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