Fortune Industries, Inc. (fka FDVF)

[SSKILLZ1]

FDVF

Been buying a little here and there of FDVF in the low 20's. here is what I like.

1) FDVF earned .013 in q1 which is their seasonally weakest quarter, so I expect the quarters to get better from here.

2) Has a sizeable cash position on it's balance sheet of almost 20%.

3) I expect growth to continue as FDVF has been growing solidly during the period.

4) I expect .015-.018 in q2, and even better in q3 and q4. So I expect .06-.08 for FY 16. Hence I see the stock trading at a PE of 3 going foward, which is waaaaaaaaaaaaaaaaaaaaay too cheap in my opinion.

Conclusion: I like FDVF will keep the position very small (Under 1%) due to primarily liquidity, and the lack of PR's. But I think it offers a good risk/reward in the low 20's in my opinion. All is just my opinion and I could always be wrong though.