Greystone Logistics Inc. (GLGI)

[Free Cash Flow]

Gross margin is irrelevant for them since they allocate some depreciation in there. The EBITDA margin is most relevant and was very strong. I don't understand what they are talking about with the changes in the manufacturing process and that causing changes in pricing. Does this mean that higher priced pallets aren't being sold now due to manufacturing changes for those pallets? If so, this would be a short-term issue.

Overall, this is still extremely cheap on EBITDA or free cash flow. Capex has significantly declined vs. last year along with leverage continuing to decline. I don't think people realize the potential impact starting in the next quarter from an increase in purchasing from Pfizer. I saw GLGI's pallets on tv when they were showing vaccine distribution. I imagine worldwide distribution of a vaccine would require them to purchase more pallets but who knows. The next quarter has a tough comparison from the prior year which was their best quarter they have ever had so I'm not expecting revenue growth, but hope that revenue will grow from this quarter.

I'm long the stock and continue to hold for the long-run as they should do well in an economic expansion.