R&D opens new markets

Article Excerpt

SIERRA WIRELESS $15.87 (Toronto symbol SW; TSINetwork Rating: Extra Risk) (604-231-1100; www.sierrawireless.com; Shares outstanding: 36.2 million; Market cap: $575.9 million; No dividends paid) faces challenges this year: sales in the automotive industry, a big market for the company, are slowing; and a continuing shortage of Intel chips has hurt the expansion of Internet of Things (IoT) connectivity in the mobile phone market. Still, as new auto systems come into production in mid-2019, Sierra should profit. As well, IoT connectivity for cloud-based networks (where users access software systems over the Internet) is expanding; new mobile 5G networks should also spur significant growth toward the end of this year. To remain competitive in these markets, the company continues to spend a high 12% of its revenue on research and development. Sierra also buys firms with technology and products that it can use for its existing business. Sierra Wireless is still a buy. buy. …

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.