IMHO, OML is worth taking a close look at.
I have been following OML for a few months, and have been trying to get some real numbers for some time - instead of the growth rate percentages which they publish in their news releases. I finally phoned Barry Lee in Calgary - still didn't get any hard data, but I have quite a bit of confidence in the future of OML. Among the reasons are the following:
1. The company is spending banked cash on share buyback. This indicates to me that they have money they don't really need in order to grow, and don't want to pay tax. (Certainly better diluting share price with a share offering to raise money) This share repurchasing is in addition to an expansion of manufacturing capacity. This new capacity will be, I understand, wholly devoted to orders from the military.
2. They are working to get a Nasdaq listing. Barry said that they were planning to do this in fall, but they have had quite a few inquiries from Americans on how to purchase their stock and have moved the date of this up.
3. As they are selling to the army, Chrysler, and Nike, I believe that they are in a very expandable market - and that there is no real limit on how much room for growth they might have.
4. They have had analysts visit them in the recent past. If they have no long term debt, if they are growing at the pace which they indicate in their releases, and broaden their revenue base as they seem to be doing, it is very likely that they will get a positive review. (A Cantonese newsletter in Ontario is recommending them as a buy in their April edition)
All of these seem to me positive signs. I hope that with the release of financial data, that my point of view will be confirmed.
Any other opinions?
Ed |
