I think ALIF is a no brainer! They are a provider of software for cell phones (mainly games) that is growing like a weed. They have had 1026% organic revenue growth from Q1'07 to Q1'08. They made $0.053/share in Q1 and last traded at $2.40 so they are undervalued IMO. They are guiding for continued growth, are rapidly hiring, are rolling out many new games, are expanding into new markets, and have some high profile relationships. IMO ALIF will be a multi-bagger and run like DGLY did. More DD is located below:
iHub ALIF Board
siliconinvestor.com
Overview
Artificial Life, Inc. is a leading global full service provider of award winning cell phone technology, cell phone TV, content, games and business applications.
Web Site
artificial-life.com
Commerce Portal
botme.com
Sample Cell Phone Games
 
 
   
Historical Financial Infomation
Quarter Revenue Net Income Diluted EPS
Q1'08 $4,118,377 $2,493,585 $0.053
Q4'07 $3,116,754 $2,199,996 $0.049
Q3'07 $1,611,704 $28,478 $0.000
Q2'07 $707,066 -$684,613 -$0.020
Q1'07 $365,688 -$532,044 -$0.016
Investment Thesis (see links for supporting details)
1. Explosive Revenue & Earnings Growth - The company has rapidly grown revenue and earnings over the past several quarters. Q1'08 revenue grew 1026% over Q1'07 and the growth was organic! They are guiding for growth to continue. "We continued our global expansion in Q1, 2008 and expect further growth for the remainder of the fiscal year 2008. We will extend our global sales channel network and client reach by forming more reseller and operator partnerships as well as by releasing new products and extending our successful activities in the area of mobile business applications," said Eberhard Schoneburg, CEO of Artificial Life, Inc. in the Q1 press release. siliconinvestor.com
2. Recent Launch of Many New Games Will Drive Revenue and Earnings Growth - Games released since mid November include: Chips Unlimited, 15 Japanese games, Tokio Hotel, America's Next Top Model™ 10, and Germany's Next Topmodel.
3. 2008 Growth Strategy - They are expanding beyond games to become the world’s first and only full service broadband (3G and 4G) content and technology provider. siliconinvestor.com
4. Massive Hiring - They have 31 open positions listed on their web site in addition to the 51 full time employees as of March 31, 2008. This signals that they are undergoing further huge growth. siliconinvestor.com
5. Rapidly Growing Industry - Gaming for cell phones is growing rapidly. It was $3B in 2006 and is forcasted to be $10.5B in 2009 and 17.5B by 2011. This is a huge industry to service. siliconinvestor.com
6. Relationships with Big Names - They have relationships with major media companies such as Warner Brothers, Paramount Digital Entertainment, Cartoon Network, and Oxygen. In these relationships they are making or made products based upon the company's films or TV shows (e.g. Braveheart). They also have relationships with famous people such as Soccer Star Leo Messi, Vitali and Wladimir Kitschko, and the Tokio Hotel band to make games based upon their images and likeness.
siliconinvestor.com
artificial-life.com
7. Credibility as a Huge Force in Mobile Media - Artificial Life has been written up in many articles and has won several awards which gives them credibility as a huge force in the mobile media market. siliconinvestor.com
8. High PE Industry - Stocks in rapidly growing industries like this typically attract high PEs. Right now, however, the PE is low.
ALIF FAQ/Backgrounder - REQUIRED READING
artificial-life.com
Recent Press Releases
05/08/08 - ARTIFICIAL LIFE IS "BUSTIN' BALLS™" SOON - siliconinvestor.com
04/30/08 - PARAMOUNT MOBILE ENTERTAINMENT & ARTIFICIAL LIFE TO CO-DISTRIBUTE MOBILE GAME GLOBALLY - siliconinvestor.com
04/14/08 - ARTIFICIAL LIFE SIGNS LICENSE DEAL WITH FAMOUS GERMAN SOCCER CLUB: FC BAYERN MUNICH - siliconinvestor.com
04/08/08 - ARTIFICIAL LIFE SIGNS EXCLUSIVE LICENSE DEAL WITH WORLD BOXING CHAMPIONS KLITSCHKO - siliconinvestor.com
03/10/08 - Artificial Life, Inc. Announces iPhone and iPod Touch Games - siliconinvestor.com
03/03/08 - Artificial Life, Inc. Brings "Germany's Next Topmodel" to Mobile Extension of Contract from SevenOne Intermedia GmbH - siliconinvestor.com
02/21/08 - Artificial Life, Inc. Launches America's Next Top Model™ 10 Mobile Game - siliconinvestor.com
02/20/08 - Artificial Life, Inc. Inks Distribution Agreement with Thumbplay Further Expands US Distribution Channels - siliconinvestor.com
02/01/08 - Artificial Life, Inc. Revamps botme.com Better and Faster Access with More Games Offered - siliconinvestor.com
01/24/08 - Artificial Life, Inc. Wins Contract from Cartoon Network - siliconinvestor.com
01/23/08 - Artificial Life, Inc. Partners with PlayPhone for US, Canada Distribution - siliconinvestor.com
01/08/08 - Artificial Life, Inc. Releases the First Official "Tokio Hotel" Mobile Game -https://www.siliconinvestor.com/nfvda/boards/read_msg.asp?message_id=29371129
10/30/07 - Artificial Life, Inc. Announces Growth Strategy for 2008 - siliconinvestor.com
Financial Press Releases
Q1'08 Report - siliconinvestor.com
Q4'07 Report - siliconinvestor.com
Charts
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