Christine Hughes BSM Technologies GPS-T PAST TOP PICK Sep 17, 2014

They acquired a couple of different companies to offer a broad product offering to rail. Earnings growth is expected to decline and then rebound. They are spending money to expand into the US. You have a fairly fully valued stock.

Basically they help to figure out where your stuff is. Their specialty is in Canada and moving down into the US, is in the rail industry. A lot of it has been in the supply trucks that run on the rail system. Their challenge has been that they have spent a ton of money in expanding. Analysts are wondering when there will be a return on that money. Earnings forecasts are fairly modest at $.01 for 2016, and are forecasted to grow by $.02. $.02 against an $0.84 stock price gives you a 34 PE multiple, and the company is not free cash flow positive.

(Market Call Minute.) Not really that keen on this. They are a hardware company masquerading as a SASE and are just selling as a commodity.

A Canadian software/hardware company which operates in the telematics space. Very much a secular growth story. They provide hardware which goes into trucks, such as UPS, and tracks how efficient a truck is being on fuel, following its routes correctly, as well as safety things like seatbelts being buckled, etc. Sends the data back to the head office to assess. There is a lot of competition, but they operate in several niches that insulates them from the general competition. (Analysts’ price target is $2.00)

GPS hardware to assets on wheels, such as trains. It allows companies to track movements to generate efficiencies. They’ve gone through 2 acquisitions, and have pretty much doubled their customer base. He likes the growth. There is a bit of overhang potential where they have about 10,000 customers that are on the 2G network right now, which are expiring. There is a risk they don’t renew those customers, but the company has well telegraphed that. Longer-term, he likes the company. A lot of growth potential behind it. There is an insider investor behind it that is astute at selling companies like this, so they may be getting set up for some bigger special opportunity type of trades. This is worth owning.

(Top Pick Feb 28/17, Up 7%) There is some execution risk still, but he thinks they will eventually get there. The real big driver for this is data capture. There is a huge secular demand growth in North America. The penetration rate is going to double over the next couple of years. They have enough scale now. It could get taken out over the next 2 years.

Telemetric business. They have an activist shareholder involved. They have been meeting expectations and working on converting some clients that fell off because of the loss of a certain cellular signal. He thinks at some point they will be taken out.

He likes this company and has recently started covering it. They have a hedge fund that is backing and supporting them. Essentially, the company does GPS technologies in fleets, etc. They’ve cited a number of large companies that could be coming on board down the road. Growing at a pretty good clip. If you are patient with this, it will do well for you.

Uses their GPS system to figure out where trains are, and to more accurately schedule trains and service vehicles for people working on the rails. Reported on Aug 14 and earnings were down 10%. That was against a 32% increase in sales. In the coming quarter, earnings are expected to be down 75% year-over-year. Great technology. He is still waiting for the traction that is expected.