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Gleneagle Research: Initiating Coverage on MGM Wireless (ASX: MWR)

Posted by Greg Tolpigin on 16-May-2018 13:49:38

We're please to share our research report on MGM Wireless (ASX: MWR) after the launch of their SPACETALK Kid's smartwatch: Please click here for the report:

By Greg Tolpigin, Head of Proprietary Trading at Gleneagle Securities:

We believe this to be an exceptional opportunity in an explosive global market and MGM has created a best in breed product with no debt and currently has $3.0 million cash in the bank. At a market cap of just $14 million there is scope for a serious re-rating on the back of signing a major retailer and/or Telecom which they expect to do before the end of June.

Key Highlights:

  • In October 2017 MWR released its SPACETALK children’s smartwatch to the public, after three years of research and development. The watch is an all-in-one phone, GPS tracker, messaging service and step counter aimed specifically at children and parents wanting to stay in contact without the pitfalls of social media and the broader internet. Other applications including aged and disability care are currently being discussed.
  • Sales have commenced via the Company’s owned website www.allmytribe.com and negotiations are currently underway with telecoms and bricks and mortar retailers for a wider sales network.
  • SPACETALK is the world’s first kid’s smartwatch that uses best practice security encryption and privacy features. It is certified for all mandatory Australian Regulatory Compliance and has been built to meet strict European privacy laws.
  • Cheaper, lower quality competitors have been banned in Germany and pulled from stores in the UK/US as a result of poor security and lack of necessary accreditation.
  • Following consultation with telecoms and retailers, MGM has lifted its forecasted annual sales potential to 130,000 to 180,000 smartwatches (from 3,000 – 10,000). 

Please contact us for further queries or subscribe to receive further updates.

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Greg is the Head of Proprietary Trading at Gleneagle Securities and has over 20 years of experience as proprietary trader and high level strategist for the major investment banks including Citigroup, Bankers Trust and Macquarie Bank. He has been involved across all asset classes including commodities, bonds, currencies and equities right across the globe.

 

After a 10 year career with the large investment banks and research firms Greg formed his own proprietary trading firm successfully building the business into a multi-million dollar trading operation that turned over a billion dollars a year. This same team now runs the proprietary trading desk at Gleneagle Securities, risking their own money in line with the firm's and client's capital.

Greg has appeared on CNBC, Channel 9 - Business Sunday programme, a guest columnist for the Australian Financial Review, a regular author for Personal Investor, Wealth Creator and Shares magazine and is the former Treasurer of the Australian Technical Analysts Association.

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