Polar Power Inc (POLA)

[southacresdave]

Why revenue is more important than margins or expenses imo:

$15M/qtr x 32% margins (figure that's the best they get anymore) - $3.0M in expenses ($450K above current) x 0.74 for full taxes (Fed & Calif) divided by 10.2M shares = 13 cents/share. That's 52 cents/share full taxed. Assume everyone hates them (but sees the potential still for further growth) and they get p/e of 15 = $7.80.

Would I be happy with $7.80 a year from now? No. Would I take it? At this point yes.

I don't think you can assume margins are going to 35% unless tariffs go away. I think you have to assume expenses go up far more than they are saying. The question then becomes can they really get to $15M/qtr? 165 employees + more coming plus the money spent on automation means they are trying to get there. No doubt they make it in time if the demand is strong enough.

I think for long term shareholders the hope is they get to $15M/qtr asap and to heck with margins and expenses. Backlog #s are the only thing that shows there is demand. That pr comes in early March. The next news is earnings in early May and that will depend less on Q1 numbers and more on what production rate they are doing for Q2.