I wrote several times on NEXT BIometrics. I recommended the purchase when the share price was 7 NOK based on the below investment article. The share price today is 9.2 NOK. The company has achieved a multiple sales wins (agreements with customers) that are translating into sales with 6-9 month lag. We know that they have been selected to deliver, we are just waiting for the contracts to transfer into sales and profits. Pareto believes the quarterly sales should increase by 400% by Q4. If that is correct the share price should multiply from here by the end of the year. It could increase 2-4 times. My base case is 25 NOK by the year end.
Detailed investment thesis
Today NEXT reported another sales win. See below the press release
New design-win for NEXT in India
| Oslo, April 28, 2021 -NEXT Biometrics (Oslo Bors: NEXT), a global company in finger-print sensor technology, has received an initial purchase order of sensors amounting to NOK 1 million |
| The initial purchase order is a result of NEXT`s collaboration with Mobiocean, a Fintech business partner to NEXT. It is an additional design win for POS devices within the India Fintech domain, similar to the order announced with Pagaria on 10 February 2021.The sensors are prepaid and planned to be shipped during the second quarter 2021. NEXT expects additional follow-on orders from the same business partner during 2021. |
| NEXT sensors will be integrated into payment POS terminals for financial inclusion projects by one of the largest state cooperative banks in India, providing door-step digital and banking services to the citizens of India. |
About NEXT Biometrics
| NEXT provides advanced fingerprint sensor technology that delivers uncompromised security and accuracy for the best possible user experience in the smart card, government ID, access control and notebook markets. The company’s patented NEXT Active Thermal principle allows the development of large, high quality fingerprint sensors in both rigid and flexible formats. NEXT Biometrics Group ASA (www.nextbiometrics.com) is headquartered in Oslo, with sales, support, and development operations in Seattle, Taipei, Bengaluru and Shanghai. |
My top idea for the next three weeks is Xbrane. See below the write up. We first recommended this when the share price was 70 SEK. It is 101 SEK today. We believe that it should reach 120 SEK before the investor day scheduled for May 17. My year end target is 160 SEK. Very bullish.
See the thesis:
https://seekingalpha.com/article/4419351-xbrane-partners-bausch-lomb-to-enter-usd-12-billion-market
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