MUEL
SSK: MUEL looks undervalued and would soar if they got off the pinksheets. Their reporting is of 10K caliber, which is a big positive.
True but as you said there reporting has been quality of any company. I think the low PE is attached to the fact that Balance Sheet didn't look pretty several quarters back. This reminds me so much of dit several years back.
Tax rate was only 15% through 9 months, helped in part by foreign tax credits ... not sure how long that will last.
True but stock is too cheap. plus I think a higher earnings run rate is coming so earning rate may go up even with taxes.
Revenues were up less than 1% y/y through 9 months despite increasing backlog, so the backlog may be for long term delivery.
Look at it this way. Q4 backlog was the lowest hence sales were the lowest in q1. Sales from q2 and q3 were up from q1 but backlog was also up from q1, and q2 and q3 backlog was flat, and sales in q2 and q3 were flat sequnetially. With q3 Backlog up based on this pattern not hard to believe we will see something like 50 million in sales in my opinion.
Q4 revenues were strong last year, yet gross margin contracted so much (20% for Q4 versus 28% for the prior 3 quarters) that gross income was the lowest of the 4 quarters .... hopefully we won't get a repeat margin drop this year. Might have been due to year end accounting adjustments.
There were some one time charges Like the ex ceo leaving was a cost. SGA is waaaaaaaaaay down from last year due to effective cost cutting. Also GM were lower in q3 last year only 25% in q3 so problems were showing signs inq3, probably a spike in material costs at the ends of 2012, that caused a short-term negative in gm. I'm not worried but time will tell. All is just my opinion, and I could always be wrong though.
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