SYT Charts, page-192

Some independent research done by Fosters that I received. Not much we all didn't know already.
Is 3c undervalued? I'd be happy with 5c
DYOR

INVESTMENT HIGHLIGHTS


·SYT recently listed on ASX via a reverse takeover of Pacific Ore Limited. Currently trading at $0.029 with an undiluted market cap of $58m. SYT has two fully commercialized products utilizing the same proprietary technology platform. Both products aim to transform the way consumers and businesses access applications and content across the mobile internet.

·The company’s consumer product “Freeway” gives consumers sponsored access to mobile applications and content, providing a new way for content providers, sponsors, and operators to reach, acquire, engage and monetize customers. By paying for a subscribers mobile data usage, content providers and mobile operators can increase consumer reach, acquire new users, deepen engagement and loyalty, and retain and monetize users.

·SYT’s Freeway is positioned to take advantage of an enormous market opportunity, with sponsored mobile content estimated to be worth in excess of US$23b worldwide in 2015. Over 5 billion users either cannot afford to connect, or ration their data use due to cost.

·Freeway is fully operational with initial customers and revenues already contracted. Of particular significance is the validation by major carriers Sprint, AT&T and Tata Communications who integrated the Freeway platform into their networks and have entered into commercial arrangements involving platform license fees, monthly maintenance plus revenue share arrangements. We understand the arrangement with each carrier is different, with Tata Communications potentially being the most lucrative at this stage.

·The deal with Tata Communications is initially focused on the Indonesian market where 40m smartphone apps are downloaded each day. We understand that SYT stands to earn a substantial revenue share based on the volume of content that transverses the “Freeway by Syntonic” platform. We expect the Tata Communications deal to be expanded into further Asian markets in the near term.The company’s business product “Syntonic Dataflex” is designed to reduce the cost to Businesses of providing their employees with smartphones. In the US market businesses are spending on average each year, US$1,700 per employee on smartphones, and are found to be overpaying by US$275 per employee. Litigation risk exists if businesses are not reimbursing employees accurately.

·Syntonic Dataflex utilizes the same technology platform as Freeway to separate smartphone data usage on a smartphone between personal and business use. Businesses can pre-determine which applications are deemed to be for business use and will accurately calculate the exact data usage for those applications and content. Employee’s personal data remains separate and private.

·Syntonic Dataflex is estimated to generate annual savings for businesses of approximately US$400 per employee.Like Freeway, Syntonic’s Dataflex is a fully developed and commercialized product with early customers deployed and revenues booked. Dataflex is sold as an enterprise product with pricing ranging between US$36,000 for smaller businesses, to >US$500,000 for large enterprise customers. The company estimates the Dataflex addressable market to be worth circa US$30 billion p.a. and is potentially a larger revenue opportunity than Freeway. We expect SYT to provide significant operational updates in the near term demonstrating further commercialization of both Freeway and Dataflex products, with material revenues expected within the second half of CY16.

We place a SPEC BUY recommendation on SYT and $0.05 short term price target.