Friday, June 19, 2015

New Purchase!

My first Mad Money stock, I decided that a certain allocation of my portfolio will be dedicated to a Mad Money type stock. I consider these stocks to have great growth potential or an extremely high dividend yield, in other words a sort of wildcard that may serve you very well or very poorly.

For my first Mad Money Stock I purchased 265 Shares of SVC.TO or Sandvine.  Sandvine
is a networking equipment company based in Waterloo Ontario.  Sandvine network policy control products are designed to implement broad network policies, ranging from service creation, billing, congestion management, and security.  Sandvine is essentially a service provider to offers its unique services to companies in need of them. They are in somewhat of an interesting place, and with Internet basically everywhere today, I see great growth potential for this stock.

The metrics:

Price – 3.68/Share

P/E (TTM)- 18.2

EPS  (TTM) – 0.17

Forward P/E – 15.2

These metrics are not great for a good diviend stock that I look to usually, however, for a company with such growth potential I believe it is undervalued. The cash flow is strong and their financials are in order, I believe this company can grow even in a down market and thus I decided to take a chance on them. Over the past five years they have experienced a year over year growth of 13.3% and YTD already they are up nearly 12%.

I think the area which this company operates is somewhat of an unknown for most and the growing demand to optimize the services they provide may enable great growth in this small company.

But at the end of the day I will quote a great movie (Rounders - Mike McDermott) "You can't lose what you don't put in the middle. But you can't win much either"


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