Remark Media, Inc (NASDAQ:MARK)

CAPS Rating: 1 out of 5

Focused on developing social media businesses. The Company's leading brands, BoWenWang (bowenwang.com.cn) and ComoTudoFunciona (hsw.com.br), provide readers in China and Brazil with thousands of "how-to" articles. Company is the exclusive digital publisher in China and Brazil for translated content from HowStuffWorks.com, a subsidiary of Discovery Communications, and in China for certain content from World Book.

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Member Avatar pchop12316 (85.83) Submitted: 11/18/2014 10:49:40 AM : Underperform Start Price: $5.00 MARK Score: +2.30

struggling now

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Member Avatar jed71 (70.45) Submitted: 11/17/2014 11:04:26 AM : Underperform Start Price: $4.98 MARK Score: +2.49

Shady company with many subsidiaries, some of which built through reverse mergers with subsidiary entities:

"On May 2, 2014, the Company entered into an Agreement and Plan of Merger, dated as of May 2, 2014 (the “Merger Agreement”), between Roomlia, Inc., a wholly-owned subsidiary of the Company (“Merger Sub” or “Roomlia”), and Hotelmobi Inc. (“Hotelmobi”), a company engaged in the business of developing, owning and operating mobile hotel booking applications. Pursuant to the Merger Agreement, Hotelmobi merged with and into Merger Sub, with Merger Sub surviving as a wholly-owned subsidiary of the Company, referred to herein as the Merger. As consideration for the Merger, the outstanding shares of Hotelmobi’s common stock were converted into the right to receive an aggregate of (i) 400,000 shares of the Company’s common stock, (ii) 100,000 shares of the Company’s common stock to be issued on the one year anniversary of the closing of the Merger, provided that the recipient is employed by the Company on such date or was terminated by the Company for any reason, (iii) warrants to purchase 500,000 shares of the Company’s common stock at an exercise price of $8.00 per share and (iv) warrants to purchase 500,000 shares of the Company’s common stock at an exercise price of $12.00 per share. The warrants to purchase shares of the Company’s common stock issued to former Hotelmobi stockholders in the Merger (the “Roomlia Warrants”) vest 12.5% on the last day of each fiscal quarter beginning June 30, 2014, provided the recipient is employed by the Company on such date or has been terminated other than for Cause (as defined in the Merger Agreement). The Roomlia Warrants expire on the fifth anniversary of their issuance. Additionally, pursuant to the terms of the Merger Agreement, concurrently with the closing of the Merger, the Company paid Hotelmobi’s principal stockholders a total of $171,894 in cash in repayment of funds they loaned to Hotelmobi."

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Member Avatar TSIF (99.96) Submitted: 4/29/2014 7:20:57 PM : Underperform Start Price: $6.00 MARK Score: +28.11

Remark Media, Inc has been outperforming the S&P for over six months now, but I struggle to find any redeeming qualities financially or fundamentally. It appears to me, and I'm a cynic sometimes, that the share price is higher, and the market cap higher, (allowing this to meet the pick threshold), because volume is virtually nonexistent. What does that have to do with anything? Did you already forget that I said I was a cynic sometimes??

P/S 32, P/B 28.3 (in other words, not selling anything and book value unless there are mitigating circumstances, (like maybe low volume??)....is about $0.21 per share and that appears generous to me.

Annual revenue about $2M a year, Annual expenses $6M a year. Guess those China and Brazil readers aren't really that interested in World Book and HowStuffWorks in broken translated languages??

Existing on borrowing, share issue, (expect some soon), with about 24 employees.

Nothing Re"mark"able here except the low volume, the $64M market cap, for a company with miniscule revenue, cash, etc. Maybe someone thinks the "bikini.com" division will take off....

(I usually avoid low volume stubs as they do strange things for long periods of time and clutter my space, taking a swag at this one that someone will want to sell a few shares at some point.....

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