Search Results for "swir"

SWIR Q2 08 Results

By: ispeculatornew | Date posted: 07.29.2008 (9:32 pm)

SWIR- Sierra Wireless (NASDAQ) – (Closing Price – $12.48)

Sierra Wireless reported second quarter results on July 23 and reported another good quarter. However, the company issued guidance below expectations and the stock price took quite a hit.

Sierra Wireless reported revenue of 156 million and diluted EPS of 0.35. Revenue and EPS both improved substantially year over year. For Q3 Sierra Wireless gave guidance for revenue of 140 million and diluted EPS of 0.27. This was below analysts’ expectations of revenue of 157.2 million and EPS of 0.37. Consequently, the stock price sold-off.

However, I think the sell-off was overdone and investors are currently pricing in a lot of weakness into the stock price. Sierra Wireless is almost trading at a single digit forward PE which is fairly absurd for a growing company. (more…)

SWIR Announces Acquisition of CradlePoint and Share Buyback

By: ispeculatornew | Date posted: 04.08.2008 (9:09 pm)

SWIR – Sierra Wireless (NASDAQ) – (Closing Price – $18.43)  

Yesterday, Sierra Wireless announced it agreed to buy privately held CradlePoint Inc, which develops and supplies wireless networking products, in a cash and stock deal worth about 30.2 million.

The company expects the deal to add to earnings by the end of 2008, excluding restructuring and integration costs. The deal is expected to close in July.

Two analysts who follow Sierra Wireless said positive comments about the acquisition.

The company also announced that it would seek regulatory approval to purchase up to 1.56 million shares of its common stock on the Toronto Stock Exchange and the NASDAQ, representing approximately 5% of the common shares outstanding.

If the approval goes through the share buyback will obviously be a positive development because the share count will go down and EPS will increase. The potential share buyback also shows that Sierra Wireless feels its stock is undervalued.

These announcements provide two more positive reasons for owning Sierra Wireless.

Disclaimer: I have no position in SWIR.

SWIR – Q1 2007 Earnings

By: ispeculatornew | Date posted: 04.26.2007 (12:00 am)

SWIR – Sierra Wireless (Nasdaq) (Closing Price – $16.77)

Sierra Wireless reported outstanding first quarter results today and I think the share price is going to make some huge gains in the next few months.

Sierra Wireless reported revenues of 85.43 million which was a huge jump sequentially and almost double what they made in the corresponding quarter last year. Sierra came in with earnings of 0.20 per diluted share which doubled what they earned sequentially and year over year. They also posted impressive guidance for the second quarter: revenues of 92 million and earnings of 0.21. (more…)

SWIR – Initiation of Buy Recommendation

By: ispeculatornew | Date posted: 03.26.2007 (12:00 am)

SWIR – Sierra Wireless (Nasdaq) (Closing Price – $15.44) 

There aren’t many stocks in the market that I like right now but Sierra Wireless is one that I like a lot.

Sierra Wireless makes wireless laptop cards and the demand for their products is starting to pick up. A couple of quarters ago Sierra Wireless had earnings of 0.04 on revenues of 52.54 million. Last quarter they had earnings of 0.09 on revenues of 68.30 million. This quarter they have given earnings guidance of 0.12 per share on revenues of 82 million. As you can see Sierra’s financial numbers are increasing very nicely. (more…)

Google trying to get US government support?

By: ispeculatornew | Date posted: 05.28.2010 (3:21 am)

As Google has grown more important in the digital economy, it is poised to encounter an increasing amount of interactions with the world governments. Already, Google has had confrontations with the Vietnamese and Chinese governments this year and is now at odds with the European governments over privacy issues. Google is also battling on many fronts including operating systems for pc’s, phones, selling digital books, computer digital drives, etc. What does all of this mean? It means that increasingly, Google has to discuss and negotiate with the US government. Having Washington by its side on domestic but also international matters is maybe not priceless but it’s not that far. Imagine if Hillary Clinton and the US government had not demonstrated support for Google in its battle with China? I’m not saying there would have been a war but things certainly could have turned a lot more nasty.

