Aug. 20 at 10:33 PM
$INSG Nokia’s FWA business is operating at roughly a 20% loss, and that’s clearly one of the market’s biggest concerns as it should be.
That said, Gatoff was able to turn Inseego around from a financial perspective, so I expect management to take a similar approach with the Nokia assets after the acquisition closes. The big question is how long that turnaround takes and how much pressure it puts on the combined company in the meantime.
Who knows how low the stock goes from here. If it trades into the
$2's, I’ll be a speculative buyer.
Year one after the acquisition is going to be critical. Inseego needs to prove it can successfully integrate the business, improve margins, control expenses, and turn the combined operation around.
As we saw on the last earnings call, they completely flopped, which many people expected. I don’t think many investors realistically believed Inseego was going to hit its original full-year guidance anyway.
Now we wait and see whether management can execute
