The Mission Marketing Group: Capital markets day (CMD): Breadth of value
June 7, 2019 | Edison Investment Research
The recent CMD allowed themission's newly-appointed CEO, James Clifton, to outline the direction of travel to best leverage group strengths. It also showcased Krow, bought in April 2018, and businesses being developed within the Fuse incubator, particularly Pathfindr. There was no new financial information. Increasing collaboration across group agencies gives a solid base for more cross- and up-selling to the low-churn, blue-chip client base. The valuation remains at a sizable discount to peers. Read More
European Assets Trust: Long-term capital growth and high yield
July 10, 2019 | Edison Investment Research
European Assets Trust (EAT) aims to achieve capital growth over the long term through investing in small- and medium-sized companies listed in Europe (ex-UK). Over the past 10 years to end-June 2019, the trust has delivered an annualised NAV total return of 15.1%. EAT also has an attractive 5.6% dividend yield, significantly higher than its peers, reflecting the board’s high distribution policy. The trust completed its legal migration to the UK from the Netherlands in March 2019; previously dual-listed in London and Amsterdam, EAT is now solely traded on the London Stock Exchange (LSE) and is a constituent of the FTSE SmallCap and FTSE All-Share indices. Read More
S&U: Encouraging update
May 24, 2019 | Edison Investment Research
S&U's AGM trading update provides reassurance on the motor finance business, Advantage, where receivables growth is modest but in line with our expectation, while impairments and risk-adjusted yield are showing improvement. There is also confirmation of continued development of Aspen property bridging. The shares have shown strength recently, but are still modestly rated in terms of P/E and offer an attractive yield. Read More
Secure Trust Bank: Upbeat trading update
May 21, 2019 | Edison Investment Research
Secure Trust Bank's (STB) trading update seems to vindicate its decision to step away from mortgages for now and focus on segments where the risk-reward pricing is more attractive. The retail and motor finance segments (both with net revenue margins above 10%) have been doing well and earnings are slightly ahead of management expectations in the first four months of this year. We are not changing our forecasts, but may revise them if interims in July confirm the good news. Read More
Numis Corporation: Cost discipline and franchise strength in evidence
May 9, 2019 | Edison Investment Research
In particularly difficult market conditions, Numis's franchise strength and maintenance of the compensation ratio softened the impact of lower investment banking and equities revenue. Earnings per share were still down by two-thirds compared with H118 but, looking ahead, a return to a more favourable environment should allow Numis to deliver attractive returns on equity once more (historical five-year average c 20%). Read More
Canadian General Investments: Building on positive long-term track record
May 8, 2019 | Edison Investment Research
Canadian General Investments' (CGI) manager Greg Eckel is optimistic on the outlook for Canadian equities in 2019, particularly if there is resolution to the US-China trade dispute, along with clarity about the revised North American trade agreement. The manager says that while there are macro issues to consider, the Canadian equity market looks reasonably valued and he is encouraged by the outlook for corporate earnings, judging by the US Q119 results so far. Eckel is continuing to ‘stay true to CGI's heritage', following a bottom-up, low portfolio turnover approach, and is finding interesting new investment opportunities. The company has a very strong track record; its NAV has outperformed the S&P/TSX Composite index over the last one, three, five and 10 years. CGI's total dividend is on track for its first growth in seven years, and offers a prospective yield of 3.1%. Read More
Park Group: Investing for faster growth
May 3, 2019 | Edison Investment Research
In a trading update, management says FY19 trading exceeded its expectations, driven by Corporate business, and it expects similar trends in the current year. Reported profitability in FY19 and FY20 will be negatively affected by costs associated with implementing the strategic business plan, with little of the benefit expected until FY21 and beyond, and also IFRS 15 effects. We expect management to provide more details of the potential for enhanced growth and efficiency with the full-year results. Read More
Aberdeen Diversified Income and Growth Trust: Widely diversified, flexible multi-asset investment
May 1, 2019 | Edison Investment Research
Aberdeen Diversified Income and Growth Trust (ADIG) follows a diversified multi-asset approach, aiming to generate attractive long-term income and capital returns. The managers aim to hold a genuinely diversified, global, multi-asset portfolio of investments with differing return drivers and risk characteristics, that should produce uncorrelated returns. Performance has been mixed since the appointment of Aberdeen Standard Investments (ASI) as manager in February 2017, but positions in longer-term, less liquid investments, typically only accessible to large, sophisticated investors, are steadily being built up, and the experienced investment team is confident that the Libor +5.5% pa target return can be achieved over the investment cycle. The FY18 total dividend was 1.17x covered and the board intends to increase the FY19 dividend by 2.3% to 5.36p, representing a 4.7% yield. Read More
Acorn Income Fund: High-yielding fund with recovery potential
April 25, 2019 | Edison Investment Research
Acorn Income Fund (AIF) is one of the best-performing funds in the AIC universe over the past 10 years. However, it suffered a period of poor performance in 2018, as its high level of structural gearing compounded the ill effects of a sell-off in UK small-cap equities, in which c 75% of its portfolio is invested. The managers of the small-cap portfolio, Simon Moon and Fraser Mackersie at Unicorn Asset Management, remain very positive on the outlook, citing highly attractive valuations for the kinds of profitable, cash-generative, dividend-paying companies they seek. Meanwhile, the managers of AIF's income portfolio (Paul Smith and team at Premier Fund Managers) are focused on generating absolute returns from a diversified selection of short-dated bonds, investment companies and structured notes. Read More
Fidelity Japan Trust: Unearthing attractively valued growth in Japan
April 23, 2019 | Edison Investment Research
Fidelity Japan Trust (FJV) has recovered well in NAV terms from the global equity sell-off in the last quarter of 2018, which negatively affected its FY18 performance. Manager Nicholas Price says that the sharp de-rating of Japanese equities (which has only partly reversed as share prices have rebounded) means he is able to find many attractive companies trading at unwarranted discounts. The Japanese equity market is extremely under-researched compared with other major developed markets, and the input from Fidelity's large, locally based analyst team, together with Price's own research, makes FJV well-placed to capitalise on investment opportunities that the majority of (particularly overseas) investors may have overlooked. FJV's multi-cap portfolio continues to have a natural bias towards smaller and mid-cap stocks, with Price seeking reasonably priced companies that have high returns on equity and a solid three- to five-year growth outlook. Read More
Greggs: More than just the vegan-friendly sausage roll
August 6, 2019 | Edison Investment Research
Greggs’ interim results highlighted that the consumer is responding well to the company’s transition to a leading food-on-the-go retailer. This has led to record revenue growth and a step change in gross margin, as well as enabling further investment to fund future growth initiatives, while funding a special dividend as expected. Our forecasts are broadly unchanged following four upgrades in six months. Read More
Britvic: A good interim performance
May 23, 2019 | Edison Investment Research
Britvic has delivered another strong performance in H1, with organic constant currency revenue growth of 1.9%, organic adjusted EBIT margin up 30bps and adjusted EPS up 5.2%. The business capability programme (BCP) is due to be completed during H219, bringing higher capacity and increased flexibility to the company. Looking ahead, as capex and leverage normalise to lower levels, and planned returns and further growth from the BCP programme come to fruition, the wide discount to peers may narrow. Read More
Treatt: A good start to the year
May 7, 2019 | Edison Investment Research
Treatt has delivered another period of strong revenue and profit growth, demonstrating its transformation from a trading house to a provider of value-added, technical flavour and fragrance solutions. Its key categories of citrus, tea and sugar-reduction continue to drive profit growth. After a few years of increasing raw material costs, Treatt is experiencing some falling prices, particularly in citrus. Citrus represents c 50% of company revenues – and Treatt's historical area of expertise – and falling raw material prices tend to result in selling price deflation. Crucially, they do not necessarily result in a fall in profits, as due to timing of contracts, the fall in raw material costs is not always fully passed onto customers. We trim our FY19 and FY20 sales forecasts in light of raw material deflation, but we leave our profit forecasts broadly unchanged. Our fair value moves to 517p (from 510p) as we roll forward our DCF to commence in 2020. Read More
ADL Bionatur Solutions: Solid Q119 growth
May 9, 2019 | Edison Investment Research
ADL Bionatur Solutions (ADL-BS) reported robust Q119 growth, with revenue of €9.97m (up 134% year-on-year), driven largely by increased capacity utilisation at its contract manufacturing (CMO) business. CMO revenues were €8.02m (up 180% vs Q118), whereas the active pharmaceutical ingredient (API) segment was down 14% yearly to €0.90m, due in part to seasonality for β-lactam antibiotics. Other revenue, which includes proprietary products and other contracted services and income, was up 205% to €1.05m. The strong CMO growth drove a swing to positive €0.11m EBITDA, marking the second consecutive quarter of positive EBITDA. ADL-BS continues to expect positive overall EBITDA for 2019. Read More
Australis Capital: Taking advantage of the cannabis boom
May 31, 2019 | Edison Investment Research
Australis Capital is a cannabis-focused company spun out from Aurora Cannabis (ACB) to take advantage of the rapidly growing US cannabis market. It has acquired a range of assets across the industry, with a focus on durable assets and those that can be leveraged across multiple geographies such as brands, IP and technology. The company has assets and has entered into deals with a total nominal value of C$47.8m to date. Read More
Citius Pharma (NASDAQ: CTXR)
