Casa Systems

Casa Systems  -  CASA  .  NASDAQ

This is what I thought in November 2019 when I first bought the stock...

Casa Systems is a technology company with a suite of software and hardware products which enable telecom companies to add capacity, speed and new capabilities to their network infrastructure. They have served hundreds of customers in 70 countries around the world. Their original core customer group has traditionally been the cable companies, but spending started to dry up in 2018 after several years of industry-wide infrastructure investment. The resulting downturn hit Casa stock hard and I started buying in at a price of around $3.50 per share and a price to peak earnings ratio of around 3.5. My hope is that cable spending will at least partly recover, providing enough in the way of earnings to justify a higher stock price. The kicker to the deal, though, is the company’s shift in focus to the new 5G standard and their plan to leverage their existing platform and expertise to harness the anticipated industry demand for solutions to help build out this exciting new telecommunications technology.