If it’s good enough for Celine Dion and Hilary Clinton, then what are you waiting for?
While probably not the best tag line for augmented reality company ARHT Media (ARHT Media Stock Quote, Charts, News, Analysts, Financials TSXV:ARHT), investors may still want to check out the Toronto-based hologram-maker. That’s according to Black Swan Dexteritas portfolio manager Kim Bolton who thinks ARHT’s share price could be dropping to attractive levels.
ARHT Media, which has its HoloPresence technology for holographic display, has seen its platform put to good use in recent weeks, including a gala in Toronto last month to pay tribute to National Ballet of Canada’s Karen Kain, one attended virtually by the likes of Celine Dion, Martin Short and Tony Award-winner Donna Murphy, who all gave holographic tributes to Kain.
“Celine was heartfelt and admiring, Martin was comical and charming and Donna had the house turning on the waterworks,” said ARHT Media CEO Larry O’Reilly in a press release. “It felt as though each of them was there in person, which wasn’t possible without our technology.”
ARHT’s tech is making the rounds lately, with Hilary Clinton appearing virtually at London’s Tech Week while Ukraine President Volodymyr Zelensky spoke virtually in June to tech entrepreneurs and investors at four different European tech events.
ARHT is building up its financial results, as well, as shown last week in the company’s second quarter 2022 numbers. Revenue rose from $1.2 million to $2 million, with ARHT taking on 17 new Fortune 500 companies over the quarter.
But for Bolton, investors should pay attention to the technical picture on ARHT, as the stock has the potential to be worthwhile if, that is, it sinks a bit further.
“I love their business model and the technology that they have, but I’ll be honest, it just trades terribly,” said Bolton, President at Black Swan Dexteritas, who spoke on BNN Bloomberg on Wednesday.
“It’s sort of hung out there right around 20 to 19 to 22 cents and then more recently it’s slid off here to about 15 cents. If you can pick it up in the low teens, I think it’s probably a good bargain,” he said.
ARHT has been able to grow its sales and marketing team courtesy of a big financing round earlier this year which brought in $10 million and the company has been able to develop a backlog of orders. ARHT launched the CAPSULE Holographic Display platform a couple of months ago and has already started shipping orders.
But much like a number of emerging tech companies, ARHT’s share price has been a disappointment over the past couple of years, rising briefly in the earlier days of the pandemic when communication platforms were a hot topic and falling back over the ensuing months. Over the past 12 months, ARHT has been relatively steady, hanging around the $0.22 mark.
Bolton says it’s a matter of execution and scaling up on the company’s part, and so far things look good.
“It’s difficult for Larry O’Reilly and the team to to get traction. They’ve been trying to bring the prices down and get something that can be used [more widely]. They’re going in the right direction. They have a great following and there’s a little more competition coming on to it right now,” he said.
“The problem is just the price action of the stock. We believe it has great value down around the sort of 12 to 13 cents and you’re getting close to it now,” Bolton said.