Intrinsyc Technologies Corp. (TSX: ITC) could see very significant growth in
2018 as record sales orders impact financial results, which supports stock
price appreciation potential.
share price accumulation target of $1.20 for Intrinsyc Technologies Corp. was
reached on March 21, 2016. For the record, we do not revise share price targets
for our Investorfile Top Ideas – Small Cap Value Stocks. We have positioned our
blog to be one of the first providers of a pragmatic perspective of a small cap
company stock's potential worth, where there may be uncovered value that has
been largely overlooked by the investment community.
the financial performance of Intrinsyc Technologies has been lacklustre in
2017. Revenue growth has been flat and profits are lower compared to the first
six months of last year and the Company’s stock price has trended
downward over the last 6 months from its 52-week trading highs.
But the Investorfile
blog sees a reversal in the stock price coming, an upward trend emerging over
the next 12 months, as big orders begin to positively impact the Company’s
Technologies Corp. (TSX: ITC - $1.55) provides solutions that span a
product's development life cycle from concept to production. Intrinsyc services
high–tech device makers (original equipment manufacturers – OEMs) with the
ability to offer differentiated products with faster time to market. As
a Qualcomm licensee, Intrinsyc designs proprietary computer modules with
Qualcomm processors. The Intrinsyc computer modules become the embedded systems
that drive the dedicated functions for new high-tech products in markets
including the Internet of Things, smart phones and tablets, drones and robotics,
wearable security cameras, in-flight entertainment, auto console computers,
plus many more.
Technologies has a revenue model that derives sales from proprietary computer
modules and development kits, as well as high-margin engineering services
related to those modules and kits for an OEM product development program. As
its OEM customers’ new products gain market acceptance, Intrinsyc shares in the
commercial success by earning recurring revenues from computer modules sales
and/or design royalties in correlation with the production ramp-up over the
lifetime of new high-tech products.
stated in its Q2-2017 report that the Company has made excellent progress in
earning additional design wins and moving its OEM clients from the product
development stage into commercial production. Intrinsyc currently has built a
pipeline of 42 customer products in development and 18 in commercial
production. The Company says that design and production wins are important
metrics to track its progress in building a business with scalable repeat
revenue for the coming quarters
the Company reported that it has secured a US $3 million order for memory
components placed by a Global 500 OEM customer. The memory component is for a
computer module (designed by Intrinsyc) that powers the OEM’s new product. The
total value of the modules to be purchased by this customer is expected to
reach between US $13-14 million for delivery throughout 2018 and into early
2019. The Company is also designing a new computer module to power a
next-generation product for the same Global 500 customer.
The Investorfile blog views the recent business developments as a strong signal for Intrinsyc Technologies' growth potential in 2018. Though, the expected revenue growth is not just going to come from the above-noted Global 500 firm, but from numerous other Intrinsyc customers whose products are expected to head to commercial production, too.
Based on the above, we suggest that small cap investors should begin accumulating the shares of Intrinsyc Technologies again (currently while the stock price is trading at its lowest levels in the year) in advance of the Company realizing its revenue growth potential expected in 2018.
The Company has approximately 21.1 million shares outstanding.
Intrinsyc website: www.intrinsyc.com
Author’s share ownership disclosure: ITC - Yes
article is for informational purposes only. This article is based on the
author's independent analysis and judgment and does not guarantee the
information's accuracy or completeness. The information contained in this
article is subject to change without notice, and the author assumes no
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information contained within this article should not be construed as offering
of investment advice. Those seeking direct investment advice, should consult a
qualified, registered, investment professional. This is not a direct or implied
solicitation to buy or sell securities. Readers are advised to conduct their
own due diligence prior to considering buying or selling any stock.
is not engaged in an investor relations agreement with Intrinsyc Technologies
Corporation nor has it received any
compensation from Intrinsyc Technologies Corporation for
the preparation or distribution of this article.
author of this article has acquired and may trade shares of Intrinsyc Technologies
Corporation through open market
transactions and for investment purposes only.