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Spacetalk (ASX:SPA) share price surges 77% on Telstra deal

By InvestmentNo Comments

Source: Yahoo

The Spacetalk Ltd (ASX: SPA) share price is in the stratosphere today. At the time of writing, shares in the technology company are swapping hands for 19.5 cents each. That’s more than 77% higher than their last closing price of 11 cents before they entered a trading halt earlier this week.

For comparison, the All Ordinaries Index (ASX: XAO) is currently down 0.56%.

The monumental rise comes after investors reacted positively to news of a commercial deal with Telstra Corporation Ltd (ASX: TLS) and a $5 million loan facility from PURE Asset Management Pty Ltd.

Let’s take a closer look at what the company announced today.

Spacetalk share price explodes on Telstra deal

The Spacetalk share price on an absolute tear today. In a statement to the ASX, Spacetalk declared Telstra had agreed to sell its Adventurer devices in all retail stores, and online, by April 2021.

The device will be placed in Telstra’s core wearables range after it is configured for the Telstra network.

According to Spacetalk, Telstra plans to aggressively market the devices. It intends to use influencer channels, digital advertising, in-person pitching, and billboard placement within stores.

Telstra will sell the technology outright or through payment plans. It also plans to roll out an Adventurer-specific SIM service plan in the near future.

Speaking on the news, Spacetalk CEO Mark Fortunatow said:

We are delighted by the ranging of Spacetalk Adventurer with Telstra, Australia’s leading telecommunications and technology company.

This is a very strong endorsement of the quality of Spacetalk devices, with Adventurer to be placed on Telstra’s core wearable device range. It is also a recognition by Telstra of the growing market and customer need for Spacetalk devices, and our leadership in the category of kids connected smartwatches. Needless to say, we are extremely excited by the enhanced brand recognition and sales growth we expect from extending our customer reach with Australia’s largest MNO [mobile network operator].

Telstra retail and regional executive Fiona Hayes also said:

Smartwatches are the fastest growing market for wearables globally and the addition of Spacetalk will strengthen Telstra’s connected smartwatches offering. Spacetalk is a market leader in Australia in connected smartwatches for children and seniors, providing a practical solution for families to stay connected.

The loan facility

In a second announcement, Spacetalk also told the market it has secured a $5 million loan from PURE Asset Management. The credit will be available for immediate use.

The loan is split into two components:

  1. A $3 million term loan facility at 9.5% interest with an option obligating Spacetalk to issue 11 million shares to PURE at a value of 30 cents each.
  2. A $2 million bridging facility at 12.5% interest.

The term loan will span four years while the bridging facility will last two years. The company will use the credit to purchase inventory, invest in its brand, and for a range of other purposes.

Spacetalk and Telstra share price snapshots

Over the last 12-months, the Spacetalk share price has increased by around 117%. Most of these gains, however, occurred today. One year ago, the company’s share price was 9 cents. On Tuesday this week, it closed at 11 cents.

The Telstra share price is currently up a much more modest 0.47% today. At the time of writing, shares in the telecom giant were selling for $3.205. Compared to this time last year, Telstra shares have remained relatively flat – losing around 2% of their value. The Telstra share price has, however, gained around 19% since reaching its 52-week low in October last year.

Spacetalk and Telstra have current market capitalisations of $30.6 million and $37.8 billion respectively.

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Spacetalk taking on Apple, Fitbit with smartwatch for children

By Media ReportsNo Comments

Source: News.com.au

The only Australian business exhibiting at the Consumer Electronics Show has a plan to beat the world’s most valuable company at its own game.

An Australian company is taking on the world’s most valuable brand at its own game – but its CEO reckons they have something the tech giants don’t: A head start.

“We’re seeing the emergence of a brand new category — connected kids mobile watches — that didn’t exist before and it’s really taking off in a big way,” Spacetalk CEO Mark Fortunatow told news.com.au during the Consumer Electronics Show 2021.

Spacetalk is the only Australian company exhibiting at the all-digital CES.

Spacetalk CEO Mark Fortunatow with the Spacetalk watches. Picture: Benjamin Liew

Spacetalk CEO Mark Fortunatow with the Spacetalk watches. Picture: Benjamin LiewSource:Supplied

“The market has been looking for a device, and we’ve got it.”

