The Energy Report

Source: Streetwise Reports   10/03/2017

Russell Stanley, an analyst with Echelon Wealth Partners, explained the significance of the milestone for this cooking fire prevention technology firm.

Pioneering Technology Corp. (PTE:TSX.V) “successfully installed its latest fire prevention product in a prominent Ivy League school,” wrote analyst Russell Stanley with Echelon Wealth Partners in a Sept. 12 report. This Canadian company “develops and markets cooking fire prevention technology and products.”

This new Pioneering brand product incorporates “the heat sensor technology” of Innohome OY, a developer of fire safety devices for kitchens. The item contains two heat sensors, “allowing it to measure both excessive temperatures and the rate of temperature change,” explained Stanley. The product works by setting off an alarm when danger of a cooking fire exists. If, after some time, the threat remains, the product then turns off the stove.

Pioneering accomplishing a first installation is a “positive step towards developing and monetizing products that are complementary to [its] lead product, SmartBurner,” Stanley concluded.

This debut product “targets the electric smooth top range market,” whereas SmartBurner “targets the electric coil stovetop market,” wrote Stanley.

Pioneering markets its products “primarily to the multi-residential market and secondarily through retail channels,” Stanley indicated. As such, SmartBurner “still has a large untapped market to penetrate (40M installed base in the U.S.)” and while it “targets the aftermarket, plans for a retail strategy are in development.”

Adding this latest product to the company’s line also is favorable, the analyst remarked. First, it “expands Pioneering’s addressable market.” Second, it allows the firm “to better leverage its existing distribution partnerships with Staples Business Advantage, HD Supply and Interline. We believe the company is just scratching the surface with these partners, so the addition of another aftermarket product could accelerate sales through this channel.”

In general, Pioneering is “positioned well to accelerate growth,” wrote Stanley. “On track to at least meet its FY17 revenue growth guidance of 50%” and with no debt and positive operating cash flow, the company is “free to support growth investments.”

About Pioneering as an investment, Stanley concluded, “We continue to view PTE as an undervalued, underfollowed play on new safety requirements that should drive strong demand growth for the company’s cooking fire prevention products.”

Echelon has a Speculative Buy recommendation and $1.60 per share price target on Pioneering, whose stock is currently trading at around $1.00 per share.

Want to read more Streetwise Reports articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pioneering Technology Corp., a company mentioned in this article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: PTE:TSX.V,
)