6 Oct 2014

Snakk Media share price questioned

3:11 pm on 6 October 2014

Snakk Media's share price does not yet reflect the value of its potential reach and future profitability, an investment analyst says.

Given the company's outlook and market position, Edison Investment Research said today a share price between 11 and 15 cents would put it in line with other similar listed businesses.

The shares last traded on Thursday last week at 9.5 cents.

Edison has reviewed Snakk's opportunities in the mobile advertising market in Australia, New Zealand and Asia.

Snakk, which is listed on NZX's alternative market, uses apps, games and social media to help business brands reach customers on their smartphones, tablets and other smart screen devices.

Despite its small size and early stage of development, Edison said Snakk has a good opportunity to establish a strong market position in the region by leveraging its existing agency and brand relationships.

However, Edison said Snakk needs to establish a more formal organisational structure to deal with the scale of its opportunities.

It said the cost of new systems and procedures points to higher short-term losses, but could mean greater returns further out.

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