Peter Imhof Spectra7 Microsystems Inc SEV-T HOLD May 12, 2016

Interesting and thinks there is a window here for some nice momentum. Have wired tethers that run high-speed data over short distances, and he believes designed into the Oculus Rift headset, the Facebook virtual reality game. Ultimately he thinks those headsets will go wireless. Thinks there could be a nice ramp up on this over the next year.

Has intellectual property to the design of a chip, and they outsource the manufacturing. They are going to make anywhere from $4-$6 depending on the time of day you talk to management. It is rumoured that it will be in every single virtual reality headset of all the major manufacturers. The initial price of these headsets is incredibly high, and then you have to buy the computer. Thinks the rate of growth will not be to quite the same extent that he had thought.

There was a lot of hype around it initially. He was into it once or twice for a trade. They will be in all packs when virtual reality picks up. If you believe in the thesis that they will be designed in to other company’s products, it could go up from here otherwise it may be a little too much. It is not trading on fundamentals.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Backlog reported looks better with $4-5M in revenue expected in the second half of this year. They have received a large new order from China. They also secured a $5M in equity financing. Risks are high with market cap at $28M and low volume. However, it looks better now overall. Still losing money but the metaverse and VR theme could see significant growth. Unlock Premium - Try 5i Free