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Is The Maven Publishing Network a Good Long-Term Investment?

Updated on March 10, 2018
Glenn Stok profile image

With 40 years experience trading stocks, options and futures, Glenn Stok writes about strategies and controlling risk that he has perfected.

Maven is an online content company based in Seattle, Washington, that was incorporated in Nevada on July 22, 2016 under the name “Amplify Media, Inc.”

Their name was changed to “Amplify Media Network, Inc.” on July 27, 2016 and further changed to “theMaven Network, Inc.” on October 14, 2016.1 Presently, their logo simply refers to them as “Maven”.

Despite combining unrelated topics under one domain, a practice that Google frowns upon as being a content farm, Maven uses a proven method of organizing niche channels into interest groups that effectively engage the reader.1

Source

Maven Acquires HubPages

Maven announced the acquisition of HubPages in January 2018. Since then, I watched their share price drop from $2.50 to $1.50.2

I'm sure HubPages isn’t the cause of the lower share price because of my own experience with over a million views on my articles that are published on their various network sites.

In 2012 Google implemented the Panda Algorithm that literally wiped out other content sites that shared unrelated articles under one domain as a content farm.

HubPages solved that problem by creating a network of 27 individual sites, each related to only one specific topic category.

In addition, they imposed strict guidelines for writing stellar articles that meet Google’s Search Quality Rating Program.3 This is a set of guidelines for creating written content that has a defined Page Quality (PQ rating) and that meets the needs (NM rating) of people doing online search.

I’m sure that’s why Maven decided to acquire HubPages. They saw it as an opportunity to improve their own business.

The two companies have a common mission of providing content creators a publishing platform that takes care of search engine optimization and monetization, leaving the author free to concentrate on writing content.

So Why Did Maven’s Share Price Drop?

Subject to a number of conditions to be met, Maven’s acquisition of HubPages was for a combination of stock (based on a valuation of $2.50 per share), short-term debt, and cash.

Since the acquisition of HubPages, I watched Maven’s stock price struggle to go above $2.40, and it was dropping steadily instead.

Personally, ever since I learned about Maven, I expected their shares would drop in value as more investors analyze the business and think of it as a content farm.

There is a subtle difference between Google’s content farm definition and Maven’s site arrangement. A content farm, the types of which Google essentially eliminated with the Panda algorithm back in 2012, was a combination of unrelated articles all on one site. Very little attention was given to quality, and Google recognized that too.

Maven, on the other hand, has communities run by experts in their niche fields. These individual communities are hosted as channels under Maven’s domain.

I had a concern about the possible relationship with a content farm because these communities are not under their unique domains as HubPages is doing with its vertical network sites. But that may not be so important when considering the community of experts devoted to their business. That's a unique and powerful opportunity for growth!

It's clear that Maven’s staff of professionals know what they are doing. They are combining authoritative communities of high quality content that Google and other search engines will recognize as useful to Internet search, and that’s what counts.

In the interim, nevertheless, the share price followed my guess—although maybe for different reasons. Nevertheless, this provides me with an interesting investment opportunity.

My Maven Investment Strategy

I would have wanted to invest in HubPages for many years now, but I couldn’t since they are not a public company. Now that a public company acquired HubPages, and assuming the conditions of the merger are met, I now have the opportunity to invest in HubPages, although indirectly by buying Maven shares.

I have reasons to believe Maven might do well over time, and I'll discuss that in a moment.

In the middle of February 2018, Maven’s shares price dropped to $1.50 and buyers quickly came in, bringing it back up over $1.80 in two hours. So I figured $1.50 is a good entry point.

I placed an order to buy shares at that low of $1.50, good till canceled if it ever gets back down there. On Feb 23rd, right before the market closed, my buy order executed and I got my shares as it closed at $1.50 once again.

I expect a lot of volatility as the price goes up and down, but I plan to be patient and hold these shares long-term.

