SWIR Sierra Wireless – Leading ‘M2M’ Machine To Machine + Internet of Things Stock

by Olivier on December 26, 2013

Here is a stock trading idea that is part of an investment theme that I believe has the potential to catch everyone by surprise in 2014. The emerging investment theme is called ‘M2M’ which is the short form for ‘Machine to Machine Communication’. Another name that is often used for this investment theme is the term ‘Internet of Things’. It simply means everything equipped with a wireless device and to some extent an RFID chip can be tracked, monitored or remotely controlled. The potential applications are literally limitless. To make a long story short, I have compiled two M2M sector overview charts that contain all the stocks I could find related to that industry. SWIR – Sierra Wireless has great odds to emerge as ultimately being the M2M leader. Nothing is written in stone but so far this looks like the one to bet on. The reason is the recent volume pattern. Out of nowhere volume exploded and has been on a tear for almost 3 months now. This is not the footprint of retail trading. This is institutions piling in like crazy.

This is a situation where you have two choices:

  • You wait for more information —> You increase price risk
  • You embrace information risk —> You reduce price risk

The concept I described above is an important concept well described in Justin Mamis’ book: ‘The nature of risk’ which is one of my favourite books of all time. Simply put: the more you know WHY a stock should be priced high the less price appreciation potential you get. When everybody knows everything good there is to know about a stock you cannot profit anymore. The greatest profit potential comes with UNCERTAINTY. You need to buy before all the good things are known. The only way to do this is to follow the footprints of big money. They KNOW why they are buying. This is legally ‘buying based on insider knowledge’ simply using technical analysis to clue you in.

For more Justin Mamis:

Going back to SWIR – Sierra Wireless you can see the institutional footprints in the daily chart.

The weekly chart shows the tremendous overall bullish pattern pressure:

Simply click on the charts to maximize. I have a position but I wouldn’t advocate chasing at these levels. Instead I would monitor SWIR for buying opportunities on pullbacks. Otherwise monitor the rest of the pack for proper entry points when they break out of clearly defined bullish charts formations.

Updated 01/12/15: 

Here’s a stock list of ‘IoT’ Internet of Things and ‘M2M’ Machine to Machine plays:

SWIR – Sierra Wireless, BBRY – Blackberry (former RIMM – Research In Motion), CAMP – Calamp, UBNT – Ubiquiti Networks, LOGM – Logmein, FSL – Freescale Semiconductor Holdings, NMRX – Numerex, ORBC – Orbcomm, FLTX – Fleetmatix Group, ITRN – Ituran Location & Control, ZBRA – Zebra Technologies, ESYS – Elecsys, BOSC – Better Online Solutions, MIFI (former NVTL) – Novatel Wireless, SIGM – Sigma Designs, CTRL – Control4 Corporation, LOJN – LoJack

Related Posts – Emerging high potential IoT leaders to keep a close eye on: 


Sierra Wireless company description www.sierrawireless.com/en/AboutUs/CorporateProfile.aspx:

Sierra Wireless is simplifying the connected world by delivering intelligent wireless solutions. Over the past 20 years, Sierra Wireless has built a proven track record of developing innovative products and solutions for its customers.We offer the most comprehensive portfolio of wireless machine-to-machine (M2M) devices including 2G, 3G, and 4G embedded modules and gateways that are seamlessly integrated with our secure M2M cloud services. Customers worldwide, including OEMs, enterprises, and mobile network operators, trust our innovative solutions to get their connected products and services to market faster.

If you argue with the market you will lose. – Larry Hite

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