Expansion of Single Touch Systems (SITO) Sends Stock Price near the Record Values

Posted by on Jul 08, 2010 | No comment

Single Touch Systems Inc (OTC BB:SITO) stock price reached its 2010 high of $1.52 on June 24 and since then corrected down to  trade in the range of $1.25 in July. Altogether SITO’s stock price increased approximately 150% from April 12’s $0.50 to July 7’s $1.26. The price growth was driven by solid messaging traffic that the Company’s Enhanced Services Platform provides for one of the world’s largest retailers.

The Company’s flagship offering – the Mobile Dial Code (MDC) – is a proprietary technology, enabling mobile device users to access information and/or download of content in various forms by dialing intuitive, short-cut telephone numbers – a ‘#’ plus 3 to 6 digit branded telephone number – to access significantly more features than are available through SMS. SITO was the first to deliver successful MDC programs commercially on multiple carriers in the United States. A recent review has indicated that, the Company’s MDC programs have had over 14 million calls with over 30% of those callers making a transaction. The Company’s MDC program received the 2006 Mobile Marketing Association Award for Innovation.

SITO has transitioned to a transaction based revenue model facilitating mobile commerce and advertising using the Enhanced Services Platform. SITO’s ESP provides customer messaging for one of the world’s largest retailers. These services include alerts for store specials, reminders when products or services, such as photos, are available for pick up and back to school advertising. The Company generates revenue from each voice call, data transmission, advertisement and mobile payment transaction that the platform enables.

On June 24, the Company announced that its retail Enhanced Services Platform has serviced over 4,400 retail locations in June up from 3,000 retail locations serviced in May. The Company has recently signed another 1,100 locations pushing the number of serviced locations for July at 5,500.

As a result, since October 2009, SITO’s retail messaging traffic has grown at a constant rate of 29.8% month over month.  Even more, transactions for the month of June were up over 70% compared to the same period last month. The top performing stores are averaging 257 messages per store. The ‘number one’ store saw an average of 351 messages per day, peaking at 466 messages over the same period.

The exponential growth in messaging numbers is turning into a solid revenue source for the Company.  Moreover, SITO anticipates its messaging numbers to continue to increase over the medium term and plans to launch new retail locations in the immediate near term to strengthen the retail messaging numbers, digital presence and retail client base as it establishing a retail messaging highway for retailers to communicate with mobile phone users.

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BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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