NuRAN Wireless in New Uptrend, Further Upside Possible

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Monday, April 15, 2019

As the world begins to usher in 5G, experts are trumpeting the many ways this next generation technology will change how the world works.  At its core, 5G will be a steroid shot for communication networks, substantially speeding up communications while allowing far greater capacity for data transfer, but it isn’t exactly coming to most people’s neighborhood anytime soon.

Leading the 5G charge is Verizon (NYSE:VZ), which rolled out its 5G technology at a couple select hotspots in Minneapolis and Chicago last week.  The communications giant is shooting to have 5G in 30 U.S. cities by the end of the year.

Fact is that most of the world won’t see 5G for years or possibly even decades.  The image below from NuRAN Wireless’ (CSE:NUR) (OTCPK:NRRWF) investor presentation demonstrates the state of the world today with regards to communications.

While people in a few areas of the world may be spoiled with 4G, the majority of the rest of the world doesn’t enjoy such bandwidth.  As it happens, about 3.7 billion people globally do not have internet connectivity or cellular coverage at all.  For rural areas, the connectivity blackout affects some 70 percent of the population.

NuRAN has a hand in 5G with a patented technology protecting the algorithm behind the company’s Massive MIMO (multiple-input, multiple-output) technology, but its core competency is on communications solutions for the billions of potential customers in the underserved markets. 

To accomplish this, NuRAN has turnkey solutions that makes it cost-effective to install stand-alone or network communications in rural and remote regions without all of the infrastructure traditionally thought to be necessary.  To that end, NuRAN has clients and partners that include the likes of Vodafone, Orange, Verizon, AT&T, AirTel, America Movil and more.

The technology is starting to bear fruit for the company.  Earlier this month, NuRAN said that it received new orders totaling more than C$500,000 during March for its rural connectivity solutions.  The company added that over 80 percent of the new orders represented recurring business from existing customers, lending credence to the value of the products.

NuRAN is averaging C$1.0 million per month in new purchase orders so far in 2019.  “The uptick in business and the stickiness of our client base should begin to be reflected in our Q3 2019 and Q4 2019 financials and revenue ramp up from there going into 2020,” commented Francis Létourneau, VP Sales and Marketing of NuRAN Wireless, on the future of business.

Judging by the C$10 million market cap and prices trending around 7 cents, NuRAN is an undiscovered gem in the making.  Although, measuring by shares of NUR bottoming in 2018 at C4.0 cents in October and now starting to make higher highs and higher lows, especially on a noticeable increase in volume, it is arguable that interest is building momentum as the company executes the business model.

Shares have found a solid support at 7 cents in the past couple weeks following a retrace from a high at 13 cents printed in January.

Technical traders will be looking for NUR to climb back over its 50 and 200 day moving averages, a bullish move that generally emboldens additional buying pressure.  Further up the road, investors will be looking to the break of resistance at 10 and 11 cents, which should portend for a new higher high over 13 cents and the continuation of the uptrend as the stock retakes lost ground towards its 52-week high at C$23.5 cents.

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