Jason Knott 2017-01-16 03:29:01
CE & Security Stocks Surge in 2016 Public companies in the channel enjoyed a 22.4 percent rise in stock price last year, and three-quarters of those tracked saw increases. IF YOU WANTED TO MAKE some serious dough in 2016, consumer electronics and security company public company stock would have been a great option. Overall, the stock price of 48 public companies engaged in the home automation, security, Internet of Things (IoT), and consumer electronics space rose a healthy 22.4 percent in 2016, outperforming the Dow Jones Industrials’ 13.4 percent increase. The 22 percent growth is a nice comeback from 2015, when CE stocks fell 11.8 percent. In the list of 48 companies, 36 companies saw stock price increases, while 12 had declines. The list CE Pro tracks is always evolving. This year, several companies were dropped from coverage due to buyouts and in several instances, those companies went private, namely Nortek, ADT and AVAD. In addition, several larger public companies gobbled up others, such as AT&T buying DirecTV, Samsung acquiring Harman, Johnson Controls acquiring Tyco, and Charter Communications purchasing Time Warner Cable. New additions to this year’s table are Tessera Technology (acquired DTS), Napco Security Systems, IAC Interactive (owners of HomeAdvisors.com and ServiceMagic), Amazon, Ametek (bought ESP/SurgeX) and Canon (acquired Axis Communications). TiVo Paces 2016 Winners The company with the biggest stock price increase last year was TiVo, which rose a whopping 134 percent. The company was acquired in April 2016 by Rovi Corp., which then melded into the public stock of TiVo. The purchase was for $10.70 per share, which is half the stock price TiVo finished the year. The new company combines TiVo’s user experience and content discovery for traditional television, OTT and on-demand content with Rovi’s strength in guides, personalization, advertising, analytics and cloud services. The new company serves more than 28 million households. The next “big” winner was Sharp whose stock also more than doubled (up 130 percent), albeit from a tiny $1 per share to $2.30 per share. The Japanese TV panel manufacturer recently flexed its muscle by warning Samsung it would stop providing glass for its flat-panel TVs. Another big stock winner in 2016 was Tessera Technology (up 97 percent) after its acquisition of DTS in September for $850 million. Other companies with significant gains were Logitech (up 65 percent); Alarm.com (up 65 percent) just one year after is IPO; Charter Communications (up 61 percent) after its acquisition of Time Warner Cable; and Belden (up 57 percent). Pure-Play Stocks; Highest/Lowest Priced It is always interesting to look at the “pureplay” stocks that are focused on the custom installation industry versus just being a division in a larger company. Napco Security Systems, for example, had a solid year growing 40 percent. Control4, one of the few pure-play home automation companies on the list, saw its stock grow 40 percent in 2016 to $10.20/share. That is still down from where it started the year 2015 when it sold for $15.37 per share. The most expensive stocks to buy are Samsung (equivalent of $1,498/share in Korean won), Alphabet/Google ($776/share) and Amazon ($758/share). The cheapest stocks on the list are HH Gregg ($1.42/share), Sharp ($2.30/share) and Toshiba ($2.50/share). Down in 2016 It’s never a good sign when the economy is cooking and the stock market is setting records, yet your company stock has fallen. Unfortunately, there were a few companies that struggled in 2016. The biggest loser was HH Gregg, the Indianapolis-based retailer with 200+ brick-and-mortar locations and a solid online etail presence saw its stock fall by 61 percent, from $3.66/share to just $1.42. You might think it is because “retail is dead,” but Best Buy had a solid 40 percent increase in 2016. Other companies that saw stock declines were IMAX (down 12 percent) and VOXX International (12 percent decline). Future of Day/Date Movie Server Prima Cinema in Question PRIMA CINEMA was a pioneer in the emerging category of “day-and-date” movie releases, allowing consumers to view just-released films in the privacy of their own home theaters. Those customers today are twiddling their thumbs, waiting for new flicks to arrive. At press time, it seems Prima Cinema has gone dark. “Movies that were supposed to be available in early December still aren’t downloaded,” says one dealer who asked not to be named. At the hefty price of $35,000 for the server and $500 per movie (for a one-time viewing), the Prima system made its way into private cinemas of the rich and famous, as well as screening rooms of producers, directors and other Hollywood types. The first system was installed in 2012, the year CE Pro dubbed it one of the most significant products of the year. The next year, IMAX acquired a stake and a “significant option position” in Prima Cinema as IMAX itself entered the high-end home-theater business. Last fall, however, dealers were telling CE Pro that they and their clients “can’t get customer service or tech support” and that “nobody answers the phone.” At least one dealer, who requested anonymity, had a server in for repair, unable to get it returned. “It’s like they disappeared into thin air,” says a Prima rep, who also asked not to be identified. In November, CE Pro reached out to Prima CEO Shawn Yeager, who responded immediately via Linkedin, but was not ready to comment on the state of the company. Two other requests for comment went unanswered. The Carlsbad, Calif., company moved a few months ago into a one-room office, which was dark