Polar Power Inc (POLA)

[southacresdave]

I'm not worried about a capital raise. They don't need to do it if the quarterly results start growing in positive numbers to the bottom line going forward. That cash + quicker turnover in inventory will do it (plus potential bank line of credit against receivables). The only reason they would need to do that is if they needed a 2nd plant. The only reason they would need that is if they exceeded the capacity of this one. That'd be $15M/qtr in generator revenue + rev from any international tower builds + hybrid solar/battery pack installs. You figure the last two don't need manufacturing capacity to generate revenue.

The only way they exceed $15M/qtr in generator sales is if they sign some big international sales or domestic residential takes off with NG/LPG distributor partners or US telecom ramped up way beyond what is expected. If all that happened, then, imo, the stock isn't below IPO prices anymore no matter what.

The problem with it sub $4 is that someone isn't believing they ramp up significantly in the next 12 months. All future growth is now being pushed out of the stock for some reason. I'm not sure anyone knows anything other than an institutional owner wanting POLA off their books.

The company thinks they could have capacity at $5M/month by the end of the year. I don't doubt they can get the plant operating at that level, the question is will the demand be there to do it? If it is, shareholders don't have a problem even with the current stock price.