The EROAD ASX announcement today is interesting. The new Sysco contract in North America looks like a good boost to their sales in that market especially during a period of economic downturn so the business case must stack up in this backdrop. The Sysco fleet is 9000 trucks so if there is one unit per truck that's about a 10% increase in installed units in North America.

For me, the best news is that it is in a specialist vertical of food safety and sustainability which is a key differentiator from the many generic solutions out there. Refrigerated transport was only a 7% segment for them so this is a material expansion.

From the Sysco website "Sysco is proud to be leading the industry with our science-based climate goal to significantly reduce emissions in our own operations by 27.5%. We'll do this by adding nearly 2,500 electric trucks to our U.S. fleet and sourcing 100% renewable electricity for our global operations by 2030"

Obviously transporting refrigerated transport there will be a laser focus on energy efficiency due to high fuel prices and future sustainability trends. I think this Sysco deal will be a great case study once they deliver successfully.

hi @Turnbulln -- it's a great question. The liquidity tends to be more associated with the size of the business, and the 'depth' of shareholders, as opposed to the number of shares outstanding.

In regard to eRoad, being duel listed may be a (small) factor -- with shareholders split across both the NZX and ASX. But mainly i'd say it's because the shares are tightly held by substantial shareholders:

About 10 entities own half the shares outstanding.

I do think that shares with lower liquidity find it harder to attract a decent multiple -- and rightly so. It's a legitimate advantage to have something you can easily move decent sums in and out of.

Over time, assuming the company continues to grow, the liquidity situation tends to improve. Which can give you a nice multiple expansion.

Looks like it's headed back that way again. There's no buyer resistance atm, will be interesting to see where it stabilizes. Shame that the meeting got postponed as definitely would be timely to get some reassurance.

Anyone know why eRoad is up 50% over the past week on, from what I can tell, no news?

Is it just bargin hunters swooping in on an illiquid stock?