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). Since then, we published three more notes on June 1, July 3 and October 12.
At the time of the last note, we anticipated that SIM.V was going to re-surge (at best) or consolidate at around the $0.60 cents mark.
Instead, what ensued was a selling cycle despite four orders order-related releases issued in the past month.
Oct. 26 - $180K Purchase Order (PO) from multinational pharmaceutical company for its Uniden® U620 Rugged Device.
Nov. 2 - Sold 750 units of Truckfone and Voyager, 3G connected vehicle devices, to Sweden and the UK for Q4 delivery.
Nov. 8 - Receives commitments for U7 HULK Clamshell Devices worth $1.2M with a Q1 2018 delivery.
Nov. 16 - First PO for 190 Voyager devices from a multinational security transportation company.
The company is NYSE listed with a global network of operations in over 100 countries.
We have to admit some element of surprise in the current stock trend. SIM.V tested S1 ($0.52) in the past month but also S2 ($0.48) in the past week.
Other than the beginning of the tax loss selling season, it may be that the sell cycle is related to the remaining warrants. On the July 3 note we cautioned readers about warrants (21-25M shares from $0.40-$0.60 cents) that were set to expire on July 17 and July 23. We know that 11M (about 50%) were converted on August 17th. Hence, it may be that the current selling pressure is related in part by investors cashing in before year end.
Despite the current trend, we're still bullish on SIM.V. At the current price, we consider SIM.V to be discounted. Below is our forecast for the week.
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