Polar Power Inc (POLA)

[worthylion]

Obviously $7.5 million in new backlog is positive and proof that sales are ramping.Since that will be Q4 and Q1 revenue, doesn't shed any light on Q3 revenue which they had good visibility on if they had chosen to be more specific. Doesn't mean Q3 will disappoint, but it felt like they were shifting revenue focus past Q3 to Q4 which makes me wonder about Q3.

Their expanded production capacity which it's their "objective to have operational by the end of 2018" bodes well for margin improvement in 2019 but will probably be a drag on earnings in Q3 and Q4 during the build out.

It's not surprising that it takes time to build a fast growing business with increasing profits. Nonetheless, it could be 3-4 more quarters before growing revenue and profitability finally warrant a much higher share price. I plan on remaining patiently long.