Seeking Alpha
Editor's notes: LOJN has a solid balance sheet, a new JV to catalyze the stock, and valuable exposure to the connected car. Valuable Insights homes in on multi-bagger potential.

We believe LoJack, the leader in the stolen vehicle recovery market, represents a compelling investment opportunity. There are multiple catalysts that could drive shares, which closed at $4.24 on Monday, quickly to double-digits, with a possible $15+ stock price over the next 18 months if the company executes. With shares currently trading at 6x EV/EBITDA (or 3.5x excluding non-recurring items), a net cash position, accelerating revenue and profitability, and a soon-to-ramp JV with TomTom (OTCPK:TMOAF) in the fleet management sector (fleet management comps trade at 2x EV/sales vs. LoJack at 0.3x EV/sales), it appears to us that shares are extremely undervalued. Moreover, LoJack has a well established brand whose value does not show up on its balance sheet,...

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