A Social Media Play with a China Kicker

Focus: STOCKS

Timothy Lutts Image Timothy Lutts Publisher, Cabot Heritage Corporation

This company has a very unique niche that is making it the go–to company in the social media marketing sector observes Timothy Lutts of Cabot Stock of the Month.

Our latest featured recommendation, Acquity Group (AQ), is an Internet stock that is growing very fast and has the opportunity to get far larger, which could prove very profitable to early shareholders.

Acquity serves as a consultant (somewhat like an advertising agency) for big companies looking for expert guidance on selling online, on mobile devices, through social networks and emerging media—basically the post–TV world. Its top ten clients in 2011 were Allstate, Motorola, Adobe, Belk, GM, American Express, Grainger, Discover, Pampered Chef, and HTC.

Acquity not only designs digital marketing strategies for these companies; it also designs digital business strategies. From developing ad concepts to advising on hardware and software, Acquity has the resources to help with all stages of modern marketing.

Although its stock was recommended by our Cabot China & Emerging Markets Report, Acquity hardly seems like a foreign company. That’s true; headquarters are in Chicago and there are offices in nine other US cities, as well as one in Canada.

But there are two in China as well, and until it came public this year, Acquity was owned by a Chinese company run by George Lu, the China–born entrepreneur who founded the online auction site uBid.

Furthermore, Acquity has formed a joint venture with Li Ning Company, a Chinese sports apparel company that was founded by Olympic gymnastics gold medalist Li Ning, and is now the second largest sports shoe and clothing company in China.

The joint venture is aiming to become a US brand as well.