MSM Corporation International Ltd dances onto the ASX

The latest speculative tech business to hit the ASX is MSM Corporation International Ltd (ASX: MSM) as the parent company of Megastar Millionaire Ltd.

MSM Corp wants to tap into the global mania for talent shows such as Pop Idol, X-Factor and Australia’s Got Talent by launching an online talent competition for budding singers and dancers to win stardom via online votes.

The company has an App available globally that an entertainer or musician with a large social media following already can use to showcase their talent to potentially win cash prizes or professional contracts. Fans are also able to download the app to vote and interactively take part in the talent search.

MSM has even signed-up U.S. crooner Usher as a brand ambassador to promote itself and today the stock changes hands for around 27.5 cents.

This means it’s being ascribed a market value around $75 million, despite earning nothing in terms of operational revenues for the financial year ending June 30 2017. In total over FY 2017 it racked up a loss of $13.5 million.

In its financial statements it notes it raised $10.5 million through “shares and loans” in August 2017 which puts it in a decent financial position. The company noted the funds raised would be used to invest in “marketing, production and judges for the Megastar competition, along with general working capital”.

What the 12 months ahead for Megastar Millionaire holds in store is hard to know, but given it’s in a similar space to powerful players such as Alphabet Inc. owned YouTube I’m not a buyer of shares. However, it could be one to watch for speculative traders, as it may or may not carve out a niche for itself.

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Motley Fool contributor Tom Richardson owns shares in Alphabet Inc.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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