Nortech Systems Inc (NSYS)

[Slim6]

NSYS sales down significantly and
Net income down by 160% from prior year. This one is way overvalued.

[Quaaflac]

6/11/24 Nortech Systems Announces Stock Buyback Plan
MINNEAPOLIS--(BUSINESS WIRE)-- Nortech Systems Incorporated (Nasdaq: NSYS) (“Nortech Systems”, or the “Company”), a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical, aerospace & defense and industrial markets, announced today the Company’s Board of Directors approved a $100,000 common stock buy-back plan.

[Quaaflac]

@NSYS $10.69, Time to break through 11 to 16 then blue sky !

[Quaaflac]

It looks like this stock will be in hibernation until the end of the year. imo

[Quaaflac]

I saw the latest report and everything including the order book is booming. Now to get it done... When they get their 5.2M SBA money that will be a huge boost to their cash position. Scary to have only 444k in the bank.

[Swimhole]

Nortech Analysis: 20 Price Target after Q2 2021

Nortech Systems operates in the Medical, Aerospace & Defense Markets and fall under the EMS industry. Nortech was founded in 1981 and has been steadily expanding operations, peaking in 2019 with annual revenues of 116M. Nortech currently employees over 890 staff at its various plants. This will come into play later. The company has historically been operating at a breakeven. Management stated the breakeven magic number is roughly 27 Million per quarter. This amount covers the fixed costs and any additional revenue results in profit after variable costs.

Covid/Government Incentives and Future Outlook

Like most companies, NSYS's 2020 numbers were impacted by the pandemic. Revenues have been affected by the shortage in materials and backlog of purchases.

Revenue dropped from 27.4m in Q1 2020 to 22M in Q1 2021. (25%)

This 25% drop makes NSYS eligible for the Employee Retention Credit

ERC Calculation

Credit amounts up to $7,000 per employee x 890 employees = 6.2 Million in ERC credits coming next quarter.

The company has stated it will be applying for the credit in a press release in March.

This 6.2 Million will be added directly to NSYS's Bottom Line for Q2 2021

Paycheck Protection Program Relief Loan Forgiveness:

NSYS entered into the PPP program in April 2020 and received 6.1 Million of forgivable debt under the circumstances that it be used toward payroll. NSYS will be applying for the debt to be forgiven in Q2 2021 per their latest annual report. They have met the criteria for the full amount to be forgiven.

This 6.1 Million will be added directly to their bottom line in Q2 2021 financials.

Future Revenues:

While NSYS's revenue numbers have dropped from 2019, the demand for their products have significantly increased. Once the shortages and purchasing delays get caught up, NSYS will be reporting record revenue figures.

Here is a backlog of their orders to be filled for Q2 2021:

Medical: 15.87M

Industrial: 10.12M

Aerospace 5.1M

Total : 31.1M

This backlog is up from 24.3 Million in the prior quarter. Backlog turnover time is roughly 90 days or once a quarter.

This means revenue for Q2 2021 is expected at atleast 31.1 M which would represent a 41% increase from prior quarter and be above their break even rate of 27 million. This 31.1m does not factor in smaller jobs ordered during Q2.

Net profit Q2 on 31.1M is expected to be in the 500k - 1M range if gross profit is at 15%-20%

Combine this with the up to 12.3 Million of government incentives you have Net income for Q2 2021 sitting at roughly 13 Million.

Valuation:

Market Cap: 18.4 Million

Q2 Net Income: 13 Million

Q2 Revenue : 31.1Million

Under any metric this stock is significantly undervalued.

The company will be sitting on a higher net book value then its share price after the debt forgiveness and government incentives.

Insider Buying:

Management believes this stock is undervalued and the CFO and CEO have both entered into share purchase agreements to purchase stock on the open market during the year.

Nortech’s chairman of the board, David Kunin, has established a Rule 10b5-1 trading plan to purchase shares of Nortech common stock on the open market in an amount up to $250,000 through January 2022.

