shareholdersunite.com

Opportunities in smallcaps

shareholdersunite.com header image 4

Entries from June 2020

We’ll Pass On iQiyi Shares, At Least For Now

June 30th, 2020 · Comments Off on We’ll Pass On iQiyi Shares, At Least For Now

At first sight, the massive shift from linear to CTV and the large Chinese market seem like a mega opportunity for CTV players like iQiyi. However, at present the company can’t even produce positive gross margins and is bleeding cash, despite solid subscriber and ARPU growth. And it turns out that much of the future […]

[Read more →]

Tags: IQ

RADA Electronic Industries Emerges Unscathed From The Pandemic

June 30th, 2020 · Comments Off on RADA Electronic Industries Emerges Unscathed From The Pandemic

The company is growing even faster than expected, and after substantial investment, it has reached profitability sooner. The runway seems pretty clear, based on superior tech and a large market need with the pandemic not hobbling progress. With operational leverage kicking in, the finances are set to improve substantially in the coming quarters. The easy […]

[Read more →]

Tags: RADA

Semler Scientific: A Little Gem Of A Company

June 30th, 2020 · Comments Off on Semler Scientific: A Little Gem Of A Company

The company has simplified the testing of PAD, which is a marker for increased risk of stroke and cardiovascular disease. It runs on a capital light, license fee business model that generates high margins and substantial cash flows. The pandemic has interrupted the progress, but the company seems well placed to weather the storm. Source: […]

[Read more →]

Tags: SMLR

Intelligent Systems: The Pandemic Headwind Is Already Priced In

June 30th, 2020 · Comments Off on Intelligent Systems: The Pandemic Headwind Is Already Priced In

The company sprouts very capable and flexible card processing technology which has attracted a gilt-edged customer, enabling significant growth. However, the pandemic is slowing down that growth, although it remains to be seen by how much. Given the stellar margins, cash flow, balance sheet, and potential to land additional customers, we think that headwind has […]

[Read more →]

Tags: INS

Fulgent’s COVID-19 Tests Are Ramping Fast, But Their Other Tests Are Suffering

June 24th, 2020 · Comments Off on Fulgent’s COVID-19 Tests Are Ramping Fast, But Their Other Tests Are Suffering

The company’s strong growth is likely to suffer as a result of the pandemic, but we think this is only a temporary blip. The company rapidly adjusted and developed two COVID-19 tests for which demand is now ramping rapidly, and demand for their other tests will resume growth near term. The cost of rolling out […]

[Read more →]

Tags: FLGT

Digital Turbine Has More Room To Run

June 24th, 2020 · Comments Off on Digital Turbine Has More Room To Run

The company is marching on as if there is no pandemic, belying fears about the possible impact of soft device sales and a crash in the ad market. The company’s acquisition of Mobile Posse provides it with a recurring revenue stream, higher margins and plenty of revenue synergy opportunities to chase. Given the growth and […]

[Read more →]

Tags: APPS

Realogy Holdings Rebounds Strongly

June 24th, 2020 · Comments Off on Realogy Holdings Rebounds Strongly

The company was cruising in Q1 with double digit volume growth but then the pandemic struck taking volumes deeply negative. The company reacted swiftly with additional cost cutting and an accelerated shift in technology uses like virtual visits. While the shares are cheap and the market could very well recover rapidly, we won’t buy until […]

[Read more →]

Tags: RLGY

ShotSpotter Has Limited Upside Left Unless Growth Re-Accelerates

June 24th, 2020 · Comments Off on ShotSpotter Has Limited Upside Left Unless Growth Re-Accelerates

The company has an attractive business model that generates decent cash flow already and tiny profits. However, worries about the true size of its TAM, declining growth and emerging competition have cooled our enthusiasm from a few years back. The shares seem fairly fully valued to us at present, even if the impact of the […]

[Read more →]

Tags: SSTI

Lumentum: Surging Demand Meets Supply Constraints

June 13th, 2020 · Comments Off on Lumentum: Surging Demand Meets Supply Constraints

Demand for most of the company’s products is booming due to secular tailwinds. However, supply constraints and uncertainty about mobile phone demand are short-term negatives. Despite declining revenue as a result of these supply constraints, which will continue into Q4, financial performance was stellar, mostly on acquisition synergies. Given the amount of cash the company […]

[Read more →]

Tags: LITE

Intrusion’s New Product Could Be A Very Big Deal

June 13th, 2020 · Comments Off on Intrusion’s New Product Could Be A Very Big Deal

The company has introduced a new product called Shield, which is complementary to their existing products and mostly meant for the commercial market where Intrusion hardly has any presence. They hired an experienced new CEO with numerous contacts in his rolodex, which will come in handy. The new product is in addition to the existing […]

[Read more →]

Tags: INTZ