Breaking Tech News: NXT-ID (NASDAQ: NXTD) Research Note Update from
SoundView; New Funding Keeps Wocket Rolling
BOSTON - September 26, 2014 (Investorideas.com Newswire)
SoundView Technology Group issues a new research note following recent industry
developments, recent uplisting to NASDAQ and funding for NXT-ID Wocket smart
wallet. NXT-ID, Inc., (NASDAQ: NXTD)
is a biometric authentication company focused
on the growing mobile commerce market.
We
have adjusted our IV model to account for meaningful revenues coming in 2015
rather than late 2014. The impact is to take our 2015 IV from $11.70 to $8.18.
If NXT-ID can meet or exceed our 40K unit/$6.9M revenue projection for 2015
then the stock will converge on our 2016 IV estimate of $17.42.
NEW FUNDING KEEPS
WOCKET ROLLING
KRIS TUTTLE,
SEPTEMBER 26, 2014
Company Update
NXT-ID
(NXTD) recently completed a financing which has enabled them to begin trading
on the NASDAQ and provides finding for the upcoming launch of their smart
wallet solution called the Wocket™.
We've been covering NXT-ID and the developing Wocket franchise for a while now
(original research note attached) and the commercial launch of the Wocket is
coming at a time when consumer interest in secure smart wallets is reaching a
fevered pitch. The biggest recent catalyst in the space is the Apple
announcement of Apple Pay. Apple Pay will usher in real adoption of digital
payments by consumers just as the iPod did for digital music.
But
Apple Pay is only for digital payments and doesn't cover other aspects of
wallets (prepaid cards, loyalty cards, etc.) plus it's limited to iPhone and
Apple iTunes users. A large part of the market, perhaps the largest, will be
found among consumers who either can't or won't soon use their smart phone as
their hub for payments and finance. Simple factors
like limited acceptance, privacy, security, and battery life are the most
obvious reasons not to rely on a phone-based solution.
We
know that the NXT-ID Wocket is the best smart wallet we have seen so far and
they are now on course to penetrate this market and grow volumes in 2015. It's
easy to find sexy alternatives with slick videos like Coin but after the hype
fades the company fails to ship and soon disappears. There are a million miles
between a video demo and a shipping product at scale that consumers love.
What
we don't know yet is how steep the adoption curve of the Wocket will be and how
well NXT-ID will be able to meet demand. What we do know is that the recent
financing has enabled NXT-ID to order the key components needed for the
commercial launch later this year. They will also be ramping up their
visibility and gathering more pre-orders over the next few months. This will
culminate with a combination of the first large batch of shipments and reviews
closely followed by a company debut at the big CES event in early January.
Conclusion
With
several positive catalysts ahead and a notable stock drop on fears that the
financing would not be done give investors an opportunity here. We have adjusted our
IV model to account for meaningful revenues coming in 2015 rather than late
2014. The impact is to take our 2015 IV from $11.70 to $8.18. If NXT-ID can
meet or exceed our 40K unit/$6.9M revenue projection for 2015 then the stock
will converge on our 2016 IV estimate of $17.42.
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
Any
questions please contact:
Kris Tuttle
Director of Research
SoundView Technology Group
kris@soundview.com
617-828-6462
Kris Tuttle
Director of Research
SoundView Technology Group
kris@soundview.com
617-828-6462
Contact:
Investor
Inquiries:
Kirin Smith
ProActive Capital Group
Direct: 646 863 6519
ksmith@proactivecapital.com
Kirin Smith
ProActive Capital Group
Direct: 646 863 6519
ksmith@proactivecapital.com
Disclaimer/Disclosure: The
Investorideas.com newswire is a third party publisher of news and research as
well as creates original content as a news source. Original content created by
investorideas is protected by copyright laws other than syndication rights.
Investorideas is a news source on Google news and Linkedintoday plus hundreds
of syndication partners. Our site does not make recommendations for purchases or
sale of stocks or products. Nothing on our sites should be construed as an
offer or solicitation to buy or sell products or securities. All investment
involves risk and possible loss of investment. This site is currently
compensated by featured companies, news submissions, content marketing and
online advertising. Contact each company directly for press release questions.
Disclosure is posted on each release if required but otherwise the news was not
compensated for and is published for the sole interest of our readers.
Disclosure: As of June 2014,
NXT-Id renewed for five thousand per month and average of two thousand five
hundred 144 shares (cash equivalent) for news publication and marketing of
Wocket smart wallet. More info:
http://www.investorideas.com/About/Disclaimer.asp and http://www.investorideas.com/About/News/Clientspecifics.asp
BC
Residents and Investor Disclaimer: Effective September 15 2008 - all BC
investors should review all OTC and Pink sheet listed companies for adherence
in new disclosure filings and filing appropriate documents with Sedar. Read for
more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors
must adhere to regulations of each country.
Become an
Investorideas.com Member and access our 14 online stock directories 24/7
–biometrics, technology, mining stocks and more...
No comments:
Post a Comment