Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, August 20, 2010

Article Excerpt

LOJACK CORP., $3.55, symbol LOJN on Nasdaq, sells systems that help track and recover vehicles after they’ve been stolen. Lojack sells its products in the U.S. and 30 other countries. The company’s Canadian subsidiary is Boomerang Tracking. In the three months ended June 30, 2010, LoJack’s revenue rose 5.6%, to $37.4 million from $35.4 million a year earlier. The company lost $1.03 a share in the latest quarter, compared to a loss of $0.73 a share. However, the latest quarter included a one-time charge of $0.87 a share for an accounting adjustment. Cash flow was positive in the latest quarter, at $1.1 million, or $0.06 a share. LoJack’s $7.9 million of debt is just 12% of its market cap, and less than half of its cash holdings of $33 million. Because the U.S. accounts for over 75% of its revenue, LoJack will need a further rebound in American new-car sales to show substantial growth. In the meantime, it will benefit from…

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