Siyata Mobile (TSX-V:SIM, OTCQB:SYATF) is not a new story to Energy & Gold readers. Since initiating coverage on SIM, near the time of its IPO at C$.30, the shares have more than doubled as the company has innovated at a high level and consistently grown revenue at strong double-digit percentage levels, including more than 60% growth in 2017. However, the story continues to evolve as Siyata continues its rapid growth as one of the pioneers in the all-in-one, push-to-talk, over cellular fleet device market.
The market opportunity is large with 3G/4G LTE compatible commercial vehicles alone, representing a US$7 billion opportunity. The Motorola 2G device upgrade cycle and the two-way radio hardware upgrade cycle in commercial vehicles represent two key multi-billion revenue growth opportunities.
Siyata’s commercial vehicles devices offer several competitive benefits including:
- Push-to-talk over cellular enabled to replace existing two way radio systems
- Superior noise cancellation to eliminate in-vehicle echo and sound quality problems
- Ability to connect directly to vehicle’s CAN bus (Controller Area Network)
- Runs on Android OS to enable use of 3rd-party fleet management, navigation applications.
Some recent profit taking in the shares have brought SIM back to a key area of potential trend support:
(SIM.V – Two Year)
The C$.55-C$.60 area also represents a key zone of price memory and potential support.
The combination of fundamental catalysts, such as third-party distribution partnerships combined with a strong technical setup, make it a compelling time for potential investors in Siyata Mobile shares (TSX-V:SIM).
Beacon Securities clearly see a large opportunity as they initiated coverage on July 31st, 2017 with a $1.25 price target.
Beacon Securities analyst Gabriel Lung stated in the report:
“While we tend to shy from hardware companies given the lumpy nature of their growth profile, we do make exceptions when a company is in the early stages of growth in a large market opportunity, has a first mover advantage, and good line-of-sight to capitalizing on this opportunity. We believe Siyata’s progress-to-date checks all these boxes.”
Siyata continues to consistently win new contracts with key operators – they announced last week that they have launched with a leading Canadian Cellular Operator and on July 24th, 2017 began device approval with a major Tier 1 US Cellular firm for its 4G/LTE device. The size of this opportunity cannot be overstated, as each of the top US carriers have ~3 – 4M commercial vehicles representing $2B in potential sales each.
With ~$10M in working capital and another $14M in cash, which could be brought in from in-the-money options/warrants, Siyata is well capitalized to execute its growth strategy.
From a technical standpoint Siyata has also been picking up steam, trading an average of 434,000 shares a day over the last 90 days and reaching an all-time high of $0.76. The company has recently drifted back down and is building support at the $0.55 -$0.60 price level and combined with very strong fundamental factors, could be poised to break out again very soon.
Disclaimer:
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Siyata Mobile (TSX-V:SIM) is a high-risk venture stock and not suitable for most investors. Consult the Siyata Mobile’s SEDAR profile for important risk disclosures.
EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.