Solitron Devices Earnings Analysis + Stock Purchase Alert
In today’s post, I want to cover three things:
Two analysis of recent quarterly earnings reports
One portfolio update covering a recent stock purchase
Solitron Devices 1Q 2023 Earnings Analysis
This past week, Solitron Devices (Ticker: SODI) released their most recent earnings report. This report was delayed, but with its release, Solitron is once again current on their financial filings. I’m going to review just a few key items that I think are relevant and that caught my eye while reading the 10Q. My goal is to identify key items and trends and record them as a part of my personal research journal.
Balance Sheet
On the balance sheet we continue to see that the cash, cash equivalents, and marketable securities is increasing. This is good especially because this is nearly all “net-cash” when you consider their only debt is the mortgage on their facility. If it were a lease, they’d have no debt at all. Yet, owning is better than leasing.
Of particular interest to me though is the development in the “marketable securities” line. You can see that Tim Eriksen, CEO, is using the excess cash in Solitron’s bank account as the basis for buying common stocks. He’s a hedge fund manager, specializing in illiquid and expert market stocks. That shows in this analysis. We can see two things here:
First, common stocks by cost basis has grown nearly $186k over the quarter. He’s continuing to make new investments.
Second, he’s buying expert market stocks and “limited partnerships”.
Let’s zoom in on that prior image:
Why is this important?