SPRS
The one big negative I see is that we currently have a supply chain issue. So people who normally wouldn't buy parts from SPRS are doing it right now because they are able to get the parts from SPRS and can't get them from other distributors or can't get them in the timeframe they would like. They are also brokering shortage buys in components which they normally do not deal in. Once this supply chain issue is resolved, then component prices could fall, and that shortage-buy situation will disappear. Companies typically prefer to source their components from large distributors rather than a small one like SPRS. It doesn't look like they are gouging customers since their gross margins haven't gone up alot, so I think they that bodes well for them. It remains to be seen if they will be able to keep all the customers they have acquired during this time or grow in a more normal environment. Also, there are new factories now being built in the US. It is going to take them awhile to come online, but when they do the competition could cause prices to fall. It's also good that they are building automotive relationships because those should stick as the automotive companies should be taking steps to make sure they aren't in this situation again. But I bought some SPRS, the supply chain problem has no resolution yet, and they have a big backlog. Current expectations to come out of the shortage situation are late 2023, early 2024, from my sources, but noone really knows.
