"Jefferies raises target to $20 from $16.75, believes management will be more focused on cost controls, likes the improved operating model and stability of M2M" Jefferies seems to have been sleeping or had a 'night mare".
SWIR "began 2013 trading at $8.05 and made big moves last year trading to a 52 week high of $26.56 before the recent consolidation. Sierra Wireless could still bring in big gains in 2014 as it is seen by many as one of the few pure play M2M stories on Wall Street in a fast growing industry."
With MNOs worldwide now aggressively targeting M2M customers, organisations can also now take advantage of end-to-end cellular service offerings and special airtime rates for connected assets. To realise the most benefit from a cellular M2M implementation, however, organisations should make sure they are using a strong and well-designed M2M platform that provides all of the essential capabilities their cellular deployments will require. - Currently , as far as I happen to know. Sierra Wireless is the only M2M supplier that has "all" of the essential capabilities the organization's cellular deployments will require. -
SWIR'S management has been aware that M2M market was highly fragmented and that its deployment was complex .There were many pieces to be fitted together and partnerships to be formed. In order to facilitate the putting together the pieces, SWIR has launched a Sierra Wireless M2M solutions for the purpose of helping to overcome the barriers that hinder putting M2M solutions into play. SWIR is also aware that consolidation must also take place either through organic growth or acquisition. Providing M2M connectivity to "things" is no simple matter.
Where consolidation is concerned, expect to see it first from companies in the number one and two market positions, either organically or by acquisition. To remain competitive, smaller players will need to find ways to provide the end-to-end solutions that M2M customers are looking to implement or they won’t survive. The upside is that ultimately the path towards M2M will become much smoother and more affordable for customers.
The only technology partner you need for end-to-end applications
From ruggedized embedded modules, gateways and routers, software suites, and development tools to services platforms, Sierra Wireless is the only company that can offer all the wireless broadband technology you need for building end-to-end automotive applications.
Simplify integration and deployment
Get new services to new markets faster with open and proven technologies that allow rapid design and easy integration, with a services platform that enables fast deployment and cost-effective maintenance and support.
Expertise in both automotive and wireless technologies
Our automotive solutions are designed by engineers with experience in both the automotive and wireless industries. Take advantage of our professional services for engineering, design, and systems integration that conform to the industry’s toughest constraints.
Credibility with wireless carriers worldwide
Leverage Sierra Wireless credibility and long-standing relationships with leading wireless carriers to facilitate network certification and connection.
Sierra Wireless solutions for Automotive
AirPrime Next Generation Modules: include a dedicated product line for automotive designed from the ground up to achieve the highest level of compliance with automotive specifications. The AirPrime AR Series offers an entire M2M ecosystem on a module to simplify the development and deployment of automotive applications, thanks to:
•Powerful multicore processor: allows smoother integration and dedicated application processing to simplify your in-car telematics system design and helps lower your total system costs.
•Open Application Framework: a complete software package, including on-board building blocks such as eCall and location libraries, to accelerate embedded automotive application development and reduce your time to market.
.•Seamless integration with AirVantage M2M Cloud: selected by leading car manufacturers to monito
It seems to me that since SWIR is the Global leader in wireless technologies with 34.5% of the global market share, it is quite obvious that SWIR should stand a good chance of providing modems for automobiles.
1•all the components required for a wireless connectivity solution, from wireless embedded modules and software suites to development tools and services platforms
2•products designed to match the automotive industry’s toughest quality requirements, manufactured in an ISO/TS 16949 compliant facility, and supported by automotive specialists
3•proven technologies that allow rapid design and easy integration, and a services platform that enables fast deployment and cost-effective maintenance and support
4•professional services for engineering, design, and systems integration that conform to the automotive industry’s toughest constraints.
Why would an automobile manufacturer want to install a cheap unproven and unreliable product into his automobile which requires toughest quality products. That is the question.
The world’s first LTE-connected car, courtesy of Audi (AUDVF), began rolling out of the factory and onto lotin Europe on Thursday. The Audi S3 Sportback now comes with an option for an embedded Sierra Wireless
LTE module as part of its technology package, making it the first production car to come with fully integrated 4G connectivity.
