Replies to post #796 on Polar Power Inc (POLA)

[southacresdave]

ebase22...I think it is or hope at least. I'm not sure why Q4 was up so much, but they seemed pretty confident that this is the new norm.

The worry we have now (and may be why someone is selling) is that POLA gets their magnets from China. It could be an issue if they put a limit on exports of rare metals. I can't think of any reason why anyone is selling otherwise. The magnets are not part of any tariff right now.

[southacresdave]

ebase...Raj made a point of injecting (separately) that March and April were running between 60-70% of capacity. Capacity is $5M/month. My hope---at the least---is it adds up to $10.5M for the quarter and comes out at around 6-7 cents/share full taxed. I'm not going to jump for joy at that, but if they did do it it means that June would be the strongest month most likely and they could have a chance at $12M for Q3 (which would be approx 11 cents/share). Again, I'm not jumping for joy, however, it is a trend that might get others interested in the stock.

At $15M/qtr, they are doing 15+ cents/share even with 31.5% margins and expenses up a bit. At that point we are all solidly back in the profit on this investment and can make our decisions on what to do then. I'd still love to get over double digits here if possible.

The quicker they get to $15M/qtr, the higher the p/e ratio imo as it would show there is widespread demand that is ramping up for DC generators. It would also mean that internationally they are getting the full package of deals (i.e build towers, generators, monitor them for continuing revenue).