Nuran Wireless Inc (CNSX:NUR) On The Brink Of A Turnaround

The unveiling of a new Mobile Network Enabler might be the catalyst that will trigger a bounce back in Nuran Wireless Inc (CNSX:NUR) shares. The stock has come under immense pressure this year and was in dire need of new catalysts to avert a further plunge. Investors sentiments in the stock took a hit in September after the company’ reported disappointing financial results.

NuRan Wireless Price Analysis

However, the announcement of the Mobile Network Enabler for facilitating network rollout promises to strengthen the company’s sentiments and long-term prospects. A spike in share price from the CA$0.05 handle to the CA$0.085 mark underscores renewed investor interest in the stock.While the stock remains engulfed in a strong bear trend, all indication is that a bounce back could be in the offing. After the recent plunge, the stock needs to rise and stabilize above the CA$0.100 handle to strengthen investor interest in the stock.A rally followed bay close above the $0.1 mark should open the door for the bulls to push the stock to the CA$0.15 mark, seen as the immediate substantial resistance level. Above the CA$0.15 mark, the stock would have turned bullish and on its way to recording a new 52-week high.

About NuRan Wireless

NuRan Wireless casts itself as a leading supplier of mobile and broadband wireless solutions. Through its subsidiary Nutaq Innovation, the company engages in the research and development of digital electronic circuits and wireless telecommunication products. It also provides systems for enabling indoor coverage as well as rural connectivity in emerging markets.

Mobile Network Enabler Opportunity

The unveiling of the Mobile Network Enabler is a major development given its potential impact as a wireless and broadband solution. Mobile network operators can now use the solution to accelerate network rollouts.MNE will act as a supplement of the current CAPEX model. NuRan Wireless is targeting telecommunication service companies that hold mobile spectrum license but lack the much needed financial or technical means to expand their networks with the new model.The MNE is designed to lower the barrier to entry by eliminating capital requirements as well as other complexities that bar network rollouts. Operators will now be able to focus their resources on high-value revenue increasing activities with the new model.

“The MNE model will enable operators to rollout networks which would otherwise have been delayed or postponed indefinitely. The MNE model provides NuRan and its stakeholders with a highly favorable shift towards long-term and recurring revenues which will contribute to more stable and predictable income projections,” said Maxima Dumas, Vice-President of Strategy & Corporate Development at NuRan Wireless.

NuRan Wireless has already identified a number of potential opportunities throughout the world. The company has also initiated discussions with some mobile operators with a view of having them deploy under the MNE model.Investors appear to be taking note of what is at stakes with the new MNE model as the company pursues deals with mobile operators. The opportunity at stake is high which explains why investors have started pushing the stock up the charts.

LiteCell XG Carrier Grade Opportunity

The unveiling of the MNE model comes weeks after the company confirmed it would start offering mobile network operators multi-standard 2G, 3G, 4G LTE raid access network solutions. The development is part of the company’s latest push to broaden its target market.NuRan wireless is currently working on LiteCell XG carrier grade tower-mount mobile radio access equipment. The equipment can operate in any combination of 2G, 3G, and 4G. The new model will provide flexibility and upgradability that operators are in dire need of, to deliver appropriate services.

"LiteCell xG will simplify the life of operators who are often faced with the dilemma of which technology should be deployed while considering current and future needs. […]LiteCell xG is in direct response to what tier-one operators have requested from NuRAN for their future rollouts, and we are confident that it will get adopted at scale", said CEO Martin Bedard.

Bottom LineInvestor sentiments in NuRan Wireless took a hit after the company reported a net loss of (-$2 million) for Q3 compared or (-$1.7 million) reported a year earlier. Gross profit margin shrinking to 48% from 64% earlier also did not go well with investors.However, the company has moved to streamline its operations and efficiencies as it looks to bounce back from Q3 disappointments. The unveiling of the MNE model, as well as the unveiling of new equipment for handling 2G, 3G and 4G connectivity, continues to strengthen the stock’s sentiments in the market.Nuran Wireless has already bottomed out in the wake of recent developments. That said it might be wise to wait for the stock to stabilize above the $0.1 handle to consider the company a long-term investment play.We will be updating our subscribers as soon as we know more. For the latest updates on CNSX:NUR, sign up below!Disclosure: We have no position in CNSX:NUR and have not been compensated for this article.