SKAS.OB (Updated)
SKAS.OB is a very interesting investment here in my opinion. Here is why I like it.
1) SKAS has a very strong balance sheet, and currently trades under book of about $0.12.
2) SKAS has enormous revenue growth as it grew revenue, almost 60% y/y last quarter.
3) SKAS had a very good quarter last quarter, although the numbers were hidden by a ridiculous tax rate. If they paid regular taxes of dare I say 40%, earning would have been about .007, which is not bad for a stock around .07.
4) SKAS looks like they are not growing earnings, but that is all because of taxes, as there tax rate is almost 60% versus 0% last year. If given earnings a 40% tax rate, earnings for 9 months ended would be about .015, with probably well over .02 after q4 fully taxed versus a .07 stock price. I think the stock is capable of posting or close to .01 a share a quarter on average soon going forward. Which means the stock is trading at a PE of less than 2 going foward. A PE of 5 under that scenario almost triples the stock price.
Conclusion: I think SKAS.OB has a lot of potential at this level, granted volume isn’t great, and so you have to keep the position relatively small. All is just my opinion, and I could always be wrong though.
