Google: Why I’m hanging on to Sierra Wireless despite its runup Chris Umiastowski
Lenny & muzakcitymiracle : Google this item, You might find it interesting.----------Why Globalstar (GSAT) Stock Is Up Today____
When SWIR launched its Legato device it placed itself in an excellent position to take advantage of the growth of the market in the connectivity of IOT. In Italian Legato means "tied together". In terms of Legato, Legato has all the components (tied together) that are needed to make M2M internet connectivity with one device. Legato provides embedded M2M developers with a head start, significantly reducing the time and cost to build their solutions. It provides existing customizable components needed for M2M solutions across a wide range of target markets, including connected cars, smart meters, and industrial automation.
The application framework, Wind Rier Linux distribution, and development environment are already set up. For AirPrime WP and AR smart module customers, Legato comes pre-loaded on the module, allowing OEMs to begin developing immediately. The device is simple to connect in time and cost saving manner. In the fullness of time, SWIR, undoubtedly, will capture its its share of the M2M market. The share price will be reflected in this growth.
Some of you might remember that SWIR'S management team met with Jefferies, an investment Banking
Firm in New York, on May, 30/14. The meeting was obviously to make some type of financial arrangement. It seemed at first that SWIR might be making financial arrangement to purchase another M2M company. However. shortly after the management met Jefferies, SWIR filed a Statement of Ownership which means that a person or a group of persons enjoy the benefits of ownership even though the shares are held by a custodian firm which in, in this case, is: Connor, Clark & Lunn Investment Management Ltd, Company, It seems that the management team purchased 5% (or more) of SWIR share and had to file a General Statement of Ownership (Security's requirement). The question remains, what impact will this transaction have on SWIR'S earnings?
When Sierra Wireless acquired the assets of Korean AnyDATA Corporation’s M2M embedded module and modem business, it expanded its reach into Korea, Now Sierra Wireless is able to provide the latest 2G to 4G technology to customers to support M2M deployments in Korea. This is a huge market which will add significant revenue to SWIR's bottom line.
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Look, techboyforever, what is your problem? Yesterday you were techboyforever wth a new ID. Today, you are romanroche1217. But, whatever ID you use, I can see by your sentence structure that you are illiterate. It follows that no sensible investor would take your advice and make investments based on it. In addition, you say that you are a "long term holder in SWIR " and "you like MDM". What does MDM mean? And, who in his "right mind" would buy and hold something that he thinks is a POS. So what I gather from your two posts is that you are just an ignorant "never do well" You do not need to reply because I will not respond to anything further that you might have to say. (case closed).
For investors looking for Canadian companies in the tech sector, options have been rather slim, with former juggernaut BlackBerry (TSX: BB)(NASDAQ: BBRY) crumbling into the ground right next to Nortel. Where does this leave tech-hungry investors? Are there any other options left?
Why, yes there are. Let’s take a look at some of the future powerhouses of the Canadian tech sector.
Masters of the “Internet of Things”
Sierra Wireless (TSX: SW)(NASDAQ: SWIR) has carved itself a niche market that is quickly becoming mainstream. The company creates machine-to-machine communication infrastructure that can be operated wirelessly through the internet. It can be used to operate things such traffic notification signs, security camera networking, and cloud-based operations.
This technology is far from a novelty, as both Apple and Google have been endeavouring to make more and more mundane products compatible with an app or device. This interest from the major players has led insiders to declare the Internet of Things a $19 trillion industry by 2020.
The products flowing out of Sierra Wireless have the possibility to make your humble handheld device more powerful than anything on Star Trek or The Jetsons. For the investors of yesterday who picked up the stock at a 52-week low of $11.78 last June, Friday’s closing price was $21.77. This shows the amount of instant growth the company has experienced in what is really the infancy of this technology.
"2. Sierra Wireless
Sierra Wireless (TSX: SW)(NASDAQ: SWIR) is a leader in wireless technologies and solutions. Essentially, the company makes technology so devices can communicate with each other via the internet.
The company is poised to be a big player in the so-called Internet of Things, which is expected to be a $19 trillion market by 2020 as more and more devices get connected to the internet. Other companies are betting big on this trend as well. Google recently acquired Nest, a maker of thermostats that can be controlled by a user’s smartphone. It paid $3.2 billion for the company.
Sierra has a rock-solid balance sheet, including about $5 per share in cash, and no debt. Over the last two years the company has essentially broken even after factoring in all its special charges. Its solid financials will serve the company well as it works on growing its business."
