Patient Home Monitoring (TSX: V.PHM, Forum) has been experiencing a rough patch as the company recovers from a failure to clearly communicate with its investors regarding the movement of some 20 million shares into a Healthcare Special Opportunities Fund being run through LDIC Inc. by two insiders, former CEO, Michael Dalsin, and Vice Chairman, Roger Greene.
Doubt regarding Dalsin and Greene’s focus and commitment was already beginning to boil as the pair had launched other endeavours like Convalo Health. So when investors saw a public disposition of almost 27 million shares without a well-publicized explanation, they assumed that the two were dumping and readying to leave. SP dropped into the toilet, triggering stop losses and a short frenzy.
The move, neither criminal nor even unethical, had been explained during a webinar back in June, but because it hadn’t been talked about elsewhere, there were a good deal of investors who weren’t privy to the reasoning behind the transfer. Dalsin raced to put out the fire, but the damage had already been done with shares dumping from $1.36 to $1.01 within a week.
Needless to say, there were some very pissed off investors.
With Casey Hoyt, co-founder of Sleep Management, a recent acquisition of PHM, taking over the reins as CEO earlier in July, the company planned to move ahead with lessons learned, however the fallout was far from over. The move had struck an unpopular cord with PHM’s shareholders, despite the fact that the company hadn’t changed at all and was still looking at blue sky potential. Also,
shorts weren’t finished bashing the hell out of the stock, so SP continued to slide.
Today shares sit at $0.72 – a fair distance from the $1.36 at the start of this mess. Is this the end? I think we’re seeing the relative bottom with this one. The soft summer market may add some downward pressure still, but when fall turns the corner, I’m betting on a recovery and if quarterly financials reaffirm the strength of PHM’s direction, which I think they will,
I expect a surge. Don’t take my word for it, do your own due diligence.
Edgewater Wireless (TSX: V.YFI, Forum) plans to revolutionize the embattled Wifi infrastructure market. There was once a time where we walked around with just one device that would access data wirelessly, but now with the flood of tablets, smartphones, handheld computers, and a myriad of other mobile devices, wireless data networks are really beginning to feel the crunch in terms of connectivity and performance.
Where the industry proposes to implement the new 802.11ac standard running at the relatively unimpeded 5Ghz range, Edgewater wants to increase the number of channels to three with a proprietary compliant chipset utilizing a technology entitled WiFi
3.
This expansion is expected to provide an aggregate 50x faster throughput than traditional WiFi.
Look at it this way, using WiFi is like driving down a single lane road. Even though you are behind the wheel of a Lamborghini Countach, the old guy wearing a baseball cap driving the vintage Model T in front of you limits your speed no matter how much you rev your engine. Edgewater’s solution puts down three lanes, one for the old guy puttering along, another for the young punk with his first Honda Civic and one for you to really open up the throttle.
Now you may not feel the benefit of this in your home, but that’s okay, because
Edgewater isn’t aiming their offering at the end user, they’re heading upstream to mobile carriers like AT&T, Telus and Rogers who are experiencing bottlenecks on their 3G and 4G networks with the preponderance of mobile devices drawing data.
Edgewater’s technology would allow these companies to redirect their mobile data traffic from the more expensive frequencies to economical wireless networks. This traffic redirection would provide significant cost savings for these operators as
mobile data is expected to hit 12.6 exabytes or 12.6 billion gigabytes per month globally by 2019 with revenues in excess of US$628 billion.
That’s a fat market for Edgewater to latch onto, but what makes them so special to think they’ve got a corner on the sector? After all, they have yet to turn a profit. Well, their WiFi
3 is patented and at this point is the only technology that allows simultaneous multi-channel interaction using standard compliant WiFi. That means there is no need to upgrade your phone, laptop, tablet or whatever WiFi device you are using – far more economical than a complete system upgrade which would still suffer from the same problems as 802.11n.
Speaking of patents, Edgewater has over 24 of them, but as every investor knows, patents mean little unless they are realized in products or monetized in licensing. So that said, where is the company now? Big news for the year so far is the strategic alliance with Zinwave, a provider of DAS (Distributed Antenna System) solutions and services, which would see WiFi
3 integrated into Zinwave’s product offerings. Not a whole lot to go on as far as progress for 2015 so far, but longs maintained their faith and snapped up a majority of the recently closed subscribed non-brokered private placement that wrapped up in the middle of July.
The company has a strong idea and good tech in its portfolio, but the real proof of the pudding has yet to surface. For now, SP is going to vacillate; it won’t be until Edgewater puts out a significant news release in terms of licensing deals and real revenue that the market will respond in kind, pushing SP past the $0.30 mark. Just what is the potential? If Edgewater can retain first mover advantage by actually moving, prospects are very good, but
they need to move soon to make that happen.
You may not be already aware of the
Canadian Innovation Exchange, but it is an important and transformative event in the life of Canada’s most innovative privately-held tech start-ups. Now in its eighth year, the conference, which takes place in Toronto in the middle of November, has garnered an international reputation with serious fund managers, analysts and investment advisors as a place where deals are done.
With over 650+ technology industry leaders, entrepreneurs and investors attending from across Canada and the US, companies flock to participate in the one-day affair as being named as part of the CIX Top 20 seriously adds to their market visibility, giving them the power to increase market share and/or secure necessary funding to take their ventures to the next level. This year adds something special – a
Public Investor day of which Stockhouse is proud to be the title sponsor. This extra day will do for public companies what it has successfully done for privates since Achilles Media began the event in 2007.
As part of a series leading up to this landmark gathering, I will be providing updates on who is placing themselves on the block. I will be speaking with the movers and shakers within Canada’s tech space, and
talking with organizers such as Achilles Media CEO, Robert Montgomery, to get the lowdown on the event, the sector and the companies looking to change the world.
Even though nominations are still open until September 25, 2015 for publicly traded candidates to submit themselves, there has been considerable interest already with
companies racing to be included as contenders for a coveted spot in the CIX Public Top 20. Successful applicants will be chosen by an expert panel and will be showcased at the CIX Public Investor Day on November 18, 2015.
Speaking of applicants,
FLYHT Aerospace Solutions (TSX: V.FLY, Forum), developer of FLYHTStream™, an application that ensures vital information from an airplane’s black box is streamed to safety in times of emergency,
Lexaria (CSE: LXX, Forum), developer of a patent-pending tech to improve bioavailability of certain fat-soluble molecules,
Orbite Technologies (TSX: ORT, Forum), seeking to take the aluminum world “green”,
TIO Networks (TSX: V.TNC, Forum), successful competitor in the US FinTech sector,
dynaCERT (TSX: V.DYA, Forum), developer of transportable hydrogen generation tech, and
Tinkerine Studios (TSX: V.TTD, Forum), leading 3D printing company pioneering the consumer space, have all added their names to the roster. Stay tuned for more.
If you would like to know more about CIX, click here.
FULL DISCLOSURE: Patient Home Monitoring is a Stockhouse Publishing client.