Tuesday, July 29, 2014

SeeThruEquity Initiates Coverage of 5BARz International, Inc. (BARZ) with $0.40 Price Target

5BARz International, developers of the patented 5BARz™ Network Extender, a cellular network booster unit which beautifully patches holes in carrier’s cellular networks (extending the reach of high-quality signal coverage via a sleek little plug and play device), has a last mile mobile connectivity business model so good that the company has now attracted the attention of smallcap/microcap focused research firm, SeeThruEquity. BARZ’s proprietary, carrier-grade 5BARz Network Extender solution helps bring solid data, video and voice connections to an entire space that has been historically plagued by coverage gaps too logistically difficult or downright expensive for carriers to fix.

SeeThruEquity is noted for their unbiased equity research and so the announcement that they have initiated coverage on BARZ ($0.235/share), with a price target of $0.40/share, is great news to both shareholders and savvy investors alike. SeeThruEquity is approved to get their content into the likes of Thomson One Analytics (First Call), Capital IQ, and Zacks. With a limited distribution to a set of opt-in investors and because they do not do any investment banking or commission-based work, SeeThruEquity is widely perceived to be one of the top, genuinely independent research shops in the game today.

The 5Barz Network Extender represents a new paradigm for indoor mobile and limited coverage areas, and part of the exciting story behind the company’s continually evolving technology is the ongoing collaboration with a top-five global wireless carrier announced last year in April. This collaboration saw much fanfare and attention for the company’s hardware at the Mobile World Congress back in February and BARZ is all lined up to ship four custom units, designed to meet specific requirements of this wireless network operator, out for testing by the third quarter this year. The operator has developed a comprehensive series of testing protocols for the custom carrier-grade builds based on BARZ’s core technology and confidence is running high that the relationship will mature to the point where the 5BARz solution will become a primary staple of this operator’s network hardware footprint.

The appeal of a booster node solution like this is immense for carriers, especially considering how easy it will be to deploy a network-wide implementation. The ability to ensure seamless connectivity for cellular users with a highly localized, efficient, standalone device-based methodology starts to make the age-old problem of poor cellular signal coverage actually look like a growth market. The small office, home and broader mobile spaces addressed by the 5BARz Network Extender are vast and the attrition rate alone globally (roughly 3%), due to poor signal quality, looks to be around a potential $27B market for BARZ.

Telecoms are either already beating a path to the company’s door or they haven’t caught on and soon will be. With a commercial device set to drop in 2015, BARZ is already hard at work putting together the preliminary intelligence and connections needed to support their international expansion ambitions. The plan for BARZ is to target regions globally which have considerable upside for the technology’s roll out and to create strong local management teams leading an array of subsidiaries on a per-region basis, as well as to continue winning over big carriers.

SeeThruEquity was keen to point out the recent appointments by BARZ to their Board in the coverage announcement, citing in particular the new CTO, Naresh Sony, a former CTO for $1.8B market cap mobile technology and patent monetization house, InderDigital. Also noted by SeeThruEquity was the appointment of Dr. Gil Amelio to the Chairman slot. Dr. Amelio is a high-profile industry veteran who previously held the CEO position at sector juggernauts like Apple and National Semiconductor (acquired by Texas Instruments), as well as serving on the Board over at AT&T. Some serious firepower for a relatively little company like BARZ and a very strong signal to markets that these guys mean business.

To learn more about 5BARz International, visit www.5Barz.com

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