Yep, Vecima is moving up nicely. The Fleetlynx division has had a major problem getting started & it remains to be seen if it will ever return the significant investment Kumar made in it. There are a number of fast growing, already established telematics companies (FLTX, MIXT) that will offer serious competition in that space.
Kumar said he would "leapfrog" these - going immediately to a leadership position, based (I suppose) on deals made with Peterbilt / Kenworth with an emphasis on long haul trucking.
At the most recent CC, CEO Sumit Kumar announced a target of 5000 subscriptions in 12 months. That number is almost laughable given the years the company has already spent trying to get customers for their solution. By contrast, Fleetmatics (FLTX) added 116,000 subscriptions in the past 12 months bringing its total to 472,000. MIXT is also hitting 20% plus yoy gains and over 400,000. That's not to say Fleetlynx can't move quickly to the front of the line, but that so far the sales strategy hasn't generated even the most modest results.
Except for that, business looks great and I expect the stock to continue to rise, based on continuing high margins, incremental sales gains, prudent management and low, low valuation. |
