In a significant strategic move, SKYX Platforms Corp. (SKYX:NASDAQ) has announced a new collaboration with Ruee Appliances, a leading Chinese lighting manufacturer, to expand its reach into the U.S., Chinese, and European markets. This partnership aims to leverage SKYX's innovative smart products and Ruee Appliances' manufacturing capabilities. The collaboration is set to introduce both operational efficiencies, financial support, and a significant enhancement in gross margins for SKYX's products.
Rani Kohen, the Executive Chairman of SKYX, highlighted the partnership as a milestone for the company's expansion strategy. This development follows SKYX's recent announcement of record annual sales of US$58.8 million, indicating robust growth and an aggressive push into global markets. The collaboration not only promises to bolster SKYX's financial backbone but also aligns with its vision to transform residential and commercial buildings with cutting-edge technology.
Why Home Tech?
The global smart home market is undergoing rapid growth, driven by significant technological advancements and evolving consumer lifestyles. According to Precedence Research and industry reports, the market is projected to expand at a compound annual growth rate (CAGR) of 21.88% from 2023 to 2032, suggesting a burgeoning consumer appetite for smart technology integration in homes. The sector's growth is closely tied to the increasing adoption of smart devices that enhance home automation, security, and energy management, which are becoming pivotal in modern living spaces.
In North America, the demand for connected security systems and smart appliances is soaring. "Consumers are increasingly investing in devices that enhance home security and offer energy savings," Statista reported. This interest is propelled by the convenience of managing home devices remotely via smartphones or voice assistants. Meanwhile, in Europe, the focus remains on sustainability and energy efficiency, with smart thermostats and energy-monitoring devices gaining traction.
On April 25, Noble initiated coverage on SKYX Platforms Corp. with an Outperform rating and a US$5 price target.
The Asia Pacific region represents the fastest-growing market, driven by rapid urbanization and an expanding middle-class demographic. Here, the market dynamics are influenced by "the rapid uptake of smartphones, the internet, and other technologically advanced devices," which are becoming essential components of a modern lifestyle.
The push toward smart homes also reflects a broader societal shift towards more sustainable and efficient living arrangements. As the technology becomes more accessible and the benefits more apparent, the integration of smart home systems is likely to become more prevalent across various regions, making advanced, smart, and safe homes a new standard in residential and commercial buildings.
Catalysts
The collaboration with Ruee Appliances is poised to provide substantial benefits to SKYX, including enhanced financial stability, increased production capabilities, and broader market access. This partnership is part of SKYX's broader strategy to enhance its market penetration and capitalize on its extensive patent portfolio in smart platform technologies.
In addition to this partnership, SKYX continues to strengthen its market position through various agreements, including a significant five-year global licensing partnership with General Electric. These developments are indicative of SKYX's commitment to innovation and growth in the smart home sector, aiming to make advanced, smart, and safe buildings the new standard. The collaboration is expected to drive further innovations and improve the company's competitiveness in the international market.
Expert Analysis
Technical Analyst Clive Maund has consistently highlighted the potential of SKYX Platforms Corp., emphasizing its significant market potential and technological advancements. In an April 2024 post, Maund noted the company's strong financial results and projected cash flow positivity by 2025, underscoring the significant improvements in its revenue and market penetration.
He remarked, "These latest stunning results show that the company is rapidly advancing on all fronts," and described the potential market for SKYX's products as "truly gigantic."
On April 26, Maxim Group started covering SKYX Platforms Corp. with a "Buy" rating and a US$3 price target.
Further emphasizing the stock's potential, Maund analyzed the stock charts of SKYX, indicating a forming Double Bottom, which he interprets as a bullish sign.
He suggested that the stock is undervalued, stating, "It is laughable and ridiculous that after all the technological progress of the past 100 - 150 years . . . you still have to climb up on a sometimes rickety stepladder and mess about with a screwdriver . . . SKYX's plug and play technology the process is easy and fast." His strong endorsement reflects a belief in the transformative impact of SKYX's technologies on the smart home and lighting industries.
National Investor writer Chris Temple also recognized the significance of SKYX's strategic moves and collaborations. In September of 2023, Temple wrote, "Simply put, such breakthrough products/technology, which end up becoming part of all our everyday lives, don't come around that often. I think SKYX's story is one of those that will be on everyone's lips not many years hence, and this remains very much a ground-floor opportunity to be a part of it as an investor, I.M.O."
Ownership and Share Structure
Streetwise Ownership Overview*According to Reuters, 15 strategic entities own 43.52%, or 42.16M shares, of SKYX Platforms. The three with the greatest stake are KRNB Holdings LLC with 9.44% or 9.14M shares, Motel 7 SQL LLC with 6.32% or 6.12M shares, and Strul Associates LP with 5.69% or 5.51M shares.
Of this group of strategic investors, individual insiders comprise 31.2%, Yahoo! Finance reported. Director Dov Shiff is the insider with the most shares, 16%. Founder and Executive Chairman Rani Kohen owns 10%, and Chief Executive Officer John Campi holds 0.9%.
"Insiders have a US$36M stake in this US$116M business," the Yahoo! article noted. "This shows alignment with shareholders."
Reuters data show that 77 institutions hold 11.31% or 10.96M shares of SKYX. The Top 3 institutional investors are BlackRock Institutional Trust Co. with 3.5% or 3.39M shares, The Vanguard Group Inc. with 2.48% or 2.41M shares, and Geode Capital Management LLC with 1.21% or 1.17M shares.
Retail investors own the remaining.
SKYX Platforms has 87M outstanding shares and 58.71M free float traded shares.
Over the past 52 weeks, the company traded between US$1.08 and US$3.96 per share.
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Important Disclosures:
- SKYX Platforms Corp. has a two-year consulting relationship with Street Smart, an affiliate of Streetwise Reports, and pays US$84,000 per year in stock for such services.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Contributing Author Disclosures:
- Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed
Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.
Disclosures for Noble Capital Markets, SKYX Platforms Corp., April 29, 2024
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