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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Alex.Man who wrote (49578)	9/26/2012 12:25:54 PM
From: richardred	2 Recommendations Read Replies (2) \| Respond to of 78482

My Opinion FWIW-Alex. I took a brief look as I usually like looking at small low cap companies, but this one might be to small for myself. Looks like they could be subject to defense cutbacks. You have put forth data as why Solitron might have speculative aspects. Might be something to sit on if your diversified. I'm liking some companies high tech group. This is where I'm finding some value. That's because the group is very untimely. BRKS- Brooks Automation is one I've been adding to. They are debt free also and pay a nice dividend for the recovery wait. IMO- As far as MOSFETS go. I own some IRF -International Rectifier and currently taking a liking to VSH - Vishay technology Inc. They are much bigger companies that can withstand a downturn better. FWIW as far as unprofitable companies with a good book value and tax loss carry forwards go. I've been looking at SKY-Skyline again. Why-I think housing is already recovering and hoping the worst may be over for SKY. Rick

To: Alex.Man who wrote (49578)	9/27/2012 12:40:32 AM
From: Jurgis Bekepuris	1 Recommendation Respond to of 78482

SODI - I am not an EE person, so take what I say with a grain of salt. I'd be concerned that SODI is so small. Annual sales are 8M. How many chip engineers can you hire for this? They say in 10K: "At February 29, 2012, the Company had 84 employees, 58 of whom were engaged in production activities, 2 in sales and marketing, 5 in executive and administrative capacities and 19 in technical and support activities. Of the 84 employees, 80 were full time employees and 4 were part time employees. " I'm sure 19 in technical and support activities are not all R&D engineers. So maybe they have ten real engineers. Is this enough for a future growth in high tech? This company is not a startup. It's been around since 1959. I'm sure they can sell their old/current products to military for now. But "for now" is a key word. Unless they innovate, they may have fewer and fewer sales. OTOH, there is also attrition from other manufacturers of old chips and they offer their capability to supply chips that are no longer available elsewhere, but this is not a huge long term growth area. Their CEO, who is also COB, President, CFO, etc. has been around since 1992. If he did not manage to make this a growth company in 20 years, he's unlikely to succeed now. So overall, I don't see a future for this company. However, we are talking about NCAV buy. So far they are earning money and not losing it. So NCAV could provide the margin of safety. I don't see a catalyst for the NCAV-to-market-cap gap to shrink, but everything is possible. They could get a good contract, Raytheon or IRF could buy them out, etc. I think I'll skip it though.