Regarding Foster's research - 1.9% of the earbuds market would be massive for NUH. Even if they are talking about FY21, that would likely be over a million units (>$300M revenue). I cannot work out how they arrived at this figure (or that earbuds make up 14% of all hearables), but if that's correct, then how are they forecasting such low revenue numbers?
There was a report in July 2016 (prior to launch of iPhone 7) stating that wireless made up 17% of all earphone and headphone sales for the month of June. Annualised, this equated to 57.1 million wireless units worldwide - and this was before Apple moved away from the headphone jack and other competitors were rumoured to be following suit.
Based on this conservative global sales figure, Foster's revenue models predicted NUH would capture 0.09% of the total wireless market in FY18 and 0.2% in FY19, which seemed very low to me. Rather than rehash all of this, I posted a comment last month (with research notes) if anybody is interested at having a look: https://hotcopper.com.au/threads/nuh-ta-chart.3155693/page-190?post_id=22040516
In short, this stock appears to be very undervalued. I am looking forward to seeing the sales figures later in the year once IQbuds are in full production worldwide.
NUH Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
(20min delay)