How Google is trying to get Washington and States on its side

Lobbying: As much as Google would like to find an original “Non-Evil” way to get support at the government, the best way to get it, as it has been for a very long time, is to spend money lobbeying. Google has certainly been very active. Compared to last year, Google increased its lobbying spending 57% to $1.3 million.

How is it spending it? According to this interesting article from the Washington Post, not so conventionally. I’m not certain why Google chooses to take this approach about privacy and it certainly has not helped gather support of the government. Google has always been about finding a smarter way. When it did its Ipo, Google was not conventional and the way it is dealing with bureaucracy has also been quite innovative.

Public Relations (PR):

This week, Google published a comprehensive report about its role in the US economy, broken down state by state. It gives itself credit for $54 billion of economic activity and even breaks down the calculations by state in the report is published. That is quite impressive, very interesting and very useful…for Google. With this report, Google can go to any business or individual and prove why it should be “helped”, “protected”… Who knows how exactly it will be used but I would say that it is probably a good PR move. I would imagine that most companies would like to publish a report but deem it too much of an effort. Of course, Google being the king of information that it is, the effort required is much smaller.

The latest efforts by Google to do well (and gain public appreciation) is in the environment field. Sure, building wind facilities could be cost efficient but there is certainly more to that story. Do you think that its recent announcement to be a carbon neutral company is only about “Doing no evil”? Today, Google joined environmental groups asking for laws to be passed regulating carbon emission. I do like Google, I really do. But I don’t think these are mainly about being a “good company”. There is nothing wrong with that of course, far from it, but I think it’s important to note how much importance Google is currently giving to the Government and Public support.

Why do it? (reverse negative feelings? political power?, customer loyalty?)

So you get the point, Google is doing its best to be in the best possible light for both the general public and the government, here are the reasons I see behind it:

General Branding: Let’s face it, Google is a brand loved around the world and it certainly has its benefits
Avoid government interventions; Microsoft and now Apple have faced issues regarding possible abuse of power, Google is doing its best to avoid being the next target
Public battles: Google has taken sides in a few battles including for example net neutrality. The better the perception of the company, the more chances its voice will be heard loud
International support: As Google continues to struggle with quite a few foreign governments, support from the US government is very valuable
Acquisition power: Google is very powerful and when it makes acquisitions, the chance that they end up being blocked is smaller if it does not seem “evil”
Others: let’s face it, the guys running Google are very smart and they probably have quite a few ideas in mind when they do such PR campaigns

New trade: Google(GOOG) – Tree(TREE)

By: ispeculatornew | Date posted: 12.14.2009 (5:00 am)

To many, this would seem like picking on Barry Diller. Just a few days after closing off a trade on Google vs IAC Interactive, I am at it again, going long on Google against a company that was spun off from IACI. Tree.com was the consumer credit branch of the company once owned by Barry Diller, the one that promoted loans, mortgages, etc, etc. So you can imagine how difficult conditions have been in the past year or so for such a company.

As I closed off my trade on Google, I looked at charts and data and felt like there was still a lot of upside, so I wanted to get right back in. And what better way than to do it against a company that just increased 10% in its last day of trading, Tree.com. You can take a look at the announcement done by management that caused the big rise here. Basically, guidance for the company is higher than analysts had expected.

I don’t buy it, I still put a lot more faith in a company like Google in a tough environment like the one we currently are experiencing.

Take a look at graphs for both companies:

goog

tree

I just think that Tree will have a lot more trouble than anticipated. Just take a look at the traffic on LendingTree.com, probably their most known and valuable property…traffic is down over 20%.. not a big surprise.

lendingtree-com_uv_1y

Stop being so naive…

By: ispeculatornew | Date posted: 04.08.2009 (4:00 am)

swirlingRight now, in Quebec, there is outrage because of a major loss by the main state pension fund, the CDPQ (Caisse Depot Placement Quebec), a loss of $40 billions over the 2008 fiscal year. Compared to other pension funds, the CDPQ severely underperformed its competitors and this has rightfully brought up debates about how it is being managed, bonus, compensation, etc. All of these things are reasonable and fair and with such a dismal performance, you would expect every rock to be turned in order to find not only what caused this underperformance but also the other problems that exist in the organization. Up to now, I’m fine with everything and can understand the outrage from citizens regarding the loss…

