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Entries from February 2020

LiveRamp’s Day In The Sun Will Come

February 14th, 2020 · No Comments

The company is growing fast, and its core business is likely to benefit from Google’s phasing out of cookies. Its newer initiatives like CTV and its data market are growing even faster, and the company is benefiting from margin expansion and is already generating cash. Despite all the good news and the iron-clad balance sheet, […]

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Tags: RAMP

Majesco: Progress Everywhere But The Share Price

February 14th, 2020 · No Comments

Despite having its most profitable quarter in years, the company’s shares are lingering. While progress is a little slower than we hoped, the company is improving and its cloud subscription revenue is growing fast, albeit from a small base. We think investors are under-appreciating the progress that the company has been making. Source: Majesco: Progress […]

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Tags: MJCO

New Oriental Education Profits Jump On Tremendous Leverage

February 14th, 2020 · No Comments

The company seems set for 20%-30% growth for some time to come as it is taking market share from smaller players. The company is enjoying a leverage bonanza and management argues there is more to come while cash is already pouring in. The only cloud on the horizon is the coronavirus outbreak, which is likely […]

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Tags: EDU

Boom Time At Lumentum

February 14th, 2020 · No Comments

With basically all its segments booming, the company is experiencing the best of times. While Q3 will be seasonally weak in lasers and 3D-sensing, margins keep on expanding on product leadership and larger synergies from the Oclaro acquisition. Q3 will experience a negative $15M-20M revenue impact due to the coronavirus outbreak, but the company is […]

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Tags: LITE

Tentative Sign Of A Turnaround At Usio Inc.

February 7th, 2020 · No Comments

The company’s operational performance has been on a long-winded gradual decline, and so has the share price. There are signs emerging that this could come to an end, but these signs are quite tentative. So it will take investors with an outsized risk appetite to step in here, others might want to wait for confirmation […]

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Tags: USIO

CVD Equipment Delayed Rally On Orders And Material Plants

February 7th, 2020 · No Comments

The company’s shares have been on a prolonged decline that is suddenly reversing in January and the shares are 70%+ off the recent lows. This seems to be a belated reaction to more favorable Q3 figures with a revival in orders, margin recovery, and materials plants getting ready for production. It will take a while […]

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Tags: CVV

The Sell-Off In Napco Security Technologies Is Overdone

February 7th, 2020 · No Comments

The shares sold off after disappointing hardware sales in Q2, but the worries seem very overdone to us. The company’s biggest distributor is running down inventory, as it’s in the process of being acquired. This will reverse in the quarters to come. Meanwhile, the rapid rise in recurring revenue continues unabated, as does the associated […]

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Tags: NSSC

Misplaced Market Euphoria

February 5th, 2020 · No Comments

There is still a lot we don’t know about the spread of the coronavirus, and with that, the economic impact of the measures aimed to contain it. With large parts of the second-largest economy in lockdown, this is going to produce a significant shock to the Chinese and, by extension, the world economy. Nobody knows […]

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Tags: The Markets

Increased Momentum At Agilysys

February 5th, 2020 · No Comments

Revenue from professional services is accelerating, and this tends to be a leading indicator for subscription revenues. The company increasing its up-selling and cross-selling potential through innovation and adding modules, and is experiencing significant operational leverage. So, we think that after some digestion of recent gains, the shares have further to run. Source: Increased Momentum […]

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Tags: AGYS

Casa Systems: Waiting For Cable CapEx To Recover

February 5th, 2020 · No Comments

The shares of Casa Systems have slumped 80%+ on declining cable CapEx. We see chances for a recovery in the shares preceding a recovery in financial results. The wait is on for a CapEx recovery, but that is bound to happen sooner or later, even if it could take multiple quarters. Source: Casa Systems: Waiting […]

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Tags: CASA