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Incubator Zevotek (OTCMKTS: ZVTK) Primed for Acquisition in Disruptive Tech

Incubator Zevotek (OTCMKTS: ZVTK) Primed for Acquisition in Disruptive Tech
Written by
Michael Sheikh
Published on
March 2, 2020
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What sets Zevotek Inc (OTCMKTS: ZVTK) apart from other incubators is its team. Investing in incubators in terms of money and human capital takes seasoned industry veterans who understand funding, supply chain, management and marketing. Zevotek had a team of professional consultants and management at its disposal. The backgrounds of these professional consultants range from seasoned business veterans to entrepreneurs with an impressive track record of success in private companies. The initial targets of Zevotek are Market Disruptive & Game Changing Business in the IOT, Business Automation, Artificial Intelligence (AI), Business Analytics & Connected Healthcare sectors. The company has also indicated that they are competent in applying for federal grant money which is a great source of non-dilutive funding for their acquisition targets. The charts are showing accumulation and it seems like an acquisition in one of their focus sectors is right around the corner.

  • CHART ...Green candles last 15 of 17 trading days, major accumulation
  • NO NEWS since May of 2019 after a busy news cycle that month
  • Goldman Small Cap gave a target of .77/share when trading at .36
  • Share Structure: $1M Market Cap… 27.8M OS 307K float (OTCMKTS)

At the moment, ZVTK has 30% ownership in Dalos Technologies which has disruptive SaaS solutions. This asset acquisition allowed the company to enter in an $85 billion marketplace. Dalos’ near-term target market represents a $435M opportunity by 2022. Dalos’ flagship, cloud-based SaaS product will eliminate revenue slippage from service contract renewals and generate profitable revenue streams for tech OEMs and integrators squeezed by declining product margins. Besides Dalos, Zevotek owns 100% of a consumer audio products company, Blankki Products which is positioned to take advantage of a migration to affordable products. According to Blankki, they strive to become a TOP 10 provider of headphones and accessories and attain revenues of $75 Million over the next 5 years.

The IoT Sector

Cars nowadays are becoming smarter and smarter. Our dashboard has become more intertwined than ever before with the devices we carry in our pockets. Bluetooth functionality allows us to seamlessly walk into the car ecosystem and make calls, get email, and text alerts. The cars also give reminders of when the tire pressure is low or reminders of the nearest service station if the gas is running low. Last year Ford (NYSE: F) announced its connected-car app, dubbed FordPass. At the start of the year competitors like Hyundai upped the bar with their park assist option which is generating a lot of buzz and essentially kicked off an “arms race” for more apps. This is a tectonic shift for mainstream automakers but brings opportunity to develop ways to distinguish themselves from their competitors.

Business Automation Sector

Companies like Workday (NASDAQ: WDAY) focus on productivity for the business. They represent a scalable solution for on-demand financial management of human capital. They can take mundane jobs that require people and create an automation algorithm that never stops, eliminates human errors, and is more cost effective than hiring a person and paying them benefits. There are lower tier competitors in the space like Open Planet Software with its business productivity application Just Press Record. This is just one of 3 products that they have and after a year in business and it’s in the top 10 productivity apps for business. Their marquis product is making a splash for busy people on the go who have an iwatch. All a person has to do is record a memo and then it syncs to all their devices, transcribes it to text, and enables editing later. It’s great not to have those senior moments. This is the type of company that Zevotek is looking for and that could bring great value and a potential acquisition target.

