Polar Power Inc (POLA)

[southacresdave]

ebase22.... in 2nd Q margins were 35%. In 3Q they were 30%. That will be the difference maker in Q4. The plus is that they should be using the discounted engines the whole quarter. The higher revenue should help too with lower costs. The question becomes then how much inefficiency did they have in getting the new facility going as far as personnel expenses? How much overtime was there? The reality is they didn't move their big new laser cutter in till after Christmas (from their Linkedin post) so I'm not sure how smoothly everything has been going. We also know this from the fact they only did the low $8M range in Q4.

Imo, if they did $8.3M with 35% margins and $2.3M in expenses, then net income comes in at your number (there shouldn't be any income tax this quarter since they have a bit of carryforward now). If it's 30% then they are lower down closer to 4 cents/share.

If they did $8.4M and 6 cents/share AND announced some rock solid backlog, I think it'd draw in some new investors. That's the problem right now. No one new is inspired to come in.

One plus that may come in 2019 to aid us......Canada and Mexico are both saying that the U.S. will have to ratify Nafta 2.0 first and that they will refuse to sign it unless the steel and aluminum tariffs are dropped. Those were used as an incentive to get them to negotiate. Now that they did, they want them gone or forget it. Senator Grassley is agreeing with them and pushing it himself.