On the sale of ProceraI think Sandvine shareholders should reflect carefully on the purchase of Procera.
I held them both, Procera I purchased after it went on the market. I'll sell my shares today. Sandvine I sold just recently after we passed the $4.00 mark which had been my target price, but I've held it for years.
Private equity firms are not strategic buyers. To me the purchase means that the OEMs do not perceive this as a strategic sector. Procera may have had its challenges but it was top 3 in the industry. If Sandvine was going to be taken out at a home run multiple then Procera would have commanded a higher premium. It didn't so we need to look at Sandvine only on fundamentals. And the fundamentals are limited by the size and growth rate of the market. It's only growing at 25%ish a year. That's going to more than likely decrease. It's a maturing market. We're late to be acquired.
Sandvine is doing everything right. But it can't change the fact that the market isn't that big. I have no doubt that Sandvine will be acquired one day and if management keeps on keeping on, the share price will continue to go up, drift, and go up. But I believe it to be fully valued, there is no 'deal' here. And I personally invest in undervalued opportunities, so this is where I tap out.
FYI, I've gotten it wrong in the past! Good luck longs.