Value Microcaps Zip Code Changers

[Bobwins]

SIM.v/SYATF +.03 to C$.46

Siyata released Q2 report. Good sales number of C$5.28million resulted in a small profit of C$83K. Most of that was from a currency adjustment of C$805K due to strong US$. Siyata reports in C$ but most new sales will come from US.

Good news is that gross margins were good. 29% vs 20% when I first bought stock. CEO says once 4G products are established, margins will further improve to 35% range. So after Tier One Carrier approvals, sales should climb to C$100million/yr from C$20million and margins get better!

Still need those approvals but conference call was encouraging. Asked about competition, CEO said they don't see anything now. Said this niche is too small for Samsung, Apple, etc. to spend the R&D to develop a product. There is a possibility of a startup but he felt the barrier of entry was fairly high and again this is a niche market.

Asked about financing and said no need in short term(2 qtrs). But if they get approvals, sales should spike and that will create need for cash. He said PO's from telcos are financeable but I think they will need staff and advertising/marketing budget to help telcos and dealers sell this new product line. So I expect a financing early 2019.

Share count is still ok at 95million. I will continue to hold for the blessed event. Expect Canadian approval first with two US telcos to follow. Company says telcos are excited to bring their products to market because they get nothing for operating existing two way radio bands. They would get around $50/month for each 4G unit, which would be new revs for them. In addition, their dealer network would get installation fees for a bunch of commercial fleets AND software commissions for any software they cross sell to new Siyata customers.

http://www.stockhouse.com/news/press-releases/2018/08/29/siyata-mobile-announces-record-quarter-with-77-revenue-increase-over-q1-2018