“One interesting company that Michael Wayne of Medallion Financial talked about during our Investor Strategy Day was Audinate (AD8), which is definitely best-of-breed. The question mark is about its culture and I’ll endeavour to get the company’s CEO for my TV show ASAP,” Peter Switzer of Switzer Financial Advisory said.
“This is what Michael shared with me on my TV show last Thursday. (https://www.youtube.com/watch?v=dbTwCA4Yzpk ),” Peter added.
AD8 has a 23.9% upside, if the experts can be believed. It deals in audio equipment that allows electronic equipment to connect with each other without the need for the wires. It’s high-end audio for sporting events, musical festivals and the like. AD8 provides a product called Dante, which is embedded to allow the equipment to communicate. This is how the company website explains its crucial IP: “Dante replaces point-to-point and audio and video connections with easy-to-use, scalable, flexible networking. Adopted by hundreds of manufacturers in thousands of professional products, Dante is the de facto standard for modern connectivity.”
“Is it like Sonos?” Peter asked. Michael replied: “Yes, but better quality…and it’s getting adoption rates 17 times faster than its nearest competitor.”
What’s AD8’s story?
The company started in the audio space but is now moving into the video digital sector.
It seemed similar to Bluetooth but Michael says Bluetooth a lesser quality tech alternative owned by a not-for-profit operation.
“This quote from Michael got me thinking: “AD8 has the potential to be an unregulated monopoly,” Peter said.
“This company is certainly a beneficiary of the reopening, getting back-to-normal economy ahead, which should gain from the comeback of business and events that need quality audio connections
Here’s the latest price action, which also looks promising. I will ask Mike Gable from Fairmont Equities to run his technical analysis over the business, so watch out for my TV shows this week!” Peter concluded.