Adding some WSCI. This one sure has been a dog (good call by sskillz). Wish I was starting to buy now in the mid $4's instead of the mid $5's. It's almost like the big earnings turnaround last week was bad news. Weird. I suspect it's DPW dumping their shares (they wanted to acquire WSCI for $6/share months ago). Now it's like they just want out, regardless of improving fundamentals.
Not a real low P/E, but plenty to like here. WSCI just reported their most profitable quarter in years. Earnings of .16/share vs. a loss last year. The really positive news is their diversified group (energy, defense, aerospace, industrial) is seeing huge growth with revenues up 78% last quarter. This is great on several fronts...this segment has much higher gross margins (mid 20% last quarter vs. 15% for the company), there's less seasonality, and it reduces their customer concentration. WSCI has a strong balance sheet with $1.64/share in cash. They also brought back the dividend in the prior quarter (another sign of confidence), with the current yield a healthy 3.5%.
We've probably got some more DPW overhang to chew through. When that's gone, I expect this low floater to shoot back up to the $5's and $6's
