Short Term Trading Weekend Lounge: 7 -9 Apr, page-36

STTCOMP NUH, FA LONG
Current SP 7.4c
MC $51.2m
Cash $5m+

Nuheara is an innovative audio Wearables company. It has developed proprietary hardware and software to deliver multi-functional intelligent hearing technology that augments a user’s hearing and facilitates cable-free connection to smart devices. With Nuheara’s IQbuds™, consumers are able to augment their hearing according to their personal hearing preferences and connect hands-free with their voice-enabled smart devices.

The IQ Buds have been independently reviewed as the best in the market, beating the Apple Airpods.

A capital raising was recently completed at 8 cents to fund production growth (with an SPP at the same price) so now there is an opportunity to purchase on market at a discount.

The fundamentals have never been better for NUH but the capital raising and selling from early investors looking to lock-in profits with a CGT discount has had an effect in recent weeks.

NUH is not a concept or prototype company that may take off. The IQ Buds are in production with over $2m AUD in sales.

The only thing that's been holding it back is a slow ramp-up in production, which will be corrected in the weeks ahead.

Near-term catalysts for a strong bounce and resumption of uptrend above 10 cents include:

1. Completion of delivery of order backlog.
2. Expansion of availability through Best Buy where supply is currently overwhelmed by demand.
3. Commencement of availability on Amazon and through other existing distribution agreements.
4. New distribution agreements in North America, Europe, Asia and Australasia.
5. Confirmation of sales numbers, indicative sales numbers and margins.

I see NUH as the next RAP, ISX, EDE, etc. in terms of growing to an MC in the hundreds of millions. My target is 40 cents by the end of the year which would be around a $300m MC.

However, there is a fair chance of this becoming a blue-chip like Cochlear in years to come, since the product is the best in market (with new versions coming) and the market is so huge. Definitely a takeover target at some point IMO.