SWIR - Turnaround At Sierra Wireless

• SWIR's new management is much more focused on profitability versus growth.
• Growth nevertheless didn't disappoint and is boosted by secular tailwinds from IoT and 5G, which are still in the early innings.
• Cost cutting has really helped, and there will be a good deal of operational leverage going forward which is likely to produce positive cash flow.
• Component shortages and pricing remain a constraint and a risk going forward while production capacity has been expanded.
• Much of the turnaround is already priced in; the shares are not a screaming buy.

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