The world’s first LTE-connected car, courtesy of Audi (AUDVF), began rolling out of the factory and onto lots in Europe on Thursday. The Audi S3 Sportback now comes with an option for an embedded Sierra Wireless LTE module as part of its technology package, making it the first production car to come with fully integrated 4G connectivity.
U.S. customers will get an LTE option on the A3 Sedan, as well, but they’ll have to wait until next spring. A three-door plug-in hybrid version of the S3 Sportback is also scheduled for U.S. release in 2015. Audi spokesman Brad Stertz tells GigaOM that now that its first 4G car is in production, the German carmaker will roll out the feature to the rest of the fleet quickly, including its entire A3 line in Europe starting in November.
What’s particularly interesting is how signing up for in-vehicle 4G connected car service will be different in the U.S. and Europe, mimicking the way those different regions buy phone service. In Europe, 4G Audi owners can use any carrier’s network. They just need to insert a data SIM card into the dash.
In the U.S., though, Audi connectivity will most likely be tied to a specific operator, Stertz says, just like most of our smartphones are optimized for specific carriers. That makes some sense, given the complexity of U.S. LTE networks.
While in Europe most carriers are deploying their networks on three common bands, in the U.S. every operator is using a different LTE frequency. Just as Apple (AAPL) and Samsung Electronics (005930:KS) make separate versions of the iPhone and Galaxy for different carriers, Audi and Sierra Wireless (SWIR) may need to supply different modules for those different networks.
Stertz says Audi is still negotiating with U.S. operators and will make an announcement about which carrier or carriers it will partner with at a later date.
Even though Audi won’t have its first U.S. 4G car until next year, it will likely beat all its rivals to market. General Motors (GM) plans to make AT&T (T) LTE standard in all cars starting in model year 2015. BMW ((BMW:GR) has developed an LTE hotspot accessory car owners can use to create miniature wireless LAN within the vehicle, but the automaker hasn’t started selling it yet. The accessory approach also means it’s not integrated with the car’s infotainment system, so you can connect your gadgets in the car but not the car itself.
Audi is going fully integrated from the get-go. The S3 and forthcoming A3 will use their LTE chips to link its on-board nav system to the cloud with access to Google (GOOG) Earth and Streetview. Drivers can access social media networks Facebook (FB) and Twitter with voice commands, though its Audi Connect platform is still light on other apps. And the LTE connection can also be redistributed to other devices in the car through Wi-Fi.
Here are some more recent news about AUDI/ SWIR partnership"
"The world’s first LTE-connected car, courtesy of Audi (AUDVF), began rolling out of the factory and onto lots in Europe on Thursday. The Audi S3 Sportback now comes with an option for an embedded Sierra Wireless LTE module as part of its technology package, making it the first production car to come with fully integrated 4G connectivity"
Here are some old news about SWIR/ Audi partnership. I can't see why AUDI would change now.
"Sierra Wireless (NASDAQ: SWIR) (TSX: SW) today announced that Audi is using Sierra Wireless AirPrime™ embedded wireless modules to help develop and test an LTE-connected infotainment system. Still in the development and testing stage, the system has been showcased at several industry events this year, including the Consumer Electronics Show (CES) in Las Vegas in January, and CeBIT in Hanover, Germany, in March. Drive tests were started in late 2011 and are ongoing. "
Sierra Wireless, as a world leading pure play M2M company enjoys significant advantages, including:
The industry's most comprehensive M2M product portfolio
1 A proven track record in M2M technology innovation
2. Global sales and R&D teams on six continents
3 Strong balance sheet, with $188 million in cash and no debt
4 Blue chip customer base of leading OEMs, enterprises and operators around
5. 34.5% of the M2M global market
"Sierra Wireless (SWIR) bolted 7% to a six-year high in fast trade. It's well extended from a second test of its 10-week line. The stock broke out from a flat base in September and has climbed more than 70%. The communications equipment designer lost money in the past two years, but is expected to turn a profit of 21 cents a share this year and 56 cents a share in 2014."
Shares of CalAmp Corp. dropped in the extended session Monday after the maker of wireless-communications products provided an outlook that fell short of Wall Street expectations.
