SSTI - ShotSpotter: Shares Are Overvalued With Significant Downside Potential Compared To Potential Returns
ShotSpotter (SSTI) came to my attention during the stock's rally in 2017-2018. The product seemed compelling, and frankly, it still works well. Management claims that there has been meaningful shooting reduction because of ShotSpotter, with areas like Oakland seeing a significant shooting decrease of 66%, per mile. With the potential to increase people's quality of living, and even save lives, ShotSpotter's product may have merit for citizens, but the same cannot be said for the stock.
Despite shares trading almost 40% lower than last year, we believe that there is a significant downside ahead,