when CE Pro stopped by. You could see the room was filled with gear and boxes. Prima has had a good run in a tricky business with very few rivals. Along with the movie-server provider Kaleidescape, Prima has been integral in forging relationships with Hollywood that benefit the home-technology integrator channel. There’s talk of more mass-market availability of day-and-date movies, but so far none that rival Prima in quality or earliness of release. For example, Apple is mulling the release of $15 movies on iTunes as soon they hit DVD, maybe sooner. Last year, Screening Room was launched by Napster co-founder and former Facebook president Sean Parker and entertainment mogul Prem Akkaraju. The company promised early-release movies for $50 apiece (rental), played on a $150 box. —Julie Jacobson Industry Mourns Passing of Audio Veteran Ken Furst THE CONSUMER electronics community reeled with December’s news of the death of Ken Furst, who enjoyed a four-plus decade career in the audio industry. Furst, 66 when he passed away Dec. 17, started his career in retail sales and management for Arrow Electronics, Route Electronics and Tech Hi-Fi. He later went on to a long career in product development, management and marketing for major brands including 10 years as vice president of marketing at Denon, along with stints at Adcom, Onkyo, Denon, Philips. Furst had a special connection with the industry media because he spent part of his career at Home Theater Magazine in the mid-1990s, and the past eight years running Furst Marketing, where he worked with Proficient Audio, among others. He also spent two years as the executive director of the Home Theater Industry Association. His career included major contributions to the launch of Compact Disc and digital audio, and the development of home theater systems. Furst was a mentor and advisor to many and had a well-deserved reputation for applying his deep knowledge of the industry to helping companies and individuals flourish. Many of Furst’s projects won industry acclaim and awards, such as the prestigious Design and Innovation Awards given at CES. Furst was truly a dedicated audiophile, whose passion enabled him to converse about components, instruments (especially keyboards), and music in general. Tributes poured in across social media, with those from the industry noting his great life, lust for life, and “irreplaceable” body of work. He is survived by daughter Alexandra. CE Pro’s Jacobson Among Women in CT Group Honorees WOMEN IN Consumer Technology, recently renamed from Women in CE, honored recipients of its 2017 Legacy Awards, which honor top-level executives from the retail, publishing, research, manufacturing and entertainment segments of the consumer technology industry. The ceremony took place during CES 2017 in Las Vegas. “We’ve seen some incredible technology innovation this year, but even more remarkable is that we’ve witnessed women playing an integral role in its advancement,” says Carol Campbell, founder of Women in CT. “We couldn’t be more inspired not only by these remarkable recipients but also by all of the nominations we received. These women continue to push the boundaries at their companies and are a driving force in empowering other women across the industry.” CE Pro founding editor Julie Jacobson was one of this year’s six award honorees. A veteran of nearly 25 years in the custom electronics space, she has specialized in covering and become an expert in the home automation, security, networked AV and home systems integration sectors. Jacobson received the CTA’s TechHome Leadership Award in 2014 and was also recently named a top influencer by Inc. magazine in the area of Internet of Things. The other recipients recognized during CES: - Sandy Conrad is senior vice president of merchandising at HSN. Conrad has more than 28 years of experience as a senior merchant executive. With a keen ability to recruit, hire, mentor, and inspire, Conrad not only sustained phenomenal growth in direct to consumer retail sales at HSN, but also for served as an inspiration to women who want to succeed in a male-dominated corporate industry. - Karyn Schoenbart has worked for The NPD Group for more than 33 years, now as president and COO. For more than 10 years, she has managed all of NPD’s commercial teams, including the technology business sector, which is one of the largest groups at the company. - Sally Washow has worked in the consumer technology industry for more than 20 years. Currently CEO of Cedar Electronics Holding Corp., Washow provides executive leadership for the company’s portfolio of brands, as well as directs overall strategic growth. She helped establish the company’s partner mentorship program with the University of Illinois. - Shelley Zalis is the recipient of the Carol Campbell Inspiration Award. She left the corporate world to found OTX (Online Testing Exchange), which became one of the largest and fastest growing research companies in just nine years and sold to Ipsos in 2010. She is creator of The Girls’ Lounge, a one-of-a-kind destination for women to connect, collaborate, and empower each other. - Paris Bradley is the Woman to Watch honoree. Product marketing manager for DISH Network, Bradley built a communications system to drive internal and external education for all of the company’s products and technologies. She also formed DISH’s first diversity group, The DISH Women’s Network, to support the growth and success of women on a personal and professional level.
Published by Electronic House. View All Articles.
This page can be found at http://digital.cepro.com/article/Industry+Pulse/2689020/376947/article.html.