SEV...Well, today is the last day to get in on a shot at Sevcon's preferred shares. Stock just traded in the low $7's. (Is that the gap Guy was waiting for to get filled?). It'll be interesting to see how the share price reacts starting monday.
I've been looking into Sevcon over the past few days and think the long term potential looks good...
The on-road EV & plug-in hybrid market is in its infancy and will NO DOUBT see big worldwide growth over the next 5 years. (Sevcon's CEO said recently they are now in a "sweet spot").
Sevcon has traded publicly for 22 years, has outlets around the globe, and they have always kept an ultra low share count with MINIMUM dilution to the shareholders along the way. (BTW, share count has only increased 250k over the past 5 years).
Total shares outstanding = approx 3.7M.
(On a side note, they actually did a 2:1 split in 1995 after going public in 1992).
Sevcon also use to pay a decent dividend, but canceled it in 2008 when the economy crapped out.
There are currently 13 institutions holding the stock and 5 of them are NEW (for Q/E 3/31/2014). Institutions hold approx 1.7M shares (approx 46.5% of total outstanding). And insiders hold I believe approx 1M.
Anyway, I guess the Preferred could be a way to go here if you like dividends and want a little protection. (It'll be interesting to see what final terms are). And/or holding Common for LT growth looks good. Either way, SEV doesn't look too shabby IMO.
I have DD on Sevcon's China JV I'll post next.
The information posted by 2morrowsGains is opinion only and should not to be taken as investment advice.