Nortech’s chief financial officer, Christopher Jones, has established a Rule 10b5-1 trading plan to purchase 25,000 shares of Nortech common stock on the open market through March 31, 2021. (roughly 175k worth)

Two new purchasing plans were also entered into on June 1, 2021 for Miller and Chris Jones. Chris agreeing to buy more stock after his recent 175k purchase in Q1 2021.

Share Float:

The company currently has 2.66Million shares outstanding while the tradeable float is significantly below that.

The Kunin family and executives own roughly 61% of the float and increasing each buy back.

Mutual funds currently own 5% and are increasing their ownership.

There are a few large holders on message boards that own 7-10%.

This makes the tradeable float roughly 26% of 2.66M or 700k shares.

This low float will play a large roll during the next ER, due to the large income beat individuals who want to enter into this company and purchase shares will have to compete for shares driving the price up significantly.

Summary: NSYS is significantly undervalued and will be getting 12-13 million of government incentives during Q2 2021. This will be free cash going directly to their bottom line. The company is worth only 18 million currently and is extremely undervalued. This is why the CFO, Board and CEO have been buying shares like crazy and entered into a new purchase agreement earlier this week. Once next ER is released in July/August this stock will run to $20+ as it reports revenue growth of over 40% from prior quarter and 13M+ in net income.

Disclosure: I am long on this stock

[Swimhole]

Nortech Systems operates in the Medical, Aerospace & Defense Markets and fall under the EMS industry. Nortech was founded in 1981 and has been steadily expanding operations, peaking in 2019 with annual revenues of 116M. Nortech currently employees over 890 staff at its various plants. This will come into play later. The company has historically been operating at a breakeven. Management stated the breakeven magic number is roughly 27 Million per quarter. This amount covers the fixed costs and any additional revenue results in profit after variable costs.

Covid/Government Incentives and Future Outlook

Like most companies, NSYS's 2020 numbers were impacted by the pandemic. Revenues have been affected by the shortage in materials and backlog of purchases.

Revenue dropped from 27.4m in Q1 2020 to 22M in Q1 2021. (25%)

This 25% drop makes NSYS eligible for the Employee Retention Credit

ERC Calculation

Credit amounts up to $7,000 per employee x 890 employees = 6.2 Million in ERC credits coming next quarter.

The company has stated it will be applying for the credit in a press release in March.

This 6.2 Million will be added directly to NSYS's Bottom Line for Q2 2021

Paycheck Protection Program Relief Loan Forgiveness:

NSYS entered into the PPP program in April 2020 and received 6.1 Million of forgivable debt under the circumstances that it be used toward payroll. NSYS will be applying for the debt to be forgiven in Q2 2021 per their latest annual report. They have met the criteria for the full amount to be forgiven.

This 6.1 Million will be added directly to their bottom line in Q2 2021 financials.

Future Revenues:

While NSYS's revenue numbers have dropped from 2019, the demand for their products have significantly increased. Once the shortages and purchasing delays get caught up, NSYS will be reporting record revenue figures.

Here is a backlog of their orders to be filled for Q2 2021:

Medical: 15.87M

Industrial: 10.12M

Aerospace 5.1M

Total : 31.1M

This backlog is up from 24.3 Million in the prior quarter. Backlog turnover time is roughly 90 days or once a quarter.

This means revenue for Q2 2021 is expected at atleast 31.1 M which would represent a 41% increase from prior quarter and be above their break even rate of 27 million. This 31.1m does not factor in smaller jobs ordered during Q2.

Net profit Q2 on 31.1M is expected to be in the 500k - 1M range if gross profit is at 15%-20%

Combine this with the up to 12.3 Million of government incentives you have Net income for Q2 2021 sitting at roughly 13 Million.

Valuation:

Market Cap: 18.4 Million

Q2 Net Income: 13 Million

Q2 Revenue : 31.1Million

Under any metric this stock is significantly undervalued.

The company will be sitting on a higher net book value then its share price after the debt forgiveness and government incentives.

Insider Buying:

Management believes this stock is undervalued and the CFO and CEO have both entered into share purchase agreements to purchase stock on the open market during the year.

