MENU

Why the Audio Pixels Holdings Ltd share price is rocketing today

The Audio Pixels Holdings Ltd (ASX: AKP) share price lifted 14% to $17.60 today after the self-proclaimed manufacturer of next-generation audio speakers announced it’s making progress in getting the speakers manufactured to a commercial standard.

Despite having nothing in the way of sales revenues currently, Audio Pixels has a market value greater than $440 million thanks to investor excitement over the potential of its tiny speakers that can reportedly produce superior sound quality to today’s conventional home entertainment or commercial speakers.

The stock is up 250% over the past five years as claims over the potential of the sometimes micro-chip sized speakers to revolutionise sounds systems continue, however, so far the company has been long on promise and short on delivery.

For the year ended December 31 2016 Audio Pixels clocked up a net loss of $5 million, with little news as to any concrete agreements it has to sell its digital speaker technology, if it’s able to develop it as it expects.

Although, Audi Pixels reportedly has some big potential, given its valuation, financials, and track record you can count me out as a buyer of its shares.

Especially because there are plenty of fast-growing junior tech companies on the ASX already posting big profits with strong outlooks.

One to consider is online voice services business MNF Group Ltd (ASX: MNF), which actually trades on a market value around 25% cheaper than Audio Pixels despite it boasting half-year revenues of $91 million and a full year forecast for EBITDA in the region of $22+ million.

This goes to show how share prices can often present investors different risk-adjusted opportunities, although that’s not to say that Audio Pixels won’t go onto be a success.

For Investors Who Are Anxious About 2017

In 2017, the share market could have its most volatile year ever. That's why one Foolish expert is revealing 5 of his favorite dividend payers now. These "strong and steady" shares promise a healthy stream of income plus capital gains...

But you must act now. This newly updated report is available for a limited time only, and your copy is 100% free. So don't miss out!

Simply click here to receive your free copy of "Our Top 5 ASX Dividend Shares to Earn You Money in 2017" right now.

Motley Fool contributor Tom Richardson owns shares of MNF Group Limited.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.