Sierra Wireless, Inc. (USA) (SWIR)

Sierra Wireless looks like a good play on the future of enterprise mobile computing. As wireless coverage expands and a wide variety of commercial and government organizations increasingly deploy mobile devices to bolster efficiency, revenues, and customer service, Sierra appears to be well-positioned to take advantage. Their product line is fairly broad, offering everything from USB modems that are re-branded by wireless carriers and sold to consumers, to rugged mobile computing devices used by the transportation, oil & gas, and energy industries to allow workers in adverse environments to access critical business applications while in the field.

In spite of the recession, Sierra's balance sheet is in excellent condition, with little debt, ample cash on hand, and strong operating margins. With credit markets still tight, you'd expect to pay a premium for a company in this position, yet their P/E ratio is only around 7.6. I wouldn't be surprised if they became a hot buyout target when the economy picks back up, but at the very least, the rapid expansion of mobile computing should provide increasingly strong revenues for years to come. All said, this pick seems like a clear winner to me.