February 8, 2007
SpeculatingStocks.com Stock Pick: Pointer Telocation, Inc. (PNTR)
Stock Price: $12.55 (short-term strong buy)
Pointer Telocation, Inc. provides a range of services to insurance companies and automobile owners, including road-side assistance, vehicle towing, stolen vehicle retrieval, fleet management and other value added services. The company's services, for the most part, are provided in Israel, through its subsidiary Shagrir and in Argentina and Mexico through its local subsidiaries.
PNTR has been in a trading range for over a month. Today, PNTR is finally breaking out of its range by moving above its 50-day moving average as well as crossing resistance at $12.47. This is followed by three out of the last four days closing in the green.
PNTR is experiencing strong growth and undervalued compared to their industry. We believe PNTR will eventually guide higher on their 2007 revenue estimate of $46.0 to $47.5 million.
There are only 511,200 PNTR shares in the float.
SpeculatingStocks.com Target Price: We expect PNTR to reach $18.00 within the next 1 - 2 months.