The Internet of Things (IoT) is a somewhat exaggerated phrase of the technology used, but still has meaning in the future of everyday life. A recent IPO that may be able to take advantage of this growing market is Universal Focus (NASDAQ:FCUV), which went public on August 31 this year. 2 million FCUV ordinary shares were issued at a bid price of $ 5, with gross revenue for the company amounting to $ 10 million.
IoT refers to objects that have sensors and processing chips that work with software that connects to the Internet or wireless networks. Smart homes are the most popular IoT concept. Appliances and appliances such as lighting, thermostats, home security and kitchen and cleaning appliances can be connected to the internet and controlled and monitored by both users and automated systems.
The marketable address for IoT products and solutions is large and was estimated to be $ 760 billion by 2020 and reach $ 1.4 trillion by 2026. Focus Universal claims it will be a $ 1.5 trillion market by 2030 The data collected by these devices is an important aspect of this industry, and the growing need for data analysis and analytical integration will be a major driver of growth in the future.
Five key technologies
Founded in 2012 and headquartered in Ontario, California, Focus Universal develops and manufactures Internet of Things products and solutions. The company states that they are working to solve major problems in hardware design, hardware manufacturing, software design and communication in both IoT and 5G applications.
Focus is developing technologies that cover five different areas:
- USIP (Universal Smart Instrumentation Platform) – a common universal hardware base for IoT design, manufacturing and applications.
- DoC (Device-on-a-Chip) -a single chip that performs all the functions of the USIP device.
- NIPL (Naturally integrated programming language) -a cross-platform language that interfaces between other programming languages and certain application software.
- UNB-PLC (Ultra Narrowband Power Line Communication) – a communication technology that allows IoT devices to transmit data over a power grid.
- 5G + (Ultra Narrow Wireless Communication) – An update of next generation wireless communication technology that aims to improve speed, coverage and cost.
When taken as a whole, these technologies will solve the most fundamental problems facing the current IoT industry and are crucial to the next step forward in IoT technology.
What to do with FCUV stocks
As of June 30, the company had only $ 1.4 million in cash; however, the company’s IPO occurred in the third quarter, ending on 30 September. Cash on balance sheet should currently be approximately $ 10 million, depending on the extent of the company’s burnout and debt repayment.
At present, the company is mainly a majority of various air filters and digital, analog and quantum light systems. For the final fiscal year in 2020, the company generated most of their revenue from sales of a wide selection of agricultural sensors and measuring equipment.
I can not find any analyst coverage from a signatory as it has not been 40 days since the IPO. The third quarter earnings release comes in mid-September and has seen no information about a possible earnings call.
FCUV can be a good long-term growth company if their money levels are maintained and their important products hit the market and are commercialized successfully. But I will wait until the results of the third quarter to see where the company stands on these important issues before investing in FCUV shares.
At the date of publication, Tom Kerr did not hold a position on any of the assurances mentioned in the article. The views expressed in this article are those of the writer, subject to InvestorPlace.com Publishing Instructionswith
Tom Kerr has worked in the financial services industry for over 25 years. Mr. Kerr has also been a contributing writer for TheStreet.com, RagingBull.com AND InvestorPlace.comWith Him he is a CFA charter holder and received a BBA in Finance from the Technical University of Texas. He also created 406dad.com blog for kids adventures.