But then, one night I open the tv and see a tv broadcast where the news is about the CDPQ spending millions of dollars in hockey and show tickets for their clients. They then proceed to speak with “specialists”, business teachers that have courses about ethics, corporate governance, etc. Those “specialists” said that in such a context, CDPQ should not be spending any money on hockey tickets; that it is not part of what they are mandated to do.

That is when I feel outrage. It just seems like such an easy point to make, especially when you are speaking to the general population, where most people are far removed from the field of finance. It’s an easy story to break and you would of course have the support of the population if you tried to block such expenses but it would also be dead wrong to do so.

Fact is that in finance, as in other fields, generally salesmen provide many services to their clients. Great meals at expensive restaurants, bottles of wine, gifts, sport tickets, etc, etc. I’m not saying it’s the only thing that matters of course, but it counts. Generally, a client will prefer going with a seller that will take him out for a day of golf, all expenses included, than another one that provides the same service without the nice day under the sun. You might not like it, but that is how things are done. And they are done like this all over the world in many industries. So while I cannot of course say that CDPQ is using its sport tickets in an optimal manner, it is very simplistic to say that they should not buy any. Anyone saying that would simply not know the business.

In theory, the best service and lowest cost will get you all the clients you can handle. That is what you will also learn in school. But try that theory out for a few years, I’ll be giving out a good (as opposed to excellent) service, at a fair price, but providing my clients with hockey tickets, we’ll just have to see who comes up with more sales…

8×8 Q1 09 Results

By: ispeculatornew | Date posted: 08.10.2008 (3:45 pm)

EGHT – 8×8 Inc. (NASDAQ) – (Closing Price on Friday 8/8/08 – $1.09)  

8×8 reported first quarter results for 2009 on July 31 and reported moderate results.

8×8 came in with revenue of 16.28 million and diluted EPS (earnings per share) of 0.02. Revenue was up 10% year over year but was essentially flat from the prior quarter. In the conference call it was mentioned that licensing revenue was impacted by licensing deals that were pushed into Q2. Diluted EPS increased by a penny both year over year and sequentially.

8×8 announced it added 1053 new business customers and that business service revenue grew to 56% of total revenue compared to just 44% last year. Business revenue continues to grow which is offsetting the decline in residential and video revenue. (more…)

Free Stock Picks – July Report Continued

By: ispeculatornew | Date posted: 07.08.2008 (10:04 pm)

FEED – AgFeed (NASDAQ)

AgFeed is down quite a bit from my initial recommendation but I think this has more to do with the weakness in Chinese stocks and the stock market in general than it does with AgFeed. Unfortunately, the behavior of most individual Chinese stocks is heavily tied to how Chinese stocks as a group are trading. Since Chinese stocks are out of favor right now this is dragging on AgFeed.

However, AgFeed has given and reaffirmed very impressive guidance and I find it hard to believe that the stock price won’t jump right back up if the company meets its numbers in Q2. I think the selling in AgFeed is overdone and I am going to recommend to average down and buy some more (I am going to use today’s closing price for calculation purposes). (more…)

Free Stock Picks – June Report

By: ispeculatornew | Date posted: 06.02.2008 (8:02 pm)

AIXG – Aixtron (NASDAQ)
Aixtron reported Q1 results on May 8 and reported flat results. However, the company reaffirmed guidance which means the company should report considerable improvement in future quarters. I would continue to hold your shares.

CAAS – China Automotive Systems (NASDAQ)
The stock price of China Automotive Systems had a big jump after the company released impressive Q1 results but has sold off since. I think the stock price of CAAS has the potential to go much higher so I would be patient and continue to hold.

DTLK – Datalink (NASDAQ)
There has not been any major news released about Datalink. A positive article was written about the company though. I still rate the company a hold. (more…)