VCM operates as a provider of hardware and software solutions for broadband access, content delivery, and telematics. Growth has been quite challenging in recent years, as the company experienced two years in a row of negative growth. With that said, the most recent quarters show a reacceleration in topline growth, which grew 4% (compared to double-digit declines in previous quarters). As a result, the market reacted positively to it. The balance sheet is strong, VCM allocated capital mostly to fund organic growth and paying dividends.
It is still early to tell whether this time growth is sustainable, but it is surely worth putting names like this on the watchlist. We would be more comfortable adding to VCM if growth is sustained over the next few quarters.