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r/valueinvesting
VRRM: Deep Value or Gamble?
Investor summaryBullish
Author views VRRM's 70% drop as an overreaction to losing 10% of revenue, targeting a 3x return to $12.
Bull points
- Real revenue with corporate and government clients, not a meme stock.
- 70% stock drop is an overreaction to losing only 10% of revenue from Avis.
- Base case target price of $12 offers an easy 3x return from current levels.
VRRM价值 / 回购
Post body
What I like about it is that it's not some meme stock. The revenue is real, and the customers are corporate and government entities.
The current sell-off is definitely an overreaction. Yes, they lost 10% of their revenue from Avis, but that doesn't justify a 70% drop in the stock price.
My initial position was 200 shares @ $4.11, and another 500 @ $4.50. I will enter another 5000 next week, hoping for a pullback to $4.30.
I don't expect it to go back to $25. However, if everything stay the same now, my base case is $12, easy 3x
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