BEW.TO - BeWhere Holdings

[matthewd98]

News out this morning from both Bell and BeWhere: https://web.tmxmoney.com/article.php?newsid=5695095179389544&qm_symbol=BEW

 

The announcement took place at Henry of Pelham winery with both companies along with Huawei and the premier of Ontario. I really believe we will see large orders from Bell in Q1 when their LTE-M starts rolling out.

 

"The announcement took place this morning with the three partners, alongside Ontario Premier Kathleen Wynne, who highlighted the partnership ahead of her trade mission to China."

Bell - "Bell's leadership in LTE-M wireless technology and in the IoT space is a result of our continued investment and innovation in broadband communications networks and services," said Claire Gillies, Vice President, Bell Mobility. "The LTE-M network enables smart sensors to collect and send data over a wider range and with much better battery life – a perfect fit for Henry of Pelham, wineries and growers across the country and many other industries.

 

In June, Bell announced it will launch an LTE-M (Long Term Evolution, category M1) wireless network in 2018 to support the rapidly increasing use of IoT devices on low-power, wide-area networks (LPWANs) in Canada."

 

 

Huawei - "This project represents the best of what we can achieve when working with our long-term partner Bell and emerging Canadian IoT companies like BeWhere," said Steve Lu, President of Huawei Canada. "We are excited about the future of IoT and the benefits that smart agriculture solutions will bring to farms and vineyards across the country."

[matthewd98]

Q3 results look good, the company delivered on it's target of ~ doubling revs QoQ. Net loss wasn't too high (~310k), and we can see expenses and GM trending in the right direction. Expenses were higher this quarter mainly because of 1) additional $60k spent on tradeshows (in marketing line under SG&A breakdown) and $50k on travels to meet with other carriers & clients in the US and Europe, and 2) hiring of new execs to support growth as stated in the MD&A:

 

"The Company is following a managed growth strategy and continues to build its team count in line with customer wins and new technology development requirements. The Company has also added key executive management during 2017 to ensure the Company is able to grow as expected and manage risks if they arise."

 

As I stated before, one of management's biggest concern is losing their first mover position if they are unable to meet demand due to quality control, manufacturing issues, etc. It's a great problem to have and I'm happy to hear they are taking it very seriously.

 

I'm still very pleased with expenses as they are relatively low and they grew slower than did revenues (50%ish VS. 75%). Furthermore, I've been getting a lot of questions from shareholders about the $80k for 9 months of IR service. I think it's important to consider that the last financing was done without any finder fees, typically 7-10% of the amount raised, and there were no warrants attached. That's a far greater savings compared to the $80k + taxes incurred for the IR service. The company wanted to try out an IR service especially as important milestones were coming up. It will probably not continue the IR service, and the cost of this IR service is actually well inline with the average price of IR services.

 

I look forward to reading the news release tomorrow morning... There should be more info in it.

[matthewd98]

Q3 PR is out: http://sedar.com/CheckCode.do;jsessionid=0000X04n-8CmmAQVmVOj5brfrws:1884ter20

 

Key takeaways:

 

- The Company plans a world-wide commercial launch of its LPWA cellular solution in Q4 2017 with the first shipment scheduled for December 2017

- Continued conversion throughout the remainder of 2017 of our 60 plus pilots to commercial contracts

- The Company believes it will continue to announce new partnerships and build its pipeline of contracted revenue throughout the remainder of 2017 and 2018 all while continuing its leading- edge product development.

 

 

I'm very impressed that they already have orders for LPWA (mobile-IoT) beacons. I think this is indicative of the huge market opportunity and demand. The order must be with a US carrier since they are the only one with LTE-M networks up and running.

[matthewd98]

Great video about BeWhere and interview with COO:

 

This video just reaffirms my beliefs about the company:

- No competitors currently in the space

- Real merit in the technology, case in point with Henry of Pelham winery in Ontario

- Huawei using BeWhere's LPWA beacon to sell their NB-IoT and LTE-M infrastructure and applications (remember Huawei is a manufacturer of telecom equipment).

- Carriers are eager to get into the IoT space because it will a massive market, larger than the telematics company.

- Solid relationships in place with carriers and resellers/dealers thanks to management's years of being in the telematics industry

 

It's also a good video that explains the technology better and shows its potential applications for those who aren't as knowledgeable about the technology and industry.

[matthewd98]

First analyst coverage by Mackie research: https://www.dropbox.com/s/jrrtz9ogbemvqdh/BEW%20Initiation.pdf?dl=0

 

And Cantech Letter article: https://www.cantechletter.com/2017/12/bewhere-holdings-could-have-150-upside-mackie-research-says/

[matthewd98]

BeWhere Holdings Inc. Announces PTCRB Certification and the Commercial Launch in North America of the First of its Kind Mobile IoT Devices for Asset Tracking and Environmental Sensing using LTE-M: https://web.tmxmoney.com/article.php?newsid=4828706394926455&qm_symbol=BEW

 

Owen Moore, founder & CEO, commented “Being one of the first to market is important and PTCRB certification is the last step in the commercialization process.  This is a very exciting milestone for our team and shareholders as it opens up a large market opportunity which I’m very excited for.”

[matthewd98]

I keep mentioning how large the LPWA market will be. According to "a new report from the Dell’Oro Group, an IT research firm, believes that the market for wide-area IoT technology – such as narrowband IoT (NB-IoT) and LTE-M – will provide $33bn in sales for service providers and mobile infrastructure vendors by 2022. Of that amount, services based on cellular technologies are expected to account for more than 98pc of service provider wide-area IoT revenues." Link: https://www.siliconrepublic.com/machines/nb-iot-lte-m-2022-uber

 

Staying true to those figures, the market will have to grow exponentially over the next 4 years.

[matthewd98]

Clarus Securities initiates coverage with $1.00 price target. Nice to see another analyst pick up the story.

 

https://www.dropbox.com/s/6o4c3u0v6fptob3/BEW-2018-01-30-Clarus.pdf?dl=0

[david_lai]

The private placement at $0.19 is definitely dilutive, adding 20M shares. Anyone has a update on the company? The money raised was mainly used for preparing inventory for the orders. However, seems we did not hear any big orders for a period of time. Anyone has any thought about how the industry is adopting the technology?

[david_lai]

Anyone still following this company?

 

Revenue in Q4 is 1.4M, with only 23.4% recurring revenue

However, the GM only 12.8%, lowest among 4 quarters in 2018, wondering what happened during the quarter.

[deepdiving]

I have finished a deep dive here, and has conversations with management. in short, I believe this is a commodity play on a hyped-up IoT. They acknowledge they will forever be destined to invest large sums in R&D that might lead nowhere just to keep the competitive advantage. Unlikely to hold any competitive advantage for the long term. This is running on Shareholders not knowing what is the business. I think very little investors took the time to "Grill" management with the right questions.

 

If you must play the IoT (why?) better find cheaper businesses run by better capital allocators with some sort of competitive advantage.

[Jurgis]

Resurrecting this thread: Paul Andreola pitched this at Fall Investor Summit. I still need to go through their docs and numbers and this thread. The last post on the thread by deepdiving is not exactly positive.  ::)