Who doesn't wish they were early investors in a global success story such as Facebook Inc?
In Australia, there have certainly been some global success stories such as CSL Limited (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC) which have gained 640% and 580% respectively over the past decade. Obviously these successes were in the health space.
The property space has also had its share of winners to, with Lend Lease Group (ASX: LLC) and Westfield Corp Ltd (ASX: WFD) both successfully establishing leading global footprints.
Major global success stories within the ASX technology sector are less frequent however, although there are niche examples such as Altium Limited (ASX: ALU) which has produced major gains – close to 2,000% in the past 10 years – but still has a market capitalisation of just $575 million.
The ASX's answer to Facebook?
For a company which can already boast a market capitalisation of nearly $240 million, Migme Ltd (ASX: MIG) is perhaps surprisingly little known.
Migme is an Australian-based digital media company which offers a social entertainment platform that includes chat, entertainment and micro-blogging services. The platform is essentially a competitor to Facebook but focussed on the 3.5 billion internet users in emerging markets, including India, Indonesia, Malaysia and Philippines.
Recent analysis by research house Edison suggests that Migme already has 30 million users including 24 million who are considered "active users". This figure is forecast to grow to 52 million users in 2016, 82 million users in 2017 and 262 million users by 2022 if Migme is successful in capturing network effects.
Amongst the reasons to be bullish on the outlook for Migme is the group's success at seeing its app pre-loaded onto new mobile Android handsets sold in India for a fee plus a share of revenue which has the potential to help capture wide adoption. A large share of new handset sales in Indonesia are already shipped pre-loaded with Migme.
Risk versus Reward
Given the early stage development of Migme's business model the market has obviously already priced the stock somewhat richly in recognition of the potential upside. Of course, if Migme is ultimately successful in monetising its business the prize is very large and its market capitalisation will most likely be multiples of its current level.
