Sivers IMA Holding AB – Approaching breakthrough in the mobile market
Market cap: approx. $ 10 million (SEK 70 million)
The share is traded in Stockholm, Sweden
Share detalis on Bloomberg: www.bloomberg.com/quote/SIVE:SS
Share detalis on Yahoo Finance: http://finance.yahoo.com/q?s=SIVE.ST
Connection speeds of mobile devices increase with each new generation; 3G and 4G mobile devices are designed to handle speeds of 14 Mbps and 100 Mbps. Exploding number of users and new services with rich content such as streaming video, web surfing, and online gaming demand a dramatic increase in backhaul capacity in the Gbps range. This capacity is not currently offered by traditional radio links. Sivers IMA has developed a series of products that fulfill this need.
Sivers IMA currently has received orders from, or is in ongoing discussions with, three of the five largest potential customers in the market. The largest players are Ericsson, Huawei, NEC and Alcatel-Lucent. Sivers IMA considers it unlikely that none of them will choose Sivers as a subcontractor, and it’s possible that more than one of the major players enters into a collaboration with Sivers. Will Sivers’ products be subject to an in-design of one of the major players would that justify a valuation several times the current market capitalization.
During March Sivers received its first major order within this segment and much suggests that more will come in 2013 or early 2014. It is currently 1.5 years ago Sivers received its first prototype orders from Ericsson. Usually the time it takes before a design-in, meaning that Sivers product becomes an integral part of such Ericsson’s end-product, is about 1-2 years. Sivers has said that the company received test orders from several players in addition to Ericsson in the past year, which means that both the 2013 and 2014 will be incredibly exciting year for the company.
Sivers IMA is currently the leading player in the field with a technical advantage of about 1 to 1.5 years as compared to competitors, according to the company.
The foundation of Sivers IMA was in 1951 when Carl von Sivers founded Sivers Lab AB. The company was for a long time part of Philips but was then bought out to become an independent player. Today Sivers IMA is a leading supplier of system components based on microwave technology, with customers worldwide. Over 85% of the Company’s sales are made abroad, and most of the United States. The sales to the United States, a large part of the U.S. military. Sivers IMA include extensive collaboration with several suppliers to the U.S. military, a quality given the standard required this type of product.
The potential for Sivers is located in the business area millimeter wave products, which means that this is the market you as an investor should focus on before investing in Sivers IMA. The company is as manufacturer of converters, a radio component. Radio Link Units are ultimately part of a larger mobile network. The end customer to Sivers products include mobile giants such as Ericsson, NEC, Nokia Siemens and Huawei. This makes radio market a very consolidated market where the five largest players account for over 70% of the market. The largest are Ericsson and Huawei which have a 20-25% market share each.
Estimates show that Sivers converters corresponds to 25% of the value of a radio link. Global market is estimated at 1.5 million radio links per year, with a growth of 13% annually. Sivers IMA is in the market for high-frequency links; currently a very little part of the total market, but with the higher growth. The next few years this market is expected to grow by 53% annually according Viasant Strategies. Sivers themselves estimate that their elected market segment today has a size of $ 350 million, and will grow to 550 million by 2014.
Apple seems to have made a short-term low (at least). If it can clear resistance at $438, I can see it going for $450, and also to close the price gap at $460.
EUR/USD has ralllied strongly since the low at 1,2750 one week ago. It still looks bullish. Next resistance is at 1,3170.
Pre-Market Thursday 3/28/13
EUR/USD is drifting lower and there’s no significant support before 1,2600-1,2660.
S&P 500 is consolidating at the highs. Looking for the index to break up from the consolidation and to continue the uptrend. Next target is 1,580.
3/23/13 Update: EUR/USD has now reached my target and last week’s panic low followed by a strong reversal is a nice buy setup. I believe last week’s low will hold and that the price will move up.
2/25/13 Update: EUR/USD continues to drift lower and is approaching my 1,2900 target.
The correction in EUR/USD is not over. My target is a 38,2-50% fibonacci retracement and the 1,2900 level.
This push over 1,500 followed by a bearish candlestick pattern and close below 1,500 could be the beginning of a pullback. If so, the target would be a 38,2-50% fibonacci retracement to reach the price gap at 1,425-1,435.
EUR/USD cleared resistance at 1,34 today, but with negative momentum divergence on the daily chart. Look for a retest of the break-out level at 1,34 in the next few days.