PCTEL (PCTI)
is the sort of tiny tech company that could generate substantial upside
if things started clicking, but it has been a long, frustrating wait
for that growth to materialize. The company's antenna (Connected
Solutions) business has some legitimate addressable growth markets like
process automation, precision agriculture, and positive train control,
and the company's scanning receivers have substantial share (albeit in a
small market). It also doesn't hurt that the company has been free cash
flow positive.
Unfortunately, this somewhat thinly-traded,
under-followed company isn't generating the strong quarter-in,
quarter-out double-digit revenue growth that seems mandatory for most
winning tech stocks. I still believe that the company can start
reporting double-digit growth again before too long and that the shares
are undervalued, but I have to acknowledge that owning these shares
could be a frustrating experience for long stretches of time.
Follow this link to continue:
The Wait Goes On At PCTEL
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