FleetMatics tumbles on SA article

|By:, SA News Editor

Shares of FleetMatics (FLTX -6.5%) tumble after SA contributor Prescience Point makes the bear case on the fleet management solutions provider.

The short-focused boutique claims FleetMatics is inflating financial metrics through "an aggressive cost capitalization strategy that results in a highly misleading reflection of its business model and economics." The issue may come to a boil, Prescience Point, claims as "vehicle churn rate is set to continue increasing in the back half of this year, resulting in the unwinding of financial statement benefits previously reaped." It sees a downside of 72%.