Saving Lives of Hospiptal Patients with Catheters Infected by Deadly Bacteria
BioPharma Credit: New debt investment in OptiNose
September 30, 2019 | Edison Investment Research
BioPharma Credit (BPCR) has recently entered into an agreement to provide up to US$82.5m in the form of a five-year senior secured loan to OptiNose, a Nasdaq-listed, commercial-stage pharma company with its flagship product XHANCE, an FDA-approved nasal spray for the treatment of chronic rhinosinusitis with nasal polyps. The therapy uses the inhaled corticosteroid fluticasone propionate coupled with OptiNose’s proprietary Exhalation Delivery System (EDS) designed to reach deep into the nasal passages. We estimate that BPCR still has c US$400m in uncommitted cash available for further deals. We also acknowledge the recent settlement of the dispute between Lexicon (one of BPCR’s borrowers) and Sanofi, which will result in a US$260m cash inflow for Lexicon. Read More
Oncology Venture: New CEO as company moves toward late stage
September 13, 2019 | Edison Investment Research
Oncology Venture announced on 4 September 2019 that it has appointed a new CEO, Steve Carchedi, former senior executive of J&J and Mallinckrodt. This comes at a critical juncture for the company as it moves its programmes into the late stage and starts to look for development partners to advance these assets. The company has made substantial progress getting LiPlaCis ready to launch Phase III studies with IND and IDE applications. Read More
The Biotech Growth Trust: Bright start to 2019
July 31, 2019 | Edison Investment Research
The Biotech Growth Trust (BIOG) is managed by Geoff Hsu and Richard Klemm of OrbiMed Capital and aims to generate long-term capital growth from a diversified portfolio of global biotech equities. Investment performance has improved markedly in 2019, following a tough few years, and the managers retain their record of long-term outperformance versus the NASDAQ Biotechnology index. They remain very optimistic on the prospects for the global biotech sector, citing a favourable regulatory environment, a ‘golden era of innovation’ and an uptick in merger and acquisition activity, and believe that political noise in the run-up to the 2020 US presidential election will be manageable for the industry. Read More
Hutchison China MediTech: An emerging global biopharma
July 5, 2019 | Edison Investment Research
Hutchison China MediTech (HCM) has announced positive data that key late-stage asset surufatinib met the primary endpoint of PFS in non-pancreatic at the Phase III interim analysis. This translates to an earlier than expected China NDA submission (H219) and the potential launch of HCM’s first un-partnered asset (early 2021). In China, partner Lilly has launched Elunate (fruquintinib) capsules. Early sales look promising and its potential inclusion on the China NRDL later this year will be definitive to the China opportunity. However, failure of fruquintinib monotherapy in third-line NSCLC and the changes in strategy to savolitinib in RCC has negatively affected our valuation. We forecast two further product launches on the horizon in 2021/2022 (China launch of fruquintinib in gastric cancer and global launch of savolitinib in NSCLC). HHHL has completed a secondary offering of ADSs, which has reduced its holding to 51.15% (from 60.2% previously). We see this as a significant positive for HCM as it increases the free float, potentially leading to better liquidity. We value HCM at $5.6bn (£6.72/share) vs $6.5bn previously. Read More
BONESUPPORT: US sales rebound and new clinical study
June 14, 2019 | Edison Investment Research
Recent updates indicate Bonesupport has been making progress in all key strategic directions. Sales have started to rebound in the US since the company started commercialising its CERAMENT bone void filler in Q418. The top-line results from the clinical CERTiFy study released in Q418 are also helping to increase awareness. CERAMENT G/V will be included in a new, large investigator-led SOLARIS study, which could potentially change the standard of care in osteomyelitis treatment. Our valuation is largely unchanged at SEK1.73bn or SEK33.1/share (vs SEK33.5/share). Read More
NeuroVive Pharmaceutical: Several R&D events within cash reach
June 12, 2019 | Edison Investment Research
The combined net proceeds of SEK108m from a rights issue and direct placement completed in Q119 ensure NeuroVive Pharmaceutical's operations will be funded well into 2020. Potential near-term share price catalysts include initial results from the KL1333 Phase Ia/b, a non-dilutive financing solution to enable the start of the NeuroSTAT Phase II clinical trial, the publication of in vivo data for NV354 and the an out-licensing of NV556. Our updated valuation is slightly higher at SEK1.55bn or SEK8.3/share. Read More
Newron Pharmaceuticals: Evenamide down but not out
May 31, 2019 | Edison Investment Research
Newron's plans for its novel mechanism of action drug, Evenamide, due to enter late-stage development for schizophrenia, have been delayed. Specifically, the FDA has requested that Newron carry out additional short-term safety studies before larger, pivotal-stage clinical trials can be undertaken. This has taken us and the market by surprise, as we had expected the two Phase II/III trials to start in Q219 as per guidance. The delay is a setback and we therefore push back our launch expectations by 18 months to 2024, erring on the side of caution. We now value Newron at CHF653m vs CHF714m previously. Read More
ReNeuron Group: Year-end update highlights transaction potential
May 20, 2019 | Edison Investment Research
ReNeuron's year-end update summarised its recent clinical progress in the human retinal progenitor cell (hRPC) programme in retinitis pigmentosa (RP), which has become the focus for investors, and a slight delay to its CTX programme for stroke disability. The announced £26.4m cash position was slightly higher than our prior YE19 forecast of £25.7m and will help ReNeuron's position in any further partnering discussions. Read More
BioPorto Diagnostics: Paediatric NGAL Test submitted with breakthrough
May 20, 2019 | Edison Investment Research
BioPorto announced that it had submitted an application to the FDA for the paediatric NGAL Test. The application was specifically for the risk assessment of acute kidney injury in children under the age of 21. The application was submitted with breakthrough designation, which we consider very encouraging. The designation shortens the statutory review time to 45 days (from 90) and provides that a portion of data needed be provided after marketing clearance. Read More
ASIT biotech: No surprises in FY18 annual report
May 17, 2019 | Edison Investment Research
ASIT biotech published its preliminary FY18 results in early April, including the cash position at the end of March 2019, and issued its FY18 report in May. The release of the balance of the FY18 financial statements resulted in no surprises, while the completion of the dosing phase of the Phase III study implies a safe and well-tolerated short-course allergy product. Read More
Laboratorios Farmacéuticos ROVI: Becat roll-out benefits top-line growth
May 10, 2019 | Edison Investment Research
Laboratorios Farmacéuticos ROVI (ROVI) reported Q119 operating revenue of €82.2m (+8% y-o-y), driven by strong growth in the speciality pharmaceutical business (+12%). Sales of its low molecular weight heparin (LMWH) franchise grew 34% to €37.6m, driven by the continued uptake of Becat (enoxaparin biosimilar) (+398% to €16.5m) and growth in domestic Hibor (bemiparin) sales (+4% to €17.6m). International Hibor sales struggled (-50% to €3.5m), but management believes this was a one-off stocking effect, and expects that full year sales should stabilise. Operating revenue guidance for 2019 has been raised to low double-digit growth. The next milestone will be finalised clinical data from the Phase III study of DORIA, ROVI's long-acting formulation of risperidone for schizophrenia, which met its primary efficacy endpoint in March 2019. We value ROVI at €1.17bn or €20.9 per share. Read More
Atossa Genetics: Endoxifen catalysts expected in 2019
May 9, 2019 | Edison Investment Research
Atossa Genetics' endoxifen programs are awaiting key catalysts in the coming year. Top-line data from a Phase II study in women with elevated mammographic breast density (MBD) is expected in Q219. The high rate of dropouts due to skin irritation/rashes may prompt a formulation change. The firm is also advancing an oral endoxifen formulation to reduce cancer cell activity in the window of opportunity between breast cancer diagnosis and surgery, and in women refractory to tamoxifen. Our rNPV-derived equity valuation is $37.3m, or $3.81 per fully diluted share, up from $3.66/share previously. Read More
Actinogen Medical: Phase II XanADu trial results
May 8, 2019 | Edison Investment Research
Yesterday Actinogen announced the initial results from its Phase II clinical trial of Xanamem in patients with mild dementia due to Alzheimer's disease (AD). The safety of the drug was confirmed and the data showed Xanamem was effectively inhibiting cortisol production, as demonstrated by the expected increase in adrenocorticotropic hormone. However, the 10mg dose of Xanamem was not effective in demonstrating statistical significance on any of the endpoints. We note that both primary and secondary endpoints were robust ‘gold standard' psychiatric tests used to measure cognition in AD patients, hence the trial was well designed, but the hurdle was high. Actinogen indicated it will analyse the data and make a decision on future steps once that is complete and the results from other supporting trials are released. Specifically, the company indicated that a higher dose and longer treatment could potentially be a way forward, given the drug appears safe and pharmacologically active. Read More
Immunovia: Optimised hunting for the hidden killer
May 3, 2019 | Edison Investment Research
During 2019, Immunovia will focus on optimising the IMMray PanCan-d test in preparation for the start of a commercial private testing service for pancreatic cancer (PDAC). The sample optimisation study should end in Q2. In H219, accreditation of the Swedish and US laboratories is required to enable a private PDAC test service by Q120. The 2,000 patient PanFAM-1 prospective clinical trial is still recruiting patients and might report primary data on early-stage PDAC detection in December 2019. Earlier-stage opportunities are: Type II diabetes, early symptoms of PDAC, lung cancer and rheumatoid arthritis. Our valuation remains at SEK3.5bn. Read More
Pixium Vision: Pixium appoints new CEO
May 2, 2019 | Edison Investment Research
