This stock offers two important benefits: it is an Advance Depository Receipt (ADR) of a company from a Euro currency home base, with 70% of sales from outside the Americas; and it is a member of the Communications Equipment industry, which has superior growth prospects all over the world.
The company has important attractions compared to similar offers on the stock market. Its extremely versatile technology platform is an outstanding competitive advantage. The wireless platform on which business is built has innumerable applications, since it can be part of any device or equipment. Any customer that wishes to receive or send voice or data is a potential client for the company.
Business cycle integration is another value driver for the stock. The company covers all customer needs from manufacture to marketing and after-sales service. The quality of technical support helps to protect the company’s margins from erosion by market forces.
The stock market has reacted to the earnings report for the Most Recent Quarter by taking more than 10% off the January 2008 price. Discerning investors will see this as a stock purchase opportunity, considering that net income has more than doubled compared to the same quarter a year ago.
The most strategic aspect of this stock is the recent management acquisition of a machine-to-machine client server software service provider from France. This inorganic move adds greatly to the stock value, and since the acquired organization is from the home country, integration will be smoother and faster than in trans-national deals of this nature.
The management has recently won an exclusive alliance with a major French manufacturer of electronic payment terminals. This business deal will enable the two companies to jointly offer cost-effective and reliable electronic commerce solutions globally.
The stock represents a rare opportunity for US investors who fear stagnation in their home economy, and a weak dollar.
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