This is a positive as an embedded SIM card can only be activated and provisioned remotely, which is EVOL's business. It is highly likely that an embedded SIM card will gain a higher market share initially in "wearables" and will build share over the next 3-5 years if adopted by both Apple and Samsung and becomes an industry "standard." It may also gain large share in M2M devices.
I found the article to be "thin soup" and wonder why the author even bothered. He doesn't seem to understand the business, provides links to EVOL materials to explain, does a DCF and concludes that the stock should be $9.30-$9.70 while using comparisons to companies whose earnings statements are nowhere near as "clean" as EVOL's and the author also uses a 7.5% growth rate?????
If Yahoo kills the link just go to Seeking Alpha and you will find it.
Yes...this portends well for 3-4 quarters hence, which is when the revenue starts to hit. My hunch is that you may get a GREAT buying opportunity shortly after Q-2 as all the weak hands fell from an OK, but not great quarter. In the meantime they are paying 4-5% for you to wait for the goodies to come home.
SNCR is already valued at a much higher multiple than EVOL (and they are MUCH, MUCH larger and also into some different aspects of activation, such as providing the collateral "free" storage for major domestic carriers upon activation etc.)...however the fact that they might sell themselves at an even higher price shows how seriously undervalued EVOL is. Clean balance sheet, strong free cash flow, with minimum Capex and large, motivated inside shareholder could see this one on the block also and it would go for $14-$15 if the Cash Flow multiples were the same as SNCR is implying.
Only thing that I'd like to see is some more revenue growth. What will drive this revenue number up moving forward?
If the company can show 10% growth, I think it jumps to low teens
Agree, have been in the stock for something like 8 years between the dividends and capital appreciation it's a nice story! Someday the buyout too?
Bob if you do your research this stock is the best investment out there. 5% div. Profitable. No Debt. Leader in its field. Growth. Excellent management. Please sell your shares I am loading up today.
Same old story, pick up more below 9 and up she goes....and in comes the divi!
11 c Dividend, great upcoming quarter, new customers, leaders in their field, new upcoming productst
- EVOL looks like a good investment