Topic: How To Invest

Stock Pickers Digest Hotline – Friday, December 2, 2016

Article Excerpt

SIERRA WIRELESS INC., $20.30, symbol SW on Toronto, makes digital components that connect products, including smart electricity meters and vehicles, to the Internet. This is known as machine-to-machine networking, or the Internet of Things. In the three months ended September 30, 2016, the company made sales of $153.6 million. That’s a slight drop from $154.6 million a year earlier (all figures except share price in U.S. dollars). In the latest quarter, excluding one-time items, Sierra earned $4.1 million, or $0.13 a share. That’s down 44.6% from $7.4 million, or $0.23, a year earlier. The company is preparing to launch 40 new products. That’s holding back sales and profits as customers wait on the new components before placing orders. To stay ahead of competitors, Sierra devotes a high 12% of its revenue to research. It holds cash of $112.1 million, or $3.50 a share, and has low debt. The stock trades at 20.9 times forecast 2017 earnings of $0.73 U.S. a share. That’s somewhat high, but…