VRRM - Los Angeles to contract with Verra Mobility launching the largest speed safety program in California
u/Far-East-locker ·
Reddit — r/ValueInvesting
· June 15, 2026 at 13:42
· ⬆ 15 pts
· 💬 10 comments
| View on Reddit ↗
AI Summary
Summary
The post discusses Verra Mobility (VRRM) securing a major speed safety contract with Los Angeles, the largest in California, and the stock jumped 6%.
Author believes VRRM is deeply beaten down and any good news will cause a sharp rebound, citing near-monopoly government contracts and barriers to entry for competitors like Avis.
Thesis: Avis’s attempt to replace VRRM in-house will fail due to the complexity of integrating with 4,000+ entities, leading to a renewed contract before September termination, pushing VRRM back to $15+.
Quality assessment: Moderately researched DD with specific contract news, but relies heavily on speculation about Avis’s future behavior; more of a catalyst-driven thesis than deep fundamental analysis.
Score15
Comments10
Upvote %89%
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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