"the stock could trade in the $8.00 to $10.00 range by the end of 2000", from Insider's Report and Golden Capital:
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INSIDER REPORT:
Infowave Wireless [V.IWM] - Golden ups its Target
Golden Capital was one of the few independent brokerage firms to catch on to Infowave's story early and the clients who followed their advice did very well by getting in under $2 earlier this year. As the story has been strengthening almost weekly, with the launch of new products and relationships with the big players in wireless technology, we are not surprised that Golden is again first out of the gates by re-iterating their "buy" rating for IWM with a new target of C$8-$10. "Fiscal 2000 should be a strong one for Infowave, as the wireless products start to generate meaningful sales and existing wireless products are extended to other devices. If the company obtains a TSE listing and can generate wireless sales in the $5-7 million range, the stock could trade in the $8.00 to $10.00 range by the end of 2000." To read the full text of this report, click on goldencapital.com
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GOLDEN CAPITAL:
Infowave Software (V-IWM)
After a rapid run-up from the $1.00 range in January to a high of $5.20 in the second quarter, it comes as no surprise that some Infowave shareholders would book some profits in the third quarter while the stock paused to catch up with itself. For most of the summer, the stock has remained within the $3.00 to $4.00 range, which is about where the stock should be based on its current fundamentals.
Most R&D efforts have been focused on two wireless products: Infowave for the Net and Symmetry. Infowave for the Net is a client-server product that provides secure, real-time, wireless access to corporate intranets. Mobile users access an Infowave server through a wireless data network, and the Infowave server interacts with the intranet servers ? all residing behind the corporate firewall. All communications between the intranet server and the wireless user are managed by the Infowave server, which uses strong encryption at both ends to protect privacy. Symmetry is a desktop product that allows users to connect a wireless device to their desktop Microsoft Outlook program for email, contact management, scheduling, reminders and task lists. The product is designed to work with virtually any wireless device that is capable of having an email address assigned to it, including pagers and PCS and GSM cell phones. Conceptually, the product is quite simple ? once installed on the desktop, the software redirects all Outlook messages to a specified wireless device. Users can configure the software to send only the messages they want to receive while away from the office, based on user-defined criteria such as the identity of the sender, the message type, or the content of the message. Symmetry is being developed and marketed in partnership with Glenayre, which will be the exclusive distributor of the product to the paging industry.
On the imaging side of the business, Infowave continues to enter into strategic alliances with major peripheral manufacturers. In September, the company announced a bundling agreement with New Motion, whereby Infowave's PowerPrint software will be sold with New Motion's iDock product. iDock is a hub that enables iMacs (which support only USB ports) to connect with up to six peripherals that use the more traditional serial and parallel ports. In the third quarter, the company also entered into agreements with Canon and Tectona Electronics. Under the Canon agreement, the company will develop customized Apple printing solutions for Canon's multi-function peripheral products, while the Tectona agreement gives Tectona distribution rights to PowerPrint in the Asian market.
Going in to Q4, we are anticipating more developments on the wireless side, as paging carriers are signed up to provide Symmetry to their customers. As Q3 and Q4 tend to be strong quarters for printer sales, we are also expecting stronger revenues for the second half of the year, although net earnings are still expected to remain close to the breakeven level. Fiscal 2000 should be a strong one for Infowave, as the wireless products start to generate meaningful sales and existing wireless products are extended to other devices. If the company obtains a TSE listing and can generate wireless sales in the $5-7 million range, the stock could trade in the $8.00 to $10.00 range by the end of 2000. |
