Buy LoJack, Hold American Woodmark

Article Excerpt

LOJACK CORP. $20.90 (Nasdaq symbol LOJN; SI Rating: Speculative) (www.lojack.com; 1-781-326-4700; Shares outstanding: 18.8 million; Market cap: $393.5 million) sells vehicle theft recovery systems. The company has two main products: the LoJack Vehicle Recovery System and the LoJack Early Warning System. LoJack operates in the U.S. and 29 other countries around the world. In Canada, the company operates through its subsidiary, Boomerang Tracking. LoJack’s recovery systems use radio frequency technology to track stolen vehicles. Once a customer realizes a vehicle is stolen, they contact police. Local police cruisers and aircraft equipped with LoJack technology (supplied at no cost by LoJack to law enforcement agencies) are led to the tracking device. In the three months ended June 30, 2007, LoJack’s sales rose 2.6%, to $58.2 million from $56.7 million. However, earnings rose 21.8%, to $6.7 million or $0.35 a share, from $5.5 million or $0.29. That’s because it has successfully cut costs, in manufacturing as well as other areas. Cash flow rose 28.6%,…