CAMP Stock: CalAmp Corp is an Affordable Bet on Telematics

June 2, 2020
motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary

  • The Telematics Industry  is not pandemic resistant. Cal/Amp saw its Q4 2020 Telematics revenue drop  almost 20% year-over-year to $52.4 million.
  • COVID-19’s headwind on Telematics is why CAMP has not yet recovered to its February highs of $10 price levels.
  • CalAmp’s stock will continue to linger below $9 this year because there’s no COVID-19 vaccine coming soon. This is good for value investors looking for a cheap bet on the fast-growing Telematics industry.
  • Go long on CAMP while it still trades at just 1.23x Forward EV/Sales valuation. This company can survive pandemics. Its Telematics business will recover after COVID-19 gets neutralized.
  • CalAmp will again return to profitability after companies starts adapting efficiently to a pandemic-affected business climate.

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