Optex Systems Holdings Inc. (OPXS)

[littlefish]

Agreed on warrants. However, they deliver $1.5 per exercised warrant in cash so while there's dilution above $1.50, you're also hypothetically getting cash on balance sheet at discount if you get hold of shares below there.

I'd expect things to hang around $1.5 area roughly unless news hits. Earnings near term I'd expect to stay in a middling area until the AMPV enters LRIP (hopefully early next year) to help give some organic boost or possibly the commercial customer picking back up on sighting scopes or both.

As long as margins can maintain their improvement moving forward (newer contracts seem to be slightly better margin), there's a good amount of organic growth opportunity for them given Europe's emphasis to deter Russian aggression (e.g. Crimea), the Middle East unrest/challenges and US budget support of traditional ground defensive units.

They have good capacity available as well if they can continue ramping up more, so further revs growth like we've been seeing lately should drive earnings growth. Plus they have low CapEx needs so cash flows should also continue to be be healthy.

All IMO only.