MFON, AUGT, SITO: Mobile Stocks to Dial

Mobile marketing companies such as CommerceTel Corporation (OTC: MFON), Augme Technologies Inc (OTC:  AUGT) and Single Touch Systems Inc (OTC: SITO) could be a good investment given the growth opportunities in the mobile market. While majority of the market players continue to look at the bigger players, these smaller stocks may be the dark horses of mobile investing.

California-based CommerceTel Corporation (OTC: MFON) is a provider of mobile marketing technology that enables major brands and enterprises to engage consumers via their mobile phones and other smart devices. Its C4 is a cloud-based enterprise-grade platform and provides extensive CRM features. The company provides its services on the asset light ‘software as a service’ (Saas) model which helps smaller companies in breaking-even faster.

The growth achieved in its third quarter earnings is nothing short of a big accomplishment although its margins continue to remain in red which is not an abnormal thing or most of the smaller fast-growing companies. In the latest three months, the top line expanded to $842,885 from $254,274 in the same period last year. Similarly, its nine-month sales revenue is close to $1.6 million, significantly up from the $ 683,096 recorded in the first nine months of 2010. Its customer list includes some prominent names such as CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal. The stock currently trades at $1.25 and has a 52-week range of $0.37 - $4.25.

Augme Technologies Inc (OTC:  AUGT) is another small player in the same space providing its services in areas such as mobile marketing, video content broadcasting and ad network provisioning. The company this week announced successful closing of its $20.2 million public offer. However, the stock has subsequently corrected on fears of margin and earnings dilution. After the recent fall, this highly traded stock is looking even more attractive. Currently trading at $1.65, the stock has seen a 52-week low of $1.43 and a high of $4.77.

Single Touch Systems Inc (OTC: SITO) has developed a scalable messaging and voice based enterprise solution in the area of messaging, notifications and abbreviated dial codes. This California based company has come a long way from last year when it successfully raised $6 million from a public offer. The stock lost nearly 15 per cent in the last month and remains nearly 4.5 per cent down today also. However, this high beta stock can easily outperform the broader markets when the situations become better.