NEW YORK, NY / ACCESSWIRE / November 26, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage on Sector 5, Inc. (OTC PINK: SFIV) with a price target of $2.20.
The report is available here: SFIV Initiation Report.
We initiate coverage of Sector 5, Inc. (OTC: SFIV, ''Sector 5'') with a price target of $2.20. Sector 5 specializes in the design and manufacture of branded electronics utilizing Google-approved Chromebooks, Chrome OS, Android, and Windows operating systems. The company is focused on offering high value computing solutions for the K-12, higher education, and B2B markets in North America. Led by CEO Erick Kuvshinikov, Sector 5 is pursuing a market strategy that leverages ''Open Innovation,'' which combines American ingenuity with China's manufacturing strengths to provide a core suite of Chromebooks and mobile devices that feature rugged design, competitive pricing, and high service levels tailored for the educational, business to business, and consumer markets. Sector 5 is a Google Education Chromebook partner, and appears to be gaining traction in the market following a refreshed Chromebook product line. 3Q18 revenues increased 453% sequentially to $5.9mn from $1.1mn in 2Q18, and management expects revenues to continue to rise from additional sales of Chromebooks, mobile phones, accessories, and wireless charging devices. We view Sector 5 as an emerging speculative growth company targeting the large market for K-12 computing solutions.
Highlights from the report include:
Sector 5 an intriguing growth company in market for K-12 computing
Sector 5 is targeting the large and expanding market for K-12 mobile computing solutions with its branded line of Chromebooks with Intel Quad Core N3450 Processor, Android OS mobile devices, wireless charging solutions, and related services and accessories. The market for K-12 education is massive, as there are over 18,000 school districts in the US alone, servicing over 53mn students. Sector 5 appears to be gaining critical mass, with the company reporting that it has surpassed 500 schools as customers. These include emerging relationships with some of the largest in the country in Los Angeles Unified School District (LAUSD), Philadelphia, Texas, San Diego, Riverside, New York, and Nevada, among others. Sector 5 is a Google Education Chromebook partner, which positions it to market Chromebooks to schools directly and through distribution partnerships to help facilitate the classroom's digital evolution. We note that the alignment with Google is a shrewd move, as Google products, led by Chromebooks, hold a 60% market share in K-12 mobile computing devices in 2017.
New products to drive growth 2019-2020
Sector 5 is expecting to accelerate growth from the launch of a refreshed line of Chromebook products, as well as the introduction of Android OS mobile devices and an upcoming line of novel Chromebook wireless charging solutions. The company has already reported initial sales of more than 150,000 mobile devices, and management believes that its Chrome and Android mobile device lineup has the potential to $25mn in annualized sales by the end of 2019. SFIV's wireless charging solution is the first FCC-approved rapid wireless solution with a retrofit wall transmitter. It features patent pending technology centered around the ability to move the transmitter for connection to a fixed receiver on a device. This novel product line addresses the significant time lost each day by teachers and administrators storing, managing and charging Chromebooks.
Initiate coverage with a price target of $2.20
We initiate coverage of Sector 5 with a price target of $2.20. We see the company as an emerging speculative growth company operating as a pure play on the growing trend towards education digitalization. We see several catalysts including new mobile products and potential sales growth into 2019.
Please review important disclosures in the report and on our website at www.seethruequity.com.
About Sector 5, Inc.
Sector 5, Inc. is a publicly traded (OTC: SFIV) Nevada corporation committed to offering the best in value computing solutions for the education, business, and consumer electronics markets in North America, and is a devoted member of the Google for Education partner program utilizing Chrome OS and Android OS. We are an OEM and ODM with extensive experience working with tier-1 designers, best-in-class suppliers, and Chinese factories to combine the strengths of East and West to create products with the latest technology, that are easy to use, and offer innovative features such as wireless charging and resilience in extreme environments. Being a purpose-driven organization is integral to our success, allowing us to focus on providing reliable market-tailored solutions that minimize costs of initial deployment and ongoing operations while maximizing user and administrator productivity, sets the standards for our commitment to excellent customer support and key account management, and enables us to have faster time to market, continue to provide fair pricing, and exceed market expectations. Sector 5's promise to the world is defined by our pursuit of simplicity and innovation, and our commitment to service.
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.
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