Christmas Stock Picks: blinkx is a long-term buy
Built around the demerged consumer business of web search pioneer Autonomy, blinkx’s shares have fallen from a 65p high to a 14.5p amid market meltdown.
Yet the Cambridge/San Francisco-based company is a big beneficiary of the swift migration of advertising budgets to online video, being the world’s biggest and most comprehensive video search engine.
It has indexed more than 32 million hours of audio, video, “viral” and TV content, making it searchable and available as and when consumers want it, and is racking up content and media partners ranging from Microsoft to Getty Images and Time Inc.
“We have access to the Autonomy connection, so we stand on the shoulders of giants,” enthuses CEO Suranga Chandratillake, who reports huge demand from advertisers based on blinkx’s technological ability to deliver “targeted, action-oriented advertising within a video context”.
Recently unveiled record interims revealed 106 per cent growth in gross profit to $4.5 million (£3 million) on sales up 115 per cent to $6.4 million, while half-time cash was $32.4 million, or £21.6 million, covering more than half the entire market cap. Approaching break-even, blinkx is a buy on a long-term view, with a recent bid for US advertising agency MIVA adding interest.