My 2 cents on BEW First let me tell you my status. I am holding BEW stocks in low 6 digit numbers and I am holding. I am neither selling nor buying more at this time. To me 30c is fair price looking in to 2021 fundamentals.
Pro for BEW going forward;
- BEW had net +ve earning in 2020Q3 & it may continue to be net profitable in coming Qs.
- No debt and enough cash in hand to meet ongoing R & D expenses, increased inventory & general expenses.
- Promotors and insiders holding substantial numbers of shares.
- Management is pro-active lately and participating in company promotion among investors.
- Technical analysis show near term upward trend.
- New products are under field trials
Cons for BEW
- Hardware revenue growth is low.
- In reply to a question, BEW sensors are not used so far in vaccine logistic and only a few devices sold for US Election ballot boxes tracking.
- There are competing products for asset tracking and sensors.
- If we take 100K net profit in Q12021 (2020Q3 net profit only 25K), 200K in Q2, 300K in Q3 & 400K in Q4, an increase of 100K every Q, the total net profit is only $1M resulting in an EPS of 1c.
- For every additional 100K/Q recurring revenue, BEW has to sell 20K devices or 1M hardware assuming $50 selling price for each device and average $5 per Q recurring revenue per device.
- No known fund manager is holding BEW shares. No analyst is analyzing BEW. Those fund managers who were holding BEW shares are out and so are 1 or 2 analysts.
If I see news on more bulk orders, new customers, new market and if the numbers change, my position changes. Please do your own due diligence.