Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Radcom: Product Success And Operating Leverage Will Drive Upside

Radcom (NASDAQ:RDCM) is a ~$40 million Israeli small-cap company that has been covered with compelling write-ups on the pages of Seeking Alpha by Valuable Insights and Alpha Hungry (here, here and here), yet I believe Radcom remains inefficiently priced by the market.

The reason for the undervaluation, in my opinion, is that Radcom is in the middle of a significant inflection point in terms of delivering consistent earnings growth from its new software product, MaveriQ. MaveriQ features a more visible SaaS revenue stream and a higher-margin delivery model compared to Radcom's old hardware-driven offerings.

Because of this evolving operating model, I believe investors have yet to properly discount the future earnings stream. There is considerable...

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