TSLA - Iteris: Big Tech Investing Big Bucks In Mobility Sensors Is The Big Risk

2024-05-07 09:12:21 ET

Summary

• I see terrific potential for transportation sensors and solutions, but I'm no longer sure a small pure-play like Iteris is going to deliver.
• The company has shown steady growth, but I'm worried that big tech firms leading the self-driving revolution will eventually reign supreme in fixed traffic infrastructure that represents Iteris' core.
• I rate Iteris stock a Hold, but continue to maintain a small position.

I've long held shares of Iteris ( ITI ) as a pure play on mobility sensors. I've made some long-term profits, but nothing spectacular. The big win I was hoping for has never materialized, but I've remained patient for the most part. As the company approached their Q3 results release date a few months ago, I surprised myself by selling half of my position and reallocating the proceeds elsewhere. Iteris proceeded to report another set of unexcitable results , not really to my surprise....

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