BUY Recommendation-MOTR $.63

Motricity Inc. (NASDAQ- MOTR)

Price November 2, 2012-$.63

.We have mentioned that we have been eying MOTR. After running up from $.44 to $.83 in short order, it has backed off to $.63 and we think it is worth a look.

We wanted to wait until we saw their latest quarter results which happened yesterday. Revenues were off from $24.8 to $23 million but they made a $.01 profit compared to big losses in the recent past. Our valuation is $3.40 a share.

From their 11/1/2012 press release:”Motricity ended the third quarter with $19.0 million of cash and cash equivalents. On October 11, 2012, Motricity announced that the previously announced rights offering had closed and that the Company expects to receive net proceeds of approximately $28 million from the offering with the issuance of 1,199,643 shares of Series J preferred stock and 10,149,842 common stock warrants.

Carl Icahn is a big shareholder and purchased all of the Series J stock mentioned above.

With a market cap of about $20 million and 65% margins, and trading at a huge discount to our valuation we think this is a BUY

Average trading volume is over 500,000 shares a day. There are about 46 million shares outstanding.

About Motricity Inc.

Motricity (MOTR) empowers mobile operators, brands and advertising agencies to maximize the reach and economic potential of the mobile ecosystem through the delivery of relevance-driven merchandising, marketing and advertising solutions. Motricity leverages advanced predictive analytics capabilities to deliver the right content, to the right person at the right time. Motricity’s unique combination of technology, mobile-expertise and go-to-market approach delivers return-on-investment for our mobile operator, brand and advertising agency customers.


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