Broadly, I think the current business justifies a 200-250 price, as such I think we were grossly undervalued until just recently. The next leg up, or multiple legs up, will come from whole industries following visionary first adopters, just like the trajectory of tagging retail apparel. New verticals like food present additonal catalysts. I could give you price targets of 500, 1000, 1500, 2000, and more as/if these things happen. There are too many to list. Chris is a rock star CEO and co-founder, a rare blend of technical and business.
We received 3 nuggets on the call leading us to those higher targets, the market chose to focus on some ridiculous notion that Q4 guidance wasn't good enough. Markets are stupid sometimes, in the short term. Those opportunities are:
- There is a visionary grocer in the food freshness space. That is monster news. Food prepared in-store is already labeled individually, adding a tag is not a big step at all.
- Retailers are ordering general merchandise with tags. Any supplier tagging for WMT already would find this a simple step. Retailers already taking inventory for apparel would find this a simple step. Adoption here could move FAST.
- Chris chose not to address Exactly how readers will be imbedded broadly in cell phones following the QCOM announcement, choosing to focus more on how this development drives broad adoption of RAIN. But there are some exciting possibilities, including QCOM licensing from PI, purchasing modules from PI, or investing directly in PI.
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