NEW YORK, NY / ACCESSWIRE / November 3, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it recently initiated coverage on SmartCool Systems Inc. (TSXV: SSC)(OTCQB: SSCFF) with a Price Target of CAD$0.16
The report is available here: SSC Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Smartcool is a Vancouver-based energy management company focused on developing and marketing an innovative lineup of energy efficiency products for air conditioning, refrigeration and heat pump systems (HVAC). The company's lead products - the ECO3(TM) and ESM(TM) - are retrofit products that can be installed between compressors to monitor and adjust operating cycles. The products offer impressive energy savings, conserving an average of 15% to 20% kWh, while bringing no risk to the existing equipment.
"Smartcool targets commercial and residential customers around the world and has already established a solid customer base with more than 30,000 installations worldwide that promises to bring more revenue opportunities. It is currently developing an independent sales force in North America, testing its products for the refrigerated transportation sector, and seeking licensing opportunities to boost revenue growth," stated Ajay Tandon, CEO of SeeThruEquity. "We are initiating coverage with a 12-month price target of CAD $0.16 per share."
Additional highlights from the report are as follows:
Third-party tested technologies proven to enhance energy efficiency
Smartcool's retrofit products, ECO3(TM) and ESM(TM), have undergone independent third-party testing which verifies that on average they can reduce electricity usage by as much as 20%. Smartcool's proprietary software enables both the ECO(TM) and ESM(TM) to have very high compatibility with existing HVAC systems of almost any make and size. Importantly, these products do not cause risk to temperature or humidity conditions in the existing equipment, display verifiable savings, and offer remote performance-monitoring functions. In many instances Smartcool products qualify utility rebates, and the company has completed an impressive 30,000 installations worldwide to date.
Strong customer base providing stable revenue streams
Smartcool has a solid customer base including many Fortune 500 companies like E.ON Energy and Sainsbury's, which speak to the company's product quality and have the potential to bring further major revenue opportunities in the future. Smartcool has accomplished this by focusing on both direct sales and fostering distribution relationships worldwide. Its direct sales force targets industries whose HVAC energy expenses constitute major operating costs, and its distributors leverage their local knowledge to target the regional markets. The recent expanded initiatives to develop an independent sales force in North America seem promising as the company has significant potential to drive revenue with minimal incremental investment.
Exploring new opportunities to drive long-term growth
We are intrigued by Smartcool's initiatives in the refrigerated transportation business, which potentially opens up a large, high energy consumption market that seems well-suited for the company's value proposition. Smartcool is in the final stage of testing the energy efficiency solutions to refrigerated transportation businesses, and the results have demonstrated savings per trailer of four to six gallons per day, which equates to 17%-25% of fuel consumed for refrigeration. Assuming diesel prices of $3.50 per gallon in the US and $6.50 per gallon in Europe, this translates into potential savings of $14 to $21 per day, per truck, in the US - with nearly double the savings potential for customers in Europe. Smartcool is also pursuing the third-party cloud-based technology licensing opportunities, which have the potential to help the company accelerate its penetration into the home energy management market with high margin incremental revenues.
Initiate coverage with a price target of CAD $0.16
Our analysis indicates a fair value estimate of CAD $0.16 (USD $0.12) per share, implying an upside of 220% from the recent price of CAD $0.05.
Please review important disclosures on our website at www.seethruequity.com.
About SmartCool Systems Inc.
Headquartered in Vancouver, Canada, Smartcool Systems Inc. (TSX-V: SSC, OTCQB: SSCFF) provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world. The ECO3 and ESM are Smartcool's unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by 15% to 20%, giving customers a return on investment in as little as 12 months.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
info@seethruequity.com
SOURCE: SeeThruEquity