Great overall summary of where these guys are. Like you mentioned in the article Solitron was rather busted when Tim and Matson helped right the ship. Like no joke if you look at the financials over the last couple of years and the annual meeting video recently this company looked like it was almost lights out. One of the reasons sales did not increase was likely due to poor reputation as relationship were being repaired.
"With SODI’s operating leverage, NOLs, plus the additional cost savings from the new facility, it is not hard to imagine their earnings could grow by 20% y/y in the future. Sure, revenue hasn’t grown much, but now that management has stabilized the company, they will be able to put more focus on growth."
That's the story going forward. The company now is at a critical inflection point. I would venture to say risk reward is probably the best that it's ever been for this stock even with the a price up 4 fold from where some of the company's most vocal shareholders invested. Those guys took all the risk. Governments around the globe are ratcheting up military spending due to Ukraine and China fears. Some more developed countries are even making comments about depleted domestic arm stocks. Couple that with supply chain issues even for defense parts and as an investor you can see why Solitron may be in a good spot right now. IMO this is an early innings story.
Hey William, i throughly enjoy your write ups and back story. I am also currently a college student, senior to be exact. I am also what you would call a “value investor” or “net net” investor. If you are open to talk more about investment ideas let me know. I have a few investment ideas that might interest you. Let me know.
Nice writeup definitely agree with the undervaluation. Few questions though is that 1) Whats your take on the recurring nature in terms of sales? I get that if they're in a contract that it's going to have a ton of life to give and cash, though where I am having trouble is the frequency of how many orders they get per project from say Raytheon. Should one measure the contracts as a measure of potential sales growth other than say bookings to get a picture of growth? 2) The late 10k again and does that worry you? 3) Correlates with the writeup, are you including the scrapwork and one-off items in your $3 million profit for 2022? Other than those peculiarities I find it a great business.
Great overall summary of where these guys are. Like you mentioned in the article Solitron was rather busted when Tim and Matson helped right the ship. Like no joke if you look at the financials over the last couple of years and the annual meeting video recently this company looked like it was almost lights out. One of the reasons sales did not increase was likely due to poor reputation as relationship were being repaired.
"With SODI’s operating leverage, NOLs, plus the additional cost savings from the new facility, it is not hard to imagine their earnings could grow by 20% y/y in the future. Sure, revenue hasn’t grown much, but now that management has stabilized the company, they will be able to put more focus on growth."
That's the story going forward. The company now is at a critical inflection point. I would venture to say risk reward is probably the best that it's ever been for this stock even with the a price up 4 fold from where some of the company's most vocal shareholders invested. Those guys took all the risk. Governments around the globe are ratcheting up military spending due to Ukraine and China fears. Some more developed countries are even making comments about depleted domestic arm stocks. Couple that with supply chain issues even for defense parts and as an investor you can see why Solitron may be in a good spot right now. IMO this is an early innings story.
Thanks for the analysis, I'm long on SODI.
Hey William, i throughly enjoy your write ups and back story. I am also currently a college student, senior to be exact. I am also what you would call a “value investor” or “net net” investor. If you are open to talk more about investment ideas let me know. I have a few investment ideas that might interest you. Let me know.
Nice writeup definitely agree with the undervaluation. Few questions though is that 1) Whats your take on the recurring nature in terms of sales? I get that if they're in a contract that it's going to have a ton of life to give and cash, though where I am having trouble is the frequency of how many orders they get per project from say Raytheon. Should one measure the contracts as a measure of potential sales growth other than say bookings to get a picture of growth? 2) The late 10k again and does that worry you? 3) Correlates with the writeup, are you including the scrapwork and one-off items in your $3 million profit for 2022? Other than those peculiarities I find it a great business.
Hey William, I hope you are able to see my emily’s. Just making sure I am sending to the right one.