| | | IEHC,
I own some shares, but there are a couple negatives from the latest 10-k
Backlog is way down from $8,674,000 at March 25, 2016 to $7,000,000 at March 25, 2016. Perhaps this is the reason the stock has been down lately on relatively decent earnings.
There is also a collective bargaining multi-employer pension plan with unknown liabilities. It seems pretty ridiculous to me that the company is on the hook for liabilities, and it doesn't even know what they are. Although the company claims these liabilities are only payable if the company exits the plan, obviously they are going to have pony up money if there is a shortfall on employee benefits, which I can almost guarantee there will be at some point.
FWIW, I view this as a negative in the long term -- I don't see it impacting the bottom line in the near term barring some kind of accounting rule change.
MC |
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