Vislink Technologies: “Vislink specializes in the collection, delivery, management and distribution of mission critical, high quality, live video and data from the scene of the action to the viewing screen. Vislink’s innovative solutions allow military and first responders to protect and serve while also providing content creators an industry leading platform technology to create and distribute immersive and compelling content.”
Blah blah. Why does $VISL rock? Vislink is a global leader in advanced communication solutions. They specialize in receivers and transmitters that provide us with that crispy bokeh goodness you see at the latest NFL, NBA, or PGA event. AND SO MUCH MORE. This company really does do a little of everything.
Lets start with the TA shall we.
Current share structure.
Key Takeaways:
45M float (low: moves quick)
Institutional ownership has increased to 25.3% (Notable large purchases by Vanguard for nearly 4M shares in the last 3 months)
Short interest has dropped from 30% to 12% (They’re clearing out)
Daily Chart: 1Y Day
Key Takeaways:
Currently on break out from down trend from market high in Feb
Has seen previously higher with a 52 week high of $8.94
Lets get into the good stuff. Fundamental Analysis. Why should $VISL be priced substantially higher? Lets start with the financials.
VISL struggled with the 2020 pandemic for obvious reasons. Their main business is built around live events, and that’s hard to work around when there aren’t any. They survived off of their government contracts and media partners.
Revenue for the year came in just under $23M for 2020 compared to $29M the year before. While the money wasn’t comparable, they took the time to clean up the bottom line. Posting a net loss of $17M vs a loss of $18M the year before.
Jump to Q1 of 21 now. After an offering of +$50M in February of 21. VISL currently has a cash on hand amount of $60M, and total assets of $76M. Considering the current market cap sits at $112M (Share price of $2.45) at the moment of writing this. Its important.
CEO Mickey Miller has taken the time to clean up the internal while trying to recover from the pandemic. Revenue for Q1 21 came in at $4M, slightly lower than the $5M for Q1 of 20.
The big take away is the clean up. Miller and $VISL has managed to post a loss of (.07) per share vs a loss of (.54) the year before, and they did it with less revenue. This points toward a profitable Q2 for 2021 for the first time in years.
Mickey Miller has a history of working with companies and taking them to BILLION dollar valuations. ANDW and ALU were both purchased for north of $2B (This is his game plan) Take a company, clean it up, sell it for 10x..
Miller has gone on record stating that they booked more in Q1 of 21 than they did in the last 3 quarters of 20. That money will trickle in and start showing on the books in Q2. Id estimate revenues closer to $40M+ this year, back toward the 2018/17 numbers.
Consider their current partners.
Anything that requires a camera can use VISL tech. The partners above scratch the surface of what’s possible. With a recent $3M contract to upgrade the Public Television in the state of AL, you can really see the scope of what’s possible. Imagine 5 states? 10 states? That’s just this one type of revenue stream also.
The sporting events are the most recognizable revenue stream considering the high profile players in the space. There’s a constant push for new tech and new angles to get viewers at home closer to the action. Drones at the PGA championship, cameramen on the field in the NFL, close ups in the NBA, it goes on and on. With the Olympics coming and their new multi million dollar partnership with the Extreme E Racing Series (Your favorite racing series I’m sure), the growth potential in the sporting space is massive.
Beyond the sports realm, VISL sees plenty of movement with the unfortunate civil unrest we are experiencing because of their military and local government contracts. Consider that they have contracts for body cameras, there are always spikes in price any time there have been riots in the past year. The odds of them snagging another handful of body cam contracts is likely. The growth of remote warfare will benefit them as well.
The potential growth in revenue is obviously there, but lets talk about valuation. At $112M with revenues estimated for the year to be better than last year we can presume $25M-$30M+ right? (I personally think it will be higher, but just for the moment.)
With an industry standard multiple of 14.18 your market cap would be $354M. Add in the $76M in assets, you’re looking at a MC of $430M or a share price of $9.45. ($1.21per share in cash) This is obviously an estimate and valuation multiples can be argued, BUT with the current MC a fourth of this number, it can see a much higher upside. Take into account the appropriate negative EBITDA, this still sees the $6 - $7 range on its own. One analyst on crack thinks its worth $60. So that’s something..
In all seriousness, there’s no reason this stock should be below $5.
Now for the fun stuff.. the what ifs.
There has also been rumors. Big rumors. That point to Vislink being partnered with Elon Musk’s Space X and his Satellite internet company, Starlink. Now the possibilities of this are beyond exciting for obvious reasons. The tweet below is responsible for the 52 week high. Just the rumor, not an official PR, sent this stock 4x. This stock would see $15+ with any PR in this realm.
Mentioned again.
And again..
AND AGAIN…
Miller has mentioned that there are some partnerships that involve NDAs that he would like to mention, but cant. I would imagine that this would fall into that category. Obviously this is all speculation, but I personally cant recall a company tweeting about another company in this nature just for fun… You?
Check out a more in depth article from my man @JGInvestments1 linked below.
Let me know if you have questions or if I left something out! Feel free to tweet at me.
$VISL