Key insights
- Verra Mobility (VRRM) is experiencing a significant stock price increase following news of a major contract in California. The company's strong position in government contracts, described as near-monopolistic, suggests a high barrier to entry for competitors like AVIS. Despite potential technological challenges for AVIS to replicate VRRM's network, the market anticipates a favorable resolution for VRRM, potentially leading to a stock price rebound.
6% up today.
This one is so beaten up, any good news it is going to rip
The government contract is almost a monopoly.
I did another deep dive on the possibility of AVIS actually being able to replace VRRM in house.
Technology it is not impossible. However the actually connecting with all 4000+ entities like VRRM does, it will take years.
I won't be surprise if AVIS come back to VRRM before the actual September termination date.
If that happens, with with a discount to AVIS, going back to $15 or even higher, it is highly likely