View Matthew Dow's Articles BY TICKER:
AAPL, AMSC, AMZN, APOL, ARUN, ASML, AXIH, BAMM, BBRY, BHE, BKE, BV, CAR, CFRUY, COBR, CPAC, CSCO, DELL, DHX, DIS, DMRC, DRWI, ELNK, EMC, FB, FEIC, GME, GOOG, HMG, HPQ, HSII, ICON, INTC, KLAC, LO, LOGI, LQDT, MANT, MSFT, NOBH, NOK, NVO, ORCL, OTEX, PBI, PG, PHG, PIFMY, PTNT, QBAK, QSII, RIG, RNWK, ROVI, SAVE, SIEGY, SMTP, SPRT, STX, SYPR, THLEY, TZOO, UBNT, UFPT, VCI, VIAB, VNET, WU
Ubiquiti Networks: Take Advantage Of A Pullback To Buy At An Attractive Entry Point
- Shares are down about 30% in 2014, mostly due to short-term macro issues. Those who can patiently stomach the volatility will be rewarded in the next few years.
- New products being released as well as the next wave of 802.11ac devices should reinvigorate growth in the 2nd half of 2015, and 2016.
- The Ubiquiti Community has more than tripled in size in under 2 years, and product evangelism is growing.
- Robert Pera remains one of the youngest and brightest Tech CEOs in Silicon Valley, and he is not selling and remains 100% dedicated to the company.
Books-A-Million: Forgotten And Deeply Undervalued
- The holiday season is fast approaching, and most signs are indicating that BAM! should have a decent FY2015, with revenues being flat or even slightly up from last fiscal year.
- Real estate investments have increased rental space another 25% in the last year, and this continues to quietly improve the stability of the company.
- With the stock depressed, the Anderson family could look to again try and take the company private.
- On both a liquidation and a cash flow basis, I believe the shares are worth at least double the current market price with 100% or greater upside potential.
Update: Qualstar Earnings
- Qualstar continues to show slow and steady signs of improving its business.
- Although yearly revenues were down, new big orders for September signal a strong end to 2014.
- Insiders continue to buy as the stock dips, and they loaded up again in October.
Update: DragonWave Reports Another Good Quarter, And The Stock Continues To Be Undervalued
- This week DragonWave reported Q2 results, which showed revenue growth of 32% over the previous quarter.
- The company continues the slow march towards operating cash flow breakeven, losing only about $4m in the quarter.
- Signs remain clear that capex spending from Telecoms will continue to be strong in Q3 and Q4, which should propel full-year revenues more than 60% higher than last year.
Update: Bazaarvoice Earnings
- Bazaarvoice has announced a good start to FY2015 with revenues growing 14% over a year-ago levels.
- As I predicted in my recent analysis in June, the company seems to have passed its revenue bottom and should continue to see improving results in the coming quarters.
- As the company gains momentum and gets further removed from its past anti-trust issues, look for the stock to factor up in valuation with upside close to 50%.
SMTP Earnings And 2 Big Acquisitions
- On August 14th, SMTP simultaneously announced positive Q2 2014 results and 2 acquisitions which will have a big impact on the company in the coming year.
- I predicted in my recent in-depth article on the company that they would make some big acquisitions in 2014, and these add-ons will double revenues almost overnight.
- With an adjusted EV/Rev multiple now under 2.5x, SMTP is significantly undervalued and could easily double in the next 12 months.
Ubiquiti Networks Earnings
- Ubiquiti Networks has shined again with another strong quarterly report.
- The company has just released new products and has hinted at several more which should fuel the next leg of growth going into 2015.
- Ubiquiti remains extremely profitable, well managed, and attractively priced with a forward P/E under 15.
Update: RealNetworks Earnings
- RealNetworks reported earnings last week, and it was for all intents and purposes another disappointing quarter.
- Despite some bright news about RealPlayer Cloud, the company's turnaround is definitely slower than anticipated and cash burn is increasing.
- At this point the company would be better served to sell off most assets and focus all resources on RealPlayer Cloud.
Update: Support.com Earnings
- Support.com had a good earnings report showing the business is stabilizing.
- The company remains poised to be a leader in the Internet of Things support market.
- The report has confirmed my opinion that the stock has significant upside potential, with minimal near-term downside risk.
Update: DragonWave Still Poised For Big Upside, Despite Recent Secondary Offering
- Last week DragonWave announced an equity offering to raise more than $20m, causing the shares to drop about 15% in a day.