Pixium Vision announced that Lloyd Diamond will serve as the chief executive officer (CEO) of Pixium Vision, effective 13 May 2019. Mr Diamond, a US citizen, is an experienced executive and CEO in the MedTech sector, with 25 years of disruptive technology commercialization experience in the life sciences sector. He most recently served as the CEO of Precise Light Surgical, a medical device company based in Silicon Valley. Previously, he was the CEO of Bonesupport, a European orthobiologic company, where he oversaw rapid market penetration in Europe and the US, leading to a successful IPO on the Nasdaq OMX. He also has relevant experience in the ophthalmology segment as he was responsible for managing Lumenis's global surgical and vision franchises. Read More
Elbit Medical Technologies: Full-year financial results
April 30, 2019 | Edison Investment Research
Elbit Medical Technologies' two portfolio investments continue to advance on multiple fronts. InSightec recently completed its compatibility project with Siemens MR scanners and its ExAblate Neuro units, which lends the opportunity to expand its presence in the global MR market. According to Gamida Cell, its cash balance should fund its operations through the top-line readout of its Phase III study of NiCord, which is expected in H120. Read More
Oryzon Genomics: First vafidemstat efficacy data
April 29, 2019 | Edison Investment Research
In April 2019, Oryzon released the results from the first two cohorts in the Phase II REIMAGINE trial, namely borderline personality disorder (BPD) and attention deficit hyperactivity disorder (ADHD). The datasets included the first efficacy results, which demonstrated vafidemstat's potential in aggression management in these patients. REIMAGINE is a basket trial, enrolling patients with two neurodegenerative and three psychiatric diseases, hence the cohorts were small (six patients each). All primary and secondary endpoints were met with high statistical significance, which prompted Oryzon to announce that it now plans to expand vafidemstat's R&D beyond the currently ongoing other Phase II trials in Alzheimer's disease (results in H219) and multiple sclerosis. Our valuation is higher at €430m or €11.0/share (€9.3/share previously) with the inclusion of BPD. Read More
Xbrane Biopharma: Mammalian movement
April 29, 2019 | Edison Investment Research
Xbrane, a leading innovative biosimilar development company, is moving into mammalian cell culture with announced plans for Xdivane, a biosimilar of the immunoncology blockbuster Opdivo (nivolumab, BMS). The company plans to launch Xdivane from 2026. Xbrane has issued guidance that its share of revenues from Xlucane, partnered with STADA and due for launch by Q122, could reach €100m. The XPLORE Phase III trial has enrolled its first patient, with its primary endpoint due in mid-2020. Our valuation remains SEK581m pending further information on Xdivane. Read More
CASI Pharmaceuticals: CASI acquires an early stage CD38 mAb
April 26, 2019 | Edison Investment Research
CASI announced on 17 April 2019 that it had in-licensed the novel CD38 monoclonal antibody TSK011010 from Black Belt Therapeutics. The deal includes a €7m upfront (€5m cash and €2m equity investment) and undisclosed milestones and royalties. The drug is in the pre-IND stage but CASI noted that the IND-enabling studies are complete and it expects to submit IND/IMPD applications at the end of 2019 or early 2020. Read More
Allied Minds: Doubling down on the winners
April 26, 2019 | Edison Investment Research
Following its latest strategic review, Allied Minds has further concentrated its strategy around its three most promising investments (Federated Wireless, Spin Memory and Hawkeye 360). Each expects an important value inflection point in 2019 and anticipates further funding rounds in 2019/20. New investment for the group is on indefinite hold and HQ cash costs are being cut by a further $1.5–2.5m to ensure the group can follow its initial investments. Our estimate of FY18 NAV falls by c 33% to $277m (assuming a write-down of the healthcare assets SciFluor and Precision Biopsy pending external funding) - no major surprise given the lack of positive news on funding. The shares still trade at a 28% discount to FY18 NAV and, with clear milestones for the core assets in 2019, we are hopeful that the long downgrade cycle may now be set to reverse. Read More
Deinove: Preparing for DNV3837 Phase II trial start
April 25, 2019 | Edison Investment Research
With its latest H218 report, Deinove reiterated its focus on the major areas of bioactives and antibiotics. The most recent significant announcement was its collaboration with the Institut Pasteur, which will provide access to a selection of bacterial strains. The upcoming initiation of the company's first Phase II trial with DNV3837 for C. diff infections is the key milestone this year. According to the released details, the trial is expected to start in mid-2019 in the US and Germany, enrol 40 patients and last for about a year. If positive, the next step would likely be a Phase III trial. Deinove's commercial activities will continue to focus on the two marketed and several other cosmetics ingredients in development. Our valuation is virtually unchanged at €66m or €4.2/share. Read More
GENSPERA CORPORATION (GNSZ- OTC QB Exchange)
Based on the company's attractive growth prospects with a pipeline of products based upon its unique platform targeting large tumor applications; and strong development and experienced management team who have taken drugs successfully through clinical trials, we recommend the purchase of GNSZ stock for speculative accounts seeking long-term capital appreciation. Our target: More than a double within the next 12-24 months.
Equity Research July 2014; Kareg Corp. Independent Investment Rese
What Does the Upcoming Election Mean for Investors?
September 10, 2020 | SPADE Indexes LLC
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Boku: Reiterating outlook for FY19
September 11, 2019 | Edison Investment Research
Boku reported 39% year-on-year revenue growth in H1: 19% growth from the Payments business was boosted by the newly acquired Identity business. This translated to 69% growth in EBITDA and 64% growth in normalised operating profit, despite investment in the Identity business. Management expects a stronger H2 and is maintaining FY19 guidance. We have taken a more cautious approach to our Identity forecasts reflecting longer sales cycles; this reduces our FY19–21 forecasts, although we expect the company to meet FY19 guidance. Read More
De La Rue: Venezuela costs dearly
June 6, 2019 | Edison Investment Research
Despite delivering close to our expectations for FY19, De La Rue has hit another problem which undermines prospects for FY20. The abrupt end of the overspill supply to Venezuela due to sanctions not only leaves the company £18m out of pocket, but also having to accelerate optimisation efforts to adjust to the new, lower but sustainable banknote print volumes by 2021. The result is a 22% reduction in our FY20 EPS estimates with declining revenues through FY21. Combined with the announced change of CEO, even the dividend yield support now falls into question, although we feel the prospects are bright enough for its maintenance. Read More
Osirium Technologies: Moving beyond PAM
May 17, 2019 | Edison Investment Research
Osirium reported FY18 revenues and operating loss slightly ahead of our forecasts. Although bookings intake was lower than expected in H218, the increase in proofs of concept underway and the number of customers using PxM Express support accelerating bookings growth in FY19. By broadening the product offering with the recently launched secure IT process automation solution, Opus, and the soon to be launched endpoint privilege management (EPM) solution, Osirium is growing its addressable market and creating upsell opportunities for its ‘land and expand' strategy. Read More
Osirium Technologies: Opus: taking the work out of IT security
May 7, 2019 | Edison Investment Research
Osirium is building on the success of its privileged task automation technology with the launch of a new product, Opus, to provide privileged IT process automation. Opus enables the automation of more complicated processes that require privileged access to multiple systems, and provides for human interaction where choices and exceptions arise. Opus will be sold as a separate module and management expects it to have a growing and material impact on its financial performance. Read More
Cohort: Orders underpinning prospects
April 29, 2019 | Edison Investment Research
As anticipated at the H119 results, order intake for Cohort remained strong through the second half of the year. With the addition of Chess, the backlog at the year end should stand at more than £175m, comfortably a record for the group. It represents c 1.3 years of revenues based on our FY20 expectations and while many of the contracts are multi-year, it does provide increased sales cover for the medium term. Cohort continues to deliver against its growth strategy, appears to be largely insulated from Brexit concerns and still trades on an undemanding P/E multiple. Read More
ProCredit Holding: Impact-oriented SME lender in SEE and EE
June 4, 2020 | Edison Investment Research
ProCredit (PCB) has extensive experience in supporting small and medium-sized enterprises (SMEs) in emerging economies (coupled with a strong environmental, social and governance (ESG) profile), with a focus on Southeastern (SEE) and Eastern Europe (EE) and banking operations in Ecuador. Its in-depth, impact-oriented relationships with SME borrowers (93% of loan book at end-Q120), prudent credit risk management and solid capital base (CET-1 ratio of 14.0% at end-Q120) should help reduce the impact of macro headwinds. We forecast PCB’s ROE to increase from c 7% in FY19 to 10% by FY24, driven by solid loan book growth after FY20e (c 9% pa), which can be achieved with the existing capital base. This should be assisted by limited growth in operating expenses due to a lean branch network and digital platform. Read More
bet-at-home: A cautious tone ahead of German regulation
March 11, 2020 | Edison Investment Research
bet-at-home (BAH) is an established European online sports betting and e-gaming provider. It largely operates in unregulated grey markets that are characterised by strong cash flow, although they also carry commensurately higher regulatory risks. Upcoming legislation in Germany will provide clarity but will likely result in responsible gambling restrictions and potentially higher taxes. FY19 results were above our estimates but management has guided to a more conservative outlook for FY20 and we now forecast a revenue decline of 10.7% in FY20. The FY19 dividend is more modest than previous years (€2 vs our €4), as BAH is clearly being prudent in view of regulatory uncertainties. BAH trades at 7.4x EV/EBITDA, 12.3x P/E for FY20, with a 7.0% dividend yield. Read More
Games Workshop Group: Third consecutive year of record results
August 2, 2019 | Edison Investment Research
Games Workshop (GAW), the global leader for tabletop miniature gaming, has bucked wider consumer trends and delivered a third consecutive year of record sales and earnings growth in FY19. The company is proactively exploring new ways, such as the development of digital content, in which to leverage its rich intellectual property and introduce the Warhammer hobby to new audiences globally. Our modest forecast assumptions, which have not materially changed, drive a DCF valuation of 4,703p. Read More
