Top small cap fund manager Steven Palmer of AlphaNorth Asset Management appeared on SmallCapPower.com on April 11, 2014 (Watch the Interview here), and provided an update on one of his past picks Spectra7 Microsystems Inc. (TSXV: SEV), which has surged more than 100% since.
At the time, Spectra7’s share price was trading at $0.35. Mr. Palmer noted that the company’s stock had been under pressure seeing that Spectra7 was running low on cash, but that it had recently announced the closing of a $7 million equity financing priced at $0.30 a unit.
Spectra7 Microsystems makes computer chips that allow electronics to run faster, clearer, and lighter. Its chips are used in the new 4K televisions, which has horizontal resolution in the order of 4,000 pixels. Mr. Palmer, when he first recommended the stock back in October 2013, believed Spectra7 shares could get a boost as the company’s new product launches should cause its revenue to ramp up significantly into 2014.
During the past seven months Spectra7 has made more than a few corporate announcements, including the production launch of its Display Direct Virtual Reality chip for wearable computing and virtual reality platforms, which the company claims provides up to a 90% diameter reduction in the Resultant Cable so that it is lighter and runs up to 10 times faster.
In addition, the company also reported that it has developed what it called the industry’s first chip capable of enabling lightweight, ultra-thin active interconnects for high speed and low latency for gesture recognition processing and motion control for gaming and virtual reality products.
On October 21, 2014, Spectra7 reported preliminary financial results for its most recent quarter (Q3), in which the company expects a 170% surge in year-over-year revenue to a record $1.7 million. As well, it anticipates its gross margins for the quarter will exceed 80%, up from 69% a year earlier.
Spectra7’s stock price closed recently at $0.81, up more than 130% since Mr. Palmer’s SmallCapPower.com interview.
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