(The M2M market is expected to grow at 30% annually)
secondopinion999: Jason said that SWIR commanded 34% of the global market generated by embedded cellular M2M market devices. These devices provide a complete platform for internet connectivity. just like SWIR's Legato device. (Read about Legato.) There are other devices that provide internet connectivity but are not embedded. The combined embedded an the not embedded M2M market generated $10B in revenue. Hope this helps.
Philips CityTouch chose Sierra Wireless AirPrime modules for the CityTouch LightWave system based on the level of global support Sierra Wireless is able to provide as the market leader, as well as the potential for evolution in future products with a simple migration path from 2G to 4G technologies.
“The more we talked with Sierra Wireless, the more confident we became that this company really understood what we needed to not only build and launch a new generation of CityTouch Ready outdoor lighting fixtures, but to also grow and evolve them over time,” said Vasanth Philomin, General Manager of Philips CityTouch. “We knew we needed more than just a simple hardware supplier, and Sierra Wireless offered both the expertise to help us get to market efficiently and the long-term vision we were looking for in a collaborative partner.”
“CityTouch LightWave offers an innovative approach to easily connect city lights for smart cities,” said Dan Schieler, Senior Vice President, OEM Solutions for Sierra Wireless. “The ability to monitor and manage street lighting can provide more reliable service, more efficient use of city funds, and a more environmentally-friendly solution. It’s a classic example of how connecting everyday city services can benefit both the municipal organization and its citizens
Source: Analysys Mason
This data from Analysys Mason shows the amount of machine-to-machine connected devices that currently exist, and how many are expected by 2023. Basically we're going from a little more than 100 million M2M devices in 2014 to about 700 million in 2023. But it's not just the amount of devices that's increasing. Revenue generated from M2M hit $10 billion in 2013, and is expected to reach $88 billion within the next 10 years.
And that's where Sierra Wireless comes in. This company is helping to usher in the Internet of Things with its wireless communication modules and cloud management services. The company currently boasts about 34% of the embedded cellular M2M module business right now, which can be found in everything from Tesla's 3G connected cars to Nespresso's coffee makers.
Sierra Wireless sits on about $150 million in cash, has a market cap of under $700 million, no debt and a P/E ratio of less than 11. In its first quarter 2014 earnings file, the company's revenue increased 19.5% year-over-year to $121.2 million. All in all, not too bad.
Alison Southwick has no position in any stocks mentioned. Eric Bleeker, CFA has no position in any stocks mentioned. The Motley Fool recommends Apple, Sierra Wireless, and Splunk. The Motley Fool owns shares of Apple and Sierra Wireless. Try any of our Foolish newsletter services free for 30 days.
Chris Umiastowski is the growth investor for Globe Investor’s Strategy Lab. Follow his contributions here and view his model portfolio here.
Sierra Wireless is another that has experienced huge performance for me, and I think I want to closely examine how much traction they're getting in what we call "M2M" (machine to machine), considering that's what they've bet on almost entirely.
a day ago
Tesla Motors has also grown a lot, and while I see huge upside long term (many many years from now), they need to execute almost perfectly to generate that upside. Thankfully I love spending a lot of time on that name, otherwise it would be quite a scary one.
a day ago
So Redknee and Sierra Wireless and Tesla are all current holdings. What about prospective new purchases?
In the energy segment, smart metering has been on the rise here in North America for quite some time, as readings from our meters are collected remotely because the meters are connected to the utility companies. At this time there are large global programs in Europe and Asia that are connecting meters in those parts of the world.
Legato and AirVantage take Sierra to the next level
Legato is a big differentiator for Sierra, as it reduces the time and cost for clients who are building their solutions. And AirVantage provides the company will ongoing service revenue, as Sierra sells AirVantage cloud services along with Legato.
Strong growth rates
The latest results, the first quarter of 2014, saw 19.5% revenue growth including acquisitions. Organic growth was also strong at 17%, and ahead of expectations. Furthermore, design wins, which are a good forward indicator, achieved a record in the first quarter, and over half of the wins were new programs. It will take some time to see the revenue stream from these wins, but they represent incremental revenue.
The company expects second-quarter revenue to increase 18% to $128 million to $131 million and gross margins of 31%+ accompany this growth rate.
Strong balance sheet enables future acquisitions
The company currently has $150 million in cash on its balance sheet, with no debt. The CEO has stated that it will use the this cash for M&A, focusing on the enterprise solutions business unit, which has higher gross margins, and is a more fragmented market.
Investors pay attention. Sierra is leading the charge in the pursuit of the M2M market, which is taking the technology world by storm. Any weakness in the share price should be viewed as a buying opportunity.
