Siyata Mobile Inc. (SIM.V) is a provider of vehicle mounted mobile communications platform (Push To Talk Over Cellular ("PoC") devices).
We initiated coverage a few months ago (March 28). In our last article we discussed trading gaps.
As promised, we wanted to update you. Last month, we speculated: "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."
We're surely not at our target price yet ($0.48 to $0.50) but we're approaching it. As displayed in the chart above, SIM.V is definitely following a notable trading cycle. It first spike on April 6 and sustained ($0.55 to $0.60 range) for three weeks. The stock then reverted to trade between the 0.44 to .48 cents. Thereafter, SIM.V hit another spike (and another 52 week high) and consolidated around $0.60 for about five weeks. In the past week, an acceleration of the selling cycle was noted. SIM.V is not oversold yet but has an RSI of 40.72 as of June 30th.
In the last month, SIM.V provided the following updates,
May 30 - Record quarter of $4.9M (vs. $2.7M in Q1 2016) in revenue, positive EBITDA and an increase in gross margins.
June 1 - Announced that it will present at The 7th Annual LD Micro Invitational on June 6.
June 6 - Begins PTCRB Approval For Its Uniden® UV350 4G/LTE In-Vehicle Cellular Device including FirstNet - “Band 14” in the US.
June 7 - Article in MarketWatch: The Need for Smartphone Integration with Vehicle Systems.
June 8 - Signed vendor agreement and received first Purchase Order (PO) from leading global two-way radio vendor both rugged devices as well as commercial vehicle devices with Push-to-Talk Over Cellular (“PoC”) capabilities.
June 13 - Receives multiple POs from Caltronics Communications Ltd.
June 22 - $360k PO from a leading Israeli operator for its connected in-vehicle cellular devices both Truckfone and Voyager devices.
June 26 - Siyata's CEO (Marc Seelenfreund) was interviewed on Capital Ideas - You ought to listen to the first 12 minutes.
In the June 26 interview above, Fabrice Taylor informed investors that there are warrants at $0.40, $0.50, and $0.60 cents coming up to expiry (July 17, 23) to the tune of 21M to 25M shares. This mean that we can expect the sell cycle to possibly extend until that date. Nonetheless, SIM.V performance is such that more announcements are a strong possibility. This can also impact the number of shares available at a given price.
Our prediction for the week is below. Accumulation in the "Lo 80 or Lo 90" area is considered sensible.
Again, we're long on this stock, and we reiterate the target price upgrade by Paradigm Research (April 7th) from $0.75 to $0.85 for the year.
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