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Edgewater Wireless has 178% upside, Echelon Wealth says

Edgewater Wireless

Edgewater WirelessInvestors seeking an undervalued tech junior should be taking a long look at Edgewater Wireless Systems (Edgewater Wireless Systems Stock Quote, Chart, News: TSXV:YFI), Echelon Wealth Partners analyst Ralph Garcea says.

In a research report to clients today, Garcea transitioned Edgewater Wireless from his Watch List to Full Coverage, assigning a “Speculative Buy” rating and a one-year price target of $1.25 on the stock, implying a return of 178 per cent at the time of publication.

Ottawa-based Edgewater Wireless develops and manufactures multi-channel single radio wireless communications equipment and wi-fi technologies. Garcea explains why the company’s solutions will be in accelerating demand, even against larger competitors.

“Traditional Wi-Fi, from the likes of Qualcomm, Broadcom, or Quantenna , use a single channel radio architecture. And like a single lane road, a single channel radio gets bogged down when there is traffic,” he notes. “Edgewater’s patented approach, called WiFi3, creates a multi-lane highway for Wi-Fi and delivers multiple, concurrent channels of transmit and receive from a single, Wi-Fi standards compliant radio. This means devices will compete less for bandwidth. The Company’s products include WiFi3 powered access point (AP) solutions (www.aera.io), silicon solutions and software targeting high-density Wi-Fi and IoT applications. YFI recently announced that it is working with Kroger (KR-US, NR) to help power smart retail technology at its stores (~2,800) across the US – with an initial order for $1.1M. The Company is also working with four out of the top five largest cable operators including MediaCom (Private).”

Garcea thinks Edgewater will generate Adjusted EBITDA of negative $1.7-million on revenue of $200,000 in fiscal 2018. He expects those numbers will improve to an EBITDA loss of $1.3-million on a topline of $2.7-million the following year.

Garcea says upcoming catalysts for Edgewater include the anticipated conversion of pilot projects into announced contracts, global OEM design wins, and IP licensing deals.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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