BOSTON, Dec. 3, 2014 /PRNewswire/ - SoundView Technology
Group (http://soundview.co) releases the following market and
company update for NXT-ID, Inc. (NASDAQ:NXTD and NXTDW).
Market & Company Update
WOCKET
WORKING TOWARDS CES
KRIS
TUTTLE – DECEMBER 1,
2014
Investors have come to realize that the "revolutionary" Apple
Pay is a continuation of the existing credit/debit card model and
payment infrastructure. It adds a layer of security and convenience
but the back end is still the same. In other words, we are
digitizing the plastic part of the existing payment system rather
than doing something profoundly new and different.
There is a simpler and more direct way to digitize your credit
cards. Using a digital wallet like the Wocket, the myriad separate
plastic cards are replaced with one reprogrammable card that
behaves as whatever card the user selects. Not only does this also
use the same back end systems in place, but it also works with all
the existing front-end systems for credit and debit cards.
Major retailers like Home Depot have launched major investments
to upgrade their own infrastructure with security enhancements that
will work with all transactions. This is key point – retailers need
to offer safe, secure and smooth checkout for all customers and
payment types, not just Apple Pay.
So for us, this puts solutions like the Wocket in a favorable
position with respect to other solutions involving all non-cash
transactions. Consumers can keep their existing cards, pay any
merchant, and have no worries about security, fraud, battery life
or other "technical issues" that bedevil many existing phone-based
offerings from QR codes to NFC.
As many failed Kickstarter projects attest – it's exponentially
more difficult to launch a real consumer product at scale than make
a slick video showing a magical solution, like "Coin" for example.
When you get into the nitty-gritty of different cards and formats
needed to support all cards and not just the easy ones, some real
technical innovation is needed.
NXT-ID has been hard at work for months, finalizing their Wocket
so it's ready for CES in early January. As they have worked through
the design, they have overcome thorny issues ranging from
accurately capturing different types of cards to engineering the
Wocket card to contain all the needed electronics, yet still remain
just a millimeter thick.
We still expect their initial production run to happen during
December and for first commercial units to be in use during
January. CES will be a coming out party for NXT-ID with mainstream
buyers, partners and the broader media outlets. Based on what we
know, the feedback should be validating and positive, but we will
have a better gauge of that post-event.
NXT-ID has been preparing their production facilities to ramp up
to much higher volumes, which should be able to meet initial
consumer demand and improve steadily during 2015. A review of our
current IV estimate (attached) indicates the planned ramp provides
plenty of room for NXT-ID to exceed our expectations, as long as
they continue to execute and consumer acceptance and adoption
provides the market opportunity.
Stock Conclusion
The market has been taking a "wait and see" attitude with
respect to the shares since the end of the summer when it became
clear that commercial volumes wouldn't happen until 2015. We won't
try and predict market sentiment on NXTD, but if the company meets
current plans for early commercial units by December and has a
solid debut at CES, the shares will have put in a bottom.
We plan to share more data points in December as production work
continues. Our IV of $8.18 makes the
shares very attractive, albeit with some expectation of success
built into the estimate. If the company meets their plans in 2015,
it would push our IV estimate up to $17.42.
It's also a good time to keep a careful eye out for
indiscriminate tax-loss selling during times when volumes are low –
it can create some extra volatility. Based on the outlook for next
year, we'd be looking to exploit that opportunity should it
materialize.
The NXT research update (PDF) is also published and available
here:
http://s3.amazonaws.com/PUBLISHED/NXT-ID_NXTD_SV_NOTE_DEC_2014_PUB.pdf
Past reports and related research can be found on our website at
http://soundview.co/infosec
About NXT- ID Inc. - Mobile Security
for a Mobile World: (NXTD) (NXTDW):
NXT-ID, Inc.'s innovative MobileBio® solution mitigates consumer
risks associated with mobile computing, m-commerce and smart
OS-enabled devices. The company is focused on the growing
m-commerce market, launching its innovative MobileBio® suite of
biometric solutions that secure consumers' mobile platforms led by
the Wocket™ ; a next generation smart wallet
designed to replace all the cards in your wallet, no smart phone
required. The Wocket works anywhere credit cards are accepted and
only works with your biometric stamp of approval.
http://www.wocketwallet.com/
NXT-ID' wholly owned subsidiary, 3D-ID LLC, is engaged in
biometric identification has 22 licensed patents in the field of 3D
facial recognition http://www.nxt-id.com/, http://3d-id.net/
Disclosure: SoundView Technology Group is providing fee-based
advisory services to NXT-ID on investment positioning, strategy and
business development. Our research opinions are our own and based
as much as possible on factual information and observations.
Additional information about SoundView can be found at
http://soundview.co.
Contact:
Kris Tuttle
SoundView Technology Group
kris@soundview.co
+1-617-828-6462
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/soundview-technology-group-issues-nxt-id-update-wocket-working-towards-ces-300004061.html
SOURCE NXT-ID, Inc.; SoundView Technology Group