Market Wrap - Stock Pick — Cartrack
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Nancy Bambo from Momentum chose Cartrack Holdings Ltd as her stock pick of the day
"My stock pick today is Cartrack, it is probably not the best stock for institutional investors because of the liquidity. But, it has shown quite resilient growth over the past five years, it's grown 20% plus in terms of its earnings. It also has really strong margins. In terms of the business that it is in, it has a good business telematics, so it's not just about stolen vehicle recovery, it's also about your logistics companies for example. They need to basically just manage their fleet and this would mean better efficiency so more profits. The company has growth, it's got a big balance sheet, its ROA and ROEs are in the double digits, ROEs are at about 47%, ROAs about 28%. I think it's one to buy and hold."
"My stock pick today is Cartrack, it is probably not the best stock for institutional investors because of the liquidity. But, it has shown quite resilient growth over the past five years, it's grown 20% plus in terms of its earnings. It also has really strong margins. In terms of the business that it is in, it has a good business telematics, so it's not just about stolen vehicle recovery, it's also about your logistics companies for example. They need to basically just manage their fleet and this would mean better efficiency so more profits. The company has growth, it's got a big balance sheet, its ROA and ROEs are in the double digits, ROEs are at about 47%, ROAs about 28%. I think it's one to buy and hold."
