Ted Macklin Sierra Wireless SW-T DON'T BUY Feb 26, 2004

This is in the “Internet of things” space, and make modules that allow cars, refrigerators, etc. to connect to the Internet. This is in the growth space which is becoming crowded. A well-run business, and has had quite a run. Could be a potential takeover candidate at some point.

He likes the space “the Internet of things” that this is in. This has about 38% of the business in Canada and he thinks it is going to keep growing. It is in the right sector, between the pro-growth and the defensive. They just had a fantastic quarter and caught the street off guard. Sees this having a double from here. The next resistance is around $46, and he thinks it is taking out the $58 at some point. (Analysts’ price target is $29.50.)

This company reinvented itself a number of times over the years. They are a technology hardware manufacturer. This is best summed up by calling them an “Internet of things”, for all kinds of devices. From a long-term perspective, it is subject to the vagaries of the product cycle and technological obsolescence. He doesn’t care for the volatility and prefers others.

This has had some great runs in the past as well as some real difficulties. Their products sort of come into and go out of favour. He is not sure this is the one he would pick within the group, but would prefer one of the larger ones.

Overall it has done well. It has a reasonable PE to growth. Next year he expects 18 times PE. They are in a reasonable kind of sweet spot for the Internet of Things. If there is a pullback then it would be an opportunity, but just buy part of your position if it does.

They make choips for data communications, for example used in cars to talk to each other. It's a competitive business. You can hold it here, but the stock needs new excitement over the chips to get the stock going. A wait and see story.