Tailwinds’ Guest Post…this is the second blog piece submitted by a current MARK shareholder who would like to remain anonymous. This author has extensive experience in software and has developed a very deep understanding of Remark and their technology.
All it takes is a little digging …..
As stated prior I more excited about my investment in Remark Holdings (MARK) than any other investment in my 35 plus year career. The reason is simply because of Remark’s Kankan Artificial Intelligence Data Platform.
Kankan has more data than any other AI product or platform (more than 1.3Bn active unique profiles, 130Bn comments & reviews, 22Bn posts and 6 Bn Videos & images). Furthermore Kankan can have up to 11,000 data points per profile.
And two more real cool elements are (1) that despite all this massive data Kankan only requires a little data for its Machine Learning and (2) Kankan Products can be developed quickly. Like real quick. Like in weeks. Kankan became available after years of investment in 2017 and there are already 15 unique Kankan Products serving distinct and unique verticals with big Total Addressable Markets (TAMs). By the end of 2018 there will be at least an additional 15 unique Kankan Products – making a total of 30 or more.
So on December 4 & 5 the CFO sold some stock. Those that have been betting against the company – they were doing so when the stock was $2 and $3 (oh dear) – have been caught in a trap. Naturally they will do everything they can to try to claw back some losses at least. I think more are realizing that Kankan, with its $30M minimum revenue guidance for 2018 (focus on “minimum” folks) being in the hot category of Artificial Intelligence there is a short runaway, at least in my opinion, before the company reaches $1Bn market valuation. Only takes a handful of more big deals, or bigger deployments of existing big deals, and we get to a revenue run rate of say $50 to $70M of Kankan revenue.
In a hot category (AI – check), with a great product (Kankan – check), a product that can scale to 30 vertical Products by then end of 2018 (Kankan – check), valuation multiples of revenue growth may reach the heights of 20x, 30x or more. When Remark Holdings’ market cap hits $1Bn several bigger funds will be eligible to invest. The thirst for funds, family offices and retail to invest in real AI for real AI horizontal offerings in China and globally is without limit. The road from $1Bn to higher will therefore be shorter still.
Big words I know. But this is AI. And Kankan is the only horizontal AI offering of substance, that can scale, with incredible volumes of data and quick Vertical Product production I can find.
The CFO sold a total of 107,142 shares on December 4 & 5. Of these he already owned 44,000 (a mix of 40,000 restricted and 4,000 common shares purchased in the market). Of the remainder the CFO exercised and sold 63,142 options – less than 9% of his options. Some that are too lazy to understand a Form4 and its surrounding context, or are happy to misrepresent, claim the CFO has only 4,000 options/shares remaining.
All it takes is a little digging, a little work……
The S8 of May 2017 indicates 615,000 options for the CFO. The Form4 of June 23, 2017 indicates a further 180,000 options for the CFO. Don’t forget the 4,000 he owned in the open market.
Do I have to do the math for you to show the CFO now owns 691,858 options after his sale of 107,142 shares on Dec 4 & 5 ?
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