Pacific Safety Products fka PSP

[gilead23]

Hi worthy

Actually asked mgmt about that some time ago. They basically said they were trying to set guidance they absolutely knew they could make. This is very much an under promise over deliver kind of outfit.

In terms of revenues last quarter was down sequentially but prior to that growth was excellent on a sequential basis going from 7.2 to 9.2 to 9.4 million.

I think last Q was probably an abberation and may be related to some of the turmoil associated with setting up the new facility. Some of their manufacturing was being moved there so it may have delayed orders. That isn't from management but is just my speculation.

As far as my expectations going forward if you read their PR's they are talking about several million a year in new revenues from ballistic blankets and they spent 400k+ last quarter setting up their sales organization in the US. You don't spend that much in one quarter to set up a sales org unless you actually expect to get some sales from it.

They are also getting the product into the hand of alot of US distributors. If you google about some of the police suppliers you will see Sentry Armor popping up more and more.

The wildcard as always is military sales in the US but I would be very suprised if they don't pull one this calendar year. That management team is the kind that has ins within the military and when it comes to military orders it is "who you know".

One military sale which I do expect to happen and those revenue numbers and bottom line go through the roof.

Remember last Q while weak in terms of revenue would have had earnings of around .035 a share without the setup expenses in the US and those were fully taxed (and overtaxed) numbers for the first time. Take those away and you would have had another .04 quarter.