Xumanii: Continues To Gain Traction In Media Marketplace

When Akon, the internationally owned recording artist, tweets about your company, you know you are making strides. The company, Xumanii (XUII), provides online live content streaming services through its website. With multiple new artists joining the label and broadcasts posting tremendous growth, the company is shaping up to be a monster runner.

Xumanii's mission is to maximize the online live HD broadcast experience for all users by providing the best and the most cost effective solution for content providers to broadcast their content around the world. The company’s first initiative is partnering with the major players in the music industry by providing the best solution on the market to smaller event producers worldwide. Xumanii is aiming to transform and revolutionize the live broadcast experience with its patent pending technology, online platform and solution of hardware and software.

Akon recently signed with the company. He is a big-name acquisition with 12 million albums sold worldwide, five Grammy Award nominations, and 45 Billboard Hot 100 songs under his belt. In addition, he's made a staggering 300 guest appearances for icons including Michael Jackson, Lady Gaga, Gwen Stefani, Lil Wayne, R. Kelly, and Eminem.

The Akon/Xumanii partnership is off to a running start. On Tuesday, Xumanii announced that its live broadcast featuring Akon showed a greater than 600% increase in viewer log-ins over its previous event. A 600% growth rate is not too shabby. The company’s CEO added, “We are compiling more data on every stream and are very optimistic of what we see: increased viewer log-ins, a more stable platform, global audience, high bit-rate etc.”

Akon is also using his marketing muscle on Twitter to bring more publicity to the company. On May 24, he tweeted “Watch the LIVE opening of my new nightclub “Jewel” @xumanii (OTCQB: XUII) http://www.xumanii.com this Saturday May25 http://tinyurl.com/po638m8.” He followed that up with a May 25 tweet saying “Yo, Checkitout, Tonight you can tune in xumanii for live view of my new Club Jewel TONIGHT!… http://instagram.com/p/ZwbZz4lsCt/.”

Pusha T, a hip hop artist signed to Kanye West’s label, is next up with a July 1st broadcast from Paris, France. Xumanii and Pusha-T recently signed an agreement, which includes the live broadcast of four concert events over the next two years. While the company has stated that there are several large acts that they are currently in various levels of negotiations with the scalability of this Paris Festival as well as the international appeal and exposure for the company are key factors leading it to choose this venue as the 2nd Xumanii live broadcast of Pusha-T.

Taking a closer look at other companies in the music space, suggests Xumanii is in a good spot. RealNetworks (RNWK), a creator of innovative applications and services that make it easy for people to connect with and enjoy digital media, is a $7 stock despite notably struggling in the last half a decade. Pandora (P), giving people music and comedy they love anytime, anywhere, through connected devices, is a $17 stock despite still being a non-profitable enterprise. Sirius (SIRI), which provides satellite radio, is a $3 stock. Reaching SIRI’s share price seems to be a reasonable short-term goal for Xumanii with a long term target being RNWK’s $7 price. With the growth rates the company is beginning to show, it is not unreasonable.

Despite the brand name recognition of the artists signing with the company, there are some skeptics out there as can be seen by the short interest. The last reported short volume was about 8 million versus a total volume traded of 29 million for a daily short interest of 26%. That seems like it’s playing right into the hands of investors as these people shorting the stock creates a buildup of buyers in the marketplace.

Although typically I avoid small stocks, this one is definitely very interesting and something I am considering adding to my portfolio with the growth, premium valuation multiples typically assigned to music companies, and management’s aggressiveness of bringing on the top talent on board.