Planning for Long-Term Voyage: blinkx
blinkx and you’ll miss it but Blinkx, the online video search company, has almost surpassed the £500 million market value level.
The company is an offshoot of Autonomy — arguably the most successful listed British technology company of all time after its sale to Hewlett-Packard for £7 billion this year — and is a logical name to throw in the mix for the next target for a takeover. The stock has outlived the “ten-bagger” tag it earned at the start of the year after it rocketed from 12p in 2010 to 120p and is now only 5p away from the 150p level.
The company has 35 million hours of online video that it can serve up and search, which helps to explain the share price surge. The army of iPad owners and laptop junkies out there have moved on from YouTube to other online video sources and blinkx has proved a hit in America.
It’s latest trick comes courtesy of its acquisition of Burst Media this year. The company has launched 12 new internet video channels that publishers can slot into their own websites with ease. The video ranges from celebrity gossip to gardening tips to the sort of cooking shows that have kept Channel 4 flush with advertising dollars for years.
The British markets offer precious little exposure to the sharp end of the consumer technology sector and blinkx still looks a decent play, despite its infancy. It isn’t cheap, trading at 17 times forecasts, but bear in mind that is less than Rightmove’s current valuation. Tune in.