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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: re: SW Sierra Wireless

Lots of positive things being reported recently. Has anything you have seen as of late generated additional optimism regarding SW moving forward since your July 2 answer? And would you consider SW a buy or "hold off and wait and see?" SW bucking the trend up 5.89% so far today.

Thanks for all you do

Gord
Read Answer Asked by Gord on August 05, 2014
Q: SW-T Sierra Wireless

Looks like Investors didn't like 2Q guidance and are carrying some concerns as you said regarding lighter than expected margins.

I still like SW and the Sector plus am looking for some opportunities to buy low and sell high... which tends to be the opposite of what most of us do... who knows why...

Could you give me an idea if you were going to add a 2% portfolio position in SW, what price you would target - be comfortable with?

Thanks for all you do.

Gord
Read Answer Asked by Gord on May 07, 2014
Q: SW... Sierra Wireless

For 5i & Family... with a question at the end...

SW has had very good "recent" financial Performance and 2014 Q1 will be reported May 1. Cisco believes the M2M market will be worth (get this) $19 Trillion by 2020. SW has made some very good acquisitions as of late and last reported EBITDA grew 48% to $18+ mm.

They have developed a number of new (and unique) products including AirVantage which is a cloud service enabling OEM's to run their applications directly on the module reducing overall time and cost significantly. And they have released the world's first 4G embedded module designed specifically for the automotive industry. In addition, they have recently introduced ES440 designed specifically for Branch Office Continuity.

Balance sheet looks strong with lots of cash, $18 mm in operating cash flow and stock is reported as relatively cheap at a trailing P/E of less than 12 despite a stock increase of 90% in the past year.

As I reported earlier this year, I went by and visited the Head Office and saw a very busy environment with people running all over the place, and lots of suppliers/customers in the lobby. SW has significant Blue Chip customers and has landed many new customer design wins.

I am wondering why I shouldn't be investing a 5% position is SW? Is this all too good to be true? Am I dreaming if I think I am looking at a $100 stock in 2 years or less?

Really look forward to hearing your thoughts

Thanks Peter & Company

Gord
Read Answer Asked by Gord on April 20, 2014
Q: Hello Peter and team;
I keep reading about the the next big thing: The internet of everything i.e. embedded wireless modules--I think also referred to as M2M and how it will connect the world just like the internet did. I would like to invest early for the future of this trend. What company would be at the forefront of this technology? Would it be Sierra Wireless (SW) OR PCN Technology (PCN) or even CSCO. Thanks you for your insight. First thing I turn on every morning is 5i research questions and answers.
Read Answer Asked by Helen on April 02, 2014
Q: re CA:SW SWIR - M2M & IofE.... for 5i research & family

Went by Sierra Wireless head office in Richmond BC. Beautiful very large building. Very busy place with tons of security. Sat in large lobby and talked with a couple of suppliers waiting to meet with SW contacts. Each said SW was enjoying a very positive attitude with lots going on in building relationships & R&D. And they appear to be working with all the big players in the M2M EofI technology sector including Cisco.

Technicals for SWIR were very flat between Jan 05 & Aug 2013. Since Aug however stock has seen a 59% increase and in the past month a 21% upside to where it sits today at $25.42. I am wondering if this chart is not going to look incredibly good over the next 2 - 5 years and beyond.

In previous reports 5i has mentioned a bit of a checkered past regarding performance for SW but lots of cash on hand. You also mentioned it isn't cheap @ 30+ times earnings. But I can't help thinking M2M technology makes incredible sense and is something we are going to see take off in a big way in the not so distant future.

Does the 5i team have any idea when that future may be? And what about a bigger player coming in and taking SW out... is that something of a possibility?

Thanks 5i... appreciate the forum big time
Read Answer Asked by Gord on March 14, 2014
Q: Sierra Wireless (SW-T)had a stellar year in 2013 but the forecast for 2014 in the Q4 report does not seem as rosy. The report noted that "We expect gross margin to decrease slightly from Q4, 2013, due to a shift in product mix and we expect operating expenses to increase as a result of higher new product certification costs, investment in sales and marketing capabilities, and a full quarter of expenses related to the AnyDATA acquired business". Does this sound like a temporary hiccup and, if so, is this a buying opportunity? As always, I look forward to your reply.
Read Answer Asked by richard on February 11, 2014
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