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.
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.
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.
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