Moving computers to the Cloud is making the tech world go round, and Microelectronics Technology Co. (MELY) is already setting up the silver lining.
MELY hit the Cloud just 2 months ago by buying a company that makes virtual websites.
As you can see from the chart, traders initially responded to the news by bidding shares all the way to $0.45.
They probably got more than a little ahead of themselves, but you never know.
On the way back down, MELY has kept spiking as much 65% a day on the right news.
Volume on the big buying days has swelled, so the market is getting more familiar with MELY and hungry for its shares at these levels.
So what does MELY do, exactly?
Its technology was originally built to help Web landlords generate big instant traffic and sell ad space.
Push a button, and suddenly Googles pushing a stream of people to click around and ring the cash registers.
Now MELY recognized that anyone who could build one fake website could build an entire cloud of real ones just as fast.
We could go on and on, but what this boils down to is that the Cloud is a $1 TRILLION business.
That’s right. The Cloud will generate one trillion in the next three years, according to the expert number crunchers at IDC and Microsoft.
Naturally, MELY only wants a tiny piece of that trillion-dollar pie.
After all, this is an 8-cent start-up were talking about.
Between the huge revenue in play and the tiny stock price, the math gets magical.
For every 1 MILLIONTH of the Cloud MELY can capture, it boosts its cash flow by $1 million.
That’s a full 10% of the current market cap in one 1/1,000,000 nibble.
Big Cloud companies are already getting fat buyout offers.
DemandForce, for example, just accepted a $423 million deal from Intel.
A little name like MELY would only be a snack on that scale.
As it is, the venture capital smart guys have already kicked in a fresh $2.7 million to get their taste.
With that kind of cash to work with, MELY should be able to get its Cloud servers spinning and start going after customers.
They’re doing it right now.
Watch the Cloud. If MELY makes one of its now-trademark leaps this morning, you may get an up-close look at the sky.