Hard numbers for Christmas
4th November 2021 |
One way of measuring Christmas is the amount of money that is spent by retailers (and others) encouraging consumers – through advertising – to spend even more money.
In this context, “advertising” means anything that could pass as advertising – radio advertisements, TV advertisements, promotions on the internet, print media advertisements, posters and electronic billboards.
According to the Advertising Association and research firm WARC, spending on advertising in the final quarter of this year in the UK is expected to be £7.9 billion.
This is the largest amount for a single quarter since records began in 1982 and represents a 13% increase relative to the final three months of 2020 (which, admittedly, was a period where activity had been suppressed by the Covid pandemic).
This UK advertising bonanza is good news for two of the stocks in the Frontier Tech Investor portfolio – Ocean Outdoor (LSE: OOUT) and Mirriad Advertising (LSE: MIRI).
Ocean Outdoor is an operator of premium digital advertising space in the UK and continental Europe.
Simply put, the company sells space for advertisements, which are then displayed on its billboards. Among much else, it operates the huge 3D electronic advertising screens in Piccadilly Circus, London.
Ocean Outdoor’s other electronic billboards are often found in or near upscale shopping malls.
On the other hand, Mirriad Advertising inserts advertising signage into digital content after it has been produced.
It allows ample opportunity for product placement in films and TV series, in which it takes a cut of the advertising campaigns that the broadcaster sells.
Suppose, for instance, that a particular scene of film or series X, which is distributed in one particular geographic market, includes people who appear to be drinking Y brand mineral water.
Mirriad Advertising’s technology makes it possible for the same people in the same scene to appear to be drinking Z brand mineral water when the scene is shown in another geographic market.
We reiterate our HOLD recommendation for Ocean Outdoor, and our BUY recommendation for Mirriad Advertising. You can find the respective, original recommendations here and here. See the portfolio for the latest advice.
Buy list update
Blancco Technology Group (LSE: BLTG)
Blancco is a provider of data erasure software. It allows sensitive data from devices to wiped without leaving a trace, meaning devices can be reused and that data regulations can be conformed to.
On 12 October 2021, Blancco announced that it had been awarded a government tender by the Government Technology Agency of Singapore.
In this, Blancco will apply its software to up to 100,000 computers belonging to Singaporean government agencies over the next three years.
Blancco’s erasure will allow government agencies to comply with Singapore’s Personal Data Protection Act (PDPA).
Blancco is quickly establishing itself as a leader in the cybersecurity space.
It has amassed 35 patents or patent-pending ideas in its data erasure software and is in the process of deploying its sustainable software on a global scale.
We are very confident that Blancco will attract interest from other national governments.
This is mainly because cyber-attacks are more ubiquitous than ever before, as we explained in our 28 October 2021 update.
We reiterate our BUY recommendation on Blancco but do not buy until the stock drops back below its buy limit. You can find the original recommendation here. See the portfolio for the latest advice.
IQE (LSE: IQE)
The global semiconductor chip shortage has gripped the world for almost a year now.
It has hampered growth of companies in a variety of industries across the world, including automotive and technology.
For example, the shortages have lost Apple the equivalent of $6 billion in sales, which shows the scale of the problem.
IQE – a Frontier Tech Investor holding – is a supplier of advanced semi-conductors.
The fall in its share price since we recommended it – of 40% or so – indicates that the company has been seen as a loser from the global chip shortage.
However, a very recent development may well cause perceptions to change for the better.
On 21 October 2021, IQE announced a collaboration with GlobalFoundries (GF), a multi-national semiconductor manufacturer.
In the deal, IQE will supply its wafers to GF’s Fab 9 Vermont facility, to produce GaN on Si (gallium nitride on silicon) technologies for mobile and wireless infrastructure.
GaN on Si is the industry standard for 5G networks.
The deal is a feather in the cap of IQE, and one that recognises the quality of its semiconductor components.
With the rollout of 5G networks in full flow across the world, and the gradual easing of semiconductor shortages, we believe better days could lie ahead for IQE.
We reiterate our BUY recommendation on the stock. You can find the original recommendation here. See the portfolio for the latest advice.
The Frontier Tech Investor “Top Three”
Sometimes it’s hard to decide on which stocks to invest in from our buy list.
Below is our Frontier Tech Investor “Top Three” section showing three stocks in open BUY positions. If you’re trying to figure out what to invest in next, these are three that we think are a great place to start.
This doesn’t mean our other stocks are no good, this is just a tool to help you spot the next Frontier Tech Investor stock that could be worthy of your consideration.
Mode Global Holdings (LSE: MODE) – Mode looks to revolutionise the way in which payments are being made. Its platform provides a seamless way to manage and spend assets from both monetary systems; the old, fiat currency system, and the new, crypto and digital assets system. We see the popularity of Mode rising in line with the wider adoption of cryptocurrencies as a means of payment. You can find the original recommendation here.
Argo Blockchain (LSE: ARB) – Argo is the first pure-play crypto mining company to list on the London Stock Exchange. Its listing on the exchange is another indication of how quickly the transition to the new money system is taking hold. Through its powerful mining rigs, the company has the capability to mine thousands of bitcoin each year, earning potentially lucrative returns in line with the price of bitcoin. You can find the original recommendation here.
Mirriad Advertising (LSE: MIRI) – As explained above, Mirriad Advertising is changing the advertising game. This company has come up with a unique solution that inserts advertising into content after the content has been produced. It boosts opportunities for product placement in films and TV series, which Mirriad Advertising monetises by taking a cut of advertising campaigns. The company is expanding into the most valuable advertising market in the world (the United States). You can find the original recommendation here.
Sam Volkering
Editor, Frontier Tech Investor
Elliott Playle
Junior Analyst, Frontier Tech Investor
