TorontoRaptorsFan Posted May 11, 2015 Share Posted May 11, 2015 I eventually see this company being bought by a larger company ie- Google or PE firm My brief reasons: Home Automation is a growing sector Seems undervalued considering the interest PE firms have in the sector (ie-KKR investment in Savant & Sonos) Growing dealer base in North America, Europe, and Asia to sell the product Apps that work on both Android and Apple platforms Been in business now for over 12 years Could migrate platform to a cloud based model that would help with recurring monthly revenue from users (ie-similar to security contracts but to monitor every aspect of home - pool, spa, lights, audio-video, security, HVAC, cameras) Considering the valuation of Nest and it's one trick pony status doing temperature and Heat/Smoke detection, Control 4 is a aggregator of multiple third party devices. ie- They already work hand in hand with Nest, Sony, Pentair, Jandy, Honeywell, etc. They develop and manufacture their own products. Ideal entry point is anywhere under $9.25. Company website is www.control4.com Thoughts? Link to comment Share on other sites More sharing options...
DCG Posted May 11, 2015 Share Posted May 11, 2015 What type of moat do they have, or what could give them any type of moat? Link to comment Share on other sites More sharing options...
Laxputs Posted May 11, 2015 Share Posted May 11, 2015 Can you talk numbers? MOS? Link to comment Share on other sites More sharing options...
TorontoRaptorsFan Posted May 13, 2015 Author Share Posted May 13, 2015 Control4 Announces $20 Million Stock Repurchase Program http://finance.yahoo.com/news/control4-announces-20-million-stock-103000549.html Link to comment Share on other sites More sharing options...
kfh227 Posted May 13, 2015 Share Posted May 13, 2015 Remember Buffettt talking about horses and cars? People were trying to invest in the few of the 700 car companies that would be the eventual survivors. People should have just shorted horses. Does this apply to what is going on right now? And why not buy BBRY? They are focusing on IoT in healthcare. There is an actual moat in BBRY doing healthcare (I'd have to look up certifications but they have them for healthcare privacy issues where others do not). Link to comment Share on other sites More sharing options...
TorontoRaptorsFan Posted May 13, 2015 Author Share Posted May 13, 2015 What does Blackberry have to do with home automation? ??? There are 3 major home automation companies which are aggregators for 3rd parties devices (Crestron, Control 4, and Savant). Along with a slew of much smaller competitors. Each of the three companies specializes on a specific niche. Crestron primarily on the commercial side, Control 4 on mass market residential, and Savant on the luxury residential market. I think Control4 is undervalued right now. Obviously the board of directors thinks so as well. So I think it's a positive sign we're seeing the outstanding share count going to be reduced. Consolidation is going to occur. I primarily target Google as the company who would take the greatest interest in Control 4 to have it integrate seamlessly with Nest and Dropcam while also allowing them to push their Google Play platform even further. Link to comment Share on other sites More sharing options...
netnet Posted May 14, 2015 Share Posted May 14, 2015 I think Control4 is undervalued right now. By what metric is it undervalued? I have the PE north of 50 and the EV/EBIT north of 15 and it was growing at ~20% per year, but deaccelerating. In a cursory look I don't see a moat. So is this an execution play with a hope for a buyout given that the sector is hot? (i.e. you pray that Apple or Google buys you before you prey on you.) Link to comment Share on other sites More sharing options...
gfp Posted May 15, 2015 Share Posted May 15, 2015 http://www.bloomberg.com/news/articles/2015-05-14/apple-homekit-devices-will-be-in-stores-in-june-says-apple Link to comment Share on other sites More sharing options...
TorontoRaptorsFan Posted June 17, 2015 Author Share Posted June 17, 2015 Nice rise in CTRL stock in the last week. Perhaps excitement coming from the upcoming alarm.com IPO? http://www.cepro.com/article/control4_ctrl_rallies_on_alarm.com_news_short_interest_DIY_woes/ Link to comment Share on other sites More sharing options...
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