The whereabouts of a child wearing a Spacetalk watch can be tracked by parents via their mobile phone. Erz Imam can know exactly where his son Mavi is at any time using his smart phone. Picture: David Caird

The whereabouts of a child wearing a Spacetalk watch can be tracked by parents via their mobile phone. Erz Imam can know exactly where his son Mavi is at any time using his smart phone. Picture: David CairdSource:News Corp Australia

Mr Fortunatow said the feedback from local retailers has been stellar as well and those retailers are now deciding how much they want to commit to the new category, as are manufacturers.

Apple, Garmin, Fitbit and others all need to decide to what level will they be involved in this market,” Mr Fortunatow said.

Apple recently announced Family Setup, which will allow you to set up an Apple Watch to work without an iPhone, giving an option for parents who want a way to keep in touch with their children (or their own parents) without buying them a smartphone.

“Apple are repurposing a device made for adults for kids. They’re an accessory to when you have a phone and definitely not a stand-alone mobile phone device,” he said.

Mr Fortunatow described Apple’s strategy as trying to build a “moat” around its customers with families so they don’t “drift to companies like ours”.

Other companies were facing “a tremendous re-engineering and R & D process to get to market with a device”.

“To build an all-in-one smartphone, watch and GPS device is really hard,” Mr Fortunatow said.

“It looks like a crowded device space but when you filter it down it’s not that crowded at all … there are very few devices that really deliver on what they promise.”

He said competitors in the children’s smartwatch space were primarily coming from the same one or two factories and being brought into the country by importers who slap a brand on them.

“The reception is generally poor too because they’re built for international markets and in Australia we have got a very unique band system for 3G and 4G, those devices only work with some providers and not others and the reception is patchy … We’re not seeing a lot of competition at all.”

Spacetalk is onto its third watch device, but its CEO thinks it’s not the company’s biggest selling point.

Spacetalk is onto its third watch device, but its CEO thinks it’s not the company’s biggest selling point.Source:Supplied

While Mr Fortunatow doesn’t see much competition for Spacetalk in the device space, that’s also not where he sees the company’s main value for customers.

“The main product we sell is actually the app, that’s what provides the greatest value to all family members by keeping them connected, safe, and providing information they need.”

Spacetalk has already been through the research and development processes other companies will need to undertake to compete, and those companies are facing what could be a long period of trial and error.

Mr Fortunatow even admitted he wasn’t immediately happy with the reception quality on the company’s first device.

He said it was annoying enough when you couldn’t get in contact with someone.

“When it’s your child on the other end? You feel their safety may be at risk and you can’t contact them? It’s incredibly frustrating,” he said.

“These devices are ultimately safety devices for kids, they always have to work.”

Tim Boreham’s 21 stocks that are primed to run in 2021

By InvestmentNo Comments

Source: Stockhead.com.au

Tim Boreham is one of Australia’s best-known small-cap share analysts and business journalists. He has more than 30 years of experience writing for major business publications. He is known for the highly-respected Criterion investment column which ran for many years in The Australian newspaper. And, of course, Dr Boreham’s Crucible

After a year of more corporate and market pivots and pirouettes than a pre-lockdown Bolshoi ballet training class, many investors will be wondering where to find value in a remarkably resilient market.

At the time of writing, the local bourse looked like ending steady for the year despite the earnings hit across so many key sector including banking, tourism and transport.

Rock bottom interest rates may well be enough to prop up the market, but the expert consensus – if there is such a thing – is that it’s hard to see equities surging much more from here.

What’s more, pandemic ‘hero’ stocks such as online retailers might struggle as their sales numbers are compared against their bloated lockdown figures.

As always, there are hidden gems on offer among the small to mid caps for investors willing to dig a little bit deeper.

For those who prefer to flop back and watch the cricket, we have done the work for them.

Courtesy of a motley array of brokers, advisers, soothsayers and corporate hangers-on, here are 21 stocks that look primed to pop in 2021. Well, 11 – the other 10 will be published tomorrow, as we know holiday season attention spans are somewhat shorter.

