Let’s talk about Sierra Wireless.

If you’re looking for a breakout play, look at Sierra Wireless (SWIR). I think short-term and long-term it is perfectly positioned for the boom in the Internet of Things (IOT), which is expected to include 50 billion devices by 2020 and be worth $14 trillion by 2022. The company is number one in M2M (machine-to-machine) with 34% market share.

This space is driven by original equipment makers and enterprise, which is smaller but growing rapidly… some big margins there. The company’s customers right now include names like GE (GE), Cisco (CSCO), Honeywell (HON) and Chrysler. Industries are auto, networking, payments, energy, consumer, health care, security, and field services. Technically, on the chart, there's some resistance here, but I think the next big breakout could take it to $27. Longer term, I’m looking for $30 on this.

Now let’s talk about Nimble Storage (NMBL).

It’s been a volatile stock, and trying to breakout. One of the problems: Wall Street hates it -- in part because sizzling growth didn't justify the share price, which peaked at $58.

But today, I think the stock is oversold. In the most recent quarter, revenues were up 110%. The gross margin went to 66.2% from 61.8%. The company garnered 450 new end customers for a total of more than 3,000.

The greatness of this company is that they are bringing flash to low cost, high density disks in the storage space. It’s scalable, it reduces datacenters need for space -- in fact, dramatically, they use 10 times less space. Technically, there is a ton of resistance between here and $30, but that breakout could trigger a massive squeeze. 16% of the float is short. My target is $36.

DISCLOSURES

Sierra Wireless (SWIR)

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Family Owns

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CHARLES N N Y N
DANI N N N N
MATT N N N N
HITHA N N N N
KATE N N N N

Nimble Storage (NMBL)

Owns

Family Owns

Firm Owns

Investment
Banking

CHARLES N N Y N
DANI N N N N
MATT N N N N
HITHA N N N N
KATE N N N N

 

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