S.A. Advisory E-Mail Update
The next technological breakthrough- smart glasses-VUZI
During the next 4 years this new AR & VR technology will explode to $150 billion by the year 2020
July 11, 2016
ASNB a medical material company that has a $1.40 NOL & trades @ .07
ASBN hires Investment Banking firm for strategic options-extremely cheap
We featured OPXS in Wall Street's Best as our Mid-Year stock pick for the balance of 2016. During January 2016 we picked HEMA@ .44~ currently @ .70~ We still rate HEMA with a strong BUY rating.
Vuzix Corp (VUZI~$6.35)
Vuzix Corp. recently introduced M300 Smart Glasses and Iwear Video products including personal display and wearable computing devices. VUZI, a leading supplier of video eye wear and smart glasses products. The M300 is VUZI next generation Smart Glasses for "hands free mobile computing."
The Vuzix Iwear headphones are the ultimate mobile entertainment system, compatible with any device supporting HDMI output, such as mobile phones, tablet devices, gaming consoles, PC's and Blue-Ray players. VUZIX's Virtual Reality (RV) manager and the Iwear integrated motion tracking. VUZIX has recently been able to announce the Iwear Headphones that support over 120 gaming titles.
On July 5, 2016 VUZIX announced a Partnership with the International Drone Racing Association.
Recently, VUZIX priced a small underwriting and raised $6 million dollars (including over allotment ). We assume that it closed on July 8th 2016- hearing that it was heavily over subscribed. The company announced that it has begun shipping M300 to VP Partners(35)~there are over 150 companies that asked to receive early units. The M300 is primarily geared towards the AR industry (AR- Augment Reality- a live direct or indirect view of a physical, real world environment whose elements are supplemented by computer-generated sensory input such as sound, video, graphics or GPS data. Augmentation is conventionally in real-time. The information becomes interactive and digitally manipulable.
On 7/07/2016 VUZIX announced teaming up with Sensory, a Silicon Valley based company focused on improving the user experience and security of consumer electronics through state of the art embedded voice and vision technologies, to deliver "true-hands-free" voice recognition on the M300 and to improve the efficiency of work flows in the warehouse, in the field, in telemedicine & countless other user cases.
1. The industry anticipated to reach $150 Billion by 2020 for AR & VR. The majority or 75% of the revenue will be generated from the AR model.
2. Intel (intc) owns around 25% of vuzi ( recently bought Recon- a Canadian sport computer glasses company.) Intel bought into Recon in 2013 and 21 months later bought the whole company. Food for thought concerning VUZI.
3. The fully diluted market cap is around $150 million (taking into account all options and limited warrants if any exist.) We base this upon 24 million fully diluted shares outstanding. Most use the 17 million shares. We aim to be more conservative. Revenue stream will commence during 3rd and explode during the 4th Q of 2016.
4. You Tube video- Recently 5 different companies had their product reviewed & VUZI came in #2 - see http://www.youtube.com/watch?v=RrbZEy4a27g
5. Recent raise- VUZI has about $14 million in cash and only $1.4 million in debt.
6. Kopin Corp. (KOPN) A competitor within an industrial segment that offers investors diversification for exposure to the segment. KOPN is more military oriented with a main focus towards military night vision and computer display with eye wear for military adventure.
7. Recent Interview: http://www.wallstreetanalyzer.com review 07/08/2016 with CEO Paul Travers. Excellent managerial responses from very plain vanilla questioner.
8. Very informative research: http://www.vistapglobal/wp-content/uploads/2016/06/Vuzix-UOC-62816-1.pdf Vista Global fills in all of the blanks with a comprehensive due diligence concerning VUZI with a target of $15 within 12 months. A MUST READ!
Note: If you are unable to read doc go to www.vistapglobal.com and create a password in order to read the document.
9. Digi- Capital forecasts combined AR/VR market revenue to reach $150 billion by the year 2020! It is estimated that AR will receive $120 Billion and VR will get the balance. The growth potential during the next few years for these technological advances, for hands free and voice activated computer glasses, is astounding .
10. It is estimated that $4 out of every $10 will be spent on Hardware.
11. During the fall of 2016 VUZI will have 3 "new" products in the marketplace ~ Iwear Video Headphones, the M300 & M3000 Smart Glasses.
