NEW YORK -- Sales and earnings at LoJack Corp. are growing strong as an increase in auto thefts boosts demand for the company's stolen-car recovery system, Barron's reported in its latest issue.
More drivers pay $695 for LoJack to install a radio transmitter that allows local police to track down their car in the event of a theft, Barron's said. The company says its system has a 90 percent recovery rate, it added.
With revenue and profit-margins on the rise, LoJack earnings are expected to soar 20 percent this year and in 2005, the magazine said.
LoJack shares, trading at just more than $9, have doubled in two years, yet the stock remains attractive at 15 times expected 2004 earnings, Barron's said.
Barron's noted some investors expect LoJack's radio technology will be supplanted by satellite-based services, such as General Motors' Onstar system. But satellites can't track cars in an underground garage and smart thieves would know to remove a car's antenna.
And though its U.S. growth is solid, LoJack has expansion opportunities abroad, the magazine writes. The company has license deals in South Africa, France, Spain and Mexico. The company recently struck a deal in mainland China, it is negotiating for a license in Italy.
This month the company agreed to buy Boomerang Technology, Canada's leading stolen-car tracker, Barron's said.