Well it sounds like a scary statement until you break it down. Fact- SWIR has made only two M2M acquisitions- Wavecom and Sagecom. Wavecom got them started in M2M and Sagecom added an additional M2M segment. So to say that SWIR has an M&A strategy to outcast smaller companies is based on no facts and is in fact nothing but hot air that the Fool is so famous for. The Fool and Seeking Alpha are both just absolute garbage and deserve no credibility.
wallstreetdufus you need to show the statement in context:
Novatel wireless has a growing presence in the Wireless M2M Module market, thought it is relatively smaller than Sierra Wireless. During the first quarter of 2013, Novatel experienced robust growth in both its business verticals. It is noteworthy that Mobile computing and M2M revenues increased sequentially by 18% and 52%, respectively. In addition, during the fourth quarter of the previous fiscal year consolidated revenue also reported a 22% increase.
The company is well positioned to establish itself as a key player in the industry, as it recently launched Mifi 2, which is the first mobile hotspot with a touch screen display and the most feature-rich mobile hotspot in the market.
Relative to Sierra Wireless, Novatel’s market share is much smaller; hence, it does not compete with Sierra in the mainstream. Furthermore, Sierra Wireless has adopted a highly aggressive M&A strategy in order to outcast smaller companies such as Novatel.
Nevertheless, Novatel has now shifted its focus on strengthening its core-competences and innovating through investing heavily in R&D; therefore, I still keep an optimistic view on its stock.