Ituran Location and Control Ltd. (US) (NASDAQ:ITRN)

CAPS Rating: 5 out of 5

Engaged in the area of location-based services, consisting of stolen vehicle recovery and tracking services. The Company also provides wireless communication products used in connection with its location-based services and various other applications.


Player Avatar TheDumbMoney (54.66) Submitted: 4/14/2011 11:52:21 AM : Outperform Start Price: $13.28 ITRN Score: -1.95

I have owned this stock before and I have pitched it on CAPS before. In short: excellent little sub-$500 million market cap Israeli company (20% Israeli tax on divvies, which can't be recovered if you buy in an IRA, so I'm not buying in my IRA), that is among other things a competitor to Lojack. Does a lot of business in Argentina and Brazil, in addition to Israel and the U.S. Big dividend (though not a stable, American-style dividend, it fluctuates European-style). Excellent balance sheet. ROA and ROE have been recovering in the last two years. TTM revenue is at an all-time high, but the stock is down recently, on various things, including slower earnings growth and concerns about international small-caps I suspect. Depreciation is in line with cap-ex. The stock has gone to nowheresville in the last year, and is down significantly from its recent January high. This is a great little company, and I should never have sold it when I did in May 2010, and will not sell again. While I continue to add to my "safe" large-cap quality stock holdings, my strategy this year, which I have already been implementing, is to make "riskier" bets (for me) in ETFs of interest, for example EPI, VHT, and BRF, which I already own some of, and to look for high quality SMALL-cap companies. By high quality, I mean companies with great balance sheets, decent price to earnings and/or price/FCF ratios, stable or growing and decent ROE, rational business plans, etc. I put ITRN in this category. Purchased today at $15.19/share. This initial position will put it at between two and three percent of the stock component of my portfolio.

Report this Post 3 Replies
Member Avatar TheDumbMoney (54.66) Submitted: 6/15/2011 11:58:53 AM
Recs: 0

Note that as the economic outlook arguably worsened in April/May I abandoned the small-cap strategy, which is why I have not bought others since that time. In fact I sold off my other small-cap, and a couple other stocks, in May.

Member Avatar TheDumbMoney (54.66) Submitted: 5/6/2013 11:57:42 AM
Recs: 0

Closing out this position, per this article: Sold today at $16.00 on the button.

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