 

RareX (ASX: REE) – market cap $47 million

Elon Musk’s electric vehicle (EV) maker Tesla is now worth more than $US600 billion ($810bn), prompting renewed buying support for the battery materials stocks.

The argument goes that if Tesla is worth that much, the EV and energy storage revolution must be real – and hence a voracious need for lithium and graphite despite price weakness across these commodities.

Rare earths are also required in not just EV motors, but wind turbines. That’s why leading rare earths stock Lynas Corp has performed strongly.

For those who prefer getting on at the basement, junior RareX has a known resource in the Kimberley region of WA and is doing something that hasn’t been done for years – exploring for new deposits.

Trade fears around the China supply chain have emerged in recent times, adding a strategic leg to the rare earths demand story.

 

Neometals (ASX: NMT) – $125 million

While lithium-ion batteries are at the forefront of the EV push, eventually they expire and need to be disposed of. And despite the green-friendly reputation of renewable, these batteries contain hazardous materials.

The lithium hard rock miner divined the winds of changed and turned to both energy storage and eco-friendly materials recovery.

Neometals’ proposed European plants will recover graphite lithium, cobalt and nickel from recycling batteries, as well as vanadium from slag stockpiled at steel mills in Sweden and Finland.

What distinguished Neometals from so many other tech hopefuls is its robust cash balance of $77 million.

 

Hazer Group (ASX: HZR) – $100 million

Despite the zeal for hydrogen’s role as a form of stored energy, the Perth based Hazer is the only pure-play hydrogen stock on the ASX. Hazer is commercialising its eponymous process that uses iron ore as a catalyst to produce hydrogen and useful graphite – rather than CO2 – from methane.

The most common existing process involved superheating natural gas, but this releases enormous amounts of CO2.

Hazer is building a $15.8 million demonstration plant at Perth’s Woodman Point wastewater treatment plant.

 

Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH)

Renewables aside, ‘woke’ investors increasingly are seeking to expunge companies with poor environmental, social and governance standards from their portfolios.

But it’s also a problematic field given the various definitions of what practices are acceptable. For example, is BHP knocked out because it mines a bit (ok, a lot) of uranium on the side?

To make things easier, the recently launched Vanguard Ethically Conscious Australian Shares ETF has diversified exposure across about 240 ASX-listed stocks, but filters out those involved in areas such as fossil fuels, alcohol, tobacco, gambling, weapons, nuclear power and adult entertainment.

That about covers the A to Z of vices.

 

Antipa Minerals (ASX: AZY) – $110 million

For fans of ‘nearology’, explorer Antipa has been focused on WA’s remote Paterson gold and copper province, which has become a hotspot thanks to Rio Tinto’s Winu discovery and the Havieron find by the Newcrest/Greatland joint venture.

Antipa’s first-mover advantage meant it secured highly prospective ground before anyone else.

Antipa has farm-in agreements with Rio, Newcrest and IGO Limited, who have agreed to spend $20 million over the next two years.

The farm-in conditions mean Antipa’s exposure reduces the more money the joint partners spend. But there is nothing wrong with a junior owning 30 per cent of the next big discovery.

 

Dart Mining (ASX: DTM) – $17 million

This one’s an early-stage entry into the go-go Victorian gold sector, without the (arguably) frothy valuations of the later stage plays.

After a recent $5 million fund raising, Dart is drilling across several tenements. Its main focus to date, Buckland is suspected to be the source of alluvial gold taken from Buckland and Ovens rivers.

Further north east, Dart is probing the idea that gold extends undercover on the extension of the Lachlan Fold, which hosts the Newcrest Mining’s Cadia gold-copper mine near Orange.

 

Alderan Resources (ASX: AL8) – $26 million

There is hope yet for shareholders in US copper/gold explorer which peaked at $2 a share in 2017, on hype around its Utah exploration effort.

Now trading at less than 10c a share, Alderan is developing a following on the back of its Frisco copper/gold project – in partnership with no less than Rio Tinto’s copper arm Kennecott.

After getting some nice hits in the first holes for the joint venture at Frisco, Kennecott expanded the planned scope of the 2021 drilling program. It’s one to watch.

