Sergio
UFPT: From the 10k
"The $95 million revenue value of the automotive contract is an estimate, based on the automotive supplier's projected needs. The Company cannot guarantee that it will fully benefit from this contract, which is terminable by the automotive supplier for any reason, subject to a cancellation charge that includes, among others, a provision whereby the customer will reimburse the Company for its total capital investment less any depreciation taken. The Company's revenues from this contract are directly dependent on the ability of the automotive supplier to develop, market, and sell its products in a timely, cost-effective manner. If the automotive supplier's needs decrease over the course of the contract, the Company's estimated revenues from this contract may also decrease. Even if the Company generates revenue from the project, the Company cannot guarantee that the project will be profitable, particularly if revenues from the contract are less than expected."
Given the downturn in sales for Ford, GM etc. I'd be a little careful of this contract taking full effect.
On the rest of the FA side for the stock...it looks real good. Military and medical demand were very good for the company's product last Q and for the year. With such a tiny float 2+mm shares and insiders holding the majority of the rest of the stock this could go up in a heartbeat. The forward PE is only around 5 with trailing at 22. I would be a little concerned that they made over 60mm in rev's but only a small amount of that made it to the bottom line, judging from the PE only about 1% of the 60mm was profit. That should be higher, about 3% IMO.
Ken |
