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Sandvine Corp. (SVC.TO)

BUY

(Market Call Minute) Got some good operating momentum and he is looking at it for the long side.

PAST TOP PICK

(A Top Pick Jan 8/13. Up 30.52%.) Deep packet inspections. Likes leaders that have high barriers to entry. This one is probably the best in the world. Slip ups over the last couple of years are largely behind them.

TOP PICK

(Top Pick Jan 07/13, Up 36.23%) Will help track you by cell phone so they can send you a coupon when you enter the store.

BUY

(Market Call Minute) Big history of messing things up and missing earnings.

WATCH

Operated for a long time with very high expenses and effectively making no money. In an industry where growth rates have been pretty strong they plateaued for the last year while others did well. Feels the industry has been transitioning away from monitoring to managing traffic and linking them back in to offering certain services. Now offering a more full service and less of a commodity service. Seem to be getting back on track. A little early to get too excited. Have a lot of cash and a good balance sheet.

SELL ON STRENGTH

They are so dependent on big contracts and the space is so competitive and so tricky. He would sell it if it got up to $2.

TOP PICK

Thinks there is a return to growth in the telecom equipment sector and this company will be a beneficiary. Had a number of issues last year. Cheap at 1.2X sales. Gaining market share after a few missteps.

SELL
(Market Call Minute.) There is a great need for their kind of product. Lack of sales has been frustrating.
COMMENT
Very small cap of about $100 million. Basically has the lead position in deep packet inspection. Has about $0.77 a share in cash giving a lot of downside protection. Have been winning contracts. Could be a take out candidate.
BUY
Earnings will go from 4 to 6 cents. Recent drop was because company said earnings weren’t as expected. The coming quarter is expected to be down by 30%. Next year earnings should grow by 25%. 19 PE. Thinks company’s products will continue to be in demand.
COMMENT
Reads contents of packets of information on networks to allocate them to certain areas. Looking at opportunities in Europe. Increasing competition in the DPI space and their market opportunities may be shrinking.
BUY
Good opportunity for solutions on cell phone attacking cell phone towers.
RISKY
Deep packet inspection for cable internet in order to smooth information flow. Also looking at potential applications in wireless.
TOP PICK
Has a history of selling off and making a big base formation. Started base building in early 2008. All the sellers get out because they are aggravated and new people get in. Very speculative.
WATCH
(Market Call Minute.) Expecting a big announcement at 2pm. Government is supposed to be giving them money or recognize them as one of the technology leaders.
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