Fleetmatics, Inc.
Navigating for Disaster
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Research Overview

INDEX:
S&P 500
Sector:
Technology
Position:
Short
Date:
Sep 19, 2013

After conducting a forensic financial and accounting review, Spruce Point (fka Prescience Point) believes Fleetmatics, Inc. (Nasdaq: FLTX), a software-as-a-service fleet management firm, is showing signs of 1) growing accounting shenanigans that inflate profitability, 2) concerns related to inexplicable discrepancies between related accounts in its financials, and 3) concerns related to the founding backer’s ties to a previous accounting fraud. Based on our investigation, we estimate 75% downside risk, or $11.00 - $12.00 per share.

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