One Horizon Group, Inc. ($OHGI) is up this morning after the company announced that its Chinese retail VoIP service Aishuo now supports all of the major Chinese mobile payment platforms – including China UnionPay, Alibaba's Alipay and Tencent's Wechat Wallet. It’s also available in over 25 smartphone app stores, and all in all, this far reaching announcement has helped send shares higher by 150%.
Shares are up $3 to $5, or 150% in early trading today, on the back of a $2 move in mid-May when shares traded from $1 to $3, making this an unprecedented 5x move in 30 days. The company valuation went from $30M to $165M in the second half of May...but it came as a surprise today for investors – many of whom missed the move completely. With little information that any deal was in the works for OHGI, the stock sat dormant since it started its rollout in February.
The Aishuo rollout to Chinese smartphone users commenced in late February 2015, and has recently surpassed 3.5 million downloads. These internal numbers were not available to investors, and now the company is projecting 15 million new subscribers over a two-year period. Take a look at One Horizon's impressive performance here.
Chinese Market Adds Fuel to the One Horizon Fire
Ireland based One Horizon develops and markets voiceover Internet Protocol (VoIP) platforms for smartphones, and also offers a range of other optimized data applications, including messaging and mobile advertising. Brian Collins, founder and CEO of One Horizon, said "From a monetization perspective this is an important development for Aishuo, as our premium features are now easily funded through all of the most popular mobile payment platforms in China. Combined with our significant increase in the app download rate, we expect a ramp up of revenues from premium services, as customers choose to add low cost voice minutes and rental of Chinese telephone numbers to their app usage."
The app now supports all of the major Chinese mobile payment platforms, including China UnionPay, Alibaba's Alipayand Tencent's Wechat Wallet. This gives users the option to purchase Aishuo credit, which allows them to quickly subscribe to a range of premium Aishuo app services. These services currently include One Horizon's industry leading proprietary, optimized-for-mobile VoIP calling solution with competitive per minute call-rates as low as ¥0.15/min. They also include the virtual SIM number rental service, which provides a local Chinese number for friends and family to call without the need for an expensive mobile plan – ideal for students and overseas travelers wishing to avoid incoming roaming fees.
These Chinese companies are hard to figure, and shorting it here is risky. It may be best to see what profit taking this week will come from investors who bought under $2. I expect to see profits booked by many above $5, and if the stock shows any sign of weakness after the run up, it will be those with average prices below $2 trying to exit. There is absolutely nothing wrong with a 100% winner in a month – it sure beats working for a living.
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