16:22:17 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Sierra Wireless Inc
Symbol SW
Shares Issued 31,872,860
Close 2015-02-27 C$ 47.02
Market Cap C$ 1,498,661,877
Recent Sedar Documents

Inv Reporter says hold Sierra Wireless

2015-02-27 20:52 ET - In the News

The Investment Reporter, in its Feb. 20, 2015, issue, says hold Sierra Wireless Inc., recently $40.98. The Reporter said buy three times from June 29, 2007, to Sept. 23, 2011, at prices ranging from $6.80 to $27.24. A $1,000 investment for each of the three buys is now worth a pleasing $11,310. The communications equipment company joined the S&P/TSX Composite Index in December. This means ETFs and mutual funds that aim to replicate the performance of the index are likely to buy Sierra. It earned an adjusted $22.8-million (U.S.) or 63 U.S. cents a share in 2014, up sharply from an adjusted $5-million (U.S.) or 23 U.S. cents a share last year. Cash flow doubled to $27.4-million (U.S.) and exceeded its needs. The Reporter would like to see Sierra pay dividends, since it has an excellent balance sheet with zero debt and cash of over $207-million (U.S.). While the shares have momentum, the newsletter finds them overpriced. Sierra expects to earn $1 a share in 2015 and $1.88 a share in 2016. These estimates give it excessive forward P/E ratios of 41 times and 21.8 times, respectively. Since Sierra pays no dividends, you can only profit if the share price keeps rising. For now, Sierra is a hold.

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