OPAP: Strong EBITDA driven by VLTs and cost controls
June 7, 2019 | Edison Investment Research
Q119 gross gaming revenues (GGR) increased 5% to €396.0m, OPAP's strongest Q1 performance since 2010. This was driven by a 58.9% increase in video lottery terminals (VLT) GGR (17% of GGR). The core lottery business was steady at €191.7m, although sports betting declined by 5.3%. Sustainable cost containment contributed to an adjusted EBITDA margin of 25%. Our headline forecasts are broadly unchanged, and we assume that the VLT roll-out will continue as previously planned. Cash generation remains strong, net debt/LTM EBITDA is only 1.1x and the company recently announced a scrip dividend option for shareholders. OPAP trades at 8.3x EV/EBITDA and 15.6x P/E with a 7.9% dividend yield for FY19. Read More
PPHE Hotel Group: Going up
September 30, 2019 | Edison Investment Research
H119 has seen PPHE again deliver both operationally and from a property perspective. Like-for-like EBITDA increased by 6%, driven by London, its main profit source, clearly outperforming a buoyant market and benefiting from maturing room stock. Successful property development is reflected in a further rise in EPRA NAV per share, up 5% to £25.52 yoy (surplus of over £700m to book value) and confirmation that its extensive £300m investment programme is well in hand. Despite tougher H2 comparatives we are maintaining our 2019 EBITDA forecast but for a £5m IFRS 16 uplift. An enhanced contribution from London should make up for relative shortfalls in Croatia (competition) and Netherlands (delayed reopenings). Read More
Telford Homes: Executing the Build to Rent strategy
June 4, 2019 | Edison Investment Research
FY19 results were in line with February guidance and the year ended with lower net debt than we had anticipated. The migration to a dominant Build to Rent (BTR)-led pipeline is well underway. The first developments of this type were handed over in the year and, together with the announced strategic partnerships, other live projects indicate good momentum in this sub-sector. As before, FY20 will reflect other project and open-market effects before earnings start to rebuild from FY21, consistent with our estimates. Telford's valuation looks conservative if the company is able to sustain or exceed our projected FY22 EBIT over the long term. Read More
DeA Capital: Continuing to focus on asset management growth
May 31, 2019 | Edison Investment Research
DeA Capital produced a solid performance in Q119, with the alternative asset management division benefiting from performance-related fees, continuing its platform development, and launching new funds. NAV and the net cash position remained robust, and an unchanged €0.12 per share dividend was paid on 22 May 2019. We forecast a similar distribution in FY19, representing a prospective yield of more than 9%. Following the dividend payment, our adjusted net asset value per share is €1.75. Read More
FCR Immobilien: Sustained high transaction activity
May 31, 2019 | Edison Investment Research
FCR continues to grow its property portfolio which, at 29 May 2019, represents lettable floor space of c 261,500 sqm compared to 175,000 at end-2017. To facilitate this growth, the company recently launched a new €30m bond issue and a share capital increase. FCR deploys its targeted higher leverage at property level, with the bank liabilities to book value of properties ratio at c 67% at end-2018. Meanwhile, it also managed to achieve a solid aggregate return of 32.3% on nine property disposals completed in FY18 (with additional profitable transactions in 2019 ytd), taking advantage of continuing strong underlying investment demand in the commercial real estate (CRE) market. Read More
Deutsche Grundstücksauktionen: High tempo
May 24, 2019 | Edison Investment Research
Strong momentum in H218 has ensured yet another successful year for Deutsche Grundstücksauktionen (DGA). Boosted by a bumper €15m Q1 auction lot, 2018 saw a 30% rise in both net profit and dividend as surplus cash (DGA has no debt) allows full profit distribution. The current year has also started well with Q1 gross turnover and net commission slightly above the average of last 10 years and positive indications for Q2 auctions. While 2018 will be a hard act to follow thanks to that bumper sale, the offer of further high-value lots is not wishful thinking, given DGA's good relationship with the Federal Bundesanstalt and excellent publicity as a reference sale. Therefore management's target for 2019 gross turnover of €109m (average of last five years) may prove cautious. Read More
NNoratis: Strong pipeline
May 14, 2019 | Edison Investment Research
Noratis remains firmly on a growth path. Accelerating development of its asset base (stock book value up by over half in H218 at €176m) has been followed by news that fundraising options for further expansion are under review. While this should underpin strong long-term prospects, a typical two-year lead time for asset value enhancement explains apparently measured guidance for 2019 (maintained EBIT on higher revenue). Timing was also a factor last year as H2 bias of high-margin asset sales drove a 30% rise in adjusted EBIT, more than making up for a first-half shortfall. A generous dividend policy is being maintained despite growth ambitions. Read More
Lloyd Fonds: Update
May 9, 2019 | Edison Investment Research
Lloyd Fonds is accelerating its transformation into a leading asset manager in Germany with the proposed acquisition of highly regarded SPSW Capital. This follows the recent sales launch of its new business model, focused on open-end retail funds and targeting assets under management to exceed €5bn by 2023 (€1bn+ in 2019). While repositioning makes financials difficult to assess, this move gives reassurance as growth in assets under management is the stated driver of future earnings. Read More
Epwin Group: Improving ongoing business footprint
May 7, 2019 | Edison Investment Research
Steps were successfully taken by Epwin to consolidate its ongoing operational footprint in FY18, a challenging trading year. We expect growth to resume this year with a small contribution from PVS (acquired after the year-end) also. It is too soon to call a significant uptick in market conditions but the start to FY19 has been encouraging according to management comments. An 8.3x P/E multiple offers a reasonable entry point and investors can collect a 3.9% yield with the final dividend payment (and 6.0% prospectively for FY19). Read More
PPHE Hotel Group: Mind the gap
May 1, 2019 | Edison Investment Research
In keeping with its strong record of asset development, PPHE is actively repositioning itself at the corporate level. The introduction of EPRA reporting highlights the company's success from a property perspective (EPRA NAV per share of £24.57 at December 2018), while share liquidity and broadening of the investor base should benefit from the recent secondary placing and move to a Premium Listing. Operationally, progress is robust with resilient trading (8% gain in Q1 like-for-like RevPAR and revenue), continued material investment payoff and abundant asset-acquisition opportunities. We believe PPHE's shares offer an attractive way to access hotel property markets, particularly in London and the Netherlands, both in terms of capitalisation yield and a SOTP valuation. Read More
Consus Real Estate: Ready for take-off
April 30, 2019 | Edison Investment Research
In FY18 Consus completed its transformation into the largest listed pure-play residential real estate developer in the top nine cities in Germany and will now focus on optimising its operations. With a relatively young portfolio representing €9.6bn of gross development value (GDV), Consus expects a significant increase in earnings as key projects progress beyond the planning stage. The strong forecast consensus earnings growth in 2019–2021 should be further assisted by improving rental income multiples at which projects are sold and ongoing digitalisation. This is illustrated both in the management guidance and current market consensus. Read More
Target Healthcare REIT: Rental growth and development progress
April 30, 2019 | Edison Investment Research
Target's portfolio continued to perform well during the three months ended 31 March (Q319), with RPI-driven rental growth, increased property valuations and progress with the forward-funded development of pre-let, high-quality, purpose-built homes. Due diligence on potential further acquisition opportunities continues, in aggregate sufficient to fully deploy remaining debt capital resources. Read More
discoverIE Group: Boosting North American presence
April 23, 2019 | Edison Investment Research
discoverIE has acquired two high-margin design & manufacturing (D&M) businesses for initial consideration of £15.9m, and raised £28m net from the issue of 7.3m shares at 400p per share. The acquired businesses strengthen discoverIE's position in the magnetics and sensor markets, increase presence in North America and open up organic growth opportunities in the group's target markets. The placing brings the group's gearing down and provides headroom for further acquisitions. Read More
Accsys Technologies: EBITDA milestone achieved, Hull build delay
April 23, 2019 | Edison Investment Research
FY19 performance at the Arnhem Accoya facility has been robust with successful delivery of higher volumes from raised capacity. Construction delays at the new Hull Tricoya facility outside Accsys's control are a near-term frustration and dampen EBITDA progression over our forecast horizon. That said, achieving a positive group EBITDA outturn in FY19 is a significant milestone. The current valuation is underpinned by Arnhem. Read More
BlackRock Greater Europe Investment Trust: Exposure to niche, attractively valued companies
May 24, 2019 | Edison Investment Research
BlackRock Greater Europe Investment Trust (BRGE) has been co-managed by Stefan Gries since June 2017. Since then, there has been a marked improvement in the trust's investment performance. Gries is constructive on the prospects for the trust, suggesting it provides access to winning franchises in niche, attractively valued companies that ‘just happen to be based in Europe'. In aggregate, BRGE's portfolio companies have a meaningfully higher return on capital and greater forecast earnings growth compared with the reference index (FTSE World Europe ex-UK), which the trust has outperformed over one, three, five and 10 years. It also offers exposure to the potentially higher-returning emerging markets in Europe. Read More
Walker Greenbank: Year to date trading as expected
June 20, 2019 | Edison Investment Research
An in line AGM update is to be welcomed after a tough trading year in FY19. Market conditions have yet to show any marked improvement, but UK cost savings and some international progress support our existing estimates. The new management team expects to deliver a strategy update in the Autumn and this should provide insight regarding future growth prospects. The rating has increased in recent months though FY20 should represent trough earnings in our view. Read More
Lepidico: Valuation update
July 8, 2019 | Edison Investment Research
In May, Lepidico (LPD) announced a trio of transformational initiatives. The first of these was an all-share offer to acquire Desert Lion (TSXV: DLI), according to which LPD will pay 5.4 shares for every one Desert Lion share. The second was a one-for-nine renounceable rights issue to raise up to A$10.8m via the issue of 372.9m new shares (plus warrants) at a price of A$0.029/share. The third was a supply and marketing alliance with Gulf Fluor for the supply of sulphuric acid, including the provision of land for the construction and operation of Lepidico’s Phase 1 Plant project in Abu Dhabi. Our last note considered the strategic rationale for the three initiatives; this report looks at the valuation implications. Read More
Alkane Resources: Another forecast upgrade and an investment
June 7, 2019 | Edison Investment Research
Gold production from the mid-grade stockpile at Tomingley continues to perform above our expectations, resulting in a second upgrade of our production estimates this year. We increase forecast gold (Au) production for FY19 to 48,000oz (from 44,000oz on 2 May 2019, previously 40,000oz on 12 February 2019). As a result, we also increase forecast gold sold to 52,800oz (from 48,800oz). The increased production levels also result in a lower all-in sustaining cost (AISC), which decreases to A$1,004/oz Au (from A$1,059/oz Au). Alkane also announced a binding agreement with Zirconium Technology Corporation to fund a pilot plant operation to convert metal oxides into metals. Read More
June 7, 2019 | Edison Investment Research
After two years lost to a state of emergency in Ethiopia, a new political order has emerged that has allowed KEFI to progress Tulu Kapi to the point of development. All federal government consents have now been received (including from the National Bank of Ethiopia, Ethiopia's central bank). This now allows KEFI to trigger the first equity instalment of US$11.4m from its Ethiopian partners into the project, which will fund detailed engineering & procurement (including long lead items), allow community resettlement and defer debt funding until FY20. Importantly, however, it also enables the infrastructure finance bond programme to proceed, such that, on the current timeline, commissioning of the plant is anticipated to start by end-2020, with first gold in April 2021 and full production by mid-2021. Read More
BCI Minerals: Mardie PFS optimisation study
May 23, 2019 | Edison Investment Research
On 17 May BCI announced the results of its PFS optimisation study at its Mardie salt and potash project in north-western Australia. Relative to its earlier PFS study (the results of which were announced in June 2018), the principal differences are an increase in salt and sulphate of potash (SOP) production, by 14.3% and 33.3% respectively, and the development of a dedicated port at the Mardie site. While this has increased the project's capex estimate by 48.7% to A$498m, it has increased its pre-tax NPV10 by 67.2% and our estimate of post-tax NPV10 by A$111.2m to A$345.5m (or 86.9c per existing BCI share). At the same time, the project's operational lifespan has been extended to 60 years (from 30 years previously). Read More
Lepidico: Acquisition, rights offer and Gulf Fluor alliance
May 9, 2019 | Edison Investment Research
Lepidico (LPD) has, this week, announced a trio of transformative initiatives. The first of these is an all-share offer to acquire Desert Lion (TSXV: DLI), according to which LPD will pay 5.4 shares for every one Desert Lion share. The second is a supply and marketing alliance with Gulf Fluor for the supply of sulphuric acid, including the provision of land for the construction and operation of Lepidico's Phase 1 Plant project in Abu Dhabi. The third is a one for nine renounceable rights issue involving the issue of up to 372.9m new shares in Lepidico at A$0.029/share to raise A$10.8m. Read More
Endeavour Mining: Starting as it means to go on
May 3, 2019 | Edison Investment Research
For the third time in succession, Endeavour's (EDV) quarterly results were materially ahead of our expectations in Q119, driven by universally higher production and lower all-in sustaining costs (AISC) at each of its operating assets (with the exception of the Ity heap leach operation). Output was further augmented by 8.8koz of pre-commercial production from the Ity CIL plant. While production and sales were both c 31% below Q418's record level, therefore – as a result of c 30% of total mill feed being derived from low-grade stockpiles – they were nevertheless c 22% above our expectations at 121koz apiece. Read More
Alkane Resources: Forecast and valuation upgraded
May 2, 2019 | Edison Investment Research
Q319 was a strong quarter for Alkane Resources, with gold production from the stockpile at Tomingley Gold Mine above expectations. As a result, we have increased forecast gold production for FY19 to 44,000oz from 40,000oz and increased gold sold to 48,800oz from 41,500oz. We have also decreased our forecast all-in sustaining cost to A$1,059/oz Au from A$1,108/oz Au. Read More
Entertainment One: Mark Gordon’s content
July 31, 2019 | Edison Investment Research
Entertainment One (ETO) has reached a multi-year production agreement with Mark Gordon to develop and produce content. The continuing alignment of his efforts with the group’s objectives is good news and removes any residual uncertainty post last month’s press stories. We have now updated our forecasts for the bond refinancing; the reduction in forecast interest costs results in uplifts to PBT and EPS for FY20e and FY21e of 4–5%. ETO is currently trading at a discount of around 7% to peers, based on our sum-of-the-parts valuation. Read More
Pantaflix: Growing digital channels
June 19, 2019 | Edison Investment Research
Pantaflix's content production business continues to do well, although FY18 earnings were impacted by timing issues, with revenues slipping into FY19 and costs already incurred. The content pipeline is strong, including a first series for Netflix. Longer-term growth should come from expanding the Pantaflix platform from transactional video-on-demand (TVoD) to subscription and advertising-supported models (SVoD and AVoD). It should also open up white-label and commercial B2B2C opportunities. Read More
Mondo TV: Tracking on trading
May 16, 2019 | Edison Investment Research
Mondo TV's Q119 figures are as flagged, tracking to its December 2018 business plan. Our revenue and earnings numbers are unchanged. YooHoo to the Rescue is now airing globally on Netflix, giving a strong start to management's ambitions to broaden geographic revenue spread. The group has settled with three of the four Asian customers that withdrew in H218, but remains in dispute with one. It has also disclosed that it is subject to a further tax authority investigation, which it is confident will find in its favour. A further mark down in the share price, now off the lows, leaves the valuation at a deep discount to peers and the DCF. Read More
Mondo TV: Child's play
May 10, 2019 | Edison Investment Research
Mondo TV has started FY19 in much improved financial health, with a more concentrated portfolio centred on properties with good potential globally. YooHoo has been sold to Netflix as an original series and is now airing internationally, generating revenues and also acting as a flagship project. Licensing revenues should pick up in its wake. Robot Trains should also contribute from this year. The highly competitive environment between terrestrial and SVoD carriers provides a strong trading backdrop as they vie for content. Post the re-basing, Mondo TV is a far less risky investment proposition, yet is priced at a substantial discount to global peers. Read More
Focusrite: Earnings growth despite market headwinds
April 30, 2019 | Edison Investment Research
Focusrite has delivered 23% H119 earnings growth, despite market headwinds, reflecting continued market share gains for its Focusrite ranges, a strong performance in Europe and 260bp gross margin improvement. The company is actively seeking opportunities to use its substantial £26m net cash balance, as reflected in the current valuation. Read More
Nanoco Group: Major customer not moving to production
June 24, 2019 | Edison Investment Research
Nanoco's announcement that its project with the major US customer will not continue when the current contract expires in December 2019 is clearly a severe setback and we have therefore cut our FY20 estimates substantially. We note though that the customer's decision relates to a change in strategy rather than issues with the performance of Nanoco's materials or services. The company has a strong IP base and state-of-the-art manufacturing facility with an estimated 12 months of cash to explore new commercial options including with its US customer. Following Friday's share price drop, the £20m market capitalisation appears to assign little value to these assets. Read More
AAC Microtec: Low volumes induce quarterly volatility
May 9, 2019 | Edison Investment Research
Management states that Q119 results were broadly according to plan, although on an underlying basis (excluding prior period acquisition costs) both net sales and EBITDA were slightly lower. ÅAC made modest progress, but Clyde saw a reduction due to business mix combined with lower platform sales in the period. Now that financing is being addressed by the underwritten rights issue, the main challenge for management is to execute on the growing backlog. Given the lumpy nature of revenues in the current low-volume platform environment, we maintain our estimates as we expect volumes to grow as the year progresses. Read More
Williams Grand Prix: Challenging year in prospect
April 23, 2019 | Edison Investment Research
2018 proved to be an unsatisfactory year for Williams on the track, which will have ramifications for financial performance in 2019. However, with a mixture of new title sponsor, new drivers and an experienced management team there is a clear focus on recovering competitiveness in the F1 championship. In addition, Williams Advanced Engineering (WAE) continues to grow with a healthy operating margin performance. Read More
Growth potential remains
October 29, 2019 | Edison Investment Research
Cyan’s share price has halved year to date. COVID-19 and the Wirecard insolvency affected both H1 sales and its pipeline, leading to a resetting of consensus. Yet H1 sales still more than doubled y-o-y and underlying EBITDA rose to €6.7m (excluding the Wirecard write-down). The prospects for long-term growth remain healthy. At €11, Cyan is valued at 7.0x FY21e consensus EBITDA, a substantial discount to peers. With a new CEO due to arrive in January, it might be time for investors to revisit the story. Read More
mVISE: Is an H2 catalyst coming?
