SSNI trades at a mere 9x 2015 EBITDA and 6x 2016 EBITDA, while competitors like Itron trade well above this level. Given SSNI's recurring revenue model and limited capital spending, I would expect them to trade at a premium to Itron's multiples. The company has a strong backlog near $1 billion, Comed is looking to accelerate their deployment, and the industry is still growing. By the end of this year, it wouldn't surprise me if we're trading back above $20, or if SSNI gets bought out by CSCO or another industry player.
The problem with the 2015 and 2016 valuation argument is that the EBITDA estimates are pulled from thin air. After being tricked by management twice investors are finally smartening up today. The U.S. smart meter market is past its stimulus-funded peak and large international markets are going in various technology directions. That said, I am now out of all positions so good luck to all!
This was always a 2015 story and it still looks to be a 2015 story. Q4 results will start to show the improvement that we shareholders are looking for. With today's decline, 45%-50% of the company's enterprise value was wiped out. This is a bit extreme. The company's backlog reamains, its just been shifted further out to the right. Brazil is a huge potential market for them. Good news on deployment there could take this right back to $15+. I continue to hold and bought more around $11. This story is taking longer to play out than I expected, but I still feel that SSNI's best days are ahead of it.
Half time...I'm thinking of doubling down...what statistice motivated you to do so? Thanks...looking for courage....'Ive seen many 'promising techs and stories end up being just that...promising but never delivering...I'm still long but shaken...looking for facts to stay the course...thanks again