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- Last week, a Top Idea article was published on SA Pro on Xplore Technologies. Historically ,Top Ideas have had sizable effects on stocks. Xplore has yet to move in response.
- Honeywell has acquired three rugged computing companies since 2008 and has successfully incorporated them into its own business model.
- With Xplore finally achieving profitability and growing as it is, it may not be long until Honeywell takes notice of this rugged company.
- Taken together, the buy case for Xplore Technologies is compelling.
- Xplore Technologies is an overlooked pure play on enterprise tablet computing at the beginning of its growth trajectory.
- The low valuation is primarily due to the implied disbelief that XPLR will be unable to capture market share from iPad or other rugged tablets.
- However, customers continue to switch to XPLR as its tablets are more durable and provide superior functionality/performance.
- The recent introduction of a cheaper and lighter weight tablet expands the potential target market by >10x and should drive a >3x increase in revenue over the next several years.
- The lack of debt and $86 million of NOLs mean operating income drops straight to net income while outsourced manufacturing results in minimal inventory and no production related investment.