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Entries from July 2018

Investors Get Whiplashed At Nevro

July 31st, 2018 · Comments Off on Investors Get Whiplashed At Nevro

With the legal cloud and associated cost at least in part settled, shareholders can focus on the long-term growth perspective of the company. Despite slowing growth, we still think these offer solid chances for investors with a longer term horizon. But we should not be entirely blind to the risk of a further slowdown in […]

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Tags: NVRO

A Surprising Market Reaction To Netgear’s Arlo Spin-Off Pricing

July 31st, 2018 · Comments Off on A Surprising Market Reaction To Netgear’s Arlo Spin-Off Pricing

Netgear is selling roughly $200M or 11M+ shares in their IP security camera business Arlo. The markets were disappointed and sold off substantially. Since Netgear keeps 84% of Arlo after its IPO (and additional allocation), this alone is worth up to $1B if the IPO price holds up in the market. Given the post-IPO’s cash […]

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Tags: NTGR

Skyworks Deserves A Higher Multiple

July 31st, 2018 · Comments Off on Skyworks Deserves A Higher Multiple

The big boost to revenue growth will come with 5G and this is still at least a year off. Despite handset saturation, the company can still win content and their broad market segment is growing nicely. But the shares simply trade at too modest a multiple for such a well managed company, in our view. […]

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Tags: SWKS

Castlight’s Rally Is Fully Justified

July 31st, 2018 · Comments Off on Castlight’s Rally Is Fully Justified

The company let customers navigate a labyrinthine US healthcare system, which seems an excellent business proposition to us. It has really considerable expansion opportunities and it is consolidating its different platforms into one. This consolidation has depressed margins but that will start to change from Q2 onwards. Source: Castlight’s Rally Is Fully Justified – Castlight […]

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Tags: CSLT

CounterPath Seems To Have Found A Path To Growth

July 25th, 2018 · Comments Off on CounterPath Seems To Have Found A Path To Growth

The shares popped on a substantial order, and this came off the back of another substantial order a couple of weeks ago and good growth figures in Q3. But while its solutions are well accepted by big customers and partners, revenues are still surprisingly small and the company isn’t cash flow positive nor consistently profitable. […]

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Tags: CPAH

Crisis In China?

July 25th, 2018 · Comments Off on Crisis In China?

The Chinese economy is already slowing down, its stock market is crashing, its currency sinking and authorities are cracking down on leverage. And on top of that the US has imposed tariffs on some Chinese exports and is threatening to greatly escalate this program. Given the capital flight and the stock market crash, one is […]

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Tags: China

SHU Portfolio; And Another Buying Opportunity In Skechers

July 23rd, 2018 · Comments Off on SHU Portfolio; And Another Buying Opportunity In Skechers

Management prefers growth over margins, and they are right to do so and can easily invest in growth, given their extremely solid balance sheet and cash generation. Yet, they haven’t fulfilled their last year’s prediction that this year operational margins would recover, and investors are paying a price for that. There are also some risks […]

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Tags: SHU Portfolio · SKX

PTC’s Transition Is Paying Off

July 23rd, 2018 · Comments Off on PTC’s Transition Is Paying Off

The company is on track with its three strategic initiatives to accelerate growth, convert to a subscription model, and expand margins. In the process, the biggest gains are actually in cash flow, where the company is really doing well with near triple-digit growth. However, the expected acceleration in margin improvement and cash flow next year […]

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Tags: PTC

BioLife Is Going Parabolic

July 20th, 2018 · Comments Off on BioLife Is Going Parabolic

Terrific acceleration at BioLife and it’s no surprise that the share price has gone parabolic. Revenue growth is accelerating, gross margins are increasing, there is a great deal of operational leverage and the company generates cash. Unfortunately, valuation is already such that we can’t advice buying at this time. Source: BioLife Is Going Parabolic – […]

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Tags: BLFS

Appian Still Has Some Way To Go 

July 20th, 2018 · Comments Off on Appian Still Has Some Way To Go 

The company grows at an impressive pace and we believe this is likely to continue as there are plenty of opportunities to add revenue streams. We are also not too worried about the competition, the company could even increase prices. However, the shares are fully valued, there is virtually no operational leverage, the cash bleed […]

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Tags: APPN