Sensio Technologies Inc. (SIO-X)

In early November management was saying everything was on track and were working on ramping up the business. Then, in the middle of December, it was announced they were going into creditor protection and the stock was halted.

He has been waiting for this day for some time. They have been trying to ramp up with access to as many devices as possible. They stream 3D to your smart TV. They are at the point where the number of users they have access to is huge. They have pretty much all the major studios signed on. They have a full catalogue of movies. These are their two busiest quarters. It is a micro cap, so you want to have a risk profile here.

Basically a 3-D version of Netflix. It has taken a long time to get all the pieces together, but sounds like they are all together right now. Have all the major movie studios signed up, with the exception of one. Have 80% of the addressable 3-D-TV market, about 4 million TVs in Canada. Just going over to Europe which has about 40 million TVs. Going into the season’s heaviest period. Expects to see some real big cash flow numbers. Have really focused on getting high margin customers, and have done that through having a deep library by working with all the studios. Expect they will be cash flow positive in 2016.

Has been stuck in a range and thinks a lot of it has to do with seasonality. Their strong seasonality is really September to April, when people are inside watching TV. What is going to propel the stock going into the next few months is that they are going to see a full rollup of all their technology. Up until now they have had growing numbers as far as how many TV manufacturers they were with. Coming this fall they are going to be in 80% of the 3-D TVs and are going to put a big marketing push on to get people to really understand that they can now stream 3-D movies to their TV. The next big catalyst is when you see Samsung and LG fully integrated and the numbers for users start to ramp up.

They have taken a while to get everything solidified and in place, and he thinks that now the stars are really starting to align. There are more and more movies that are being made into 3-D, which will be important for them. Have signed on the big TV manufacturers. At the end of this year, once they have Samsung and LG signed up, they’ll have over 80% of the addressable market share to use their product, the 3DGO app. This is a product similar to Netflix, but for 3-D movies. This is really starting to ramp up. This is their quieter quarter, but going into the fall, we’ll start to see the number of users ramp up. Also, seeing them add a number of different movie studios, which means that not only will the users ramp up, but the amount of movies those users watch will ramp up too. Thinks they will become profitable in the next 12 months and you’ll really see the numbers ramp up. His guess is that they will get taken out. Stock is pretty cheap if you are prepared to hold it for 12-18 months.

Was a Top Pick April 23/14, and he is probably more excited now than he was then. Since then, they have signed deals with LG and Samsung. By the end of this year they are going to have about 80% of the addressable 3-D market that can access their app and rent movies from their 3-DGo service. The number of registered users continues to ramp up. Management has been very strong at cutting back their costs and still growing their business. 2 of their focuses right now are 1) building out their libraries, where they sign more deals with the studios, and 2) seeing the integration of Samsung. Expects that a year from now there will be some fantastic numbers. At some point he expects they will be acquired because it is basically going to be the 3-D version of Netflix.

(A Top Pick April 23/14. Down 16.67%.) Probably more excited about this today than he was a year ago. They do 3-D streaming, the 3-D version of Netflix. Since then they have signed a deal with LG to have an app on their TVs. Also, brought over LG’s 3-D app and transitioned it over to theirs. User numbers just keep climbing. Expecting an announcement soon that they have signed a deal with Samsung. Have broadened the technology they use to allow a lot more of the companies and TV manufacturers to be able to use their technology.

Everything management has said they would do, they have done. He gets pretty excited about what he sees in releases they have had in the past little while. This will end up being the 3-D streaming service for 3-D TVs, similar to what Netflix is. They embed apps into 3-D TVs, stream movies and get paid. Registered users are now at an all-time high. LG rollout was delayed a little and just started around Christmas. They are starting to see it ramp up. Will be bringing 3-D Go service to Canada with LG fairly soon. Have just broadened their technology allowing them to access a far greater number of 3-D TVs. He can see a lot of catalysts going forward.