Artificial Intelligence

AI is expected to grow at an exponential rate (46.2%) CAGR from 2019 to 2025 according to Grand View Research who sees the global Artificial Intelligence market valued at $390.9 Billion by 2025. In computer science, artificial intelligence, sometimes called machine intelligence, is intelligence demonstrated by machines, in contrast to the natural intelligence displayed by humans. There are many start-ups in this high-tech world in which Zevotek could enter this industry as an incubator or even an accelerator for an underfunded project. More than 3,600 AI startups have raised $66 billion since 2013 in over 70 countries, data shows. One of the most anticipated AI IPO is Palantir Technologies Inc., a controversial company co-founded by investor and President Trump ally Peter Thiel in 2004, has landed a U.S. Department of Defense software contract worth as much as $823 million, according to communications reviewed by Bloomberg News.Palantir’s software has been used for enabling the immigration deportation policies championed by President Trump, as well as for philanthropic ones like preventing sex trafficking and finding missing children, Bloomberg reported.

Digital Healthcare

Digital health is the convergence of digital technologies with health, healthcare, living, and society to enhance the efficiency of healthcare delivery and make medicine more personalized and precise. The discipline involves the use of information and communication technologies to help address the health problems and challenges faced by people under treatment. These technologies include both hardware and software solutions and services, including telemedicine, web-based analysis, email, mobile phones and applications, text messages, wearable devices, and clinic or remote monitoring sensors. Generally, digital health is concerned about the development of interconnected health systems to improve the use of computational technologies, smart devices, computational analysis techniques, and communication media to aid healthcare professionals and their clients manage illnesses and health risks, as well as promote health and wellbeing.Companies like Livongo Health (LVGO) offer a whole person platform that empowers people with chronic conditions to live better and healthier lives. Zevotek’s management would be wise to enter what Grand View Research sees as a $509 Billion dollar market by 2025 with a healthy 27.7% CAGR. Livongo is helping individuals with conditions such as diabetes, hypertension, weight management, diabetes prevention, and behavioral health. Livongo pioneered the new category of Applied Health Signals to silence Noisy Healthcare. Their team of data scientists aggregate and interpret substantial amounts of health data and information to create actionable, personalized and timely health signals. The Livongo approach delivers better clinical and financial outcomes while creating a different and better experience for people with chronic conditions.

ZVTK One Year Chart

1... Last May the company was in a heavy news cycle in which there was a press release every few days. ZVTK traded in a range of .30-.50/share. Noteable new releases consisted of Goldman Small Cap Research giving the company a $0.77/share 12 month target price, an emphasis of the companies incubator business strategy and the assets acquisition of Blankki.com2… Company PR machine shuts down and there has been NO NEWS since May 30, 2019. Chart shows sporadic summer volume keeps the company’s share price in the .20-.30 range3… Lack of company updates, potentially impatient shareholders who’ve lost interest along with the possibility of year end tax loss selling created a freefall down to $0.015 on November 7, 2019.4… Social Media (twitter @Zevotek_ZVTK) ramped up in late November and volume came along with it. Shares rose quickly to $0.12+ but the tweets soon stopped on Dec. 6th and the company has been dormant since. Share price soon fell to its 52W low ($0.0103) on Feb 7, 2020. 5… Bargain hunters or speculators have been accumulating shares of ZVTK since, as 15 of the 17 have been GREEN candle days.6… Shows a 10 day window of the accumulation

Investment Summary

ZVTK represents the next evolution of the Incubator. It’s poised for acquisitions in IoT, AI, Gaming and Healthcare. Regardless of the acquisition target each one will play a larger role in the ecosystem they are building and show synergies with the new acquisitions. As the company on boards deals the assets they bring in multiply the value of the company as they move from seed round to different funding rounds. In the end the company could have a little sliver of Uber (NASDAQ: UBER) because that is exactly how they started. The growth of acquisitions in the ZVTK ecosystem will directly impact the capitalization of ZVTK. Investors should look for an acceleration of new deals and the announcement of incoming funding for the companies. If Zevotek can grab a significant equity percentage in a handful of high growth sectors mentioned in this article, they are looking at having holdings in a combined market size of nearly $1 trillion!We will be updating our subscribers with more updates. For the latest updates on technology Stocks, sign up below!Disclosure: Insider Financial and its owners do not have a position in the stocks posted and have posted this article for free without editorial input. This article was written by a guest contributor and solely reflects his opinions.

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