Wadirum1....I wouldn't worry about stock price until after Q4 numbers come in. I think Q4 will help shareholders learn a lot about POLA's future. I say that because:
1. there is nearly unlimited ability for revenue this quarter---the backlog to start the quarter + backlog mid-point are both large enough for this. All they need to do is perform in manufacturing. I don't expect for them to hit a grand slam for revenues---too much inefficiency still with the new facilities just up and running this month and the bugs probably needing to be worked out more. However, they need to show they can hit a homerun. Or they will show they can't do that and give feeble excuses. As shareholders we can't really expect them to be able to do $15M/qtr consistently in the future if they can't show success at some reasonable level in Q4. Also, if they can't deliver to customers now, how can they be trusted with higher levels of orders from them + bringing in new orders from additional customers. They don't just need to prove themselves to shareholders, they need to prove themselves to telecom companies around the world that they can handle strong growth.
One plus is they are higher people with experience. Look at their Linkedin page for the last two months. They show pics + experience of some of their hires:
Shipping and Receiving Supervisor
Procurement and Logistics Manager
Applications Engineer
Director Technical Services (for warranty, installs, commissioning, training & service)
Human Resource Manager
Director of Quality Control
These posts show two things---one they are building the personnel to deal with large growth. The other is they are hiring "older" guys. Most of the pics show guys, imo, in their 50s or higher. To deal with the tough employment market, they are taking on guys in the later part of their careers. It's a plus imo. They get better loyalty + knowledge from it. POLA doesn't need innovators, they need employees who can make the machinery run smooth.
2. Also , margins should rise and give a taste of where they can go. No doubt there will be excess expenses and overtime that should disappear in the future, but the engine deal should show at some level. We will learn if 40% margins are possible or just a pipe dream.
3. Backlog at the end of the quarter and mid-point when they announce Q4 results. This is very important. Say they put in a big Q4. The next question everyone will ask (especially those that want to buy into the stock and push it upward) is is it repeatable? They aren't going to get a high p/e unless shareholders think that this is just a taste of what could come.
I've learned long ago to not put an arbitrary ceiling on a particular stock. There is nothing worse than selling a strong winner and then watching it go to the moon even after a then big run up. It almost always happens because management has the ability to grow the company in ways no one fully realized. Instead I now constantly reassess its valuation and potential after each bit of new news is known and added to the collection. I like POLA because the ceiling, imo, is very very high as growth could go in areas I never imagined (ex large international expansion in terms of contracts in the 10s of millions, military expansion in multiple vehicle lines, residential systems tying their generator to solar panels + their batteries, data center backup, or commercial systems that recharge electric cars with the cost advantage of natural gas). The thing that determines a lot of this is the vision of management and their ability to execute. I think Q4 will finally teach us a lot in this area. They have done a decent job (though slower than I'd like) of expanding from just VZ to a wider diversity of customers that are now on board + more coming in 2019. Can they take this all to a whole new level and then one after that and again? Watching potential sit there the last 12 months has been frustrating. Imo, management needs to show everyone (customers & The Street) that they can perform. If they can do this, then I honestly think you will be getting your $12+ in stock price a lot sooner than you think.
