Norwood Systems Ltd (ASX: NOR)

NOR Details

Strengthening existing support for World Message on iPhone Platform: Norwood Systems’ stock surged up 7.14% on September 27, 2017 as the group completed smartphone platform coverage for World Message App. Particularly, the group’s virtualised mobile services have been made available for individual and corporate use across iOS and Android smartphone devices. It is noteworthy that World Phone and World Message have been both launched first on Apple iOS-powered iPhones. These along with Corona and Europa enable users to access NOR’s Virtual ID and Virtual Business ID solutions, which are now available in volume in 19 countries across the globe and provide completely virtual mobile work identity. This development will help corporate clients launch a NOR-powered virtual mobile solution for ‘bring your own device’ employee use. The group also had secured US trademark registration for World Phone name and mark

NOR’s Market Opportunity Size (Source: Company Reports)
 
Earlier this month, the group received R&D tax credit of $924,092 from the Commonwealth Government for activities at Australian headquarters. The group is also set to commence its public beta testing of World Wi-Fi. The stock has slipped by about 25% in last six months (as at September 26, 2017) owing to volatile scenario, and is now available at a bargain price given the technological developments, defensible portfolio and valuable channel partner relationships. We maintain a “Speculative Buy” on the stock at the current price of $ 0.015


NOR Daily Chart (Source: Thomson Reuters)

Afterpay Touch Group Ltd (ASX: APT)

APT Details

Partnership with Target bolsters the mass consumer expansion strategy: Afterpay Touch Group has gained a lot of interest recently and the group has now inked an agreement with Wesfarmers-owned retailer Target Australia to offer the company service to the retailer’s customers for online purchases. Particularly, APT’s ‘buy now, pay later’ payment service will be proffered to Target’s customers for online and click & collect transactions from later this month. This along with the recent partnership with Jetstar to offer the company’s services to its customers, is expected to expand the group’s service offerings into a wide landscape of industries and bolsters the group’s mass consumer expansion strategy. With Jetstar, the group might be even extending the payment service to more domestic services as well as international flights. With million customers and over 7,200 retail merchants, the group is expected to strive for further growth. Recently, the group was added to S&P /ASX 300 Index effective September 18, 2017. We give a “Speculative Buy” recommendation at the current price of $ 4.11


APT Daily Chart (Source: Thomson Reuters) 

DroneShield Ltd (ASX: DRO)

DRO Details

Product up for evaluation by Spanish Agencies: DroneShield Ltd, a global provider of drone detection and mitigation products, witnessed a stock price rise of about 2.6% on September 27, 2017, while the group announced that several Spanish military and law enforcement departments, including Guardia Civil and Policia National have scheduled an evaluation of DroneGun MKII (second generation version of DroneGun) for October 2017. This may constitute a part of procurement process by Spanish government although subject to evaluation outcome. The group otherwise updated that the procurement processes have been continuing with other militaries and law enforcement agencies, including France and the UK. The group’s DroneShield(R) tactical drone jammer (i.e., DroneGun MKII) product, with optional GPS-jamming capability, was also released for testing to Australian and United States militaries. Meanwhile, DroneShield has accepted to be working as part of Team Defence Australia, which is a joint effort with the Australian Department of Defence and Austrade. With the recent rise in number of incidents involving drones and aircraft, DRO is expected to have a demand scenario with regards to the implementation of counter-drone systems at the major airports. Meanwhile, the group had reported for net loss after tax for the half-year 2017 of $2,938,138 against the 2016 loss of $2,442,725 while revenue soared by 863%. We maintain a “Speculative Buy” recommendation at the current price of $ 0.20


DRO Daily Chart (Source: Thomson Reuters)

Nearmap Ltd (ASX: NEA)

NEA Details

Efforts on expanding product suite: In last one month, Nearmap’s stock has surged 3.45% as at September 26, 2017 while the group had announced about lapse of ESOP options this month. FY17 was a significant year for the group with deployment of proprietary market leading imaging technologies to deliver an expanded product suite. Primarily, the next generation HyperCamera2 systems that have been manufactured, are now delivering oblique imagery to customers. Further, NEA’s cash generative business model continues to fund growth in Australia while the US business is said to enter the growth phase of its development finding support from robust operational base and an accelerating subscription portfolio. The group now aims to seize the opportunities in the Australian market which oblique imagery and 3D content provide. The group’s FY17 Annualised Contract Value (ACV) of $47.0M, up 29% on the prior comparative period, and 9% growth in the number of subscriptions, project the group’s ability to retain clients with addition of new customers in Australia and the US. Given the global subscriptions rising over 7,800, and group average revenue per subscription (ARPS) increasing to almost $6,000, the group expects to grow further while delivering higher value products. We maintain a “Buy” on the stock at the current price of $ 0.60


NEA Daily Chart (Source: Thomson Reuters)

Swift Networks Group Ltd (ASX: SW1)

SW1 Details

Expects growth from acquisition of Video on Demand: The Swift Networks’ stock has been trading on volatility, and has fallen over 4.5% on September 27, 2017 post rising about 20% in last three months (as at September 26, 2017). The group’s FY17 revenue and EBITDA were said to be in line with provided guidance, while the group reported for an actual NPAT loss of $1.364m post a number of non-cash and one-off items. The group now expects growth from the recent acquisition of Video on Demand (VOD), which has recently bagged new contracts through System Integrators and in the Student Accommodation sector. SW1 will be conducting its annual general meeting of the shareholders on 27 October 2017. We believe that the stock is trading at a higher level given the limited potential and performance scenario, and we give an “Expensive” recommendation at the current price of $ 0.31


SW1 Daily Chart (Source: Thomson Reuters)

GetSwift Ltd (ASX: GSW)

GSW Details

Rallying high: The stock of GetSwift (software as a service solution company) rallied 15.7% on September 27, 2017 at the back of continued positive sentiments. In September, the group announced about its partnership with NA Williams for over 1 billion per annum transaction for 5 years. The deal is said to increase the group’s reoccurring revenues once fully captured, and will help GSW expand into untapped verticals. This year, the group has signed other significant deals that include the ones with Betta Home Living and Fantastic Furniture, and Bareburger, and the stock has moved up about 663% (as at September 26, 2017). While we expect more upside momentum; given the already high run-up in the stock price, we put a “Hold” recommendation at the current price of $ 2.65


GSW Daily Chart (Source: Thomson Reuters)

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