Sell Sierra Wireless
Toby Bordelon • November 4, 2020 • SWIR
We moved Sierra Wireless (NASDAQ: SWIR) into the penalty box two months ago. Since that decision, we haven't seen anything that impresses us or makes us want to continue to own this business. Over the last six years, the business has failed to live up to expectations — both ours and the market's. A big problem for Sierra Wireless is that the driving force in the Internet of Things market is now on the software side. Hardware makers like Sierra have been pushed aside. Management hasn't been ignoring the competitive challenges it faces, but they haven't been successful in transforming their business, either.
Additionally, activist fund Lion Point Capital has recently invested in the company. It's possible that Lion Point Capital might end up taking the company private or forcing a merger, but it's also possible that nothing will come of it. We think that remaining invested in a disappointing company on the slim hope of a buyout or merger at a higher price is a very un-Foolish approach. We recommend that you sell your shares of Sierra Wireless.
Successful Trading is the art of minimizing long term risk and maximizing capital allocation.
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM