I wrote a quick post on a small-cap stock I thought was undervalued a month ago. LoJack Corp. LOJN I believe is a good value here now at $4.50 a share. It looked cheap then at almost $6.00 a share when I wrote that. With $.23 a share in earnings for the year the current PE multiple is just 19 here at $4.50 a share. This is a small company with only about an 80 million market cap and revenue growth is apparent along with earnings growth. Next years earnings are forecast at $.43 a share. If they hit the $.43, that times a PE multiple of just 20 values the stock at $8 share. I think that PE is pretty conservative given how fast their revenue and earnings can grow. I see this stock as an economic recovery play at a fair price.
I am going to nibble on some shares and put a buy limit order in to buy at $4.57ish a share. I want to see it hold the $4.50s first. Sell volume looks currently exhausted as it is resting on trend support.
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