Breaking Data Corp (BKD-X)

Followed it a while ago, not much now. They were doing search locations, and recently got into sports websites that drive traffic. He's not sure how they're monetizing that. They have a lot of users. If they can, the stock will move up.

The base business was AI and machine learning. They had a couple of different apps in that area. Another app was Breaking Data, which was sports results faster than on TV because of the time delay with TV. Now they have ‘Give Me Sport’. It is surprising the stock has not gained more traction. The problem may be that with stocks the company can execute but if the capital structure is flawed in any way it can cause problems. They did a couple of deals before they signed the most recent deal. Once the deal closed, warrants were ‘in the money’. It has continued to drift. They are in a great area but the stock has to clean itself up. It may go lower before going up.

Artificial intelligence machine learning is such a huge thing these days. This company had the technology and a fairly interesting machine learning and AI background for a number of years. They recently did a merger where they acquired a significantly bigger company in Europe, and it has taken a little while for the stock to digest what has happened. Now it looks like there is some traction in the stock price. The company continues to add new users to their platform. Once they are able to turn on the monetization of all those users, there should start to be some revenue and cash flow.

(Market Call Minute) It looks very interesting with the deal they have just done. He would like to see how this deal comes through. If it is the way they thought, it would certainly be a buy.

He doesn’t have much data on when they are going to come out. They have to continue to work through all the regulatory filings on the acquisition they are supposed to be making. It is fairly large and will really change the size of the company. Any time this happens, regulators like to go through it with a fine-tooth comb. It usually takes a couple of months.

He is quite excited about this. In a super hot area right now. Everyone is sort of clambering over artificial intelligence and machine learning, and this is what this company does. They’ve signed a number of different deals over the last year or so, which he thinks is getting them closer to the point where they will be cash flow positive. Signed deals with TabCorp out of Australia and Pacific Disaster Centres, as well as their own Breaking Sports app. The combination of those 3 are getting them pretty close to being cash flow positive.

(Market Call Minute.) This would definitely be a Buy right now. They have a lot going on. The whole AI and machine learning is huge.

Continues to sign deals. What we need to see for the stock to break out is some profitability and cash flow. Currently they have started to add some of those. They added TabCorp out of Australia. We should also see the Pacific Disaster Centres generate some income. They have a messaging Bot, BreakingSports, something new on Facebook (FB-Q). You need to watch that they get to the point where they see some sort of cash flow growth. At that time, the stock should be recognized for what it is. Outstanding technology.

In the last few days this has had some interesting news releases. Announced that everything was up and live with TabCorp, the online gaming in Australia, which is fairly significant for the company as it is another revenue-generating opportunity. Also, recently announced a couple of new people to the company, one of them holding the title of Chief Revenue Officer. Being a Revenue Officer and not the Financial Officer indicates that revenue is probably going to ramp up.

He has talked about it in the past and still owns a small piece. It is an interesting time for them. They did a couple of deals in the last year. They took a lot longer than they expected. They are integrated now and should see some cash flow. Another acquisition is now starting to generate cash flow also. Their burn rate is quite low. It looks like it could break out here.

He still really likes this. The stock price really hasn’t done too much as a result of a lack of news flow. Have 2 really significant things they have worked on and completed in the last little while. One was with the Pacific Disaster Centre, a revenue producing project. Management indicated they have more opportunities to grow that business. The 2^nd is Tabcorp, online gaming, out of Australia which he had expected to see revenue from now, which has been delayed because of Tabcorp not being able to assimilate well with Breaking Data. Understands they now have that sorted out and will start to get that up and running. Breaking Data will provide them with their information to allow them to get some revenue from that. The stock has been quiet, but the company is doing all the right things, and their technology continues to get vetted out by more and more sources.

(A Top Pick March 11/15. Down 70.18%.) Still likes. The story has changed phenomenally in the last year. Last year they were just rolling out their Breaking Sports app and now have about 1 million users. Recently got into a whole other side of their business by doing a deal with Pacific Data Centres, validating their technology. It not only works with sports, but also works in a totally different area. Very close to being cash flow positive. Super cheap.

Owns a small piece. Their business allows their computer algorithms to scrub and view different information on social media, and report that to someone. Has a Breaking Sports app allowing you to follow a player or a team. With fantasy sports being such a big thing, there are a lot of fantasy sports players who have subscribed. They have been expanding and are in the process of doing a white label app for a group in Australia who has legalized betting. Also, have a couple of advertising deals in NA with some of the big recognizable names. Haven’t had any revenue to date, but now they are starting to see that ramp up.

Their business is ramping up and is really going well for them. They launched this breaking sports app back in March, and since that time they are closing in on getting 1 million users to the app, and that is without NFL. Coming up in the fall we are going to have the NFL season, and that is really where a lot of big sports users are. They have signed some interesting deals where they are getting revenue sharing deals now. They are probably looking at other areas too. Wouldn’t be surprised if they got into E-sports as well. Thinks it is going to be revenue and cash flow positive pretty soon, and is probably a take out candidate.

(A Top Pick May 28/14. Up 54.76%.) Has a breaking sports app which is pretty unique. It was rolled out in March and there were huge numbers of downloads through March and April. They could probably be through the $500,000 mark by the 2^nd quarter. Going into the 3^rd quarter, it might even touch $1 million. A similar model to TheScore (SCR-X) except for the valuations, which is significantly cheaper.