Polar Power Inc (POLA)

[southacresdave]

Margin boost:

I looked into more. For the 10kw generator, POLA uses a Yanmar 3TNV74 engine 18HP. For a 15kw generator, they use a Yanmar 3TNV88 engine 24HP. You can see this yourself on page of the following: https://twinergysolution.com/wp-content/uploads/2018/03/8220-100_-HRZTL_1217.pdf

I researched the pricing of a Yanmar 3TNV88 24HP engine. On engine trader it sells new for $3784 https://www.machinerytrader.com/listings/construction-attachment/for-sale/list?catid=26000&manu=yanmar&mdltxt=3tnv88

Even if they were buying engines before at $2500 or $2000 each, saving $625 to $500 per engine now takes 2Q margins of 35.4% to the upper 30s nicely.

They just need to get their manufacturing efficiency back to 2Q levels and then add in the new engine discount to make shareholders smile.