shareholdersunite.com

Opportunities in smallcaps

shareholdersunite.com header image 4

Entries from August 2018

LogMeIn Scores An Own Goal

August 9th, 2018 · No Comments

The company was plagued by what management described as execution problems and the shares sold off big time. While the direct financial impact doesn’t seem to warrant the extent of the share price decline, this exposed the possibility of wider competitive issues. Much of its business is facing tough competition in slow growing markets and […]

[Read more →]

Tags: LOGM

SunPower Concentrates On Its Core Competencies… We Applaud

August 9th, 2018 · No Comments

Finally SunPower is actually choosing its markets according to its core competencies, those in efficient panels. As a result, the company is exiting a number of markets and selling three businesses. We applaud this move. This should lead to significant improvements, even if the financial contours of these are not very clear yet. Source: SunPower […]

[Read more →]

Tags: SPWR

Recovery At Acacia

August 9th, 2018 · No Comments

Better times are ahead for Acacia, once the highflyer in the optical network sector. The company had been plagued by a slowdown of Chinese demand and lately also by the ZTE ban, but these headwinds have turned. We see a stock recovery following this, unless the trade spat between China and the US escalates. Source: […]

[Read more →]

Tags: ACIA

Temporary Stagnation At Cirrus Logic

August 6th, 2018 · No Comments

Revenue decline is pretty ugly due to saturation in the smartphone market, but management promises growth returns in 2020. The company has to make increased inroads in the Android space to make up for the stagnation; it is succeeding, but not fast enough. Longer term, things look better with a couple of new products and […]

[Read more →]

Tags: CRUS

Electro Scientific Was Priced For A Severe Downturn That Never Happened

August 6th, 2018 · No Comments

We have been amazed with the price decline in Electro Scientific for some time, as we didn’t see the severe downturn that was being priced in. And as it turns out, the company just keeps on humming along, raking in large amounts of cash flow in the process. In the meantime, it’s going to enter […]

[Read more →]

Tags: ESIO

Cypress Impresses

August 6th, 2018 · No Comments

The Cypress 3.0 strategy gives the company a sensible direction and management’s execution so far impresses once again. Some of the company’s products are slowly getting a more ingrained position in growth markets. We think the shares are not expensive, especially given the dividend yield and massive cash flow. Source: Cypress Impresses – Cypress Semiconductor […]

[Read more →]

Tags: CY

All That New Technology, Why Doesn’t It Boost Productivity Growth?

August 6th, 2018 · No Comments

It seems that we’re once again in a Solow Paradox world where we see incredible new tech all around us, apart from the productivity statistics. We look at three different explanations, not all of which we find convincing. At a micro level, change is happening and investors can seek out companies with high investments in […]

[Read more →]

Tags: Economy

Softness In Sogou Offers A Buying Opportunity

August 4th, 2018 · No Comments

Sogou is rightly focusing on building core competencies (AI algorithms, most notably in speech and translation) and leveraging these. It also has a smart strategy for differentiating its search engine. We think the share price declines, most of them on some temporary factors, produce a buying opportunity. Source: Softness In Sogou Offers A Buying Opportunity […]

[Read more →]

Tags: SOGO

A New, New Normal For The U.S. Economy?

August 4th, 2018 · No Comments

Mohammed El-Erian has declared that the US alone has escaped the “new normal,” a concept he coined in 2009 to predict subdued growth for the post-financial crisis economies. Now that the US has reached “escape velocity” and people start coming back to the labor market, the Fed can keep on raising rates. We will argue […]

[Read more →]

Tags: Economy

Atlassian Is Priced For Perfection

August 4th, 2018 · No Comments

Atlassian is priced to perfection, but so far that’s what shareholders are getting in terms of execution. The company is relentlessly focused on customer needs, which drive an out-sized R&D outfit that delivers, and some smart strategic decision-making. The high R&D expenditures prevent much operational leverage, but the company produces quite a bit of free […]

[Read more →]

Tags: TEAM