Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, August 21, 2015

Article Excerpt

SIERRA WIRELESS, $27.31, symbol SW on Toronto, makes modules and software that connect products—including smart electricity meters and vehicles—to the Internet. This is known as machine to machine, or more generally as the Internet of Things. In the three months ended June 30, 2015, the company’s revenue rose 17.0%, to a record $158.0 million from $135.0 million a year earlier (all figures except share price in U.S. dollars). Sierra continues to add new clients. Excluding one-time items, the company earned $8.6 million, or $0.26 a share, compared to just $2.6 million, or $0.08, a year earlier. Sierra sold more high-margin cloud-based services to large customers during the latest quarter. It also cut costs. To stay ahead of the competition, Sierra spends a high 12% of its revenue on research. It’s also making acquisitions, but it’s focusing on smaller software firms and companies with specific expertise in connecting machines. The company holds cash of $96.5 million, or $3.00 a share, and has low debt. The…

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