You’ve probably never heard of Moseda Technologies (
TSXV:MSD,
Forum) before.
That’s a shame because it’s a good company, but it releases news about as often as Abe Vigoda stars in action movies, and the CEO is dedicated, 24/7, to expanding the product and growing it exponentially, rather than feeding the media or prettying the website.
So here’s the deal on Moseda: It’s a mobile device tracking platform.
Not sexy? Screw you, it’s sexy as hell.
Picture this: You run a hospital. You’ve got 5,000 expensive pieces of hardware, 50 staff, and 300 patients. None of those pieces of hardware talk to each other. The staff use cutting edge technology to take a reading of a patient’s vital signs, then they copy the data onto a clipboard, walk around with it all day, then type it into a computer system later. Maybe.
But then there’s an emergency in room 302 – your people need a machine that goes bing but, crap, they’re all in use. There’s got to be another one somewhere in the building, but where?
Someone call a technician.. wait, where’s my cell phone? Does anyone know what this guy’s blood sugar levels have been all week? Anyone?
Okay, so maybe I’m being dramatic here, but the health care system is dumb. Machines don’t talk, information is shared in a manner that was old school in the early 70’s, equipment goes missing, or misses a maintenance update, and staff are constantly doing busy work that could – and should – be done automatically, quickly, and securely by networked hardware.
Moseda is the link that attaches to those devices and passes information to where it needs to be, making it accessible where needed, making devices trackable, making staff more efficient, and saving ridiculous amounts of money for the health care providers.
It also works in transport, an industry where tracking is already a multi-billion dollar business.
And Moseda has been attracting executives from established tracking companies that know exactly how far ahead of the legacy companies MSD is, and how hard it would be for those old school GPS-based, change the batteries once every two months companies to catch up.
Moseda is going to destroy all comers. But it had to get its act together first, especially on the share price front.
On July 31,
the company finally released news, and part of that news is something investors need to be watchful for – the surname ‘Thindal’.
Aman Thindal has joined the company as CFO. Thindal is also CFO at
Hamza Thindal Capital, which I’ve
written about before.
When HTC jumped on Theralase (
TSXV:TLT,
Forum) back in 2013, it more than doubled. When they jumped on T-Bird Pharma (now Emerald Health,
TSXV:EMH,
Forum) in 2014? 50% jump. Mezzi (
TSXV:MZI,
Forum)? $0.09 to $0.30. Somedia (
TSXV:VID,
Forum)? $0.12 to $0.49. VancPharm (
TSXV:NPH,
Forum)? $0.18 to $0.74. Cannabix (
CSE:BLO,
Forum)? $0.17 to $0.53.
Why has this activity happened? A few things. First, HTC kicks the tar out of the management team and tightens the game of the companies they work with. Second, they raise money for the companies they’re working with. Third, PEOPLE WATCH WHO THEY’RE WORKING WITH and try to get in front of the crowd, thereby driving up share price.
Now, it’s worth noting, in the interests of balance, that all of the companies mentioned above have followed those meteoric climbs with fall-offs, with some minor and some large. That’s to be expected, as a company like HTC finances a deal and moves on. They’re not there for five years taking a stock to five bucks, they’re there to get a company off the ground floor and move it forward with advice, doughbucks and support, and what that company does when they leave the room is up to them. Frankly, when you double a stock, it’s to be expected that folks will start profit-taking, and the stock will inevitably level off, or fall, if not well supported with news. Companies like Cannabix and SoMedia simply flew too high, too fast, and got battered by short sellers. It happens.
So how quickly has Moseda jumped? It's gone from *zero* trading volume last week to 1.5m today. Sorry, make that 1.6m… tough to keep up
(UPDATE: By trading close, the company had hit 2.78 million in volume, a massive jump from the average).
As of the time of writing, it’s at $0.14 (make that $0.15). It was $0.07 two days ago. Market cap is reasonable at $5.9 million, and the share float is tight at 42.4 million, so further growth is not a ridiculous concept.
To be fair, the stock was oversold for many months due to lack of news, so a jump of that magnitude hardly took much doing. But it’s moving and will continue to move, if past history is any guide.
I own Moseda stock personally, because I heard about the story six months ago and thought it was the best deal I’d seen in tech for some time. And I’ve watched it slip for months as work was done behind the scenes to make it ready for prime time and, frankly, I’ve been frustrated by management’s reluctance to talk to investors. If that’s about to change, it’s noteworthy because, if the promise of the product is real, the stock should be at $0.50 and climbing.
I don’t know if news is coming. I don’t know what tomorrow will bring, or whether you should buy or not. But I know balls are leaving the park right now at a rapid rate, and Moseda should be on your watchlist for the next while, because you’re going to be hearing a lot about it going forward – either through the Thindal boys engaging their marketing death ray, or through good old fashioned news flow.
--Chris Parry
https://www.twitter.com/chrisparry
FULL DISCLOSURE: Moseda Technologies is a Stockhouse Publishing client, as is Mezzi.
UPDATE: Just spoke to Justus Parmar and Shane Parhar at Jordan Securities, who brought Moseda to market, and have confirmed the company has retooled the board, and is looking to expand quickly. I'm buying.