For those invested that typically invest in lower PE companies, what is giving you the confidence here?
If they hit their upper end of earnings guidance at 17 cents for the year they will have a PE of almost 80.
I bought several $12.50 calls just before earnings that have appreciated considerably (small gamble). It is a company I’ve been following. I generally like their direction, but have long term competitive concerns. If they were selling at a lower PE, I’d be much more comfortable taking shares.
I didn’t see your response to this until just now and wanted to say thanks.
I’m going to turn at least some of my calls into shares, but keep my position small for the time being.
I’m encouraged by their recent win with ConEd - a $250M order.
That’s a real big order and from a big utility. I’d think they would choose their vendors wisely especially when spending that much. Granted, I do not know the timing for invoicing said order.
They appear to be growing a great portfolio of clients. While I can’t say for sure, that tells me their offerings must be valuable.
The recurring revenue aspect of the biz is great.
And the market potential is enormous.
Of course, the underlying specter of disruptive competition lies firmly behind all of the positives, especially in such a nascent industry.
My only concern is that they seem to be purely focusing on the smart power grid as opposed to other parts of smart city infrastructure. Maybe it is the first chasm to cross or the kingpin to hit in their tornado alley but they could be outflanked by non grid smart initiatives.
Otherwise I like them and I have a small holding.
Ant
…smart city parking or smart city security monitoring…
I was trying to hone in on your concern about SSNI only playing in the smart grid corner of the smart city infrastructure market.
I don’t know for sure, but the smart grid market seems it would be a much larger market than the others you mentioned. Yes, there is still concern that a larger company will build a better mousetrap and potentially market it better and sell it faster to existing contacts in the industry.
SSNI seemingly has a bit of a first mover advantage in this arena. They continue to pile on new customers with larger contracts. Will be watching closely with a small position.