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There's Still Time To Get In On This 5G Play Early

Jan. 04, 2021 2:38 PM ETInseego Corp. (INSG)QCOM, QRVO, SWKS1 Comment
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  • 5G internet may take off first, carriers are launching home and business 5G internet.
  • Inseego already is servicing this emerging market with industry leading products.
  • Inseego share price has increased about 100% in 2020, as have many 5G stocks.
  • But with annual revenues under $300 million and a market capitalization of a bit more than $1 billion, Inseego has just begun.

5G is here, it is taking off.  Most of the best and more mature companies in the 5G space, most with diverse product offerings including 5G, have already appreciated dramatically. It tends to be overlooked a lot, but 5G doesn't transmit as far as 4G and more towers are required.  But it's fast, theoretically, 5G has a top speed of 10 gigabits per second (GBPS), a hundred times faster than 4G.  5G cell phones and hotspots in the middle of Wyoming, maybe not.  5G is ideal for internet connectivity in cities and I predict will give cable companies a run for their money.

Inseego is in a good place.  Inseego (INSG) designs and develops solutions for 3G, 4G, and 5G solutions in addition to software-as-a-service (SAAS).  Revenues are growing quarter over quarter.


2020 Q39/30/20 2020 Q26/30/20 2020 Q13/31/20 2019 Q412/31/19 2019 Q39/30/19
NET SALES OR REVENUES 90,240 80,689 56,840 52,333 62,716

from CNBC.

Inseego has increased about 100%, ahead of around 30-70% gains for Qorvo (QRVO), Skyworks Solution (SWKS), and Qualcomm (QCOM).  Inseego is not profitable, yet...  Most recent GAAP earnings were (0.06), non-GAAP earnings were (0.01).  The thesis of this article is 5G internet is poised to take off, as it perhaps makes more sense than 5G phone service for much of the nation.  This isn't meant to downplay 5G cellular phones and the relatively robust sales of 5G phones by Apple, Samsung and others, merely to point out the 5G is providing a viable alternative to cable internet in many cities and makes sense.  Onseego has products entering service, such as the 5G MiFi® M2000 mobile hotspot.  The CEO noted the demand for the companies products on Mad Money recently.  

Bottomline, Inseego shares have appreciated, but the relative percentage increase in revenue and earnings compared to the other stocks in the 5G space I would argue is large. It has appreciated recently, but is off the high. I plan to buy more Inseego shares at any pullback under $17 per share.

Analyst's Disclosure: I am/we are long INSG, SwKS, QCOM, QRVO.

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