Solitron Devices, Inc. (OTC:SODI)

WEB NEWS

All | Research | 13D and 13G Activity | Comments & Business Outlook

Wednesday, July 29, 2015

Research

SODI ($4.75) recent corporate actions:

7/21/2015 - announced regular annual cash dividend policy, and reiterated commitment to hold annual stockholder meetings and issued a letter to shareholders.
7/23/2015 - a 13D filed by Wynden Capital Management disclosed a 5.7% stake.
- “Wynden is interested in discussing with Issuer’s management, board of directors, and/or with third parties options relating to board composition, capital allocation, and any other strategies for shareholder value creation.”
7/27/2015 -announced the company continues to seek out appropriate acquisition/merger candidates.
7/28/2015 -announced the expansion of its previously authorized $1 million stock repurchase program.

We established a small speculative position in SODI on 5/6/2013 when shares were trading at $3.95 due to shareholder friendly initiatives the company had initiated after an 18% shareholder (Furlong partners) filed a proxy statement urging shareholders to vote in favor of such initiatives.

Permalink

Tuesday, November 5, 2013

13D and 13G Activity

November 1, 2013 13D

Nicholas J. Swenson as the sole managing member and president of Groveland Capital LLC disclosed a 7.4% stake in $SODI. The purpose of the transaction according to the filing:

"The Reporting Parties acquired shares of Solitron Devices because they believed and continue to believe that the Common Stock is significantly undervalued. While we believe Solitron's leadership has done a good job managing the Company from an operational perspective, we believe Solitron’s leadership has done a poor job managing the Company from a capital allocation perspective. In this regard, the Reporting Parties believe it is very important that Solitron's board be accountable to shareholders. For this reason, we intend to influence the policies of Solitron Devices and assert shareholder rights, and we have requested a meeting with the Company's management and board to discuss in detail shareholder representation on the Solitron Devices board of directors. "

Permalink

Wednesday, June 5, 2013

Comments & Business Outlook

BACKLOG as of February 29, 2012

The Company’s order backlog, which consists of semiconductor and hybrid related open orders, more than 97% of which is scheduled for delivery within 12 months, was approximately $7,685,000 at February 28, 2013, as compared to $5,990,000 as of February 29, 2012. For the years ended February 28, 2013 and February 29, 2012, the entire backlog consisted of orders for electronic components. The Company currently anticipates that the majority of its open order backlog will be filled by February 28, 2014. In the event that bookings in the long-term decline significantly below the level experienced in the last fiscal year, the Company may be required to implement cost-cutting or other downsizing measures to continue its business operations. Such cost-cutting measures could inhibit future growth prospects. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Bookings and Backlog.”
The Company’s backlog as of any particular date may not be representative of actual sales for any succeeding period because lead times for the release of purchase orders depend upon the scheduling practices of individual customers. The delivery times of new or non-standard products can be affected by scheduling factors and other manufacturing considerations, variances in the rate of booking new orders from month to month and the possibility of customer changes in delivery schedules or cancellations of orders. Also, delivery times of new or non-standard products are affected by the availability of raw material, scheduling factors, manufacturing considerations and customer delivery requirements.

The rate of booking new orders varies significantly from month to month, mostly as a result of sharp fluctuations in the government budgeting and appropriation process. The Company has historically experienced somewhat decreased levels of bookings during the summer months, primarily as a result of such budgeting and appropriation activities. For these reasons, and because of the possibility of customer changes in delivery schedules or cancellations of orders, the Company’s backlog as of any particular date may not be indicative of actual sales for any succeeding period. See “Management’s Discussions and Analysis of Financial Conditions – Result of Operations” for a discussion of the increase in bookings for the year ended February 28, 2013 as compared to the previous year.

Permalink