Sunday, December 10, 2006

Hit #136 (@Road)

Trimble Navigation (TRMB) is buying @Road (ARDI) for $7.5/share in a part-cash/part-stock transaction valuing the company at $496 million. The offer represents a premium of 139% over my average cost per share of $3.14.

Trimble, Garmin, Ituran and Navteq are long term winners in the GPS growth story, which is still in its early stages. Of these, Ituran (ITRN) and Navteq (NVT) look attractive at current price levels.

Also worth looking at are related players like MapInfo (MAPS), Motient (MNCP), SiRF (SIRF), LoJack (LOJN), GlobalStar (GSAT) and KVH Industries (KVHI).

Earlier this year Lowrance Electronics (LEIX), another GPS systems manufacturer, was acquired by Simrad Yachting of Norway. KVH Industries also makes for a perfect target for Simrad.

I own LoJack, KVH, Navteq and SiRF shares, with Navteq being a very recent addition on a sharp pullback. I am looking to add more LoJack and KVH shares.

Previous hit - Docucorp (#135)


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