Zedcor (ZDC) has had a volatile week, shedding ~25% before yesterday’s 12% recovery. It stems from news that Amazon is entering the market via Ring with the launch of a $5,000 surveillance trailer. It’s a lower cost, less complete solution…

… but when you trade at 20x forward EBITDA, any negative news can take some air out of the multiple. While the business is performing well today, Amazon might represent a longer term threat analogous to that of SpaceX to MDA Space.

If the value isn’t in the security towers themselves, but in the handling of what they pick up (routing to police/security/company) - the network sitting on top of the hardware would be where the moat (and the premium multiple) should be.