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Entries from November 2017

Cypress, As Good As It Gets?

November 21st, 2017 · No Comments

Cypress is executing well on its transformation towards higher growing markets in the IoT sector and more sophisticated solutions. They also have more temporary tailwinds in the form of increasing capacity utilization, USB-C ramp and the memory pricing environment. We think the shares still have something left in the tank. Source: Cypress, As Good As […]

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Tags: CY

Madalena Energy Has A Window To Create A Virtuous Cycle

November 21st, 2017 · No Comments

Our recent assessment was too pessimistic. Since then, production and prices are recovering and the company has become cash flow positive. We believe the company has a window to produce a virtuous cycle where cash flow from productive resources can fund much of the development of its promising unconventional resources. It’s the only small company […]

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Tags: MVN

SHU Portfolio: JD.Com – Fast Growth, Increasing Margins

November 21st, 2017 · No Comments

The shares of JD.com are plagued by bouts of worries about increasing competition. We believe that competition has always been a feature of the Chinese market, and JD.com has been thriving nevertheless. So we suggest investors concentrate more on growing revenues and margins, and the fairly modest value of the shares. Source: SHU Portfolio: JD.Com […]

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Tags: JD · SHU Portfolio

The Brink: Leverage Out Of Thin Air

November 20th, 2017 · No Comments

The Brink’s stock has had a terrific year, which is fairly remarkable as revenue growth in most of its markets is fairly flat. Not so in high cash societies in Latin America and Mexico, where most of the growth comes from. However, the company is able to create significant leverage almost out of thin air, […]

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Tags: BCO

Adesto A Play On The IoT And Memory Boom

November 20th, 2017 · No Comments

A maker of specialist memory that is very well suited to situations where very low energy is available, like many IoT applications. The memory is also able to withstand harsh conditions, broadening its market appeal. The company looks like turning into profitability. Source: Adesto A Play On The IoT And Memory Boom – Adesto Technologies […]

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Tags: IOTS

Applied Opto: Competitive Advantage

November 20th, 2017 · No Comments

In terms of margins and inventories, Applied Opto has escaped most of the damage done by the unforeseen crash in demand from its top customer. In a presentation to investors, the CEO went deeper into their manufacturing model and the sources of their competitive advantage. And according to us, there is plenty of evidence not […]

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Tags: AAOI

SHU Speculative Corner; Inseego Is Turning The Corner

November 16th, 2017 · No Comments

One company we bought for our corner with small speculative stocks is showing progress and could very well turn to profitability next year. The shares are range bound, but could break out when the progress becomes more visible. The just published quarterly figures were marred by one-off events hiding the progress from view. Source: SHU […]

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Tags: INSG

SHU Portfolio: 22nd Century Group Could Join The Ranks Of Big Tobacco

November 16th, 2017 · No Comments

A long and interesting third quarter conference call has left us with considerable optimism about one of our small and risky stocks. The big change is the FDA’s intent to regulate nicotine levels, which put the company at a potentially enviable market position. This is not going to happen overnight, and it’s not a done […]

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Tags: xxii

‘It Sounds Like Your Shorts Are Getting Nervous’

November 16th, 2017 · No Comments

The title quote is from CEO Pera during the Q1CC and conveyed his confidence and the stock price recovery. We think most of these issues are settled now and we can concentrate on company performance. After having conquered several markets and moving up the value chain, the next challenge is to improve operations. Source: ‘It […]

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Tags: UBNT

Fabrinet Deserves A Higher Multiple

November 15th, 2017 · No Comments

The company’s shares sell for very low multiples, and we think this is at least in part unwarranted. It is perceived as a low margin contract manufacturer exposed to the vagaries of the optical communications market. But what we find is a company with solid growth and earnings instead. Source: Fabrinet Deserves A Higher Multiple […]

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Tags: FN