Zedcor provides low and zero-emission mobile surveillance towers that offer protection for commercial and industrial applications.
My main concern with Zedcor was that the valuation was far ahead of the fundamentals, and the results needed to be flawless to avoid a stock pullback.
Well, never bet against a management team that’s executing. Zedcor delivered the goods again, with a 42% increase in revenue and a 49% increase in adjusted EBITDA. The other metrics also looked great, such as the total fleet utilization rate above 90% or US revenues now exceeding 10% of total revenues.
The stock ripped higher following the release, making me look like a fool for underestimating the company! As long as this team keeps executing, shareholders will be happy. However, I still stand by my comments about the elevated valuation.
Stock price when profiled (Oct 30): $2.79
Closing stock price yesterday (Nov 26): $3.46
Return: + 24%