Savvy Trades and Investments

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The POLA backlog decline would be a concern if the company wasn't in the midst of a significant expansion in their workforce, production capacity, etc. The $17M raised in December from the IPO was to help with these efforts. From the commentary in the earnings PR, it sounds like demand is very strong. Now maybe they're complete idiots (always a possibility ha) and they're expanding like crazy...just as revenues are about to drop off a cliff. From $7M+ per quarter to down below $5M. But I don't think so.

Not to say revenues are just going to ramp higher and there won't be bumps along the way. Q1 likely won't be as robust as that monster Q4. But at this price, does it have to be? POLA was trading over $9 last month. When investors didn't even know how Q4 would look. Analysts were thinking .08/share in Q4 earnings. And the stock was at $9. Then the earnings came in more than double that. I feel like the company will continue to have upside surprises on the bottom line. Margins are excellent, and they're improving. POLA should have even more leverage on the bottom line as revenues grow. I think the exciting thing here is looking out a few quarters. If POLA can earn .20/share on $7.5M in revenues, what kind of earnings will they be posting at $10M, $15M, etc in quarterly revenues.