Nortech’s chairman of the board, David Kunin, has established a Rule 10b5-1 trading plan to purchase shares of Nortech common stock on the open market in an amount up to $250,000 through January 2022.

Nortech’s chief financial officer, Christopher Jones, has established a Rule 10b5-1 trading plan to purchase 25,000 shares of Nortech common stock on the open market through March 31, 2021. (roughly 175k worth)

Two new purchasing plans were also entered into on June 1, 2021 for Miller and Chris Jones. Chris agreeing to buy more stock after his recent 175k purchase in Q1 2021.

Share Float:

The company currently has 2.66Million shares outstanding while the tradeable float is significantly below that.

The Kunin family and executives own roughly 61% of the float and increasing each buy back.

Mutual funds currently own 5% and are increasing their ownership.

There are a few large holders on message boards that own 7-10%.

This makes the tradeable float roughly 26% of 2.66M or 700k shares.

This low float will play a large roll during the next ER, due to the large income beat individuals who want to enter into this company and purchase shares will have to compete for shares driving the price up significantly.

Summary: NSYS is significantly undervalued and will be getting 12-13 million of government incentives during Q2 2021. This will be free cash going directly to their bottom line. The company is worth only 18 million currently and is extremely undervalued. This is why the CFO, Board and CEO have been buying shares like crazy and entered into a new purchase agreement earlier this week. Once next ER is released in July/August this stock will run to $20+ as it reports revenue growth of over 40% from prior quarter and 13M+ in net income.

Disclosure: I am long on this stock

[@LiftedCapital]

Nsys so tin ..bitches better fine out -->> free parked hard on dis.

[@LiftedCapital]

NSYS ...Holy Fk... is an undervalued -->> BEAST!!! Just starting my DD here!!!

PEEP THE MARKET CAP ...THEN PEEP THE FLOAT!!!

BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOM

Glad I gots mine today!!!

[hweb2]

Agree with ya on that. Float here is very attractive. I wouldn't be chasing it as they've got a few tough quarters coming up. But the markets have gotten insanely frothy...so who knows.

[@LiftedCapital]

Thanks... super low floater

[hweb2]

Ah yes. Merger coming. Of course. They did have positive news yesterday in case you missed it. FYI the Chairman and CFO are not allowed to buy shares when they know about a merger coming.

https://finance.yahoo.com/news/nortech-systems-announces-establishment-two-223000433.html

[@LiftedCapital]

Merger IMMINENT-->> SUPER LOW FLOATER... THE LOWEST I KNOW WITH SUBSTANCE.

[hweb2]

Because??

[@LiftedCapital]

Nsys LOAD FOLKS LOAD UNDER $6

[ClayTrader]

* * $NSYS Video Chart 08-28-2020 * *

Link to Video - click here to watch the technical chart video

[TheFinalCD]

$4 bucks another POP & DROP

[ClayTrader]

* * $NSYS Video Chart 11-13-19 * *

Link to Video - click here to watch the technical chart video

[Roadtojourney]

Common let it go up???

[chdobull]

HEY YANKEES18 FYI... Tentative agreement on LFEX...Lucky Friday Mine

[TheFinalCD]

WOW~!

NSYS 5.17


HIT 7.46

[yankees18]

Nice

[swanlinbar]

Post by Gilead on NSYS "NSYS one thing that could be a touch concerning

I saw this in the 10Q

"Our effective tax rate for the year ended December 31, 2018 is expected to be 65% compared to (18%) for the year ended December 31, 2017. The increase is due mainly to the effects of the tax reform changes that were enacted on December 22, 2017, and the increase in the effective tax rate expected in China."

I'm not sure what their go forward tax rate on expected earnings is but 65% sounds very high. If you assume their go forward tax rates on any earnings for the remainder of the year is say 25% then plugging in some algebra (and assuming I did the math right) you can probably only expect maybe .08 in EPS the back half of the year. That doesn't seem quite right to me given the backlog and given they are more skewed towards medical in their backlog which does have higher margins.

Margins are of course the stickler for them. Had margins been 1% lower last quarter a .14 EPS number would have been more like .04. It could be they are indirectly saying they expect lower margins the back half of the year. If so earnings might be disappointing.

