December 30, 2013

SuperCom: A Small Cap Growth Story

An interesting article at SA about SuperCom, a small but growing player in the digital ID space. 

December 23, 2013

A Buying Opportunity for Cooper Tire and Rubber

This year has been about as boom and bust as you can get for Cooper Tire & Rubber (NYSE: CTB  ) shareholders, who in June were under the impression that Apollo Tyres was purchasing the company for $35 per share only to discover that the merger would not be going through as planned. Cooper has tried on two occasions to force the merger to go through via the court system, but just yesterday had its appeal thrown out by the Delaware Superior Court.
While many investors would consider Cooper Tire an off-limits investment after its failed merger with Apollo, I see its drastically reduced share price as the long-awaited green light to buy.
The primary reason Cooper Tire looks so attractive has to do with low input and rubber costs, which are allowing for better tire visibility than both Cooper and rival Goodyear Tire & Rubber have witnessed in years. In addition to lower expenses, the auto market has been incredibly strong as we just looked at via Nissan's results above. As long as new-car sales domestically continue to pace above a seasonally adjusted 16 million units and Europe's auto market remains stable, there's little reason to believe that Cooper's results won't improve.
Finally, Cooper simply looks like a deep-discount bargain on a forward-earnings basis. Cooper is currently valued at a mere seven times forward earnings and is also paying out an annual yield of roughly 2%. It's time to be greedy when others are fearful and give this tire maker another look.

On Cal AMP Corp

It began with PCs connected to the Internet.
Then came smartphones and tablets -- which enabled us to take the Internet with us wherever we go.
Now we’re mere years away from a time when nearly every device is connected wirelessly, communicating with each other -- and automatically making decisions to make our lives easier.
CalAmp (Nasdaq: CAMP) offers the products and services that make this technological advance possible. And, as such, it sits right at the center of this colossal opportunity.
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CalAmp sells products that collect data from devices. It collects the data and transmits it wirelessly to a cloud-based network. Then its proprietary software analyzes the data to use as needed.
Currently, the company focuses on energy, transportation, and government products.
But many other industries are beginning to adopt this machine-to-machine technology, and its applications are virtually limitless. Take the automobile industry, for example: A dealer that financed a car could use it to disable the car if the owner missed a payment. Similarly, an insurance company could monitor the car’s use to more accurately price the risk of insuring the driver.
Regardless of the industry, CalAmp hopes to use this technology to help companies optimize assets, increase productivity, and improve customer experience.
According to CalAmp, its current market opportunity is $3.4 billion -- and expected to cross the $6 billion mark in 2015.
It should have no problem winning new customers as its technology’s possible uses expand: CalAmp has the reputation and know-how to serve both its existing customers and future ones. Which is especially important if those massive growth predictions come true and the market grows fivefold by 2020.
Analysts estimate CalAmp’s sales will double from about $180 million in fiscal year 2013 to $360 million in the next three years. And as profitability and cash flow expand, CalAmp shares should continue to rise.
Motley Fool senior analyst David Meier (who clued me in on this stock) expects the company to earn investors annualized returns of more than 15% from its current share price.  

On Suncor Energy

The energy company increased its dividend 54% earlier this year. And during the past three years, Suncor boosted its dividend by more than 96%! Sporting a mere 35% payout ratio, the dividend still holds a lot of growth potential. Suncor is the largest energy company in Canada and the fifth-largest in North America, as well as the leading producer in the Canadian Oil Sands. Strong production growth is expected in the future due to Suncor's access to significant sources of new oil reserves. The company boasts more than three decades of reserves at current production rates. All are likely reasons Warren Buffett's Berkshire Hathaway took a small stake in the energy company earlier this year.