ITRI: Itron Lands Big Meter Order
We’ve already talked about Itron’s (ITRI) plans to grow through acquisition. Now we see an example of their organic growth/
Itron Lands Largest-Ever International SENTINEL(R) Meter Order
Itron (NASDAQ:ITRI) announced today it has received an order from Mexico’s Comisión Federal de Electricidad (CFE), for 25,000 SENTINEL solid-state electricity meters. CFE is Mexico’s largest electric utility – covering the whole of Mexico – with more than 20 million customers and 163 power-generating plants.The agreement represents Itron’s largest-ever international sale of the highly successful SENTINEL meter. Beyond the initial 25,000 meters, CFE also has the option to purchase an additional 37,000 units over the next year.
Make no bones about it: automatic meter reading will be a long-term upgrade cycle, and the fact that a company with a market cap under $2 billion is one of the leaders means a great long-term opportunity for the stock, despite the hiccups they are bound to face along the way.
Like this article? Why not try out:
[...] When Itron (ITRI) announed a large sale recently, we said “make no bones about it: automatic meter reading will be a long-term upgrade cycle, and the fact that a company with a market cap under $2 billion is one of the leaders means a great long-term opportunity for the stock, despite the hiccups they are bound to face along the way.” Possibly less concerned about those hiccups are the private equity guys who provided some of the capital Itron needed for a recent acquisition. As we said at the time: The best deal of all was reserved for 10 private equity investors, who were given a discount from the recent trading so as not to disrupt the market price. The $57.50 they paid (which they won’t even have to shell out until Thursday) has already yielded a 17% return. [...]