Replies to post #106658 on Savvy Trades and Investments

[maxluke1]

MPTI - thanks, my wild ass guess on margins is that it's related to customer concentration/balance. Like most small aerospace/defense companies they have high customer concentration. Thinking they have better margins with their 2nd largest customer? Here's from the 10Q:

For the three and six months ended June 30, 2023, the Company's largest customer accounted for $2,723,000, or 26.9%, and $5,057,000, or 25.9%, of the Company's total revenues, respectively, compared to $2,110,000, or 29.9%, and $4,173,000, or 28.3%, of the Company’s total revenues for the three and six months ended June 30, 2022, respectively. For the three months ended June 30, 2023 and 2022, the Company’s second largest customer accounted for $1,662,000, or 16.4%, compared to $884,000, or 11.3%, of the Company’s total revenues, respectively, and for the six months ended June 30, 2023 and 2022 the second largest customer accounted for $2,671,000, or 13.7%, compared to $1,803,000, or 12.2%, of the Company’s total revenues, respectively.

[hweb2]

You were right on MPTI. Listened to their Sidoti presentation this morning. Someone wisely asked about the sustainability of Q2 margins. Management's responded it was a 'perfect storm' on the positive side for margins in the quarter. And they expect them to moderate, more in between Q1 & Q2. Revenues will hopefully continue to increase with that large backlog. Stock is still attractive around $14 imo, but not as much as I first thought after seeing the Q2 report.