The Internet of Things is forecast to be over a 7.7 Trillion dollar market by 2020. In this small write -up, Scott Matusow and Dave Callan give their opinion on the internet of things small cap company Identiv's (NASDAQ: INVE) earnings coming up this Wednesday on August 13th.
Dave Callan's Opinion And Commentary:
"I expect to see the IoT business growing steadily like last quarter. The premise business probably will be down again a decent amount with year over year losses, but new products should kick in 3rd qtr to end the downward trend there.
I estimate that this is likely the last quarter of one time hits and discontinued operations that the company will need to take. Germany closed its doors in the second quarter which will yield higher margins moving forward.
The turnaround will "mostly" be in rear view mirrors after this quarter (still accounting and other minor synergies being integrated until year end). I believe what we hear will be more critical and exciting for shareholders than the actual numbers. I think we hit the ground running hard now with future earnings, road shows, and deal announcements. Last chance to probably get in cheap. Just my opinion."
Scott Matusow's Opinion And Commentary:
"I'm interested to see company's bottom line projections and forward guidance from here. I think the premise business will be down as well yoy, but might show some improvement. The key points I'm looking for is how the synergies are taking shape and I'm also looking forward to analyst coverage on this one, as I hear there might be some analyst coverage soon after these earnings. Jason slipped us a surprise last time when he mentioned company was working with Verizon, so we might see another surprise this time around. I don't think investors should expect the company at this time to suddenly gain a large increase in valuation, as I see that happening next year by Q2' 15.
I expect to hear that the company has reached its target goal of 300 employees, down from the 460 Jason and his team first took on.
The key point for investors to listen for here is Iot synergy and guidance on that segment, as this will be the key value driver for the company moving forward. Additionally, I'm also looking forward to new premise products.
Supplemental Opinion from Scott Matusow:
Remember, Identiv is a small company at this time with a tiny $85 million market cap. Dave's investment along with mine is based on the long term, and in order for Identiv to eventually become a mid cap or larger company, it will be in steps, and take time. As I mentioned in our last article here and on Seeking Alpha, investors should not expect the stock to be a 10 bagger over night. However, we feel with explosive growth in the IoT sector and the market just catching on to it, if Identiv stays its course, we can get a much higher valuation in a shorter time that would be normal for small cap company.
Just a week ago in chat you were expecting 26-30M in revenues and revenues to be “good” largely based on ability to “read people”. What changed?
Yes I do; where in the note above do I say otherwise?