r/valueinvesting
VRRM - Los Angeles to contract with Verra Mobility launching the largest speed safety program in California
VRRM wins largest CA speed safety contract in LA; author sees high switching costs preventing AVIS from replacing them, targeting $15+.
- Secured the largest speed safety program contract in California with Los Angeles, demonstrating strong government demand.
- High switching costs and network effects: connecting with 4000+ entities takes years, making it hard for clients to build in-house solutions.
- Stock is heavily beaten down, offering significant upside potential to $15 or higher if AVIS returns to VRRM before the September termination.
- Stock is currently beaten down and facing near-term contract risks like the AVIS termination.
6% up today.
This one is so beaten up, any good news it is going to rip
The government contract is almost a monopoly.
I did another deep dive on the possibility of AVIS actually being able to replace VRRM in house.
Technology it is not impossible. However the actually connecting with all 4000+ entities like VRRM does, it will take years.
I won't be surprise if AVIS come back to VRRM before the actual September termination date.
If that happens, with with a discount to AVIS, going back to $15 or even higher, it is highly likely
Looks like the EVP of Government solutions also got canned today
I‘m in for 100k shares. This will slowly creep back up to the $7-8/share range without anything happening at all. If they land a few bigger new deals, Avis comes back, or they renew the others sooner, I can see it going above $10.
Already bought the dip , im waiting for it to go up again
Do the fraud lawsuits concern you?
What fraud? They have it in every quarterly report that they have significant customer concentration and that could adversely affect the numbers. If Avis decided to pull out and tank the share price, then it is what it is.
Shit happens.
This is routine for an event like this. The lawsuit was filed by Levi & Korsinsky. Law firms like these routinely file securities class-action lawsuits immediately following a steep stock crash as a key part of their business model.
There's no fraud though... When they terminated, they announced. There's no misrepresentation or fraud here by management.
This is a no-brainer buy. At this price, it has high upside, low downside. Easy back to at least $8 soon