This Israeli tech company is on the move, with analysts expecting double-digit growth this year and next. Our second recommendation is profit-taking on a previous idea.
Pointer Telocation (PNTR)
From The Cutting Edge
Fleet and mobile resource management firm Pointer Telocation (PNTR), announced last week that it has won a five year “driver behavior project” with an applicant of the American Transit Insurance Company, the leading commercial insurance provider for for-hire vehicles in New York City.
The project will include four thousand Black Car and Car Service vehicles, servicing customers using popular ride hailing apps such as Uber and Lyft. Installation is expected to be completed by February 2017.
The systems will integrate advanced driver assistance systems from Mobileye (NASDAQ: MBLY) with Pointer’s Cellocater hardware and software technologies, which will add fleet management abilities and driver behavior analysis.
The significance of this project is difficult to understate. It’s Pointer’s first major penetration into the US market using its software as a service (SAAS) model, and allows the company to expand sales beyond its home-based territories in Israel. There is incredible growth potential from this project, as driver behavior technology could soon become standard in commercial vehicles as insurers look to optimize their data approach.
Pointer remains one of our top holdings and recently passed above our previous ‘Buy Under’ ceiling of $8.00. We are, however, raising the ‘Buy Under’ to $9.50 in light of the recent driver behavior contract and U.S. market penetration.
Jason Stutman, The Cutting Edge, www.angelpub.com, 877-303-4529, January 24, 2017