Besides, I realize that they have a strong team behind them, and with the combination of talent from HubPages' staff, I expect much more growth in the future.

Source

Why Maven Might Do Well Over Time

I expect Maven to be a good long-term investment for many reasons:

  1. They are getting involved with a lot of successful enterprises, such as HubPages and Po.et (more on that below).
  2. They also have a strong executive team, with senior executives and veteran engineers from Amazon, Google, Microsoft, News Corp, and Yahoo! 4
  3. They handpick professional content publishers, reporters and journalists, to join as partners (known as “The Mavens”). Those who are chosen move their independent websites to join Maven’s community of experts under channels—as they are called.
  4. As of February 2018 they already had more than 70 channel partners, with roughly two being added every month since last August.
  5. Channel Partners have a powerful advantage. They can concentrate on their business while Maven provides broader reader engagement, greater distribution, and increased revenue from more efficient advertising partnerships.
  6. Publishers who moved their websites to Maven’s platform have experienced their audience engagement had increased by 71%.4

As I discussed earlier, if the combination of these channels on the same site turns out to be an issue with Google, I am sure Maven will react quick enough to construct an infrastructure similar to HubPages’ network niche domains.

I feel Maven made a wise choice with HubPages because Paul Edmondson, the former HubPages CEO, is now the Chief Growth Officer at Maven. He will deliver with his knowledge and experience, as pointed out in a recent HubPages blog.

"Network sites have been a central theme of our joint success over the last two years. We are excited to bring this knowledge to Maven."

— HubPages Blog (January 5th, 2018)

The strategy of using niche domains as network sites has proven to be successful for many authors who publish content on HubPages’ network of 27 domain sites.

Google puts a tremendous amount of extra search ranking on individual sites that focus on only one topic. This helps bring more readers because they recognize the authoritative nature of the content.

I expect that the merger of both companies will provide a learning experience for both to discover what has been working for one another.

The Maven’s CEO, James Heckman, explained their success strategy in an interview by Wall Street writer Brad Thomas.5 I had learned from that interview that they intentionally stay out of the way of Google by maintaining a closed network of invite-only professional writers.

Maven announced that the union of the two companies would bring more than 40 million monthly readers.6 This alone can increase revenue as advertising monetizes the content.

Maven Partners with Po.et

In addition to providing a revenue sharing platform for content publishing, I suspect Maven may also plan to offer protection against copyright infringement in the future using the same technology that has caused the boom in Bitcoin values. This is the blockchain technology.

In February 2018 Maven partnered with blockchain-based Po.et to protect publishers of online content.7

Source

Blockchain Protection for Content Creators

Blockchain technology is used for cryptocurrencies, such as Bitcoin. The blockchain contains all records of currency transactions so that a third party is not required to oversee the transaction in order to protect the parties involved.

Using similar technology, Po.et developed a blockchain protocol that contains time stamped titles of new content when the material is registered with the Po.et network.

In this case, the blockchain provides proof of existence with a verifiable proof of creation date which can help protect against copyright infringement.8

Video: How Po.et Proof of Existence Works

Why Blockchain Is Here to Stay

I’ve watched Bitcoin values grow from under $500 to over $19,000 in only two years and I wish I bought some at the beginning. But that’s not the subject of this article. The point is that I decided to study the force behind it and I discovered blockchain technology.

Cryptocurrencies are a dangerous game since we never know if government intervention will destroy it.

However, the blockchain technology is here to stay. The idea behind it is that it eliminates third-party intervention while providing proof of existence. In the case of content publishing, it provides proof of creation date by the original author.

The fact that Maven is involved with this powerful technology is encouraging.

Maven Continues Innovating to Improve Advertising Revenue

On February 26th, 2018 Maven announced an agreement with Wochit to include their video creation tools in their platform.9 Channel Partners will be able to use these tools to create and include enhanced video with their content. Video has been known to increase advertising revenue significantly.

