Polar Power Inc (POLA)

[ebase22]

I’ve had similar thoughts given than while sales are to rebound the higher sales team costs and higher r&d means even if gross margin returns, they are going to require higher sales to even more thrier previous earnings numbers.

It’s tough to get a fundimantal valuation on this for the time being but if they do 7 million in sales in q1 assume the average gross margin of the past 4 quarters, extrapolate last quarter’s general and administrative costs and r&d rate, then that would translate into about 5-6 cents earnings. Similar to their q1 2017 rate, despite a y/y sales increase.

So the bet here I think it really on speculation of can they continue fast sales growth into 2019? I tend to think that is work getting the share price at least back to their IPO valuation. At that point I will consider lightening up.