Optex Systems Holdings, Inc , (OTCBB:OPXS) http://www.optexsys.com/index.html through its wholly-owned subsidiary, Optex Systems, Inc. was founded in 1987. It is a Richardson, Texas company, which manufactures optical sighting systems and assemblies primarily for Department of Defense (DOD) applications. Its products are installed on a variety of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles and have been selected for installation on the Stryker family of vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors.
What We Like About It:
This is a real deal company that not only generates revenues but has a ligitimate chance of being uplisted to the NASDAQ sometime in the near future. As you will see from imgaes from the lastest 10Q filed on 05/12/2010 the company does around 26 million in revenue annually and is starting to turn the corner on the balance sheets. From our research we have determined OPXS should have a value around .33-.35 and it currently trades for less than 10 cents a share. The company share structure is 200 million authorized shares and 139 million outstanding with one inside group holding almost 74% of the outstanding shares. We estimate the float to be under 30million shares. So the question is why is it so cheap then if its so great? The answer we believe lies in the timing. We are not the first group of investors to stumble across this gem. Another group found this in the latter part of 2009 and felt strongly that it was a canidate for uplisting before the end of last year. The problem was they found it at what we believe is the fair market value of the company .33-.35, they bought heavy in anticipation of the uplist almost 8million shares in one day but the stock was at a premium price. The result was a stalemate and subsequent decline in PPS so much the price just kept falling until it started to hit radars under .06 this triggered a reversal and uptrend. If you notice on the chart located further down the page you will note upward movement on little volume(this proves the low float), you will also notice it has had hardly any volume since the heaving buying late in 2009. This tells us we have some strong hands that believe in the company and we can see why after digging through the financials. We often look for companies on the OTCBB that are trying to make it and we hope someday they will report solid financials we rarely come across one that already is and is so cheap and oversold with this type of share structure. The company is fully reporting and have govenment contracts in place. The product is unique and specialized with limited competition. We have researched this heavy and feel we could be looking at .30+ in the short term.
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