ebase....there aren't many shorts left. The latest Nasdaq number is approx 68K (vs once being close to 300K).
There is obviously someone slowly trying to unwind their position though. Those that are buying don't have an urgency to step and grab shares. It's disappointing in that the overall stock market has done a 9 week V-shape recovery while this stock has done nothing.
For pre-earnings pr last month they stated a very important fact imo:
"We believe that in order for us to gain additional market share for backup generators in the U.S. telecommunication markets, it is vital to demonstrate our ability to deliver higher production volumes to our Tier-1 telecommunication customers"
That alone is the truth. If you listen to Generac's cc call you will hear their CEO very bullish on their sales to US telecom markets. POLA is not capturing market share. Again, from last pr:
"We believe that currently we have a relatively small market share of the U.S. telecom backup power generator market with significant opportunities among the top-tier carriers as well as the fragmented "last mile" service providers"
They reduced the cost difference and have shown in demos that their product excels, but it means nothing if they can't deliver it in quantities that customers want.
The real question is the following statement....(are they to be believed? Right now the stock price isn't showing it):
"Our strategic investments in plant automation and equipment has provided us with significantly higher production capacity for 2019. We believe this increase in plant capacity will enable us to not only increase market share with our existing Tier-1 customers, but also provide us with the ability to target and serve new customers and geographies."
Only from higher revenue volumes can they get higher margins. Only higher revenue volumes can show customers that they can handle bigger and bigger orders. Q4 showed that they still aren't there. Will they start to discuss that Q1 is taking a big leap forward?
I was hoping for a pr on new orders this month. My worry is that they aren't getting follow up orders from US telecom or international orders because of the production issues. The only thing that alleviates this worry is the fact they keep running ads for personnel. If they weren't getting the orders (or expecting them for certain), then they wouldn't be hiring more (or replacing). Also, they wouldn't have just delivered a very expensive laser cutter and another CNC machine at the end of December.
I think once they can prove to the investment community that they can do $12M+/qtr, then a lot of the other issues will go away from margins to stock price.
