SHARE PUNT OF THE WEEK
PRICE: 20p WHAT IS IT?
LightwaveRF allows users to control their home using their smartphone, tablet or laptop.
It makes automated, internet-linked devices that control lighting, heating, power and security which can be bought individually on a ‘plug and play’ basis.
This makes them a lot cheaper than traditional smart home kits, which often have to be bought as a whole set, costing thousands.
WHAT’S THE LATEST?
Although LightwaveRF has been developing internet-enabled devices since 2008, the past year has been a very big one for the firm.
Back in November, its share price increased by more than 50pc after it announced a partnership with Amazon, which allows LightwaveRF’s devices to be controlled using the internet giant’s voice-activated smart speaker Alexa.
The firm then jumped by another 48pc in May when it announced a similar tie-up with Google on its newly launched smart speaker. Earlier this month, the firm secured a third key contract with Apple for its HomeKit platform when it is launched later this year.
WHO BACKS IT?
Non-executive director and consultant Michael Lord owns a 3.4pc stake. The 51-year-old entrepreneur is also the co-founder and chief executive of stairlift firm Minivator.
Chief technical director and managing director John Shermer owns a 2.3pc stake.
Shermer, 60, has a long and established career in technology. He was once a consultant to the European Commission, advising on the implementation of computer technology for people with disabilities.
WHY SHOULD YOU INVEST?
As a result of growing consumer demand, the smart home technology market is expected to be worth around £44.5bn by 2020.
By securing agreements with what are likely to remain very large players in the smart speaker market, LightwaveRF is well placed to be one of the leaders in this burgeoning industry.
…AND WHY YOU SHOULDN’T
As always with tech stocks, there is the risk that LightwaveRF won’t catch on as much as is hoped. It could also guzzle up a great deal of cash without showing profits for quite some time.