Spectra7 Microsystems (SEV:TSXV) is the latest TSX Venture tech stock to experience a dramatic spike in insider buying. The company, headquartered in Silicon Valley, has a simple message to investors visiting its website: We Make Electronic Products Thinner and Lighter.
Thinner and lighter… it just sounds good.
It is especially good in respect to consumer electronics, which is the company’s target market.
Spectra7’s patented technology fundamentally transforms the industrial design of consumer electronics, mobile infrastructure by enabling unprecedented levels of miniaturization and portability. This is an example of a technology with a potentially wide ranging application base. These types of scalable technologies are becoming highly sought after.
The company is based in Markham, Ontario with development centers in Silicon Valley, Irvine, California and Cork, Ireland.
Company news releases have emanated from Toronto, Ontario and Palo Alto, California for the majority of this year.
Palo Alto serves as a central economic focal point of the Silicon Valley, and is home to more than 7,000 businesses employing more than 98,000 people, according to the latest numbers from wikipedia.org.
With tech companies making a serious splash on the TSX Venture in recent quarters it only makes sense that start-ups and smaller companies seeking capital will migrate towards the historically risk prone environment of Canada’s largest junior exchange.
On May 28th, Spectra7 released its Q1 financials that highlighted some significant growth; revenue in Q1 increased by roughly 300% to $0.9 million in comparison to the same quarter of 2013.
Days later insider buying spiked as none other than Sheldon Inwentash, the Founder, Chairman and CEO of Pinetree Capital went on a mini-buying spree in the month of June.
Sheldon and his fund have not shied away from TSX Venture tech start-ups and have been rewarded for their willingness to diversify. More on this shortly.
According to insidertracking.com, Pinetree Capital has purchased 456,500 shares since June 3, 2014. In that same period, Sheldon Inwentash also picked up 456,500 shares.
This totals 913,000 shares bought in the past 35 days or so. The shares bought in June equate to more than 1% of the outstanding shares of Spectra7 Microsystems on July 11th, 2014.
Sheldon and Pinetree’s recent purchases were made between $0.419 and $0.55 per share.
The stock was up 3.95% to $0.395 Friday morning.
Spectra7 – 1 Year Chart
TMX Money reported today that company insiders bought $190,515.00 worth of shares earlier this week. This is in addition to the shares bought by Sheldon and Pinetree in June.
On March 28, 2014 Spectra7 Microsystems announced it had closed a public offering of 23,333,333 units at a price of $0.30 per Unit for gross proceeds of $7 million.
These units will become free trading towards the end of this month.
What is Spectra7’s goal?
Spectra7 is a high performance analog semiconductor and consumer interconnect company delivering unprecedented speed, resolution and signal fidelity to consumer and wireless infrastructure products.
By leveraging its deep analog technology and system expertise to, per Daniel Kim, Analyst at Paradigm Capital, “evaporate” the metal shielding and electro-mechanical assemblies that make every HDTV, mobile phone, and tablet unnecessarily thick, heavy, and bulky, Spectra7 could potentially capture significant market share of this exploding industry.
The Consumer Virtual Reality Market is projected to grow to $5.2 billion by 2018 according to a recent report from KZERO Worldwide.
In a May press release, titled, Spectra7 Moves DisplayDirect(TM) Virtual Reality Chip Into Production, Paul Gray, Director of European Research, DisplaySearch made these comments:
“Virtual reality will require resolutions at or beyond human perception.” And that, “Signal feeds to wearable displays have to be capable of carrying a huge data payload yet also be light and flexible enough for the wearer to be unhindered and comfortable.”
Click here to read this entire press release.
On June 11th, Spectra7 launched its CouchConnect(TM) for Mobile Gaming. This ultra-light and super-thin low latency interconnect was created to expand mobile gaming to the big screen.
Below is a short excerpt from the company’s most recent press release, from exactly 1 month ago:
Spectra7 Microsystems Inc. (TSX VENTURE:SEV) (“Spectra7”), a high performance consumer interconnect company delivering unprecedented speed, resolution and signal fidelity to consumer and wireless infrastructure products, today announced CouchConnect™ for Gamers, an ultra-light, active HDMI gaming interconnect that enables immersive, real-time mobile gaming from a handheld device onto a large screen HDTV.
With no set-up, drivers or external power required, mobile gamers can display mobile games available on popular handheld devices onto a large screen HDTV from the comfort of their couch.
CouchConnect™ delivers the multi-channel digital audio and ultra-low latency graphics necessary for immersive gaming and provides performance levels that were not previously available with typical Wi-Fi based connectivity. Spectra7’s patented, high speed active signal processing silicon, enables an ultra-thin, mobile ready 4K connection of 16 feet and just 0.11 inches in diameter. CouchConnect™ is up to five times longer, lighter and thinner compared to traditional passive HDMI cables which cannot achieve the same length, weight or size simultaneously.
Click here to read the entire press release.
Back to the Insider Buying by Sheldon and Pinetree
Sheldown Inwentash has been drawn to TSX Venture tech stocks over the past few years; and, as the leader of Pinetree Capital has not shied away from continuing to buy stocks after they have sometimes broken out to near all-time highs. Sheldon’s success in buying TSX and TSX Venture tech stocks has been well documented in recent months.
His purchases of Sphere 3D and POET Technologies are highlighted below:
Below is an excerpt from an article published on April 8th, titled, Pinetree Capital goes on POET Technologies Buying Spree.
“As Founder, Chairman and CEO, Sheldon Inwentash is responsible for creating the overall strategic vision and setting the direction for Pinetree. His actions have been speaking louder than words in respect to POET Technology of late. Check out these recent buys by the Chairman:
On March 26th he picked up 200,600 shares at $1.20 per share. The following day on March 27th he picked up 157,300 shares at $1.27. On March 28th he grabbed 92,000 at $1.34. Then on April 4th he bought 150,000 at a price of $1.49, followed by another 25,000 shares at $1.50.
Pinetree Capital bought even more, picking up 898,900 shares between $1.20 and $1.49 in the days between March 25th and April 4th.
What makes this recent flurry of buying from Pinetree noteworthy is that POET is up greater than 500% in the past 12 months from its low of $0.315 per share.”
Click here to read the entire article.
POET Technologies hit a 52-week high of $2.87 per share in early April, 2014.
Below is an excerpt from an article titled, Pinetree Chairman accumulates Sphere 3D Corp, written on April 14, 2014.
Looking back a bit further, one can easily see that Inwentash, Pinetree’s leader and Chairman, has been buying rather steadily for the past two weeks.
Inwentash has purchased approximately 250,000 shares since April 3rd 2014, between the prices of $7.95 and $7.67. That’s more than $1.9 million worth of stock in under 2 weeks.
Inwentash’s most recent purchase on April 10th was for 78,200, purchased at a price of $7.73.
Just a few days later, on Monday April 14th, Sphere 3D hit a day low of $6.46 and closed at $6.90. What make Inwentash’s purchases so notable are the prices they were bought at.
Click here to read the entire article.
Sphere 3D hit a 52-week high of $11.20 on July 2nd 2014.
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