September 12, 2019 | Edison Investment Research
mVISE interims highlight a business continuing to make progress on its three-year 2018+ strategy. Headline revenues rose nearly 7% y-o-y and 12% organically. With new white-label partners now marketing elastic.io, a big acceleration in product and associated (high-margin) consulting sales is expected in H2 and the company has maintained its FY19 guidance. We see the shift to cloud-based, big data-driven platforms providing an excellent long-term growth tailwind. In our view, these prospects are not reflected in a consensus FY20 P/E of 12.1x. Read More
TXT e-solutions: Growth accelerates in Q2
August 6, 2019 | Edison Investment Research
TXT reported strong organic revenue growth in both divisions in Q219, which combined with the contribution from recent acquisitions, translated into strong growth in EBIT and improved EBIT margins year-on-year. Recent acquisitions have been integrated and provide the potential for cross-selling in the banking & finance division, while the aerospace business has seen significant contract wins in North America. We have revised our forecasts to reflect stronger revenues, higher operating costs and higher tax rates in FY19 and FY20. Read More
IQE: Impact of Huawei ban is limited and short term
May 24, 2019 | Edison Investment Research
IQE has assessed the potential impact on its business of the decision by the US Department of Commerce's Bureau of Industry and Security to prohibit the sale to Huawei, by certain of IQE's customers, of products covered by the Export Administration Regulations without obtaining an appropriate export licence. Following discussions across its customer base, IQE estimates that its current maximum risk exposure with regards to this ban is less than 5% of its total FY19 revenue guidance. We therefore leave our estimates and indicative valuation of 91–99p/share unchanged. Read More
StatPro Group: Trading remains in line with expectations
May 23, 2019 | Edison Investment Research
Trading remains in line and we have maintained our forecasts, which imply 2.7% FY19 organic revenue growth. Management's two key priorities for FY19 are 1) improving EBITDA margins in all areas of the business and 2) ensuring the Delta integration is a success. In the longer run, margins stand to benefit from the group's increasing scale and costs dropping out as the group's three software platforms are consolidated over the next few years. In our view, the shares continue to look attractive, given the group's c £56m recurring revenue book and the declining rating (c 15x FY20e), especially in light of the active M&A backdrop in the financial software sector. We note that Axioma, a StatPro competitor in the risk space, was recently acquired by Deutsche Börse for $850m or c 8.5x sales. Read More
1Spatial: Strategic and financial progress
May 14, 2019 | Edison Investment Research
FY19 represented a year of good strategic and financial progress for 1Spatial. It divested Enables IT, raised capital and shifted to subscription licensing, all while increasing revenue and EBITDA margins. Investment in innovative 3D, LMDM and mobile projects should begin to bear fruit in FY20 and ensure that this progress continues. The recent acquisition of Geomap-Imagis (GI) further enhances its technical capability. Factoring GI into our forecasts helps raise our FY21e adjusted EPS by 14% to 1.0p. Read More
1Spatial: Fixing France - further evidence of execution
May 8, 2019 | Edison Investment Research
1Spatial's agreed €7m acquisition of Geomap-Imagis (GI) provides further evidence that it is executing on its transition plan. Aside from enhancing its capability, market presence and scale, it also addresses the challenges it faces in France and Belgium. Combining its Elyx product with GI's Esri platform here should stabilise performance and enable greater focus on sector-specific solutions. We will revisit forecasts for the combined entity more thoroughly after results next week but expect the deal to be significantly earnings accretive. Read More
FinLab: Growing exposure to the fintech space
April 24, 2019 | Edison Investment Research
FinLab's recent developments are characterised by successful new funding rounds completed by several of its private portfolio companies and their ability to attract new high-profile investors. This was coupled with good operational progress, including important client wins (eg Authada) and the introduction of new products (eg nextmarkets). On the other hand, FinLab's NAV and overall result in FY18 was negatively affected by the strong share price decline (c 50% in 2018) posted by Heliad Equity Partners. FinLab continues to expand its fintech portfolio and has some firepower left for a few additional investments. Read More
WANdisco: Set for a re-acceleration
April 24, 2019 | Edison Investment Research
WANdisco made substantial strategic progress in FY18, deepening both its partnerships with major cloud providers and broadening its product base. With discussions over a strategic deal with a major cloud vendor still ongoing and FY19 off to a good start (Q1 revenue up 38% y-o-y), we leave our forecasts largely unchanged. In our view its exceptional growth prospects and potential strategic value justify a premium rating. Read More
NXT-ID, Inc. (NASDAQ: $NXTD) Equity Research Update from Maxim Group; Spin-Off of PartX Delayed, Probably Until Late February/ Early March - Reiterate $2 PT for Stand-Alone LogicMark
Point Roberts - January 23, 2019 (Investorideas.com Newswire) Investorideas.com, a global news source and investor resource covering tech stocks reports Maxim Group has issued an update on NXT-ID, Inc. (NASDAQ: NXTD) following recent news and an update on the Company's proposed spinoff of its payment division.
BioLargo: A record-setting year
April 2, 2020 | Edison Investment Research
BioLargo reported record revenue of $1.86m for 2019, a 36% increase over 2018 and a record single quarter revenue of over $560,000 for Q4. Odor-no-More (ONM) had its best year to date with $1.46m in revenue ($832,000 gross profit). However, ONM fell short of its goal of breaking even for the year with a loss of $337,000 (albeit improved from the 2018 $433,000 loss) due to increased headcount for future growth. The company noted that in 2020 it will focus on increasing sales through improved distribution and strategic alliances and will keep its headcount constant. This will be supported by a new $10m equity facility from Lincoln Park. Read More
Battery charge: The rise of lithium-ion – options and implications
December 12, 2019 | Edison Investment Research
The abrupt fall in Chinese electric vehicle (EV) sales in Q3 has disrupted the lithium-ion battery supply chain and reset valuations. This gives investors the opportunity to reassess the long-term buy case. We believe batteries will play a critical role in the future of the transport and power industries. Investors have numerous options to play this growth in the automotive, chemical/industrial, transport and electricity sectors. Read More
Delignit: Confidence undimmed
May 7, 2019 | Edison Investment Research
Delignit continues to please with a 16% rise in FY18 EBITDA despite a demanding comparative and one-off contract as well as project start-up costs. Automotive, the major sector, stole the show with revenue up a quarter thanks to strong OEM activity and the maximisation of revenue per vehicle. This momentum, allied with an initial contribution from a potentially transformative OEM motor caravan order, underpins guidance of further double-digit growth in 2019 revenue at maintained EBITDA margin. Finances are healthy (year-end net debt was inflated by a temporary delay in customer receipts), allowing investment (up c 20% in FY18) and a progressive dividend policy. Read More
Fluence Corporation: Exceptional bookings growth
May 2, 2019 | Edison Investment Research
In a typically quiet quarter, Fluence enjoyed exceptional bookings. Aside from the US$188m CES (custom engineered solution) win in Ivory Coast, it also secured a $20m contract in Egypt and a further ITEST deal. Revenue rose 20% y-o-y and the gross cash balance was $24m ($14.7m outflow). Forecasting CES deals are hard and we trim FY19 sales by 10% to reflect a more cautious view on further big wins boosting FY19 numbers, but the company still expects EBITDA breakeven during Q419 and FY20 estimates are substantively unchanged. The share price implies an FY20 P/E of 8.6x. Read More
Renewi: ATM prudence and debt management actions
May 1, 2019 | Edison Investment Research
Management flagged stronger Q4 trading, in line with its expectations. Netherlands soil remediation activities require regulatory approval and a prudent stance has been taken over resuming shipments there, which is the primary driver of our significant estimate reduction. In this light, the steps being taken for debt management, including a proposed dividend reduction, are entirely logical. Renewi's rating is at depressed levels – we feel due to earnings uncertainty and higher debt levels – but potential resolutions to both issues are visible. The company is still yielding 4.4%. Read More
Energy Tech Investor: ECOSPHERE TECHNOLOGIES (OTCBB:ESPH) - OVERVIEW REPORT
July 2014
Ecosphere Technologies, Inc. (OTCBB:ESPH) is a U.S. technology licensing and innovative manufacturing company that develops environmental solutions for global markets. ESPH has a portfolio of more than 35 patented and patent-pending technologies: Technologies like Ozonix® and Ecos PowerCube®, which are licensable across a wide range of industries and applications throughout the world. Read More
Egdon Resources: Positive results from Springs Road core analysis
September 13, 2019 | Edison Investment Research
Egdon Resources and IGas Energy provided further details on the results from the Springs Road-1 core analysis. The analysis suggests that key characteristics of the Bowland Shale in the Springs Road-1 well compare to commercial shale operations in North America. The core results indicate a mature, organic content-rich source rock with good porosity confirming favourable gas resource density. The low clay content in the Lower Bowland Shale at c 22% is encouraging and an indication that hydraulic fracturing of the rock should be effective. Partners are encouraged by the results from Springs Road-1, particularly by the combined Bowland shale gas in place of 640bcf/square mile – the resource density – over three times previous external estimates. The joint venture will continue working on the basin model to better delineate the resource potential and refine the appraisal programme. Design and planning work for Springs Road-2 is now underway. Read More
Liquefied Natural Gas: Higher capacity at 8.8Mtpa, lower SPA pricing
June 11, 2019 | Edison Investment Research
The focus for Liquefied Natural Gas (LNGL) remains the signature of long-term offtake contracts for Magnolia LNG, the company's flagship LNG export terminal in Lake Charles, Louisiana. In March 2019, authorisation was received from the US Department of Energy (DOE) for expansion of export capacity to 8.8Mtpa (from 8.0Mtpa) to free trade agreement (FTA) countries. Management expects FERC approval and non-FTA consent from the DOE to follow shortly. Edison's valuation has been updated to reflect higher Magnolia export capacity, offset by our assumption of lower contract pricing. The net impact is a decrease in valuation from A$1.01/share to A$0.70/share. Key valuation drivers include sale and purchase agreement (SPA) pricing, cost of funding, timing of first gas exports and the risking we apply to Magnolia and Bear Head projects proceeding. Read More
ADMIE Holding: FY19 off to a strong start
June 6, 2019 | Edison Investment Research
ADMIE Holding started FY19 with a good Q1 (IPTO's EBITDA +19% y-o-y), driven by strong revenue growth (+14%) and broadly stable costs. Despite the recent share price appreciation, the stock still trades at a large discount to both European regulated utilities and the implied equity regulated asset base (RAB). Read More
Deutsche Rohstoff: US onshore organic growth
May 17, 2019 | Edison Investment Research
Deutsche Rohstoff's (DRAG) organic investments, c $145m in FY17 and FY18, helped deliver more than 100% growth in FY18 revenues to €109.1m (€53.7m in FY17). Year-on-year sales growth was supported by a material increase in oil and gas production, which almost doubled to 9.4kboed (from 5.1kboed in FY17), combined with higher price realisations. EBITDA rose more than 250% to €97.9m (€36.1m in FY17), while net income (after minority interests) rose to €13.9m (€7.7m in FY17). DRAG's key focus remains on its US oil and gas interests, with c $70m of organic and internally funded investment planned in 2019. As a result, DRAG guides to EBITDA in the €25–35m range in FY19 and €55–65m in FY20, reflecting recent divestments and underlying growth from Cub Creek Energy. Read More
Egdon Resources: Underwritten open offer announced
May 16, 2019 | Edison Investment Research
Egdon has announced a proposed underwritten open offer of c 43.3m shares (representing 14.29% of the enlarged share capital) at 5p/share to raise £2.17m before expenses. Under the open offer, qualifying shareholders have an opportunity to subscribe to one open offer share for every six existing ordinary shares held at market close on 14 May 2019. Net proceeds will be used to progress Egdon's Gainsborough Trough shale-gas assets and the Resolution gas discovery (the focus of our last note), and for general working capital purposes. Egdon's key operational focus is on finalising IGas-operated Springs Road-1 core and log analysis in Q219 and seeking an industry partner to fund the planned 3D seismic and appraisal drilling of the Resolution gas discovery. Read More
Osirium Technologies: Product innovation supports order growth
September 30, 2019 | Edison Investment Research
Osirium won a number of new customers and saw a 100% renewal rate in H119. It has signed up its first customer for the recently launched privileged process automation solution and is due to launch its first endpoint privilege management solution in Q4. With a broader product range, it has the opportunity to win new customers in the wider privileged access security market and cross-sell to its existing customer base. Read More
NXT-ID, Inc. (NASDAQ: $NXTD) Equity Research Updates Following Update on Flip, its contactless payment device for #Bitcoin
Alliance Global Partners Reiterates Buy Rating and $5 Price Target; Maxim Reiterates Buy Rating, $4.00
Point Roberts, WA - June 28, 2018 (Investorideas.com Newswire) Investorideas.com, a global news source and investor resource covering tech stocks reports on recent analyst coverage for NXT-ID, Inc. (NASDAQ: NXTD) following a corporate update on Flip, its contactless payment device for Bitcoin.
