Webtech Wireless (
TSX: WEW,
Stock Forum) is spinning its wheels but going virtually nowhere in regards to building the company and growing shareholder value. They are positioned in an exploding fleet management software service industry that’s so new it’s nearly impossible to come by market metrics without dropping $4000 plus on an analyst’s report. The one thing that can be seen easily is that the tech is falling in price and increasing in effectiveness at a rate that is driving fleet managers to adopt new cloud-based software services in order to extract a higher rate of efficiency and reporting from their drivers.
This company doesn’t seem to be capitalizing on the demand and, even though possessing channel partners like AT&T, Bell, et al, it has added less than 1,000 subscribers to the company’s client base. Not exactly a success story. What Webtech needs is vision and a determined board that will push it into a stable cash-positive position while continuing innovation within the sector to ensure market growth and increased shareholder value. Right now, the only thing it has is the beginnings of a fraud investigation into its UK branch and a history of mismanagement and legal woes. The painful part of the equation is the tech is still good and the sector is still growing. Shareholders can only hope that another entity within the sector buys up the stumbling company and boots the board and management.
On the other end of the spectrum,
Spectra7 Microsystems (
TSX: V.SEV,
Stock Forum), looks like its ready for a run and in my opinion is trading far lower than it should be. This analog semiconductor company has raising the bar on the development of high-bandwidth, low-cost consumer and wireless infrastructure products with such launches as the Display Direct™ virtual reality chip that radically increases immersive 3D resolution with extremely low latency while reducing the size, making wearable VR a real option.
The virtual reality market is expected to hits $5.2 billion by 2015 and having put together the tech, rather than the full product, like Oculus Rift, Spectra7 has the opportunity to capitalize on the entire space. What the company needs right now, however, is some TV deals in order to firmly plant their feet and establish that the company is truly a going concern. In my opinion, this stock has a very real and extensive upside if it can get to market by the end of the year.
Symbility Solutions (
TSX: V.SY,
Stock Forum) continues to plod along under the radar as the Software as a Service (SaaS) claims tech company adds more contracts both domestically and internationally to its roster. Sure, they haven’t been making headlines with record profits, but they have steadily been improving their bottom line and could quite possibly, if it is able to follow the company’s current revenue guidance, achieve profitability this year.
As an illustration to this notion, the company reported in April that it had signed 21 contracts with domestic and international customers ranging in length from one to five years with a combined annual net new annual contract value of $1.3 million and a total contract value of $4.5 million. With an expected 2014 revenue of $28.0 to $29.0 million and an EBITDA of between $3.0 to $4.0 million, the company’s prospects seem solid enough to build on.
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