Shares of Resonant Inc. (RESN) are perking up, rallying 20%+ in the last two weeks.
What gives?
I believe investors are finally redirecting their attention to the most important part of the company’s recent quarterly report – a $16 million strategic deal with the leading RF front-end module supplier in the world – Murata Manufacturing Co., Ltd. (MRAAY).
Frankly, it’s about damn time!
For whatever reason immediately following the Q2 report, investors remained fixated on the yet to materialize royalty revenue ramp and ignored the obvious implications of the strategic deal.
(Hint: It’s more cash…sooner. Plus, the best possible way to dramatically boost royalty revenues).
Instead of bellyaching, investors should have been celebrating the report, as the specifics of the deal and the closest comparable company to RESN indicate fair value for the stock is ~150% higher than current prices.
As the Murata deal marches towards closing, I believe a major revaluation is imminent. Here’s why…
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