$PHUN DD by u/paradox34690

This is taken from the reddit sub r/RobinHoodPennyStocks 

Phunware, Inc. Sector: Information Technology Industry: Software

What they do: Phunware, Inc. is an Austin, Texas based mobile application, location tracking, and advertising software company founded in 2009.

Technicals-

52 wk range: 0.54-3.00

Current price (as of 7/18/20): 1.63 (bid 1.63, ask 1.64)

Avg 10 volume: 8.3m

Last Volume: 13.1m

Market Cap: 68.8m

Shares outstanding: 43.5m

% Held by institutions: 24.56%

Short Interest: 11% of float

PHUN has been performing inline with its SMA(10).

It has been performing above its SMA(50) since May 20, 2020.

RSI: 50-70.

Earnings-

Upcoming: August 13, 2020.

Earnings Estimate: -0.09

Estimate range: -0.09 – -0.09

No earnings listed for Q1….

Catalysts-

Phunware released a new hospitality app 4 days ago targeting hotels and offering them/their customers a way to communicate through a mobile app experience. Metrics reporting, GPS location tracking, the works. https://www.phunware.com/solutions/hospitality/

Earnings report on August 13

Phunware is advocating and building a National Ventilator Database: https://go.phunware.com/covid-19-ventilators

Price target-

6/14/20 – Ascendiant Capital have a price target of $4.

I think a more realistic PT is $2-$2.15 for the short term. I don’t think it will hit $2 on Monday… Maybe mid-week? Could be wrong.

Recent SEC Info-

7/14/20 – 8K Filing – Senior Convertible Notes worth $4.32M issued to Canaccord Genuity LLC with a maturity date of 12/31/2021.  https://sec.report/Document/0001628280-20-010351/

5/22/20 – 8-K Filing – threatened delisting by NASDAQ for no longer being in compliance with the minimum stockholders’ equity requirement for continued inclusion on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(1). This document is (currently) unsigned by PHUN’s CFO, Matt Aune.  https://sec.report/Document/0001628280-20-008296/

6/4/20 – 8-K Filling – received notification from NASDAQ that listing compliance has been regained. https://sec.report/Document/0001628280-20-008998/

Risk/Rewards- Pros:

Regardless of political affiliation, Phunware provides campaign data, including “users’ daily digital trail”, to the Trump reelection campaign, through a $3 million contract awarded by Brad Parscale’s “American Made Media Consultants, LLC”. They also built the Trump/Pence reelection app for the campaign in November 2019. https://theintercept.com/2020/04/09/coronavirus-trump-smartphone-tracking/

PHUN is getting involved in the COVID plays. (Same link as above): “Now, at exactly the same time as Trump has repeatedly undermined public health guidelines and overseen a generally botched federal response to Covid-19, Phunware hopes to cash in on the need to enforce pandemic measures like social distancing. In a March 30 call with investors, Phunware co-founder and CEO Alan Knitowski explained that the company was “aggressively pursuing new business opportunities … including remote telehealth and telemedicine triage for health care patient capacity management, virtual rallies for political advocacy during a presidential election year, remote work optimization for corporate campuses and social distance policy enforcement, engagement and asset-tracking for smart cities and government organizations at the local, state, and federal level.”

“American Made Media Consultants” accounts for 31% of PHUN’s NET revenue. (10-Q filing: https://sec.report/Document/0001628280-20-007915/)

Risks:

Per Annual 10-K filing on 3/30/20, PHUN has experienced significance losses in each fiscal year since their inception. https://sec.report/Document/0001628280-20-004377/#i31a8a884fc5d4c47a0a6d932289f3c86_22

Due to COVID, 37 people (42% of their workforce) have been furloughed as of March, 2020. (Same 10-K link as above bullet point)

Their biggest customer in 2019 was FOX Network Groups (63% of total NET revenue). They do not appear to have any business dealings with FOX in 2020 so far. https://sec.report/Document/0001628280-20-007915/

Full disclosure: I do not (currently) have any stake in PHUN. I did as of Friday, July 17, 2020, have 300 shares, but fully sold for profit. I plan on picking more up on Monday, July 20, 2020.

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