EnWave Stock Price Gains Momentum as More Analysts and Investors Discover Its Potential
EnWave Corp (TSXV:ENW – $1.30 CAD & OTC:NWVCF – $1.05 USD), which commercializes a new dehydration standard for the food and pharmaceutical markets, was recommended by the popular investment newsletter “The Quiet Investor”.
John Gay, the publisher of the subscription based newsletter, stated: “It seems that EnWave has done much of the heavy lifting in order to get this Company and its revolutionary product into the market. The concept has been validated not only by scientific experiments and peer reviewed papers, but also by actual trials by a number of companies, and finally by orders for dryers that have been successfully employed on a diverse range of products.”
“There are nine dryers in operation at the beginning of this year, and the possibility of an additional nine or ten could be in operation by the end of the year. Breakeven can be around $13-$14 million depending on the mix of sales and royalties, and there is a possibility that the Company can be cash flow positive in 12 to 14 months.”
TSX Venture 50
EnWave was also named a 2015 TSX Venture 50 company by the TSX Venture Exchange. The TSX Venture 50 annually ranks the top 10 performing companies in five industry sectors: Clean Technology, Diversified Industries, Mining, Oil & Gas, and Technology & Life Sciences.
The companies are ranked based on the following four equally-weighted criteria: market capitalization growth, share price appreciation, trading volume and analyst coverage. It basically identifies emerging companies that have shown strong results in key measures of market performance.
Expanding Patent Portfolio
In addition, EnWave was granted a Canadian patent that protects the improved modular design of its nutraREV machines. As the Company’s technology continues to be developed, new innovations are made.
In this case, the new modular design allows for easy expansion in scale of a nutraREV machine. This is very useful, because there’s sort of a maximum scale at which products can be most effectively dehydrated. Thanks to the modular design however, as many units as necessary can be linked up, making it easier to customize a machine to each client’s specific needs.
EnWave has sold or received purchase orders for five nutraREV dehydrators in the past 10 months, making it the most commercially advanced platform in the Company’s technology portfolio. For example, a 100kW commercial nutraREV unit was ordered a few weeks ago by Hormel Foods Corporation to launch new, innovative dried meat snack products. The machine will be installed in the coming months and should start to generate first royalties for EnWave shortly thereafter. We expect annual royalties to vary between $300,000 and $500,000 at full utilization of the machine.
EnWave continually expands its intellectual property portfolio. It currently holds or has filed 18 separate patents that protect both its REV technology and specific methods of use. The modular nutraREV patent has also been filed in the United States and Europe.
Although a patent approval may seem like a non-event for many investors, it is very important for the Company’s business model, as every new patent extends the term of royalty payments to EnWave.
EnWave’s stock price is clearly gaining momentum as it appreciated close to 20% in the past few weeks at significantly higher volumes. Many investors are stepping in as they realize that the Company is approaching its long awaited commercial breakthrough.
The technology was already there years ago, but it’s one thing to develop a product, it’s something altogether different to get it sold. We expect more commercial contracts to be announced in the coming months.
EnWave has the potential to become a big one. If you don’t have shares of the Company yet, we advise you to buy an initial position. For those who already own shares, we advise to carefully watch the news and to add to your position as more contracts are announced.
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