MENU

First Brexit… then Trump… Now, it’s time for Pro

Is your portfolio really prepared for what’s coming next?

To help investors like you navigate this historically uncertain — yet high-flying — market and prepare for an inevitable downturn, we’re re-opening our Motley Fool Pro Canada service to a select few new members for a short time.

To discover how Pro Canada could help you to increase your upside potential… reduce your downside risk… and earn paycheque-like income in the process, simply click here — before the small number of spots we have left are all gone!

Investors Looking Long Term Should Consider Sierra Wireless, Inc.

Sometimes investors focus so much on the short term that they can’t see just how much potential a company has. On the other hand, if other investors don’t see the long-term potential of a company, then that just provides buying opportunities for us “amateur” investors.

Sierra Wireless, Inc. (TSX:SW)(NASDAQ:SWIR) has been having a pretty rough time quarter to quarter, but if we think about its potential over the next five years, present-day prices seem insignificant.

Sierra Wireless is a pure-play Internet of Things (IoT) company, which in the coming years has the potential to be a monstrous industry.

Imagine a world where your alarm clock is connected to your coffee pot and the shower. You turn off the alarm, which sends a signal to your shower to turn it on. You turn off the shower, which sends a signal to your coffee machine to brew a cup of coffee. When you put the last bit of milk into your coffee, the refrigerator automatically orders more. That’s the IoT.

Consider the following … According to research firm Gartner, it believes that there will be 25 billion devices connected to the Internet, which will result in incremental revenue of US$300 billion. Cisco believes that there will be 50 billion devices by 2020, and by 2024 incremental revenue will reach US$19 trillion. Research firm IDC believes that spending will reach US$1.7 trillion by 2020.

And this is where Sierra comes into the mix. It is exceptional at creating really tiny embedded wireless modules. In essence, these are little routers that allow for data to be transmitted from device to device. Remember my example above? Your alarm, shower, coffee pot, and refrigerator would all need these wireless modules to be able to connect to each other.

But Sierra is not just hardware. Its runs a cloud computing division and owns software for data analytics. One of the chief concerns about the IoT is that hackers will have many more points of entry to steal your information. By running this cloud computing division, Sierra will be able to safeguard the transfer of data from point A to point B.

Here’s the thing about Sierra.

Management doesn’t believe that it will have the best year, which sent many investors running when that guidance was made. However, if you’re not looking at stocks for short-term holds, but instead want to buy pieces of great companies that are top providers in their space, you really can’t go wrong with Sierra Wireless.

The IoT is just starting to heat up; getting in now rather than when it’s already hot will maximize the likelihood that you’ll get a significant return on investment.

Just released! One top stock for 2016 and beyond

Exports of liquefied natural gas could be one of the best growth opportunities out there for long-term investors. And, we think we've identified the Canadian company to invest in. It's a global company with operations across nearly 20 countries and 70 locations. We like it so much, we've named it as 1 Top Stock for 2016 and Beyond. To find out why, click here now to learn how to access your FREE copy today!

Fool contributor Jacob Donnelly has no position in any stocks mentioned. David Gardner owns shares of Sierra Wireless. The Motley Fool owns shares of Sierra Wireless.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.