Coverage on Siyata Mobile (SIM.V) was initiated about two months ago (March 28th). A quick recap, SIM.V is a provider of vehicle mounted mobile communications platform (Push To Talk Over Cellular ("PoC") devices). Since then SIM.V has had the following developments:
April 6th - Records Sales of $4.85M in Q1 2017 increase of 80% over the Company's Q1 2016.
April 7th - Paradigm raise the target from .70 to 85 cents.
April 18th - Multiple PO from McNain Communications Inc. (“McNain”) an authorized Rogers dealer, for its Uniden® Cellular boosters
April 25th - Installed devices in 200 taxis (three companies in Israel)
May 1st - Reported 12-month revenue of $12.3M, an 24% increase over 2015; Increased gross profit margin to 23.8%, a 15% increase over 2015
May 11th - Started trading over the OTCB in the US
May 15th - Retained PCG Advisory Group (“PCG”), a leading IR and Communication for OTC (US)
May 16th - Engaged for Custom Solution To NBKC Bank With Its Uniden Cellular Boosters
May 24th - Launched Full Booster Portfolio and Rugged Device at Staples.ca
May 30th - Record quarter of $4.9M (vs. $2.7M in Q1 2016) in revenue, positive EBITDA and an increase in gross margins
While we're bullish and long on SIM.V, we believe that investors should mind the trading gaps.
Prior to April 6th, SIM.V has been trading between the 0.40 to 0.42 cents range. After the April 6th announcement, the stock hit the current 52 week high of 0.63 cents (33% from the base) and subsequently returned to trade between the 0.44 to .48 cents range (-30%).
On May 30th, SIM.V reached the 52 week high of 0.63 cents, yet again. However, it would not be surprising to see the stock return to a 0.48 to 0.50 cent range and even possibly approach and break the 0.44 cents level support (S1) based on prior technical analysis. Although we believe the likelihood of the latter scenario (S1 break) to very unlikely, anything is possible. Nonetheless, SIM.V seems to be developing a pattern and it should be noted.
In any event, we'll definitely touch base again on the subject. For those who are curious, the target for this stock is 0.85 cents.
Even at the current levels, we believe that SIM.V is a great opportunity - but why pay more, if you can pay less?
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