12. Uses Atom processor & running Android 6.0
13. Cost around $1500.00/M300
14. Food for thought: Oculus was acquired by Facebook for $2 Billion despite the fact that Oculus was only focused on VR!
15. VUZI has focus and products within the combined industry and has 43 issued patents, along with 23 pending patents.
A final visual from our Crystal Ball!
Of course there is plenty of competition from corporate behemoths with huge wallets, but when you consider the size of this emerging industry there is plenty of room for a host of players.
VUZI just completed a small raise that was gobbled up by Institutional Investors. This adds to the growing Institutional ownership which helps validate the company's footprint within this emerging industry. We should not forget that VUZI 's products are being well received and that Intel (INTC) owns around 25%. It is of course very possible that INTC gobbles up the whole company like it did with Recon!
We went from desktops to laptops to tablets and then Smart Phones and now Smart Glasses.
It is easy to conclude that VUZI has the right products at the right time and the growth of this computing segment has "moonshot" potential for VUZI shares. The company as a stand alone or being bought out .
We rate VUZI with a strong buy recommendation @ current levels.
AdvanSource Biomaterials Corp. (ASNB~.07)~www.advbiomaterials.com
ASNB develops polymer materials for the use in the design and development of medical devices used for treating a range of anatomical sites and disease states. It offers polymers under the Chronofilm , ChronoFlex, ChronoThane, ChronoSil, HydroThane, HydroMed and PolyBlend trade names. The company also manufactures specialty hydrophilic polyurethanes. The products are sold directly to customers in the US.
total shares outstanding ~ 21,500,000
market cap~ $1.6 million
52 week range ~ .03-.41
Fully reporting with SEC
3 million warrants/options outstanding ~ conversion between .03 and $1.45 ( majority @ very high prices)
NOL~ value/sh $1.40!!!!!!!!
RECENTLY HIRED INVESTMENT BANKING FIRM~ Mirus Securities to provide guidance and assessing strategic alternatives. This means looking to sell the company or find an acquisition that can benefit from this GOLDEN EGG NOL OF $1.40/SH
The fiscal year ends March 31st
$3.2 million~~~~~~~~~~~~~~~~$2.6 million
net income $33k~~~~~~~~~~~~($318k)
shares outstanding 22.6 mil~~~~~21.5 mil
ASNB's success depends upon the modification of existing advanced biomaterials, the design and development of new advanced biomaterials, and designs for the medical device market.
Currently 2 customers account for 52% & 13%~ need to expand customer base so as not being dependent upon limited customers.
For complete 10K~ http://www.advfn.com/p.php?pid=nmona&article=71829002
Of course we have a tiny company with a giant prize ($32 million NOL). The company had attractive growth of over 25% during fiscal 16 vs fiscal 15.
Food for thought:
The US remains the largest medical device market in the world with a market size of around $148 billion and it is expected to reach $155 billion by 2017. The US market value represents about 43% of the global medical device market. Europe and China are the second and third largest medical device markets respectively. The Global medical device market will reach $398 billion during 2017!
ASNB products could be used in wide range of Disposable equipment and supplies, Orthopedic implants & prosthetics ,invitro diagnostics, equipment and supplies for dental, cardio and neurovascular issues. An aging demographic is driving growth. By 2050 2 billion people (22% of the population) will be over 60!
www.clearwaterinternational.com/library/global-medical-equipment-supplies-report-2015/ great read
2015~ 103 deals in the medical equipment and supplies space.
It is obvious that with endless growth in this industry and the continued acquisition mindset ~that ASNB is a great candidate for an emerging medical device company to acquire for the vertical aspect and the juicy NOL. The company as a stand alone has growth and is profitable, but the "cherry on top" is going to be plucked and we believe it will happen sooner than later. It is in our belief that ASNB is worth many times the current price just based upon an NOL that is valued @ 20X the current share price! We rate ASNB with a strong Buy rating for potential extraordinary appreciation because of their over hanging fruit!
WE MAY BUY, SELL AND OR HOLD AT OUR OWN DISCRETION .We current own shares.
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