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Tuesday, August 05, 2014 3:53:54 PM
August 05, 2014
LOGI was getting way ahead of itself price wise earlier this year, so the PPS pull back was justified. Now that their execution caught up to the price, I agree that LOGI is finally going to start rising based on strong underlying fundamentals.
LOGI trades with the market, so down days drag it down. It's given back more than half it's gain after another terrific earnings report two weeks ago. I'm just waiting to see how the correction is shaking out and then I am going to add to my position.
Disclosure: I am long LOGI and bought several times during the spring and summer of 2013 in the mid $6's and low $7's.
Logitech (LOGI) concluded fiscal 2014 in a solid fashion, delivering better than expected results. It seems that its three-year turnaround strategy is on a roll. Logitech was pleased with sales of its products, which were well-accepted by customers, enabling the company to achieve its goals that it set at the beginning of the fiscal year. On the back of its strong momentum, the company expects its sales and profitability to improve in the future.
Strong opportunities ahead
Logitech is seeing exciting growth opportunities in PC gaming, while the growing acceptance of tablets, mobile speakers and other accessories are some more tailwinds. Logitech is also well-positioned to expand its footprint beyond its traditional PC peripheral business. Moreover, it is also keeping a check over its expenses. It expects its cost cutting initiatives to be a key earnings growth driver in this new fiscal year as well.
Logitech’s moves are more dedicated toward profitability, and the company is now focusing on innovation to deliver better products. In this regard, the company’s moves to hire a chief design officer should lead to long-term improvements. The company has seen good progress in customers' purchase satisfaction levels for its products, which is justified by 121 design awards that it won recently.
Cost-cutting moves
Logitech is looking to continue its cost-cutting moves to improve its top line and profitability. Besides these initiatives, Logitech is also working on strengthening its savings strategy. Recently, Logitech also booked a $5 million restructuring charge as a part of its infrastructure savings, but it believes that these short-term pains will lead to long-term improvements.
It has consolidated its Silicon Valley campus from two to one. With this consolidation, Logitech is moving into an open space environment to improve collaboration. The company appears to be in good shape, and with such commendable moves, it can become a faster and more profitable company in the near future.
The way forward
Logitech's business model can deliver consistent cash flow on an annual basis. The company is well positioned for robust performance in fiscal 2015. It is expecting much traction in the PC gaming segment, driven by the launch of its newest gaming peripheral, the G502 Proteus Core tunable mouse. This product is already in good demand in the market. The company believes that there is solid potential for it to drive share gains in fiscal 2015. Further, Logitech has said that it will launch new, innovative gaming products in the coming months.
Moving on to the tablet segment, Logitech is seeing positive trends and expects that sales of tablets will increase in the coming days. So it is working on positioning its tablet keyboard to capture the market. The low price on the keyboards will also be an added advantage for the company. Logitech recently announced three new protected cases for the iPad, and more product introductions can be expected from throughout the fiscal year.
In the mobile speaker segment, Logitech sees strong demand for its new speaker, the UE BOOM. The company was not sure about the acceptance of this speaker, but it has outpaced expectations and has become a key reason for tripling speaker sales in the last year.
Conclusion
Logitech is seeing positive trends throughout the business. In addition, the company is laser-focused on cost-cutting and innovations. As such, investors should definitely consider investing in Logitech for the long run.
Recent LOGI News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/17/2024 12:44:50 AM
- Alphabet Nears $23 Billion Wiz Acquisition, Trump Media Stock Soars 63% Pre-Market, and More • IH Market News • 07/15/2024 10:34:36 AM
- BP Slashes Profit Forecast by $700 Million; Morgan Stanley Predicts S&P 500 10% Drop, and More News • IH Market News • 07/09/2024 10:54:32 AM
- Logitech G Launches LIGHTSPEED Gaming Mouse for All Players • Business Wire • 07/09/2024 07:03:00 AM
- Form PRE 14A - Other preliminary proxy statements • Edgar (US Regulatory) • 07/08/2024 08:42:04 PM
- Apple Joins OpenAI Board, Logitech President Opts Out of Reelection, and More News • IH Market News • 07/03/2024 10:59:39 AM
- Logitech Announces Date for Release of First Quarter Results for Fiscal Year 2025 • Business Wire • 07/02/2024 08:05:00 PM
- Logitech Proposes Board Member Changes • Business Wire • 07/01/2024 08:05:00 PM
- The Rugged Ultimate Ears EVERBOOM: Superior Sound That Is Waterproof, Dustproof and Floatable • Business Wire • 06/26/2024 07:01:00 AM
- Introducing Logitech's G515 — A Next-Generation, Low-Profile Keyboard for High-Performance Gaming • Business Wire • 06/25/2024 07:01:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/19/2024 12:40:11 AM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 06/19/2024 12:38:31 AM
- Introducing Logitech Keys-To-Go 2, an Ultra-Portable Keyboard for Tablets • Business Wire • 06/18/2024 07:01:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/13/2024 08:07:00 PM
- Logitech Expands Designed-for-Mac Portfolio for Seamless Integration with Apple Ecosystem • Business Wire • 05/30/2024 07:01:00 AM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/23/2024 08:11:45 PM
- Logitech Sync Software Introduces Advanced Room Booking Features for Enterprises • Business Wire • 05/21/2024 07:01:00 AM
- Logitech Launches MeetUp 2, the AI-Driven, Sustainably-Designed Next Generation of Bestselling Video Bar for Huddle Rooms • Business Wire • 05/21/2024 07:01:00 AM
- Logitech Files Annual Report on Form 10-K • Business Wire • 05/16/2024 09:39:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 05/16/2024 08:42:24 PM
- Logitech Announces Proposed Fiscal Year 2024 Dividend • Business Wire • 05/14/2024 09:00:00 PM
- Logitech to Participate in Upcoming Investor Conference • Business Wire • 05/09/2024 09:04:00 PM
- NEW Logitech Combo Touch Available for the new iPad Air and iPad Pro • Business Wire • 05/07/2024 05:41:00 PM
- Logitech G Celebrates the 10th Anniversary of the Iconic G502 Gaming Mouse • Business Wire • 05/02/2024 07:01:00 AM
- Logitech Announces Q4 and Full Fiscal Year 2024 Results • Business Wire • 04/30/2024 01:01:00 AM
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Kona Gold Beverages Reaches Out to Largest Debt Holder for Debt Purchase Negotiation • KGKG • Jul 17, 2024 9:00 AM
Avant Technologies Welcomes Back Former CEO with Eye Toward Future Growth and Expansion • AVAI • Jul 17, 2024 8:00 AM
HealthLynked Expands Telemedicine Nationwide • HLYK • Jul 17, 2024 8:00 AM
Peer To Peer Network aka Mobicard™ Launches AI Investor Chatbot Boosting Engagement & Lead Generation on Ihub • PTOP • Jul 15, 2024 8:30 AM
Greenlite Ventures Announces AI Integration into No Limit Platforms • GRNL • Jul 15, 2024 8:00 AM