Clarus analyst Sean Peasgood thinks National Oil, which operates 4000 Marathon and Phillips 66 gas bars, is one of many potential clients that could quickly transform iSign into a global leader in mobile messaging.
While there is no news to explain the sudden sharp rise of the company’s stock, Clarus Securities analyst Sean Peasgood says he believes iSign is very close to significant new deployments in North America and in China.
Peasgood points out that the data coming back from iSign’s trial with National Oil, which operates 4000 Marathon and Phillips 66 gas bars, is very encouraging, with an acceptance rate of 30% from clients. The Clarus analyst thinks National Oil is one of many potential clients that could quickly transform iSign into a global leader in mobile messaging. In a research update to clients this morning, Peasgood reiterated his BUY rating and twelve month price target of $.85 cents on iSign.
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Earlier this year, iSign announced it had completed the broadcasting trial trial of its Interactive Marketing Solutions (IMS) 3.1 software and Bluetooth antennas at certain Mac’s Convenience Stores. iSign said the response was positive and Mac’s has agreed to roll out the technology to all 565 Mac’s stores in Ontario.
iSigns roots go back to 2007 when, it was a fledgling digital signage company with about fifty installations in Vancouver. The company developed a method of using the Bluetooth frequency to broadcast content from the sign to mobile phones that came within proximity. That slick technology attracted Alex Romanov, who had once built startup Alpine Stereo into a company that held over 52% of Canada’s high end car audio market. Romanov bought the company and almost immediately made a deal to unveil it in Asia with a company called Best Denki, (which means “Best Electric” in Japanese). The company’s first deal, in 2008, was a success. iSign equipped nine stores with hardware and software, and was identifying over half-a-million phones per month, with a 23% download rate.
Peasgood says National Oil and Chinney Alliance Engineering, which would give iSign exposure to 39,000 locations through brands such as Family Mart, 7-11, Lawsons and Circle K, are just two opportunities that could turn into a pipeline of more than 84,000 locations. Assuming $1,000 per device per year in licensing revenue, he says this could generate a recurring revenue stream of more than $84-million for iSign.
At press time, shares of iSign were up 27.8% to $.23 cents.
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About Nick Waddell