[swanlinbar]

NSYS Nortech Systems Q2 EPS $0.14 Up From $0.06 YoY, Sales $28.538M Down From $30.134M YoY
9:15 am ET August 15, 2018 (Benzinga) Print
Nortech Systems (NASDAQ:NSYS) reported quarterly earnings of $0.14 per share. This is a 133.33 percent increase over earnings of $0.06 per share from the same period last year. The company reported $28.538 million in sales this quarter. This is a 5.30 percent decrease over sales of $30.134 million the same period last year.

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

[#NeverPennyLand]

It’s already did. Went to $9 after hours yesterday and $8 today

[laplova]

How high of pps do you guys think this can go up to?

[BF123]

LOcated 4k shares reserved them waiting for gap down be poised boys

[cssmorey]

Well, it got its attention. You were just a hair early. Hope you held.

[ClayTrader]

* * $NSYS Video Chart 08-01-18 * *

Link to Video - click here to watch the technical chart video

[TheInvincibleBull]

Liking this, just needs some attention

[~MulaGreen~]

NSYS not a Good One for Daytrading.. ignore it.

[TheFinalCD]

https://finance.yahoo.com/news/nortech-systems-collaborates-panasonic-expand-155000961.html

https://finviz.com/quote.ashx?t=NSYS

[tsoprano-1]

Thanks. I wasn't expecting any shocks from report, but who knows? Last time we ran up it was because something had come out saying they were involved in 3-d printing. Something, besides $7 book value is causing this. GLTY

T

[Yo-Yo]

I think er report comes out today yet stand to be corrected and GLTU always!!!

[tsoprano-1]

Anyone know what is causing this pop after all this time?
I mentioned them to a Seeking Alpha writer, maybe he is front running his article or it came out and is only for paying members.

T

[Yo-Yo]

Wow looks like maybe the er was ok congrats to all in!!!

[ECole]

Q3 conference call transcript




http://www.earningsimpact.com/Transcript/84612/NSYS/Nortech-Systems-Incorporated---Q3-2013-Earnings-Call

[tw0122]

Naked shorting squeeze more shares traded then float available. This one popping again. Market maker not getting enough stops to hit. Lets watch this one interesting

[~MulaGreen~]

^$ 2+ intraday!!!Lovely

[Penny Roger$]

~ Monday! $NSYS ~ Earnings posted, pending or coming soon! In Charts and Links Below!

~ $NSYS ~ Earnings expected on Monday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.








http://stockcharts.com/h-sc/ui?s=NSYS&p=D&b=3&g=0&id=p88783918276&a=237480049




http://stockcharts.com/h-sc/ui?s=NSYS&p=W&b=3&g=0&id=p54550695994



~ Google Finance: http://www.google.com/finance?q=NSYS
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=NSYS#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=NSYS+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=NSYS
Finviz: http://finviz.com/quote.ashx?t=NSYS
~ BusyStock: http://busystock.com/i.php?s=NSYS&v=2


<<<<<< http://www.earningswhispers.com/stocks.asp?symbol=NSYS >>>>>>



http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916

*If the earnings date is in error please ignore error. I do my best.

[Penny Roger$]

Nortech Systems Incorporated is an Electronic Manufacturing Service (EMS) contract manufacturing company. It manufactures wire harness and cable assemblies, electronic sub-assemblies, and printed circuit board assemblies for a range of commercial and defense industries. It provides services and technical support, including design, testing, prototyping and supply chain management. It provides a turn-key contract manufacturing service to its customers. It also provides repair service on circuit boards used in machines in the medical industry. The Company maintains manufacturing facilities in Minnesota, including Bemidji, Fairmont, Blue Earth, Baxter, and Merrifield, as well as Augusta, Wisconsin, and Monterrey, Mexico. The Company markets its products in the Aerospace and Defense, Medical and Industrial Equipment markets. In January 2011, the Company acquired the EMS business unit of Winland Electronics Inc. in Mankato, Minn.

http://www.google.com/finance?q=NSYS