- Although this has come a bit earlier than I expected, The shares are at the same level they were in June and the company will now be better capitalized.
- Major catalysts remain intact for the coming year, and the stock has big upside potential due to major increases around the world in 4G/LTE CapEx spending.
SMTP: A Cash Generating Company With Strong Growth Ahead
- SMTP is a highly profitable micro cap with strong growth prospects and a generous dividend.
- A recent shift in management strategy and an equity offering has given the company a pile of cash to accelerate growth.
- With a strong brand name, low customer concentration and increasing liquidity, look for the stock to outperform the market.
Update: Liquidity Services DoD Contract Cessation Causes Short-Term Sell-Off, But Long-Term Value Remains
- On July 10th Liquidity Services announced that the majority of its DLA Rolling Surplus Contract was being halted pending the assessment of regulatory rules.
- Although this causes a short-term hit on earnings, in my opinion the shares still offer good long-term value.
- Admittedly I didn't see this one coming, But believers in the long-term value and growth of the business should use the opportunity to accumulate more shares.
Bazaarvoice: With Legal Troubles Behind It, Look For This Stock To Outperform In 2014
- Bazaarvoice has just agreed to divest PowerReviews as part of its DOJ anti-trust agreement. This should lift a major overhang on the company.
- The Social CRM market continues to show long-term promise, and Bazaarvoice remains a leader with its growing customer base.
- Revenue growth is at an inflection point and is beginning to accelerate upwards again into double digits. Stock set to appreciate by 50% or more.
DragonWave: After Years Of Disappointment, Big Upside Potential In 2014
- After years of heavy operating losses, DragonWave is seeing greater than 50% revenue growth with a cyclical upswing in 4G/LTE network spending.
- Besides a general upswing in the market, a new contract with telecom Reliance Jio coupled with improvements in the Nokia relationship should lift the stock further in 2014.
- With the stock down more than 90% the last 4 years and all expectations deflated, good execution in the coming months will likely make for a quick multi-bagger.
Support.com: An Undervalued Stock With Greater Than 50% Upside Potential
- Support.com could see more than 50% upside near-term as the market realizes it overreacted to recent news.
- The "Internet of Things" should drive growth in the double digits over the coming few years.
- The company has a pristine balance sheet and is trading at a price/cash of less than 2.
- Insiders are converting options and nobody is selling.
Liquidity Services: Despite Recent Issues, Conservative Accounting And A Robust Business Model Point To Undervaluation
- Conservative accounting policies at Liquidity Services for software development mean reported earnings could be adjusted upwards by 20-30%.
- Despite Near Term Disappointment with the DoD Contract, the company still possesses valuable network effects and continues to grow its buyer and seller bases.
- The company has a strong cash position with no debt.
- Reasonable cash flow assumptions and EBITDA multiples indicate the shares could have 50% or more upside potential.
Qualstar: Executing Well And Still Undervalued
- Qualstar continues to be an attractive micro cap value stock as new management is executing well on cost cutting initiatives.
- Insiders believe in the undervaluation thesis, as they are buying stock repeatedly in the past 6 months including several times in May and June 2014.
- With tape storage inventory back in house and cost restructuring largely complete, look for improving quarterly results in Q2 and Q3.
- Other positives including a new distribution agreement for N2Power supply, new executive management, and positive long term prospects for the automated tape storage industry.
- Internet Patent Corporation: No Downside Risk, Let The Upside Take Care Of Itself
- HMG Courtland Properties: A Hidden Asset Play With 35% Upside
- Dice Holdings: A Stock With Upward Potential Heading Into 2014
- EarthLink: Could Be Some Value, But For Now The Company Deserves To Be Cheap
- Liquidity Services: Looks To Be A Good Value Play For 2014
- Axion International: Upward Momentum Has Just Begun With A Game-Changing Contract
- OpenText: Strong Catalyst With Red Oxygen, Another 50% Upside Expected In 2014
- Ubiquiti Networks: Another Big Year Ahead, Get In Now On The Short Term Sell-Off
- Cementos Pacasmayo: Solid Long-Term Prospects At An Attractive Price
- Sypris Solutions: Weakening End Markets Signal More Downside Can Be Expected
- Qualstar: A Beaten Down Company With 50% Upside Potential
- Cobra Electronics: Significantly Undervalued With 50% Upside Potential
- RealNetworks: The Catalyst Has Arrived With RealPlayer Cloud
- Indofood: A Great Consumer Franchise At A Bargain Price
- Ubiquiti Networks: Lock-up Expires, Providing A Short-Term Alpha Opportunity