Cannabis Stocks: 2014 Review And 2015 Outlook
Viridian Cannabis Index Gains 38.4% for 2014
Cannabis Stocks Will Attract More Institutional Funding in '15 and M&A Activity Will Rise
More Companies Will Fail as Shake Out Continues
More institutional capital will flow into public cannabis companies in 2015, reflecting the sector's growth prospects, but some individual companies will falter as investors and regulators demand performance. The backdrop and general momentum of the cannabis sector is positive as the reality of its national growth potential becomes more and more apparent, but the shake out of individual players that began last year will continue in 2015, as hype will not be enough to sustain companies in the eyes of investors, and may contribute to action by regulators. We will likely see a number of public cannabis companies fail this year. With increasing flows of ‘smart money' will come increasing demand for companies to demonstrate top-tier management and sustainable business models.
Thrace Plastics: Improving returns to drive re-rating
June 14, 2019 | Edison Investment Research
Thrace Plastics is an established international producer of technical fabrics and packaging that is moving into a 7.9% EPS CAGR phase to FY21 following recent capex programmes. The current valuation overlooks these prospects in our view, presenting investors with an opportunity to participate in a re-rating that we would expect to result from the conversion of investment into the delivery of improving returns, profits and cash generation. Read More
EML Payments: Creating value from stored value
June 17, 2019 | Edison Investment Research
EML Payments' focus on niche areas of the stored value payment card market is paying off, with strong revenue growth and expanding operating margins forecast over the next three years. Recent deals strengthen EML's market-leading positions in the mall gift card and Australian salary packaging markets. Medium-term organic growth is supported by the roll-out of existing customers' programmes, geographic expansion, the trend for customers to shift from unregulated vouchers to regulated e-money products, and the introduction of new digital solutions. Profitability should also be boosted by the shift to self-issuing. We expect organic growth to be boosted by further acquisitions. Read More
SoundView Technology Group (Boston) – April 20, 2017: SoundView Technology Group (http://soundview.co) releases the following company update for NXT-ID, Inc. (NASDAQ:NXTD).
NXT-ID (NXTD $1.51)
FROM TECHNOLOGY TO REVENUE
KRIS TUTTLE, APRIL 19, 2017
Report Link: NXT-ID
AEGIS CAPITAL
Technology
Ashok Kumar, CFA
1-650-823-4745
akumar@aegiscap.com
Initiating Coverage
March 15, 2016
Nxt-ID, Inc.
Rating: Buy
Building out the payment network ecosystem
Nxt-ID, Inc. (NXTD) is focused on developing and marketing products, solutions, and services for organizations that have a need for the Company's core technologies in digital payment technologies, biometric secure access control; encryption; sensor technologies and miniaturization.
Building the ecosystem: On 2/19/16, NXT-ID announced the first purchase order for the new SmartCard being developed for WorldVentures vacation club Members. The purchase order is for up to $15 million and is subject to WorldVentures acceptance of the prototype card now being manufactured. The purchase order calls for equal monthly deliveries with a value of $2.5 million a month from July to December 2016.
Mobile Wallets Can Deliver Value To Marketers: By aggregating offerings, loyalty points, coupons, and product information from multiple brands on top of faster, more-convenient payments, mobile wallets like Wocket® enable marketers to extend the brand promise, improve conversion rates, and drive traffic and sales.
US mobile payments to reach $142 billion by 2019: Over the last five years, US consumers have adopted smartphones at a breakneck pace: smartphone penetration among the US population grew from just 19% in 2009 to over 70% in 2015. Forrester forecasts that US consumers ramp up their mobile spending from $52 billion in 2014 to $142 billion by the end of 2019.
Remote mobile payments is the mobile extension of eCommerce:This is a focus segment for NXTD. Payments can occur via a merchant's mobile website or app and the consumer may enter payment credentials, select a card already on file or choose an alternative payment method such as a digital wallet. As the first category of mobile payments to gain traction, it is the largest category and will continue to be so through 2019. Remote mobile payments will grow from $43 billion in 2014 to reach $91 billion by the end of 2019, a very healthy CAGR of 16%. Food services such as mobile food ordering and delivery and travel services such as air and hotel purchase will drive a significant portion of the growth. NXTD remains well positioned to monetize this opportunity.
Market and Regulatory changes: In October 2015, US adopted the EMV standard used in other countries to verify the identity of cardholders for card present transactions. At the same time, liability for card fraud will become the retailer's, rather than the card issuer's responsibility. NXTD has reengineered its product portfolio to be compliant with the EMV standard. This is likely to cause disruption in near-term sales. But we expect revenue growth to resume in the June quarter.
Our 12-month price target of $3 is based on a DCF analysis that assumes a 15% discount rate and a 3% terminal growth rate. In October 2015 Aegis Capital Corp. was the sole book-running manager for a common stock offering.
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November 6, 2015
Nxt-ID, Inc.
Rating: Buy
A value-add player in the mobile payment market
Investment Highlights:
Nxt-ID, Inc. (Nxt-ID) is a biometrics and authentication company focused on the growing m-commerce market with an innovative MobileBio™ suite of biometric solutions that secure mobile platforms. The Company also serves the access control and law enforcement facial recognition markets. Mobile Payments: IDC predicts that mobile payments globally will account for US$1 trillion in 2017, up from the 2015 figure of just below US$500 billion. The majority of mobile payments today are related to mobile commerce transactions, with remote payments being the most widely used. Whereas mobile payments in North America and Europe are driven largely by systems that are linked to debit and credit cards, the limited state of card adoption in Asia/Pacific forces potential mobile payment behavior to shift to usage of bank account–linked mobile wallets. Positioned in growth markets: Nxt-ID is focused on products, solutions, and services that have a need for biometric secure access control. Nxt-ID has three distinct lines of business that they are currently pursuing: mobile commerce; law enforcement and biometric access control applications
Disclosure section may be found on pages 17 - 18 of this report: NXT-ID
SoundView Research Update on NXT-ID, Inc. (NASDAQ: $NXTD); THE #SECURITY #TECHNOLOGY INSIDE
New IV model which supports a share price of $18
BOSTON - November 10, 2016 (Investorideas.com Newswire) SoundView Technology Group (http://soundview.co) releases the following company update for NXT-ID, Inc. (NASDAQ:NXTD).
See the News: NXT-ID
SoundView Technology Group Issues NXT-ID (NXTD) Update; Scaling Up
SoundView Technology Group (Boston) – October 5, 2015: SoundView Technology Group (http://soundview.co) releases the following market and company update for NXT-ID, Inc. (NASDAQ:NXTD), a biometric authentication company focused on the growing mobile commerce market.
NXT-ID (NXTD $0.80)
Scaling Up
Kris Tuttle – October 5, 2015
Recent Highlights
We've been holding regular monthly meetings with NXT-ID to more closely track their progress since things are moving much faster now that the Wocket is in production. Here are some recent highlights:
Production ramp: NXT-ID is currently shipping their Wocket in steadily increasing numbers. Revenues are growing rapidly on a sequential basis – from $100K in Q2 to $400K in Q3 with a solid Q4 expected. The company continues to track very closely to our IV model projections which suggest a stock price of $7.47. Our unit sales estimates for 2016 and beyond appear to be low but we will re-evaluate those numbers as we exit 2015.
