July Analyst Comments: Northland, ROTH, AAPL etc Here they are again for reference.
There was a brief buzz at the July AAPL buy of 5G tech suggesting they needed an immediate LTE Cat4 and Cat-M and maybe an NB-IoT solution for IoT and IIoT.
But you and I know they are multi-year customers of QCOM so maybe those analysts were enjoying their pipes too much.
On the other hand, AAPL is such a large company with such a diversified product line beyond the jazzy i-Devices that maybe there's actually some truth to the rumor.
WHAT I AM GUESSING: R&D
I am guessing that AAPL approached SQNS for some R&D units for tests and product R&D which is just normal business and doesn't necessarily mean anything in the way of sales much less a buyout.
I further guess that it isn't the first time AAPL has approached SQNS for units for its own R&D.
Thus, I'm not excited over a rumor.
HOWEVER, recall GK said this: "recurring revenue from your wildest dream"
^THAT^ is a clear suggestion of a subscription service.
But..... how does an IC vendor generate subscription revs?
Ahhh it's just all a foggy uncertain mess that doesn't give anything of substance for a low-risk investor. And GK is notoriously wrong and deceiving in his comments.
AND recall AAPL made a very loudly announced visit to Paris back in 2017(?) that could have included SQNS large institutional investors.
If you're reading this then you are looking for a high risk high return investment to place your cash at just the right time.
NOW?
I don't know. But LA is an easy distance from Silicon Valley and One Apple Circle.
And SQNS is too cash poor to support a large product fab order like an AAPL device would generate.
I've previously stated that SQNS needs a Hero for its turn-around and waiting for that is a poor way to invest.
I'm pretty sure you agree SQNS is a lousy investment to date unless you played the run-up and sold out at $4.xx-ish back in what.... July 2018 (?) I certainly wish I had sold out entirely back then.
I don't see any evidence of a turn-around nor buyout nor legal settlement nor Regulator ruling in favor of SQNS.
However, any one of those above would cause the share price to approach its max immediately. A combination of those would raise the share price target.
So, there's your risk reward calculus to contemplate as you smoke your next pipe.
---
REFERENCES
- Apple may adopt Sequans CAT M radios, says Northland SQNS ...
- https://thefly.com/landingPageNews.php?id=2613072
- Apple may adopt Sequans CAT M radios, says Northland. Northland analyst Tom Spenzis said Apple (AAPL) is experiencing connectivity issues with its new voice-enables cellular Watch along with battery drain with LTE radios, which could lead to increased adoption of Sequans (SQNS) CAT M radios
---
- https://www.streetinsider.com/Analyst+Comments/Sequans+Communications+%28SQNS%29+Positive+Comments+Northland+Securities/13319982.html
- Sequans Communications (SQNS) Positive Comments Northland Securities.
- Northland Securities analyst Tom Spenzis makes positive comments on Sequans Communications (NYSE: SQNS) related to Apple Watch which could adopt is CAT M1 tech to improve connectivity.
---
- https://www.benzinga.com/analyst-ratings/analyst-color/19/07/14118667/analyst-why-apples-potential-purchase-of-intels-modem-businesses-could-be-positive-
- Analyst: Why Apple's Potential Purchase Of Intel's Modem Businesses Could Be Positive For Sequans by Jayson Derrick Reports of Apple Inc. looking to acquire Intel Corporation's INTC 0.23% smartphone modem business are "plausible" and would bode well for Sequans Communications SA SQNS according to Roth Capital.
- The Analyst
- Roth's Scott Searle maintains a Buy rating on Sequans with a 12-month $2.50 price target.
- The Thesis
- If Apple acquires Intel's assets, Searle said it would imply Sequans, a provider of single-mode LTE wireless semiconductor solutions, is among the shrinking population of non-Chinese and non-vertically integrated 4G and 5G silicon suppliers. Apple's tie-up with Intel's asset could create a scenario where all non-Apple and Intel baseband customers will be "fair game" for merchant suppliers like Sequans to target.
|
