***Get our small cap profiles, special situation and watch alerts in real time. We are now offering our VIP SMS/text alert service for free, simply text the word “Alerts” to the phone number 25827 from your cell phone.
Analyst Coverage: Nxt-ID (NASDAQ: NXTD)
Summary:
Nxt-ID, Inc. is an early stage technology company. The Company is focused on products, solutions and services required for biometric secure access control. The Company has three lines of business, which include mobile commerce (m-commerce); law enforcement and biometric access control applications, and law enforcement. The Company’s products include Wocket, MobileBio VoiceMatch, FaceMatch, 3D FaceMatch Biometric Identity Systems and 3D SketchArtist. Wocket is a physical electronic smart wallet that can hold information from credit cards, debit cards, loyalty cards, identification cards, and virtually any magnetic stripe card. Voicematch is a method of recognizing both speakers and specific words providing multi-factor recognition. FaceMatch serves as a modular facial recognition system for smartphones, tablets, laptop and desktop computers. 3D SketchArtist is a three dimensional (3D) software face composite sketch tool.
Nxt-ID Inc. has a current market capitalization of $11.94 M with 30.03 M outstanding shares. Its daily average volume traded is 671,945 shares.
Financial Highlights (Q3 2015):
Revenue: 0.42 M
Gross Profit: -0.15 M
Net Income: -3.54M
Cash and Cash Equivalents: 0.15M
Total Debt: 0.69 M
Recent News and Analysis:
The company recently announced the airing of a new series of commercials on Time Warner Cable New York channels starting the week of March 21st. The commercials will air on Bloomberg TV, Fox Business News and CNBC, including its popular Squawk on the Street show. The commercials airing will include a Wocket smart wallet consumer 30-second spot and a corporate ad that presents technology solutions that highlight some of the Company’s core capabilities. Gino Pereira, CEO of NXT-ID explains, “2016 will see a broadening of our revenue base beyond Wocket, as we exploit the breadth of our technology and capabilities. The first example of this is the development of the WorldVentures DreamTrips smart card. This will be followed by other significant partnerships.
Despite the statement, the Wocket is the company’s flagship product. Designed to protect your identity and replace your old wallet, simply save your cards into Wocket once and they are immediately secured. You can choose a card from the touch screen and Wocket programs its single, smart card (Wocket Card) or uses its NFC touch to pay technology to match your selection. Your Wocket can be used virtually anywhere that credit cards are accepted today. Wocket can also display a variety of barcodes. All your credit, debit, loyalty, gift, ID, membership, insurance, medical information, passwords, and virtually any other information can be protected on Wocket.
In addition, the company recently announced the first purchase order for a new SmartCard being developed for WorldVentures vacation club Members. The purchase order is for up to $15 million and is subject to WorldVentures acceptance of the prototype card now being manufactured. The purchase order calls for equal monthly deliveries with a value of $2.5 million a month from July to December 2016. With the exception of the order for the first $2.5 million, WorldVentures has the option to cancel, defer or increase monthly shipments with 90 days written notice on subsequent orders. This follows the deal with WorldVentures that was signed last month. WorldVentures made a strategic investment of $2 million in Nxt-ID to develop a proprietary new wireless smart card for its members—numbering in the several hundreds of thousands worldwide—based on Nxt-ID’s Wocket. The smart card will be customized with additional technologies and wireless features, such as the ability to seamlessly integrate with WorldVentures’s DreamTrips App to wirelessly check in and earn loyalty points towards free DreamTrips vacations at select restaurants. When a company like WorldVentures invested $2 million in NXT-ID, it was clear that they were going to use its member network to capitalize on the deal and they did. This deal is a win/win for both companies. NXT-ID has a ready customer base for its products. WorldVentures has a member base that it can sell to. When a member purchases, NXT-ID gets a sale and WorldVentures benefits as an equity shareholder in NXTD. It’s the perfect deal for both companies.
Conclusions:
Two investment analysts have rated the stock with a strong buy recommendation. Brokers have set a 12 month consensus price target of $4.38 for the company, according to Zacks. Zacks has also given NXT-ID an industry rank of 56 out of 265 based on the ratings given to its competitors. This is a reasonable price target for NXTD given the current price-to-sales ratio of 23x. With just the purchase order with WorldVentures coming into full fruition, $15 M in sales would lead to a share price of $11.50. However, a Price-to-Sales of 23x is far from the industry standard. A more appropriate value would be 10x for this junior company which would lead to a price target of $5.00 or 1062% upside from Monday’s close of $0.43. There is definite upside, however it is all dependent on the revenue growth the company experiences.
Sources:
- http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=NXTD.O
- https://www.google.ca/finance?q=NASDAQ%3ANXTD&fstype=ii&hl=en&gl=ca&ei=O1TnVtHeOZCZjAGOpJDAAw
- http://finance.yahoo.com/q?s=nxtd&ql=1
- http://www.nxt-id.com/investor-relations/
- http://microcapmagazine.com/2016-03-13-nxt-id-inc-nasdaqnxtd-receives-consensus-recommendation-of-strong-buy-from-analysts/
- http://www.insiderfinancial.com/nxt-id-inc-nasdaqnxtd-worldventures-deal-is-a-winner/114557/
- http://finance.yahoo.com/q/ks?s=NXTD+Key+Statistics
Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it, and I have no business relationship with any company whose stock is mentioned in the article. I reserve the right to sell the redistribution rights to this report for up to two hundred fifty dollars/news source.
The information contained herein is not intended to be investment advice and does not constitute any form of invitation or inducement by Robert Borowski, MSc. to engage in investment activity. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Securities, financial instruments, strategies, or commentary mentioned herein may not be suitable for all investors and this material is not intended for any specific investor and does not take into account an investor’s particular investment objectives, financial situations or needs. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only current as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fluctuate, and an investor may, upon selling an investment lose a portion of, or the entire principal amount invested. Past performance is no guarantee of future results. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.
DISCLAIMER
Broad Street Alerts has compensated the author of this report up to two hundred and fifty dollars for the redistribution rights for a period of up to 30 days.
BroadStreetAlerts.com is a wholly owned subsidiary of Small Cap Specialists LLC, herein referred to as SCS LLC.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. We have been compensated seven thousand dollars by star media llc for the dissemination of this report about NXTD. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: SCS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold SCS LLC, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. SCS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and SCS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead SCS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. SCS LLC is compliant with the Can Spam Act of 2003. SCS LLC does not offer such advice or analysis, and SCS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries and extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur. Understand there is no guarantee past performance will be indicative of future results.
In preparing this publication, SCS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, SCS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. SCS LLC is not responsible for any claims made by the companies advertised herein, nor is SCS LLC responsible for any other promotional firm, its program or its structure.
SCS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. SCS LLC is not a Broker/Dealer and does not engage in high frequency trading.