Lojack (LOJN) – Speculating on a step-change from Fleet
I’ve been watching Lojack (LOJN) for a while, almost bought into it a couple of times but I’ve never been able to get comfortable until a few weeks ago.
The irony is that if I had waited a bit longer, I could have gotten in at about 15% less. Oh well. I always dislike writing up a stock that has already moved to the upside (I am in the process of doing just that with Air Canada right now). So here I get to do the opposite; tell you why I liked the stock at $6.20, and must really like it here at $5.40.
Why I bought Lojack in the $6’s
I decided to take a position after I reviewed the fourth quarter results. My reasons were:
- The existing stolen vehicle recovery business appears to have reached an inflection where further increases in revenues should make a larger contribution to the bottom line
- The outlook the company provided on Fleet was very positive
- The stock price (around $6 at the time) priced in a modest improvement in the stolen vehicle recovery business but none of the upside of Fleet.
Reminiscences of a Stockblogger 