SoundView Technology Group Issues NXT-ID (NASDAQ:
NXTD) Update; New Growth via Partnerships
BOSTON
- January 5, 2016 (Investorideas.com Newswire) SoundView Technology Group (http://soundview.co)
releases the following market and company update for NXT-ID, Inc. (NASDAQ:
NXTD).
Market & Company Update
New Growth via Partnerships
In the course of
selling Wockets directly to consumers via the their website (wocketwallet.com)
and using specialized channels it's become clear that achieving large volumes
and scale will come much faster using a B2B approach. Our first example is a new
development and distribution agreement with a travel-focused company called
WorldVentures.1
This has major
advantages for NXTD investors. The company can focus on what they do best which
is technology and product development and leverage large value-added industry
channels like WorldVentures for customization and distribution.
The impact on
numbers is dramatic - although the company will fall well short of our 40K unit
estimate for 2015 they will greatly exceed our current 120K estimate for 2016.
If all goes as planned NXT-ID will "pull forward" our volume forecast
by about two years. Additional partnerships like the one with WorldVenturs are
targeted for other consumer-oriented markets.
The
"shift" to EMV or "chip cards" has muddied the waters in
the payment space and made it more difficult for early Wocket customers to
enjoy a high level of acceptance. Nearly every major retailer has adopted a
slightly different method of dealing with the situation - some have turned off
EMV, others support both EMV and traditional swipe, others see the mess as a
good excuse to go "all the way" with NFC and mobile payments.
For NXT-ID that
means rolling out an NFC-based version of the Wocket which will allow consumers
to enjoy broad acceptance of their Wocket card and simpler use at the point of
sale. The testing and acceptance process with the major issuers takes time so
we're not expecting a new version on the market until 1H2016 but we fully
expect the card payment space to remain in a state of flux through that time period.
Meanwhile NXT-ID will have plenty to focus on in terms of delivering against
their new deal with WorldVentures.
Our IV changes are
detailed below but our new IV of $6.13 suggests large reward versus the risk
reflected in the current share price. If NXT-ID were a private company doing a
venture round the valuation would be at least 10x the current share price.
Read this news in
full at http://www.investorideas.com/CO/NXT/news/2016/01051.asp
Editor's
Note: This article covers one or more stocks trading at less than $1 per share
and/or with less than a $100 million market cap. Please be aware of the risks
associated with these stocks.
Disclosures
SoundView serves as
a strategic advisor to NXT-ID and provides this research note for informational
purposes only. SoundView does not have "ratings" and is not an
investment bank, broker/dealer or registered investment advisor. We've
undertaken to research all facts presented here but can make no promises that
they are correct or that our reasoning and supporting intrinsic valuation model
is an accurate depiction of the future. SoundView employees may have positions
in stocks they work on however at the time of this writing we are not aware of
any outstanding positions in the shares of NXT-ID.
About NXT- ID Inc. - Mobile
Security for a Mobile World: (NXTD)
Contact:
Kris Tuttle
SoundView Technology Group
kris@soundview.co
+1-617-828-6462
SoundView Technology Group
kris@soundview.co
+1-617-828-6462
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