Basically the 3-D version of Netflix. LG is their big manufacturer. Their product just went into LG TV in November, so he is expecting that we are going to see a real big ramp up. Their service is called 3DGO, which streams the 3-D movies to the 3-D TVs. Expects there will be a big ramp up in the number of 3DGO users. Management has been excellent in stripping out all the costs, and have got down to the point where they are very lean. Any type of bump up in revenues is really going to fall to the bottom line. They also have an arrangement with Wi-Lan (WIN-T), who is defending their patents. There has been no news, but going forward he expects to see some news on that. This company also has a technology that allows them to stream into 4K televisions as well.

Still likes this company. Thinks they are suffering from not having a lot of news out. Had a quarter that was great, but going into the next 6 months, we are going to see a lot of news come out for this company. They have their ramp-up with LG. Those LG TVs with the Sensio 3-D apps are just being released into the market right now. It is going to be a big Christmas promotion that LG puts on. This means their 3-D app gets utilized and will get a lot more users. Those users drive their revenue and cash flow.

Basically they have the Netflix version of 3-D and you have to have their app on your TV. You can then basically stream a movie through your TV. Just recently signed a deal with LG, which is just ramping this up right now and will be doing a big marketing push this fall for Christmas sales. Thinks investors are starting to look at this again.

Have a technology that allows a viewer to stream 3-D movies through a TV. Their app has to be embedded in the TV by the manufacturer. A couple of manufacturers have made that decision, the biggest being LG. Giving an update on Sept 29 and he is looking for what is happening with their uptake in number of subscribers to their 3-D Go service. Also, looking for some kind of update on their patent issues with Wi-Lan (WIN-T). Wi-Lan is working with them to defend their patents. Going into the fall, the big thing he will be watching is the uptake into LG, who made the announcement they were going to start to work with Sensio and will be doing a big push for the Christmas season. Each time a user rents a movie, that rental starts to go to the bottom line where you will really see the revenue and cash flow increase.

Loves this one and thinks there is a tremendous amount of growth ahead. The latest news was that they signed this agreement with LG, one of the largest TV manufacturers globally. Haven’t seen the rollout yet, but expect it will occur this fall. LG is going to be marketing their 3-D TVs, specifically using the 3-D Go app that Sensio will provide. Around Christmas, you are going to see a lot of promotion by LG and it will be specifically around Sensio. This will drive numbers and app users and will really start to drive the uplift in their revenue. They also have a deal with Wi-Lan (WIN-T) who will do their patent protection, so wouldn’t be surprised to start to see some revenues from the patent side in the next 2 or 3 quarters.

Loves this. Since he was last on the show, they’ve signed another major TV manufacturer, giving them 2, Samsung and LG. They have a technology that allows you to rent 3-D movies for your TV. This is going to be rolled out with LG going into the fall just prior to Christmas. This means that the number of users is going to ramp way up. At the same time they have a deal with Wi-Lan (WIN-T), so he expects there will be some patent revenue as well. Wouldn’t be surprised to see the number of 3-D users go stagnant going into the next quarter.

(A Top Pick April 23/14.) Thought it would have been a little bit higher than where it is now. Continuing to Buy, and sees their technology being adopted by manufacturers. Hasn’t been a lot of news coming out and is waiting for an announcement on a major TV manufacturer. Earnings are not necessarily driven by adoption by TV manufacturers, but it buys them clients. The new 3-D TV that you get is embedded with a 3-D Go app that allows you to rent movies from this company. Also, there are a fair number of their patents for switching, i.e. deciding whether or not something is 2-D or 3-D in existing TVs. Wi-Lan (WIN-T) works with them and has been in negotiations with some of the TV manufacturers and other technology people for 6-9 months. Usually it is 9-12 months before seeing some results. Also, watch to see if they sign any more TV manufacturers, and then watch quarter by quarter the numbers of the 3-D subscribers.