Great Q1 report from AYSI, with strong top line and bottom-line growth. Backing out the non-cash amortization expense, EPS was actually $0.144 per share! I think Q2 will show another favorable y/y comp as activity in the sector remains at record levels. Prior year quarters for Q2 and Q3 were impacted by COVID, so the reported results for this year will have some very favorable comps.
The company remains severely undervalued, even as we move up into the $2's. In a sale, I think its certainly possible the company could achieve a 7x-8x EBITDA multiple, which would put proceeds in the $5 - $6 per share range.
There is more and more talk of a another looming commodity super-cycle. AYSI would certainly benefit in that environment.
