market will reach $150 billion by 2013 during Amazon.com's Amazon's Web Services expects to earn $750 Million in 2011 alone. In the meantime and as I noted late in November, the Digital Marketing Blog has pointed out that an SMS message will be read within four minutes during a former Target executive at the Mobile Marketing Forum 2011 said the company saw 250,000 consumer engagements and a total engagement rate of 18% afterwards running a mobile circular campaign for the back-to-school season. In addition and according ABI Technology estimates, mobile marketing and advertising will grow at a compound annual rate of over 40% through 2015 during study predicts that the number of SMS messages sent from 4.2 billion subscribers globally in 2011 will hit the 7 trillion level. The Mobile Marketer has as well noted that mobile advertising currently represents in broad outline 15% of online advertising and its expected to represent 64% of all digital ads in 2015 while mobile ad spend was predicted to grow from $743 million in 2010 to $4.4 billion in 2015. Hence, should you consider cloud computing stocks like MedAssets and Active Network or mobile marketing stock CommerceTel Corporation? Here is a closer look at all three to help you decide:

MedAssets provides innovation enabled products and services for hospitals, health systems and other non-acute healthcare providers in the US. MedAssets' products are delivered primarily through company-hosted software, or software as a service or Web-based applications which the company supports with implementation, consulting and outsourced services as so then as enterprise-wide sales and customer management and support. Investors should note that MedAssets' 3Q2011 revenue rose 50% to $143.6 million from $95.9 million for the same period last year however the company as well reported a net loss of $983,000 verses a net profit of $8.5 million for 3Q2010. The loss was the result of MedAssets integrating its November 2010 Broadlane Group acquisition into the company. MedAsset noted that Broadlane, which provides supply chain management and cost management services, saw its administrative fees more than double to $62.6 million from $27.9 million during service fees rose 19% to $80.9 million. If not, investors should as well note that MedAssets surged at the end of November afterwards it was reported that Director Bruce Wesson had just purchased 24,000 shares of MDAS for a cost per share of $9.36 and a total value of $224,670. On Friday, MedAssets rose 1.91% to $9.60 for a market cap of $561.4 million

Active Network is a provider of organization-based cloud computing applications serving a range of customer groups - including business events, community activities, in the open air and sports. For 3Q2011, Active Network reported that total net revenue rose 23% year-over-year from $73.1 million to $89.6 million during its net loss narrowed to $1.4 million from a net loss of $3.8 million. But, Active Network's cash flow from operations rose 52% from $40.5 million to $61.6 million during the company ended the quarter with cash and cash equivalents of $139 million. Active Network's CEO as well noted that since the beginning of 2011, the company achieved greater than $1.7 billion in gross registration fees through its proprietary cloud-based platform. On Friday, Active Network rose 0.54% to $13.01 for a market cap of $706 million.

CommerceTel Corporation is a provider of proprietary mobile marketing innovation that enables brands and enterprises to engage consumers via their mobile phones. Exactly, CommerceTel Corporation is focused on the security aspects of mobile marketing as adequate security will be key to the use of mobile phones by many consumer orientated companies. Hence, CommerceTel Corporation has obtained a patent for an invention that exploits the capabilities of smart phones to authenticate the identity of a user - giving the company a foothold in the global cyber security market which is forecasted by Global Industry Analysts to grow to an $80 billion industry by 2017. Just in case, CommerceTel Corporation is developing working prototypes that incorporate its invention to provide identification and authentication solutions for the banking, healthcare and gaming industries and commercial applications of these prototypes are set to be launched by early 2012. Nevertheless, CommerceTel Corporation has already secured then known companies or brands like CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, the Golf Channel, NBC Universal and numerous professional sports franchises as clients for their existing clients. Moreover, David Jaques, the former CFO of PayPal and BlueRun Ventures, has joined CommerceTel Corporation's board of directors and will serve as chair of the company's audit committee. Jaques had assisted PayPal through three rounds of private equity financing amounting to $140 million plus he coordinated the merger of PayPal with X.com Corp. which resulted in a $680 million valuation. On Friday, CommerceTel Corporation closed at $1.53 for a market cap of $34.45 million.

The Bottom Line

The Bottom Line. Investors interested in cloud computing investments should anyway check out MedAssets and Active Network during investors with a stomach for risk should take a look at mobile marketing stock CommerceTel Corporation.

John Udovich is a paid contributor of the SmallCap Network. John Udovich's personal holdings should be disclosed above. You can as well view SmallCap Network's complete disclaimer and disclosure.

Paid contributor of the SmallCap Network

John Udovich is a paid contributor of the SmallCap Network. John Udovich's personal holdings should be disclosed. You can as well view SmallCap Network's complete disclaimer and disclosure.