Maven also is constantly improving ad generating methods. They recently employed a sticky ad at the bottom of articles when viewed on mobile devices. This is effective for advertisers without being obtrusive to readers, which helps generate additional ad revenue.

Bottom Line

You can see why I have high hopes for the success of The Maven, Inc.

  1. They have the right attitude with their mission of providing a platform for success.
  2. They are merging with competent companies in fields that are important for content creators.
  3. They are focused on learning new skills from those who are adept in the field.

It probably will be a long upward battle that will require patience for any investor. Getting in at the right share price is also important.

The main idea is that this is a long-term investment; shares that I’ll own and just let it do its thing. My overall impression of Maven is that it’s a well-run company and it has great potential with a strong team of professionals with the right attitude.

Most of all, they have a clear understanding and appreciation of their client base that comes from Internet search, and they know how to meet their needs with quality content in a well-organized structure.

Full Disclosure

As of the writing of this article I own shares in The Maven Network, Inc.

Disclaimer

This article is for informational purposes only. I am not a professional stockbroker and this article is not meant to provide any recommendations. Your investment decisions are based on your own due diligence.

© 2018 Glenn Stok

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    • Cre8tor profile image

      Dan Robbins 

      3 months ago from Ohio

      I still believe you're in good shape. The only time I worry about the ebbs and flows is if I'm flipping which I don't often do. Long term shares I buy and forget about as not to worry about these low points and yes, I do believe this will take a minute to register in the market but not too long. I've had longer expectations for other investments but here I don't think it will be painstakingly long to see some ROI. Either way I'm patient with promising new companies and never play with money I can't afford to lose.

    • Glenn Stok profile imageAUTHOR

      Glenn Stok 

      3 months ago from Long Island, NY

      It looks like you will get a better price thanI did Dan. MVEN is presently much lower then my entry point. But as you eluded to, that can change over time. In any case, I consider it a long term investment. I don't expect any huge gain in the short term.

      As James Heckman mentioned at the Maven Coalition conference, their goal is to create a revolution. But I'm sure that will take time.

    • Cre8tor profile image

      Dan Robbins 

      3 months ago from Ohio

      MVEN has been on my radar for some time now and while my investment dollars are currently tied up I see that changing soon and like you will be excited to invest. So far my timing seems to be working out but just hope it won't take off without me because like you I see Maven have a high probability of success.

    • Glenn Stok profile imageAUTHOR

      Glenn Stok 

      4 months ago from Long Island, NY

      bradmasterOCcal - I did not post your lengthy comment because it mostly is duplication of my content. But I do want to give you a reply.

      You happen to have very accurate information in your hubs and you discuss important political concerns that many people tend to misunderstand. It’s unfortunate that you are failing to get your point across, but it’s not because HubPages is biased. Trust me on that.

      I can see why you feel that HubPages is a failure. It happens to be very successful. My traffic and income has quadrupled since Maven's methods of Header Bidding were introduced to get advertises to bid on ad space. In addition, Maven is sending additional traffic to our articles on our network niche sites.

      You’re not seeing any of that because you are not using the tools HubPages has created for you and you’re not doing what’s been taught to us to improve SEO of your articles. It seems you are not paying attention to the weekly emails and HubPages blog posts since you have failed to apply any of the needed features.

      * You have no Author Bios in your hubs to show authority.

      * You are not using proper title capitalization.

      * You have not spell-checked your articles.

      * You don’t have a true headshot to show authority.

      * You don’t use a real name or real-sounding name.

      * You have no articles on HP's network niche sites.

      Articles left on HubPages will not make any money. You need to correct the items I mentioned above by making your hubs meet Google's Quality Rating guidelines. That’s the only way to make them acceptable for the niche sites. That’s where we are all making money.

      HubPages is a tremendous success. Maven is a public company and they have shareholders to answer to, so they would not have been interested in acquiring HubPages if it weren’t.

    • Glenn Stok profile imageAUTHOR

      Glenn Stok 

      4 months ago from Long Island, NY

      Cynthia Hoover - Yes, big things are happening and it's already helping with increased revenue. Maven is already including our network niche sites in the search on their site, so we are getting traffic from that.

      In addition, they just merged with "Say Media" so we have the power of three strong companies now.

    • Cynthia Hoover profile image

      Cynthia Hoover 

      4 months ago from Newton, West Virginia

      Very informative read Glenn. I am excited to see what the merge brings to the writers here. No doubt big things are in the future and I am excited to be a part of them and see where it takes us!

    • Glenn Stok profile imageAUTHOR

      Glenn Stok 

      5 months ago from Long Island, NY

      Thanks for the feedback Natalie. It’s good to know you found it educational. That was my intention.

    • Natalie Frank profile image

      Natalie Frank 

      5 months ago from Chicago, IL

      This was a great article for those of us without much investment experience. It was very educational to follow along with your investment thinking and strategy. Thanks for the info.

    • Glenn Stok profile imageAUTHOR

      Glenn Stok 

      5 months ago from Long Island, NY

      Brian, Buying just 1 or 2 shares would reguire a hugh increase in share price in order to make up for the commission.

      Most brokers charge around $5 per trade, no matter if it's one share or 1000 shares.

      Many brokers do offer several commission-free trades when you open an acccont, so that could be an option for you if all your intention is, is to play in the game. But don’t expect it to be a wealth changer.

    • B. Leekley profile image

      Brian Leekley 

      5 months ago from Kalamazoo, Michigan, USA

      Glenn, thanks for the clear analysis of Maven. This article gives me additional confidence that HubPages is worth writing for.

      Buying stocks would be new to me. I'll think about maybe buying 1 or 2 or so Maven stocks. I can afford to gamble $1.50, and Maven sounds like a company worth supporting, as regards both making good and doing good.

      Po.et is very interesting. I'm mystified how it works, but I'm glad it does.

    • Glenn Stok profile imageAUTHOR

      Glenn Stok 

      5 months ago from Long Island, NY

      Mary Wickison - The benefit to us all hopefully will be with increased CPM. The stock is for a much longer term investment.

    • MizBejabbers profile image

      Doris James-MizBejabbers 

      5 months ago

      I hope you will keep us posted, Glen. I had heard only pessimism on the Maven merger, but this looks very encouraging. My husband and I were wishing that we'd had the funds to invest in the ground floor of some of the tech companies that today are now paying off. Maybe this is our chance.

    • Blond Logic profile image

      Mary Wickison 

      5 months ago from Brazil

      Hi Glenn,

      Your enthusiasm for Maven is encouraging. I hope that the shares do well for you and that the company will benefit all of us.

    • dallas93444 profile image

      Dallas W Thompson 

      5 months ago from Bakersfield, CA

      Sounds like the bottom line is to simply, "stay tuned."

    • Glenn Stok profile imageAUTHOR

      Glenn Stok 

      5 months ago from Long Island, NY

      Sally, I noticed from reports by others in the forum that results vary based on subject matter. My investment in Maven is related to business practice and not individual publishing revenue.

    • sallybea profile image

      Sally Gulbrandsen 

      5 months ago from Norfolk

      I hope your confidence in Maven produces the financial results you hope for. For my own part, I have seen earnings on HubPages go down since the take-over in spite of increased views.

    • Glenn Stok profile imageAUTHOR

      Glenn Stok 

      5 months ago from Long Island, NY

      FlourishAnyway - I'm curious to know their future direction too. Updates to this article may be forthcoming if necessary.

    • FlourishAnyway profile image

      FlourishAnyway 

      5 months ago from USA

      I think it’s normal for the acquiring company’s stock price to dip after announcement of an acquisition so I would not be concerned on that point. Your analysis is thorough and I enjoyed reading it. I’m interested in learning much more about their direction. More to come I guess.

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