At the end of September, just as the stock was getting ready to bust into the $20 range, I put out some thoughts on shares of Inseego (INSG) and their recently announced divestiture of their Ctrak assets. If you wish you can read about it here.
Those thoughts made the point that INSG was basically returning to its roots as a pure hardware provider of low-margin “hot spots” and “fixed wireless access” equipment that would only increase their reliance on their 2 major wireless carrier customers, Verizon (VZ) and T-Mobile (TMUS).
I also pointed out that the company was likely to trade more inline with other pure hardware providers like Netgear (NTGR), which trades at fractions of revenue rather than multiples of revenue.
Which leads me to an observation I often make, which is to follow what the company actually does rather than what the company may say they do.
Case in point INSG and the lackluster financial guidance leading to today’s disaster.