Topic: How To Invest

Pat: Can I have your opinion on Sierra Wireless’s prospects? Thanks.

Article Excerpt

Sierra Wireless, $47.37, symbol SW on Toronto (Shares outstanding: 31.7 million; Market cap: $1.5 billion; www.sierrawireless.com; Manufacturing & Industry sector; TSI Network Rating: Extra Risk), makes modules that manufacturers use to connect products to the Internet. This is known as machine-to-machine (M2M), or more generally as the Internet of Things. Web-connected products can be remotely monitored—and potentially fixed—before they cause a major breakdown. For example, Sierra’s modules let doctors remotely monitor patients and help homeowners use their smartphones to control their home-security systems. They also help car owners send out distress signals and notify automakers of possible defects. Sierra’s clients include Nestle SA, which uses the company’s gear to maintain and monitor its Nespresso coffee machines in restaurants, hotels and offices. Smart electricity meter makers, like Elster, EDMI, Itron and Schneider Electric, also use Sierra’s modules to connect their products to the Web. In August 2013, Sierra acquired the M2M operations of France’s Sagemcom SAS for 44.9 million euros ($61.9 million U.S.). In late…