 

Motorcycle Holdings (ASX: MOT) – $150 million

Bikers might have been locked down during the pandemic but they were still eyeing the lure of the open road.

The country’s biggest motorbike dealership, Motorcycle Holdings recorded June half sales increase of 35 per cent, led by off-road and all-terrain vehicles.

Broker Moelis factors in an underlying net profit of $18.7 million for the year to June 2021, 20 per cent higher than previously.

The stock yields 5 per cent.

 

Beam Communications (ASX: BCC) – $24 million

The only ASX-listed developer of mobile satellite equipment, Beam sells its off-the-grid communications devices through retailers such as Kogan, Catch and Anaconda and also owns the SatPhone shops chain.

Despite the pandemic, the company posted a $3 million of underlying earnings in the 2019-20 year, up 43 per cent.

In October, Beam raised $5 million in an oversubscribed placement.

Beam looks a likely winner of the post-lockdown era as adventurers avail of their newly-restored freedom to roam.

 

Spacetalk (ASX: SPA) – $20 million

Formerly known as MWR Communications, Spacetalk last month changed its moniker to reflect its lead wearable devices that keep primary school kids safe through GPS tracking and a call function to trusted parties only.

Think of the watches as a ‘gateway device’ to the real thing when they hit their teens.

Spacetalk is now targeting the over 65s audience with a more expensive variant to allow monitoring of vulnerable relatives.

Spacetalk’s stagnant share price over the last year does not reflect its stellar progress.

 

Jayride (ASX: JAY) – $12 million

As a facilitator of transport to and from airports, Jayride was in the eye of the virus storm and its share price suffered accordingly (down 70 per cent for the year).

But revenue improved in October – up 27 per cent – and the company has replenished its coffers with a $2.5 million capital raising.

Jayride’s platform allows users to compare 3700 services to 1600 airports in 110 countries. Jayride, naturally, clips the ticket on each ride.

The author is not a licensed financial adviser and the contents of this article should not be construed as financial advice. Readers should consult their own tea leaves or seek professional counsel.

The views, information, or opinions expressed in the interview in this article are solely those of the interviewee and do not represent the views of Stockhead.

Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.

Kids’ tech ASX stocks: It’s been a big few months

By UncategorisedNo Comments

Source: Stockhead.com.au

A handful of ASX tech stocks offer solutions for kids and some have made significant advances in recent days.

One of these is SpaceTalk (ASX:SPA) – formerly known as MGM Wireless – which makes smartphone watches that are purpose-built for children.

This morning it unveiled the next generation of its watches – Spacetalk Adventurer – as well as a new app that allows parents and kids to communicate with each other. .

It claims to have the largest battery in the category at 750mAh as well as a GPS locator with improved accuracy.

“The launch of the new Spacetalk Adventurer and new Spacetalk App is a huge achievement for the kids-connected wearables category and our company,” declared Spacetalk CEO Mark Fortunatow.

SpaceTalk’s (ASX:SPA) watch (Pic: SpaceTalk)

Another stock that has had a big week is Tinybeans (ASX:TNY) which calls itself a “modern family album app”.

The stock listed in 2017 at $1 per share then dropped and stagnated for a couple of years as investors feared about its cash flow. But shares have never looked back since 2019 when it began winning major advertisers – starting with Lego.

Yesterday Tinybeans told shareholders the current quarter was on track to be a record for the company.

It expects revenue to be up 146 per cent from the prior corresponding period and 24 per cent on the prior quarter. Monthly Active Users surpassed the 4.6 million mark, which is up 15 per cent from last quarter and 260 per cent from a year ago.

Shares are up over 25 per cent since that announcement.

 

Which other ASX stocks are in the kids tech sector?

Two other kids tech stocks are Silicon Valley export Life360 (ASX:360) and Family Zone Cyber Safety (ASX:FZO).

Life360 is a child-tracking app which listed on the ASX in 2019.

Since listing its shares have always traded below its $4.79 IPO price. Nevertheless, it has seen revenue and user growth this year – albeit to a lesser degree than TinyBeans.

As for Family Zone, it is a cyber safety platform aimed at kids.

