NFC Adoption By Apple Helps Pave The Way For Identiv

In our most recent article regarding Identiv (INVE), we introduced the company and its potential revenue streams related to the post-password-era and numerous recent data breaches.  We compared some metrics and valuation to its competitors demonstrating a confusing disparity and likely poor investor relations job.  Today, we will continue with the most recent developments for the company along with its NFC capabilities and how Apple indirectly helped them by adopting the technology in its newest iPhone. 

At the time of our previous article a few weeks back, Identiv’s stock was trading around $9/share.  It has already made some progress since then.  However, it has a long way to go to receive a fair valuation that we commented in the first article as $27/share.  Even if $27/share was achieved, it would still be a lower valuation than the CEO’s opinion as of the Q2 2014 earnings call when he said, “I’ve often commented internally that Identiv is a $400 million company.”  

Upcoming Events:

With several potential catalysts upcoming, at least a portion of the current valuation gap may be closing.  During the Q3 earnings call in November, CEO Jason Hart mentioned that it has started to negotiate “PR clauses” in its contracts, giving the company the ability to let the market know more.  This would be the opposite of the typical detective work necessary to gain information about its partners and customers that has clearly frustrated shareholders.  Hart said there were two major customers at that time who had signed off on those types of contracts, and the market would know once the roll out begins.  There is some anticipation regarding when this will happen and who these new customers or partners will be.

In addition to the potential press releases upcoming regarding these new partners or customers, the company will attend and present at a conference this week on December 10th and 11th.  This security investor conference is located at the Waldorf Astoria Hotel in New York City.  This is a good opportunity for the company to meet with the right kind of institutional investors. 

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Disclosure: I am long INVE

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Comments

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John Fitch 5 years ago Member's comment

Do you have any thoughts on the discussion of QR vs NFC in terms of payment systems? Would the success of QR over NFC have any bearing over INVE price in your eyes?

Scott Matusow 5 years ago Author's comment

well, I'm hearing Android will go with NFC as Apple. If others went QR and it was successful, yes, it would have an impact in terms of a higher speculation value here. However, $INVE is so undervalued now, its become a running joke, 387M in deficit with a good balance sheet. How much in DCT to an acquirer u think that it worth?

Wall Street Jack 5 years ago Member's comment

(INVE), This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year but overall Good Article, Thank You Scott.

Scott Matusow 5 years ago Author's comment

Well, pretty hard to do when new management took over a year ago and was faced with insolvency. Compare balance sheet then to now and compare to competitors in the space. It's a $160M company in which new management has done a very good job turning it around. Royce likes it for that reason. Small caps are like this. if u want to see the trend you are looking for, u would paying $30 a share instead of $13.50 :)