Sell: MiX Telematics (MIXT)
MiX Telematics popped after it reported Q1 earnings but, for the most part, has been trending down since. It’s now trading below the level it was at prior to reporting those strong Q1 results back in early May. It is also now below the 16.5-to-17 price zone that I was hoping would give us firm support. The underlying business is just fine, but, generally speaking, emerging market stocks have been under pressure, and with MiX based in South Africa (though it has significant business in the rest of the world) the underlying currency and sentiment trends are working against the stock.
The investment thesis isn’t broken here, but we had a modest gain going with the stock and I’m not going to let that turn into a loss. Therefore, let’s just step aside and look to reinvest the capital in a stock that’s moving in the right direction. We’ll end up with a gain of around 2% to 5%. SELL.