Breakout Alert Page

Good afternoon everyone,

Our latest feature is moving well up over 5% with plenty of room to move higher.

(NASDAQ: NSYS) has an active share repurchase program until July 2019, details below.

Nortech Systems Incorporated (NSYS), a leading provider of full-service electronics manufacturing services (EMS), announced that its board of directors has approved another installment of a stock repurchase program similar to the company’s inaugural repurchase program that expired last month.

The approved program authorizes the company to repurchase shares of its common stock in an amount up to $250,000 up through July 2019, in amounts of up to $62,500 per quarter. Under the prior repurchase program, which started in August 2017, the company spent substantially all of the $250,000 that was authorized.

“The next installment of this repurchase program shows that Nortech’s board and management continue to share confidence in our future direction and potential,” said Rich Wasielewski, Nortech Systems’ president and CEO. “Our strategic initiatives are gaining traction across all our locations and markets, aided by the improving global economic outlook.”

In addition, Nortech Systems’ chairman of the board, David Kunin, has concurrently established a plan to purchase shares of Nortech common stock in an amount up to $25,000 up through July 2019.

The purchases by the company and Kunin will be made in the open market in compliance with applicable securities laws and other legal requirements and are subject to market conditions, share price, available cash and other factors. The plans do not obligate the company or Kunin to acquire any particular amount of common stock and may be suspended or discontinued at any time.

Full Press – https://finance.yahoo.com/news/nortech-systems-announces-stock-repurchase-205000511.html

The Traders News Group

Full report below

Good morning everyone!

February 11th, 2019 Breakout Report

Tiny Float, Solid Operation, Trading Below Book Value

When we find shares, we believe are oversold, coupled with the potential for near term catalysts we want to bring it to your attention.

We are bringing you coverage of Nortech Systems Incorporated (NASDAQ: NSYS). Our due diligence indicates the company shares could experience a significant upside in the near to mid term that may exceed 100%.

Current price $4.29 per share
Book value $7.86 per share
Annual revenue $110 million
Market cap $11.5 million
Outstanding shares (est.) 2.67 million
Float (est.) 998 thousand shares
Insider shares owned 62.92%
Levered Free Cash Flow (ttm) $1.4 million
52-week high $8.08 per share

Nortech may be an opportunity to obtain cheap shares before the rest of the investment community becomes aware, they are extremely over sold and trading below book value.

Recent News
Devicix by Nortech Featured at the 2019 MD&M West Design Dome

Devicix by Nortech is pleased to announce that its director of technology solutions, Jeremy Ling, has been selected to participate in the newly created Design Dome at this year’s MD&M West conference in Anaheim, Calif., February 5-7, 2019.

The MD&M West Design Dome is billed as a design engineer’s playground and a hub for interactive design activities and prototyping workshops led by world-renowned design companies.

Mr. Ling’s session will touch upon the challenges of transitioning new products from development to manufacturing. In the Design Dome’s dynamic environment, attendees will learn about the importance of proactive measures in the design-to-manufacturing process. Taking this preemptive approach ensures that new products are commercialized at the right time and at the right cost. Mr. Ling will cover key fields of focus to illustrate how early integration of manufacturing into the development process helps to reduce risks and challenges in areas such as timing, costs and scalability of new products.

“We are excited that Jeremy has this opportunity to share his expertise and to discuss Devicix’s proven capabilities in full lifecycle management of medical device development and manufacturing,” says Corey Strege, vice president of business development – medical. “This is a unique forum for him to interact directly with conference attendees to discuss their lifecycle management experiences and address their opportunities for improvement.”

Full Press Release – https://finance.yahoo.com/news/devicix-nortech-featured-2019-md-212500899.html

The event mentioned above could signal new upcoming contracts for Nortech.

For the nine months ended September 30, 2018, Nortech reported net income of $362,000, or $0.13 per diluted common share. The company may be ready to release their Q4 and FYE 2018 results soon. Last year they were released on March 9th. We think the upcoming earnings report could be a catalyst for company shares. Revenues have increased sequentially for the last four quarters.

Nortech is a full-service electronics manufacturing services provider of complex interconnect solutions including high-quality wire, cable, and harness products, along with printed circuit board assemblies and diagnostic repair and integration services including higher-level assemblies and box builds for a wide range of industries including industrial and commercial equipment, medical device, and aerospace & defense. The company currently operates 6 locations in Minnesota and one each in Mexico and China.

The company has shown a share count that has been consistent since 2013, until 2018 when a share repurchase program was implemented and lowered the NSYS share count.

Nortech recently announced leadership changes:

Jay D. Miller, currently an independent director of the company, will become interim president.

Rich Wasielewski, who is retiring, will continue as chief executive officer until his successor is hired.

John Lindeen will be promoted to senior vice president of global operations.

Investors have reacted positively to the announcement sending the company shares up since the changes were announced in December. We believe the changes taking place at the company may generate near term catalysts that could positively impact the company share price.

Conclusion:

NSYS shares are trading at 48% off their high in August 2018 of $8.08 per share.

NSYS has a price to sales ratio of .10X and a market cap of only $11.5 million. Assuming an acceptable P/S ratio for value investors of 1.0X, these shares could be supported up to $41.00 per share. At the current share price, an acquiring company could buy $110 million in sales for under $12 million.

Value investors like to see a price to book value in the 1.0X to 3.0X range. If we use the midrange of 2.0X for a P/B value, NSYS shares could be supported at $15.70 per share.

As the chart below indicates, NSYS shares have broken through their 50DMA and 200DMA in a bullish manner.

There is no doubt Nortech could potentially double from here.

The Traders News Group

Disclaimer
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.

Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.

PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.

Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.

The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur. Understand there is no guarantee past performance will be indicative of future results.

In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. TNS LLC and it’s affiliates have not been compensated nor do we expect to be compensated for the mention of NSYS and we do not hold any form of equity in NSYS. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.

TNS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. TNS LLC is not a Broker/Dealer and does not engage in high frequency trading.