CalAmp CAMP -8.35% retreated 7.3% to $25.56 on heavy volume after the company forecast adjusted earnings of 19 cents to 23 cents a share on revenue of $60 million to $63 million. Analysts surveyed by FactSet expect 24 cents a share on revenue $63.2 million.
The company reported third-quarter earnings of 23 cents a share on revenue of $63.5 million. Analysts expected earnings of 21 cents a share on revenue of $61.1 million."
earlvv: I hope SWIR Is treated by the market based on its own merits as "Camp" does not seem to be a very good example
Another bit of MF: "
“This transaction is the next step in our transformation into a company focused on enabling the ‘Internet of Things’ – a strategy we have been pursuing with great success since 2007,” said Jason Cohenour, President and CEO of Sierra Wireless. “We are the world leader in this dynamic market, with the industry’s broadest product lineup, solutions across the value chain and an extensive, blue-chip customer base. In addition to realizing a solid return for the AirCard business, this transaction will provide significant financial resources and capacity to accelerate our growth in M2M and connected device solutions.”
So … that’s a large part of why the shares have doubled this year — optimism about that “internet of things” and their leadership of the M2M market and ability to get out of the AirCard business with a profit. Analysts haven’t allowed their expectations to boom along with the stock, but clearly David Gardner is all over it as a long term play — so really, your quick reaction to this stock will probably come down to whether you agree with Gardner about the huge growth potential of the “InterWorld” or agree with the analysts in their skepticism about the next year’s earnings. Or you could find both arguments compelling, of course, and think that SWIR will enable amazing things in the future but might be too expensive today.
Oh, and a quick P.S. — this is an excerpt from that latest reiterated buy recommendation by RBC’s analyst when they raised the price target to $20 … this came out on October 9, when the stock was between $17.50-$18, just like it is today:
“M2M Comes into Vogue: Raising Target
“We are reiterating our Outperform recommendation and raising our price target on Sierra Wireless from $16 to $20. Investor enthusiasm for M2M and the Internet of Things has raised the valuation multiple on Sierra Wireless and its peers. We see more room for upside and believe Sierra’s leadership warrants a multiple towards the mid-point of M2M peers.”
gonefor... Here is the confirmation that it is SWIR he is taking about;
“This will most likely be the last stock you — and your family — will ever need….”
Any financial advisor will probably tell you that there is no such thing as “the last stock you will ever need,” and that this kind of thinking is dangerous to your financial health … but still, as every financial copywriter knows, hope springs eternal. We all want those 8,000% gains to make us more comfortable in our golden years (or to make it so we can afford to buy $70 egg trays without blinking an eye).
So after all that, what is our “secret” stock? Secret no more, this is: Sierra Wireless (SWIR)
Sierra Wireless is a small Canadian tech company (yes it’s in a “small town North of Seattle” — Richmond, British Columbia), and they have indeed been on a tear this year, getting up to $20 a share for the first time since the financial crisis (they’ve dipped down a bit recently, shares now just under $18 as I type). They have a market cap of about $500 million, so quite tiny, and they’re expensive based on either trailing or forecasted earnings but do also have a large cash pile of about $6 a share (and no debt).
If you account for the cash, you can say that the shares trade at a forward PE of only about 24 (50 cents in earnings in 2014 expected), which sounds a bit more reasonable than the numbers look at first blush, but it’s still expensive — particularly because analysts are baking in pretty low growth expectations for the future. So it looks like David Gardner is making a big picture argument that SWIR is going to see much higher demand for its products in the coming years, with good revenue and earnings growth, and the Wall Street (OK, Bay Street) analysts are forecasting something a lot more tepid.
Sierra Wireless is going “all in” with this “Internet of Things” with the sale this year of their AirCard business (that’s their mobile broadband product) to NetGear, and that sale resulted in what looks like a huge earnings number this year (that’s why the trailing PE looks amazingly low — most of that $2+ in trailing earnings isn’t operating earnings). That basically allows SWIR to put the full force of the company behind their “machine to machine” products, referred to as M2M, that are a key enabler of this network of intelligent devices. Here’s how they put it in the press release about the sale a few months ago: