We like Siyata Mobile, says AGF’s Peter Imhof

Siyata, which makes push-to-talk technology for the transport industry, saw its share price ramp up perhaps a little preemptively over the first half of 2017, followed by a steady decline to mid-2018. But since hitting a low of $0.33 this past August, the stock is up 42 per cent.

The company recently announced its first major purchase order in Canada for its UV350 4G/LTE in-vehicle smartphone, a milestone that shows the strength of its product upgrade, says CEO Marc Seelenfreund.

“In the mobile worker market, North American enterprises are upgrading to Push-to-Talk Over Cellular due to significant cost savings, nationwide coverage, interoperability between employees, while other applications provide analytics to improve safety and business efficiencies. We are certain this paradigm shift will benefit the commercial vehicle market and we are very proud to be the first and only company to offer a dedicated in-vehicle cellular solution for the next generation of fleet communication in North America,” Seelenfreund said in a press release.

Imhof says there should be more good news from Siyata coming up.

“We do own a small position in it because it’s a very small market cap, but I do like it,” says Imhof, vice-president and portfolio manager at AGF Investments, to BNN Bloomberg Wednesday. “The stock is probably back to where we bought it at about 50 cents or so. Some of the contracts that we thought would come to fruition have taken longer but that’s usually the case for some of these small cap companies. But I think that they do have a good line of sight in terms of some growth over the next couple of years.”

“They were going to need to shore up their balance sheet, so in December they raised a couple of million dollars in a non-brokered deal, because I think they’re going to need some working capital as some of these contracts get deployed,” he says. “I do like the company and I’m going to continue to hold for the next couple of years and see how things play out in terms of quarterly revenue growth.”

Siyata last reported its quarterly financials on November 28, posting revenue of $3.15 million, down from $4.9 million the previous year, and an adjusted EBITDA loss of $898,000 versus a gain in EBITDA of $97,000 the previous year.

Disclosure: Siyata Mobile is an annual sponsor of Cantech Letter