He’s not quite ready to assign a rating and price target to it, but Echelon Wealth analyst Ralph Garcea says Edgewater Wireless (TSXV:YFI) is a junior tech that should be on investor’s radar.
In a research report to clients today, Garcea placed Edgewater Wireless on his “Watch List”
Ottawa-based Edgewater develops and manufactures multi-channel single radio wireless communications equipment and wi-fi technologies.
The analyst says the Internet of Things boom has led to wireless congestion, a problem Edgewater is uniquely prepared to solve.
“As the proliferation of smartphones and wireless devices continues to grow, rates of data and video usage are also growing at an exponential rate,” Garcea explains. “This causes significant Quality of Service (QoS) issues as the result of increased bandwidth usage and interference caused by multiple access points (APs) functioning within a condensed geographic area. YFI is positioned to address these current and future performance issues as well as offer differentiated Wi-Fi products to allow carriers and service providers the ability to deliver diverse revenue generating applications and services.”
Garcea explained how Edgewater’s “high density” WiFi3 solutions works.
“WiFi3 works by splitting the 2.4GHz (or 5GHz) channel into three separate channels, and routing information intelligently across these three separate channels,” he explains. “This means that devices will compete less for bandwidth. And if necessary, WiFi3 is capable of splitting each of those three channels into four more, creating 12 open pathways or ‘lanes’ for data. The Company’s routers can work together to form “mesh networks”, each working on different channels to avoid interference and creating a stronger overall network, solving the interference problem as well. It has products designed for both indoor and outdoor environments.”
The analyst says Edgewater is addressing markets that are huge.
“Verticals where YFI’s solution would make a meaningful impact are the $500B cable industry, $5.4B enterprise Wi-Fi market, $3.0B stadium/concert/public space market, condo/high-rise market, and retail market. Of the latter, Edgewater has publicly stated that it is engaged with a top 5 retailer.”