See the Full Report: NXT-ID
SoundView Technology Group Issues NXT-ID (NXTD) Update; MAJOR PROGRESS NOW ON SALE
SoundView Technology Group (Boston) – August 11, 2015: SoundView Technology Group (http://soundview.co) releases the following market and company update for NXT-ID, Inc. (NASDAQ:NXTD).
Market & Company Update
Summary
This season is famously bad in terms of liquidity in the stock market and especially for smaller, already thinly-traded issues. Since successfully launching their secure digital Wocket and raising capital to fund marketing and production expansion for the upcoming holiday season shares of NXTD have been cut in half since our last published update in June.
Part of the reason for the recent decline appears to be a direct result of a “sell” rating put on the shares by Zacks. It's important to realize that the Zacks system is driven by a set of quantitative and backward-looking metrics. Their ratings are not based on what we would call traditional research into what future business trends will be. Methods like the one Zacks uses can be useful for well established companies like GE or Oracle but are worse than useless for emerging growth companies.
The situation is especially compelling given that NXT-ID remains precisely on the plan we dialed into to our estimates this year and next which feed directly into our Intrinsic Valuation (IV) value of $7.47/share. There are certainly some potential near-term events like distribution partnerships that we have not factored into our numbers as of yet.
What follows is a more detailed account of company progress in Q2, the plans and outlook for Q3 and Q4, the terms of the capital raise and adjustments to our IV model based on them.
Full Research Report and disclosure: NXT-ID
Vista Partners Initiates Coverage on NXT-ID, Inc. (NasdaqCM: NXTD); Price Target $7.50
SAN FRANCISCO, CA - May 29, 2015 (Investorideas.com Newswire) Vista Partners announced today that it has initiated coverage on Nxt-ID, Inc. NXT-ID, Inc. ( NASDAQ: NXTD; NXTDW ) ("the Company" or "NXT") based in Oxford, CT, with a twelve month price target of $7.50. Ross Silver, Principal Analyst at Vista Partners, stated, "NXT is an early stage technology company that is focused on products, solutions, and services that have a need for biometric secure access control. The company is focused on the growing m-commerce market, launching its innovative MobileBio® suite of biometric solutions that secure consumers' mobile platforms led by Wocket®; a next generation smart wallet designed to replace all the cards in your wallet, no smart phone required." Mr. Silver concludes, "Competitors in the digital wallet marketplace, many of which are holdings in the iShares U.S. Technology ETF (NYSE: IYW) include: Google (Google Wallet), Apple (Apple Pay), EBAY (Paypal) & LoopPay (acquired by Samsung in February 2015 for $250M+)."
To download a FREE copy of the Nxt-ID, Inc. research report, please visit http://www.vistapglobal.com and click the "download research" icon to gain access to the report.
NXT-ID (NXTD $2.42)
COMMERCIAL RAMP
KRIS TUTTLE - MAY 19, 2015
Company Update
Back in March we published an NXT-ID update note [PDF] on the first “early access” Wockets shipping which allowed the company to gather feedback from field use. I had good success with my own Wocket even though it was a pre-release version which had a handmade prototype card that was too thick for some types of usage. Sixty days later, NXT-ID is preparing to fulfill their existing pre-orders this month which will put several hundred units into the market. The plan for June is to ship a few thousand units to customers who have requested invitations to order a unit. By July, the company should reach their baseline production capability of 10,000 units/month, which will coincide with initiatives in marketing and sales as well as some new distribution partners who will help with market penetration and fulfilment.
What follows are some new usage notes for the commercial version and a restatement of our assumptions behind our model that supports an NXTD intrinsic value of $8/share for 2015 and path to $17 in 2016.
Full report: NXT-ID update, May 2015
Technology Research Note Update from SoundView; Real-World Usage and Feedback of Wocket Smart Wallet at CVS, Whole Foods and other Retailers
BOSTON, MA - March 23, 2015 (Investorideas.com Newswire) SoundView Technology Group issues a new research update following the recent shipment of NXT-ID's ( NASDAQ: NXTD; NXTDW ) Wocket smart wallet. SoundView was one of the selected user groups to provide real- world user feedback on their experience with the Wocket in multiple scenarios and outlets.
Soundview shares their experience at CVS, Whole Foods and other retailers, making both debit and credit card payments.
Soundview analyst Kris Tuttle also says, "If the company meets their plans in 2015, it would push our IV estimate up to $17.42 for 2016."
NXT-ID, Inc. (NXTD) is a biometric authentication company focused on the growing mobile commerce market.
Excerpt: The Wocket Arrives
NXT-ID (NXTD $3.87)
THE WOCKET ARRIVES
KRIS TUTTLE - MARCH 23, 2015
Company Update
After months of hard work and anticipation the Wocket has shipped. This event addresses the first chorus of skeptics who have insisted that "the Wocket will never ship." Even within the limits of an "early access device" our initial testing has gone very well in outlets ranging from CVS to Whole Foods to Panera using Visa (in both debit and credit mode) as well as American Express cards.
So the most interesting real-world interaction occurred in a CVS where the "hand card to cashier" message popped up. I had prefaced my swipe with the comment that I was using "a new ultra secure credit card" and when I handed over she responded "oh is this one of those cards where you can store all your cards on?" To which I replied yes indeed and she simply said "cool" and handed it back.
Even after a few days of use I was comfortable with the Wocket to head out for an evening without my wallet - just a few dollars in cash and my license. Having misplaced my wallet a week or two ago I can also say that the anxiety level from misplacing your Wocket is much, much lower. I wouldn't want to lose my Wocket but would feel none of that fear and panic that comes from losing my wallet with "everything in there." In fact by having all the plastic cards safely at home I wouldn't actually lose anything or need to change out all my cards to new account numbers. Getting a new Wocket and reloading the cards would be minor job but far less than cancelling accounts, refuting fraudulent charges and having new cards issued.
Anecdotes are not rigorous market research but the awareness level of the technology was a surprise and comfort level with the thing itself was reassuring. NXT-ID is using the input from early access users while preparing for their first production run to begin to fill pre-orders beginning in late April. The next production milestone is to deliver between 5,000 and 10,000 units in June.
The progress over the last two months certainly makes us feel comfortable with our 40,000 unit estimate for 2015 in terms of production capability.
Stock Conclusion
So after suffering from a prolonged "wait and see" attitude the stock has moved up sharply recently in response to the initial shipments. Our own experience with the device so far would reinforce the view that 2015 will be a good year for the Wocket and NXTD shareholders.
The two major risks remaining are 1) the ability to ramp up production to thousands of units at first and then tens of thousands per month and 2) mainstream consumer reactions and adoption.
Our IV of $8.18 makes the shares very attractive, albeit with some expectation of success built into the estimate. If the company meets their plans in 2015, it would push our IV estimate up to $17.42 for 2016.
Our full update is available for download here:
http://s3.amazonaws.com/PUBLISHED/NXT-ID_NXTD_SV_NOTE_MAR_2015_PUB.pdf
Wocket is a smart wallet designed to protect your identity and replace all the cards in your wallet, with no smart phone or cloud required. Wocket works anywhere credit cards are accepted and only works with your biometric stamp of approval.
All your credit, debit, loyalty, gift, ID, membership, insurance, tickets, medical information, passwords, and virtually any other card can be protected on Wocket.
About SoundView Technology Group
We are an independent advisory and research firm specializing in emerging technologies as they reach commercialization. Our proprietary research and modeling work provides valuable information for company management teams and investors in these emerging opportunities. We regularly publish our findings across a variety of channels including all the major retail and institutional information outlets. SoundView is based in Boston, Massachusetts with locations in New York and Connecticut.
Disclosures
SoundView analysts do not receive compensation for their research opinions, any specific views or conclusions. They are tasked to provide fact-based research with sound analysis. SoundView does not provide investment advice or make "buy/sell/hold" recommendations. Nor do we provide investment banking or brokerage services. We act as a publisher of our own research work and are responsible for all content which is correct to the best of our abilities but by no means should it be relied upon without further validation and confirmation. SoundView provides paid advisory services NXT-ID on their business plans, technology description and investor positioning
Contact:
Any questions please contact:
Kris Tuttle
Director of Research
SoundView Technology Group
kris@soundview.co
617-828-6462
NXT-ID INC. (OTCQB:NXTD)
MOBILE SECURITY BEYOND THE PASSWORD
Stephen Waite And Kris Tuttle - October 15, 2013
INTRODUCTION
There is a paradigm shift underway in the digital economy - one that has the potential to fundamentally change the way consumers, businesses and government agencies use and interact with technology. At the heart of the paradigm shift is a transition in payments processes and security technology away from conventional forms toward more advanced hardware and software.
Device-level sensors, biometrics and embedded processing have arrived.
The shifting digital economy landscape opens up new opportunities for entrepreneurs and investors alike. NXT-ID is an emerging technology company that is building an innovative, next generation platform using advanced biometric technology to enable secure transactions, identity management, and access control in an intuitive, cost-effective and easy-to-use manner. Our initial IV case suggests a stock value of $10.90/share if the company can execute on their plans.
Updates from Soundview
June 11,2014
NXT-ID is offering pre-orders for the Wocket smart wallet (www.wocketwallet.com) at $149 and the first shipments to customers are planned for late September. After a review we are keeping our 2014 forecast of 40,000 units and will be evaluating consumer response in order to validate our longer term projects.
We're also introducing a longer term intrinsic value (IV) estimate of $20.55 for 2015. With a current IV estimate of $11.70 we think growth investors will find the risk/reward of this situation to be attractive.
http://s3.amazonaws.com/Published_Research/NXT-ID_NXTD_Update_Note_Final_June_2014.pdf
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