Overview:
This might not be the usual type of post here, but bear with me. I’ve been looking into BeammWave (BEAMMW B), a Swedish tech company with some big names behind it—folks who were instrumental in the success of Bluetooth. They’re working on next-gen technology for wireless communication, aiming to solve many of the current issues with 5G and beyond. Their market cap is currently around 150M SEK (5 SEK/share), but their potential market could be worth billions. Right now, some of the biggest telecom companies are evaluating their tech for possible integration around 2025/2026. Even their patent portfolio alone could be worth more than the company’s valuation, which seems to lower the risk.
Why I’m investing:
I look for undervalued companies, especially smaller tech ones that often go unnoticed. These are the main factors I focus on:
- The People: Are they experienced and capable?
- The Product: Does it solve a real problem? What’s the competition like?
- Valuation and Financials: Does the valuation make sense? Are they financially stable enough to get through the tough early stages?
BeammWave checks these boxes for me. I’d love to hear your opinions though.
Key Points About BeammWave:
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The Team: Led by seasoned engineers, including the people behind Bluetooth. The CEO, Stefan Svedberg, has been key to Ericsson’s success with Bluetooth, and the Chief Systems Architect, Bengt Lindoff, holds over 2000 patents.
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The Product: Their main breakthrough is distributed digital beamforming (DDBF), which significantly improves mmWave wireless communication (used in 5G, 6G, and beyond). It’s cheaper, more efficient, and more powerful than the current analog solutions.
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The Customers: Molex, Alpha Networks, and an anonymous major Asian player are already customers, with others evaluating the tech. Their ADP1 development platform lets companies prototype products using BeammWave’s solution.
Valuation and Risks:
- Current market cap is around 150M SEK, with analysts suggesting a fair value of 7–12 SEK/share.
- Annual burn rate is about 29M SEK, with around 50M SEK cash on hand.
- Big risks include stiff competition, reliance on partnerships, and the need for quick commercialization.
Why is the valuation so low?
- The company is listed on a smaller Nordic market with little international visibility.
- Their tech is complex and not easy to explain, which may be why it’s overlooked.
Challenges & Risks:
- Operating in a competitive market dominated by resource-rich companies.
- Dependence on successful commercialization within the next couple of years.
- Need to manage their cash reserves carefully until more revenue streams develop.
My Perspective:
I think this is a high-risk, high-reward situation. If they secure a deal or partnership with a major player like Qualcomm or Apple, the share price could skyrocket. Worst case, they run out of cash before commercialization. I’m betting on the team and the tech to pull through.
What do you think? Is this too risky, or does it have potential?
Disclaimer: I own 32k shares of BeammWave. This is a long-term hold for me, and I plan to hold for at least two years or until acquisition.