Trading at less than 2X cash with $4.00 target !! Scotia This is very cheap stock at $2.50 with $162 Million USD in bank. This will make then an attractive takeover target at this price!!!
.Recent Update Text as of 9SEP15 Sandvine announced that it now expects Q3 revenue to come in at $27M compared
. with consensus of $33M. Longer sales cycle impact revenues again. The issue that impacted last quarter
persisted in Q3. Longer sales cycles are causing lumpier quarterly revenue.
There have been no changes in the competitive dynamics and Sandvine continues to
see large opportunities - it's just that it's taking longer than it has in the
past. . Will continue to ramp the sales force. Sandvine has completed most of its sales
force investment. The company will be more prudent with its future spending, but
will not reverse course on its sales build-out. We believe this gives
credibility to management's view that Sandvine is still well-positioned to take
advantage of future growth opportunities. . Still see large growth opportunities. The ongoing global rollouts of broadband
and technology transitions are still supportive themes behind Sandvine's growth
opportunities. Management believes the sales funnel is larger today than it was
a year ago with significant opportunities. . Maintain SO. Although three quarters of warnings in the LTM is concerning, we do
not think the business is broken. Challenges in service provider capex are being
felt by all in the space. That said, the shares trade at only 12.2x 2016E EPS.
We believe the company will continue to grow, be profitable, and generate cash
yet it trades at less than 2x cash.
GLTA