Knowles agreed to sell its speaker and receiver product line to Loyal Valley Innovation Capital in May. Deal terms weren't disclosed, but the product line accounted for $374 million of 2015 sales and $441 million in assets, and the sale could mean a significant boost to cash. In its 2015 annual report, management pointed to the potential for significant improvements in profitability, a reduction in capital expenditures and stronger free cash flow due to the planned sale.

The company has just $345 million in net debt, which could be completely paid off with the sale of the speaker line. At a multiple of 1.6 times sales, a conservative estimate on retail tech deals, the company would still have more than $250 million in cash after paying down debt. That kind of cash position combined with dominance of a growing market could make Knowles an acquisition target itself, or attract interest from activist investors.

Shares currently trade for 19.5 times trailing earnings. Forward earnings are expected to jump 42% to $1.01 per share. Even a conservative 17-times multiple means a 24% increase in the shares to $17.17 each, which seems likely, as the company stands to improve fundamentals significantly and benefit from market growth.