It provides blocking and control services around online content, including managed screen time, social media restrictions and measures aimed to restrict cyber bullying.

The company has been a beneficiary of COVID-19, having surged from 8 cents in March to over 40 cents today.

It has benefited from the rise of remote learning as well as hype about the cybersecurity sector more broadly since the Federal Government announced an investment into the sector.

There are also a number of so-called edtech stocks, which assist with online learning. While there are a handful, only one is directly experienced by kids and that is  3P Learning (ASX:3PL).

This stock is the company behind online learning programs Mathletics and Spellodrome, among others.

It is currently amidst a takeover offer from rival company IXL.

 

Rapid growth in wearables market wins Spacetalk place in the Deloitte Technology Fast 50

By UncategorisedNo Comments

Rapid growth in demand for children’s safety devices has driven 281% growth for smartphone watch innovator Spacetalk, and won the ASX company a coveted place in the Deloitte Technology Fast 50 Australia, announced yesterday.

Founded in 2001 as MGM Wireless with a focus on SMS messaging for the education sector, Spacetalk formally changed its name last week to reflect its new focus on wearable technology that keeps families safe and connected.

The shift from school messaging to family-friendly wearables was organic, based on our years of experience working with families and schools, but even we were amazed by the demand from parents when the first Spacetalk kids’ smartphone watch hit the market in 2017,” ­­said CEO and Executive Chairman Mark Fortunatow.

“The result has been this surge in revenue, and with new products about to hit the market, we are intent on keeping up that momentum. We are delighted to be recognised alongside the most successful high-growth tech companies in Australia with a sought-after Deloitte Fast 50 ranking.”

Now in its 20th year in Australia, the Deloitte Tech Fast 50 list ranks fast growing technology companies, public or private, based on percentage revenue growth over three years.

Deloitte Tech Fast 50 lead Josh Tanchel commended all the winners for their resilience in a challenging year, saying the 2020 list had shown “incredible leadership, agility, foresight, passion and perseverance”.

Mr Fortunatow thanked Spacetalk’s management and staff for their own passion and hard work during a year of uncertainty.

“We share the same common purpose as our founding team nearly 20 years ago, when our technology was designed to make sure children arrived at school safely,” Mr Fortunatow said. “The school SMS service alerted parents if their child hadn’t arrived at school, but the first question parents asked was ‘Where is my child?’”

By listening to parents’ concerns, and after three years of research and development, the company launched its first wearable device in 2017: the highly successful Spacetalk Kids, a smartphone built into a wristwatch designed for children aged 5 to 12, with a GPS service to allow parents to quickly locate their child from the companion app on their own phone.

The company’s R&D team went on to respond to another market need – a mobile phone built into a wristwatch with safety and other features important to the seniors market.  Spacetalk Life for seniors, a new Spacetalk App and a next-generation Spacetalk Kids 2 model will all reach retail stores before Christmas.

“Spacetalk is a significant business, already over 3 times bigger than our school business,” Mr Fortunatow said. “We’re now the leader in this fast growing and huge new family wearables market.”

During this remarkable shift, the company has grown from 15 to 44 employees, with revenue up 47% to $10.7 million and office locations in London, Glasgow, Shenzhen, Melbourne, Sydney and headquarters in Adelaide.

About Spacetalk Ltd.

Spacetalk Ltd. is an Australian Stock Exchange listed technology company that develops innovative technologies to enrich connections between families, schools and society.

Founded in 2001 as MGM Wireless, the Company developed the world’s first SMS student absence notification platform for schools. MGM Wireless listed on the ASX in 2003 and went on to become Australia’s most successful school messaging company.

Leveraging this history and deep understanding of school and family communication and student safety, the Company set out in 2017 to conceive, develop and launch a safe technology ecosystem for families. The market-leading Spacetalk range of all-in-one smartphone watches for children and seniors and the companion family app platform are purpose built with tailored features, design qualities and data protection for families to stay confidently connected.

The Company changed its name to Spacetalk Ltd. on 12 November 2020.

To learn more about the Spacetalk devices and app platform, and the Company, please visit: https://www.spacetalkwatch.com/.