Value Microcaps Zip Code Changers

[Bobwins]

Because SIM.v hasn't posted a profit yet, it's hard to predict the share price performance near term. I have seen comments from the company that Q4 was profitable but have to wait and see the actual numbers by 4/30 when the annual statements are due in Canada.

If, for instance, they post disappointing numbers for Q4, the stock may dip. However they have already posted that 2015 resulted in 9.9million in gross revs. So they have already told us gross revs are 2.7million and it should be at least ebidta positive.

The company has been active in publishing PR's. Many are lacking details about the actual size of the order in $$$ but there are so many positive reports that it's hard to expect that sales won't continue to grow at 40%, especially if they successfully enter the US markets.

The company has told us that North America is the biggest market in the world for these type of devices and the US is way bigger than Canada.

Still, the US markets will be competitive and the company is going to introduce a new 4G device for the US markets. The product will have to be a winner and Siyata needs to hook up with big cell companies and their distribution networks to cover the US. They do not have the sales staff to penetrate the US. They need the existing distributors to accept their products and promote them to customers.

I asked IR why distributors would promote their products. He said that the distributors get a significant piece of the final sales price and he claimed Siyata had the best compensation for the dealers. The string of PR's regarding the big distributors of Telus and Bell Canada seem to support his claim.

I love the market. Users have to change from the old Motorola two way radios. The cell companies are going to shut down 2G networks so all the current users will be forced to change to another product. Siyata thinks they have competitive products and are one of the only companies that combines voice and data functions in one device that will allow simplification in the cab.

Since they will not be introducing their 4G product into the US until Q4 at the earliest, Siyata is a 2017-8 story. So I am recommending you consider this a medium term hold. My avg cost is C$.26 or about US$.20. So it hasn't run that far. I think this is a good level to buy. They just hit a new 52wkhi so it could pull back OR they could post a barely profitable Q4 and investors might boost the price further. Good luck.