The Motley Fool Stock Advisor folks are touting some stocks that according to them will be a part of “The Monster that Swallowed the Internet”…
Well, this to me seems to be a smart extension of Internet of Things pitch by the Foolie copywriter Aaron Winter, who has worked as a Marketing Consultant at Think Global School USA who has been a successful marketer too in his past, so a right person to do the glutinous job of hyping stocks for the fools.
While it’s also a continuation of Death of the Internet pitch which had inundated a couple of month’s back, but this time it’s not about you will earn 86 times your money, since it’s the next phase of the pitch its 37 times bigger than the Internet. They are tossing different stocks of course… and as always they have some jaw-dropping numbers to appease you.
The special report that comes free with a subscription to the Motley Fool Stock Advisor newsletter this time is “How to make $19 Trillion disappear into your pocket” the newsletter makes a sequence of interviews with Gardner brothers and their success over a period of time.
Basically the letter talks about the imminence of connected things around us, not just computers but almost all things around us (Internet of Things) you can think of.
I will skip over the stuff as I feel the utmost need to get something off my chest at this moment. The three stocks they are hyping this time around are…
But before that, quotes from their very much inundated ad.
So you just told me that your top Internet of Things Company for wireless modules is XXXXX. Why does this one stock stand out?
David: There are a few things that catch my eye. First, this company makes the smallest wireless modules in the industry, and they’re also some of the most durable. Remember, these connections to the Internet of Things have to fit everywhere. Second, even though this company is very small, it’s got an immaculate balance sheet, with zero debt and $151 million in cash….
I will let the cat out of the bag now, they sell little wireless modules for machines which let them connect with each other online through internet and stay connected.
This precisely has to be Sierra Wireless (SWIR) which was touted back in November for the “R.I.P. Internet” its indeed a small stock and a cash rich company with a little over $150 million on its cash books. They have a large market share in their niche (cellular networks) with roughly one third of the modules being of SWIR.
Sierra Wireless (SWIR) aren’t profitable yet but the predictors expect them to profit this year owing to expectations, this is the case of growth story that is imminent. Though the Gardner brothers expect much more as they are habitually long term buy and hold stock pickers for the Motley Fools.
The other two stocks and a short analysis of Sierra Wireless (SWIR) is what makes the gist of my next write-up until then enjoy, and don’t ever forget to share your own musings on the subject in the little comment box below.
Disclosure: I don’t have any positions in any stocks mentioned herein, and no plans to initiate any in the near future as well.