Excerpt: "Machine to machine communication is an industry that is growing fast. It is a fragmented market that Sierra Wireless (TSX: SW)(NASDAQ: SWIR) is well positioned to consolidate as we are at the beginning of a secular trend that is here to stay. Long term, it is reasonable to expect that most machines will be connected, as this provides financial, service and lifestyle benefits to users of these machines. Here’s why this market, and Sierra Wireless, are here to stay and are on the cusp of becoming increasingly relevant and increasingly profitable.
Exposure to a variety of industries to drive growth
This brings with it diversification as well as numerous growth drivers. In a recent analyst meeting, the CEO of the company reviewed the opportunities that he sees in the different segments.
The automotive sector will be a big growth driver for Sierra, as the penetration rate is currently quite low, at roughly 10%. According to forecasts, the market is set to grow at a CAGR of over 30% for the next five years, and to reach over $130 billion. In fact, there is no reason why we shouldn’t believe that 100% of cars will be connected in the future. Sierra sells to some of the biggest auto manufacturers, such as Chrysler, Toyota, Peugeot, Renault, and Nissan............
spot detection, self-parking, and collision avoidance systems. The company is still on shaky ground, and is burning through cash so quickly that it could be left with nothing in as little as 18 months, so it is definitely a high risk proposition at this time.
The healthcare industry also represents a potentially lucrative long-term opportunity for Sierra Wireless. While the business in this segment is small today, we can all agree that the idea of a “connected patient” sounds extremely beneficial to patients and doctors alike.
In the energy segment, smart metering has been on the rise here in North America for quite some time, as readings from our meters are collected remotely because the meters "
Sierra Wireless just filed a General Statement of acquisition of beneficial ownership
The following excerpt is from the company's filing:
5. Ownership of Five Percent or Less of a Class
Item 6. Ownership of More than Five Percent on Behalf of Another Person
Item 7. Identification and Classification of the Subsidiary Which Acquired the
Security being Reported on By the Parent Holding Company
Connor, Clark & Lunn Investment Management Ltd. ("Company")
is of the view that it and the investment companies and other
accounts that it manages are not acting as a "group" for the
purposes of section 13(d) under the Act
On NASDAQ Level 11 the dominant Market Maker is MASDAQ. Being the "axe man", the MM seems to have an agenda by being deceptive to hide his purpose. He has been "painting the tape" as SWIR'S closing price. For example, for today's closing price, 15 SWIR shares were sold at $.21 cent higher than the original closing price. SWIR shares certainly are being accumulated, obviously, without drawing too much attention.
It seems that a prudent strategy would be to accumulate as many shares as desired and hold and be patient with the "ups and downs" of SWIR's stock price.
When one considers that Jason said that SWIR has 34% of the global M2M market. Also, when one considers ,too, that according to CiSCO, IOT system will generate a M2M market in the Trillions of Dollars. In that regard, 34% of the M2M market will add a significant amount of dollars to SWIR's bottom line.
In addition, SWIR is the Global leader in the M2M market. It has legato the most complete solution for the internet connectivity at the most time saving and at the lowest cost solution.
I might add that SWIR has a goodly number of new design wins, a number of M2M partners and is an excellent position to take advantage of the growing M2M market.However, it is also prudent to do your own DD!
Part 2 of the excerpt: "On the other hand, In Motion provides mobile enterprise solutions and rugged in-vehicle mobile routers that are integrated with an advanced mobile-optimized security system. This will help Sierra benefit from connected vehicles going forward and strengthen its position in the transit and commercial fleet markets.
Product development moves
The company is investing heavily in Legato, its next-generation Linux-based platform that is intended to help developers create applications faster. Sierra will preinstall Legato on all new smart device modules. This move should drive the adoption of its products since Sierra believes that the Linux-based platform will be efficient and productive for developers in the long run.
Sierra is also boosting its product portfolio by launching a couple of new gateway products -- the AirLink LS300 and GX440. These are based on the Legato platform. Sierra also announced ES440, a gateway product designed specifically for branch office business continuity applications. The company is currently working on the commercial rollout of the product by shipping it to Europe.
The Internet of Things is gaining momentum
Sierra's product moves look interesting. The company is progressing in the right direction with these moves as the Internet of Things is gaining momentum. For example, Cisco recently injected $150 million into Internet of Things start-ups and accelerators through its venture capital arm, Cisco Investments. This investment arm of Cisco has a $2 billion portfolio to promote innovative and disruptive products.
The networking company is working to bring more devices online, which will lead to higher demand for machine-to-machine connectivity solutions that Sierra provides.
The bottom line
Looking at the huge growth potential, Sierra Wireless looks cheap at a trailing P/E of 10.5. The company's net profit margin also looks decent at 13% and Sierra has no debt on its balance sheet, while its total cash stands