NEW YORK, NY - June 12, 2018 (Investorideas.com Newswire) SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage on Gopher Protocol Inc. (OTCQB: GOPH) with a Target Price of $4.84.
The report is available here: June 2018 Initiation Report.
We initiate coverage on Gopher Protocol Inc. with a price target of $4.84. GOPH is a development stage company focused on creating IoT and AI enabled mobile technology based on its proprietary platform, GopherInsightTM. The platform offers a variety of uses in the IoT ecosystem, which is estimated to be a multibillion-dollar market. In light of this opportunity, GOPH has launched its first IoT enabled technologies into tracking devices for pets (Guardian Orb), cars (Guardian Patch) and adults/children (Guardian Bracelet). Last year's acquisition of RWJ Advance Marketing is a step towards that goal as it brings significant capabilities with respect to distribution reach. The recent (March 2018) acquisition of ECS Prepaid LLC further validates management's commitment to increasing its distribution reach. GOPH also intends to capitalize on the marketing infrastructure of RWJ and ECS to roll out its line of proprietary products and technology. The entry into new verticals such as the autonomous driving market and Fintech should further boost growth. GopherInsightTM has a variety of uses in the IoT/AI ecosystem and represents one of the pure-plays in this space. GOPH boasts an experienced management team of seasoned industry leaders who bring an ideal mix of product distribution, technology and early-stage company expertise to the business. Specifically, GOPH's CTO Dr. Rittman has been a pioneer in software and integrated circuit technology. We see GOPH as a speculative play on the burgeoning IoT/AI/Fintech markets. The company has made considerable progress toward commercializing its proprietary GopherInsightTM technology. Going forward, we expect GOPH to increase revenues and earnings via new product launches, aggressive marketing initiatives and entry into new regions and verticals.
Proprietary GopherInsightTM technology offers competitive proprietary advantage
GopherInsightTM is a real-time AI enabled mobile technology which offers multiple use cases with the primary use in developing tracking devices. GopherInsightTM based devices are billed to be far more secure, accurate and reliable than the traditional GPS tracking devices. The GPS technology is undergoing massive innovation and disruption and in our view, superior technologies such as GopherInsightTM will take away market share from traditional GPS device market, especially when it comes to a self-driving machine. GOPH has already commercially launched tracking devices for cars, pets and adults, even demonstrated potential implantation into drones by releasing a video named as dDrnoe. According to ABI Research, the personal device tracking market could reach $2 billion by 2021.
Entry into new verticals to fuel growth
Apart from personal tracking devices, GOPH is also targeting the autonomous driving market (all kinds of vehicles, potentially even aircrafts) as well as the fintech space for further expansion (as GopherInsight™ chip upon development can be potentially placed on any credit card the fintech division will sell). It is focusing on autonomous car safety research using its proprietary tracking technology and has already conducted successful tests. According to Variant Market Research, the global self-driving car market is expected to reach $20 billion by 2024. GOPH also entered the fintech space with 50% acquisition of payment service provider, Spare CS Inc. The acquisition adds international crypto currencies and fiat currency transfer capability to the GOPH network. The recent partnership with Allied Wallet, a payment processing provider, will further enhance GOPH's international fiat currency transfer capabilities. GOPH also formed a JV with Lara Group to pursue AI-blockchain based smart contracts in Latin America. We believe entry into different verticals diversifies the revenue mix and lowers risk.
Acquisition to expand geographical reach
The acquisition of RWJ Advanced Marketing and ECS Prepaid LLC including the Electronic Check Services and Central State Legal acquisition, together with the prior acquisition of SPARE and signing reseller agreements with Allied Wallet, can potentially boost GOPH's geographical reach. In particular, these latest acquisitions upon integration may provide Gopher with a wide distribution network which spans more than 21,000 locations in the United States, processing currently about 14,000-15,000 transactions a day. The company intends to begin selling its products through these locations. With an average weekly footfall of ~2,000 per week per location, the Gopher products could reach ~30 million consumers per week. The ECS platform generated ~$32 million in annual revenues in FY17. ECS Prepaid LLC's retail network provides GOPH with a large customer reach to further expand its footprint. GOPH intends to capitalize on the marketing infrastructure of acquired assets to roll out its key program 'Horizon 20/20' which aims to install GopherInsightTM technology in mobile devices by 2020.
Initiate coverage with a price target of $4.84
We see GOPH as a high risk and high reward play on the burgeoning IoT market. The target of $4.84 assumes successful execution of its expansion plans which revolve around new product launches, entry in new verticals as well as new geographies. Key risks include lack of acceptance of GopherInsightTM in the market that could materially affect company growth prospects.
Please review important disclosures in the report and on our website at www.seethruequity.com.
About Gopher Protocol Inc.
GOPH is a development-stage company which specializes in the creation of Internet of Things (IoT) and Artificial Intelligence enabled mobile technology. Its technology, GopherInsight, consists of a smart microchip, mobile application software, and supporting software. GopherInsight has endless uses in the IoT ecosystem and GOPH has so far focused on developing tracking devices based on the technology. It has commercialized three products so far - Guardian Patch, Guardian Pet Tracker (Guardian Sphere or Guardian Orb) and Guardian Bracelet. For more information, visit http://gopherprotocol.com/.
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.
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For more information visit www.seethruequity.com.
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