Considerable excitement around the launch of a new platform by audio-visual display advertising specialist MediaZest (MDZ:AIM) is setting the share price on fire. Don’t get be tempted to buy into this stock momentum as there’s big risks.

The unveiling (24 Nov) of the MediaZest Retail Analytics platform and the news a first client has been secured has triggered a near five-fold increase in the £5.2 million cap’s share price since it was announced. We are concerned about the lack of financial details and the company’s past history.

MDZ - Comparison Line Chart (Rebased to first)

The company has been plugging away since it floated on the market in February 2005 and is yet to make the breakthrough to profitability. Despite the explosive recent rise the stock still trades nearly 99% below its original issue price of 50p.

The Retail Analytics platform represents the group’s first 100%-owned intellectual property asset. Developed in partnership with Argus Global Biometrics Technologies, the product builds on Cognitec FaceVacs Videoscan. It uses this face recognition platform to provide anonymous data for the retailer to enable them to better understand their store dynamics, trading patterns and improve their customer offering.

The company has said it expects to secure further deals in the next quarter and chief executive officer Geoff Robertson claims the development is of ‘tremendous significance for the group’. He adds that it can be sold to existing customers and to new clients.

Issue Date: 10 Dec 2014