Asset Play Solitron Devices Inc
Hi everyone,
I’ve been noticing an interesting stock lately, so I want to like to share and see what your opinions are. I am not sure if this stock has already been posted.
It’s about Solitron Devices Inc.
A short introduction:
Solitron Devices, Inc. (Solitron) designs, develops, manufactures and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The Company manufactures a range of bipolar and metal oxide semiconductor (MOS) power transistors, power and control hybrids, junction and power MOS field effect transistors (Power MOSFETS), field effect transistors and other related products. Other products, such as Joint Army/Navy (JAN) transistors, diodes and Standard Military Drawings (SMD) voltage regulators, are sold as standard or catalog items. Its semiconductor products are used as components of military, commercial and aerospace electronic equipment, such as ground and airborne radar systems, power distribution systems, missiles, missile control systems, and spacecraft. The Company’s products have been used on the space shuttle and on spacecraft sent to the moon, to Jupiter (on Galileo) and to Mars (on Global Surveyor and Mars Sojourner).
Current stock price: 2.99
Market cap: 6.78M
Financial overviews 2011:
Quick ratio: 3.64
Current ratio: 4.47
ROE based on owner’s earnings: 38%
Equity increases consistently from 2003 to 2011 due increase in operational cash
Debt-free company
No issuance of new stocks from 2003 -2011
Income statement, balance sheet and cash flow seems to be clean to me. No crazy stuff.
Management
CEO and Chairman Shevach Saraf holds 25% of the shares.
- Served as VP and board of directors in company Image Graphics, a military and commercial electron beam recorded manufacturer.
- Served as VP of operations for Harmer Simmons Power Supply.
All directors and executive officers hold in total roughly 30% of the outstanding shares
Other factors notice:
1. Bankruptcy proceedings; this company had previously proceed bankruptcy in 1992. In the following, no dividend will be hard until creditors have been paid off. Totaling around 1 million accrued liabilities.
2. Tax loss carry forward possibility due to bankruptcy in 1992 and will continue to 2023.
3. US government announced a defense cut of 487bn in the next 10 years, which could result in decrease in sales.
rte.ie
4. Due to risks, this firm has continuously produce profits through the years and has been increasing their cash.
This is not a DCF pick. No consistency in earnings has been stated. This is more of a Benjamin Graham NCAV pick.
2011 data:
Total assets: 12.2
Total liabilities 2.0
I have pointed the price of NCAV around 3.40 per share. But if you use DCF with 0 percent growth, you will still end up buying this stock under its intrinsic value.
The main problem with this stock is that I don’t understand the product. I am not that Techiee…
Let me know what you guys think,
Alex
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