OML iceberg sell order
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Posted: Friday May 13 6:54:59AM 2011
OML announced today a preproduction order for the new bullets to be used by the US military.If the follow through order comes in I understand the quantities required will number in the many millions--700,000,000 plus over a few years providing OML with a great base of revenue and earnings. Their website projects revenue of 20 million a year from this one contract. My rough calculations come in at share profit of 36 cents a share at lower margins than current revenue for this one contract alone. PP completed earlier in the year for capital expenditures-- new plant etc-- indicate a degree of confidence by company and investors that they wil get contract.
Posted: Thursday Apr 28 7:48:42AM 2011
OMl had good numbers for the year; 18 cents per share profit. Today they announced 2.6 million in new orders. I think this year could be the year they start to break out into much bigger revenue. They expect to move into a much bigger facility this year. There is a good chance they will bag at least one very large US military order that will provide siginificant revenue over several years--a component for the new M855A1 bullet that will be in wide use by the US military. It is being unveiled on May 11, 2011 to the media. I suspect large orders will follow shortly.
Posted: Thursday Jan 27 10:10:44AM 2011
Just announced bought deal private placement for $6 million at $2.15. Something (earnings, orders, prospects-- the usual) must be turning positive.
Posted: Thursday Oct 16 11:01:03AM 2008
The sell-off in small-caps stocks recently has been remarkable. There are too many "bargains" out there to mention but one in particular has been in a freefall lately despite nothing but positive news and excellent and consistent year-over-year growth.
Omni-Lite Industries (OML) is currently offered at $1.06 with an iceberg sell order from Canaccord. Given the fact that it is an iceberg order, I have no idea how much stock is for sale at that price. This stock was trading at $2 less than 3 months ago. That is not unheard of in this market but the company has been posting some outstanding results. Today they announced another record quarter of revenues at $2.1 million. They had similar revenues in Q2 and achieved earnings of $417,339 and $0.04 per share compared to $124,174 in the same quarter in 2007. They are at $0.09 eps for the first half of 2008. Omni-Lite operates in a very niche technological market and has exceptional margins of 72%. This has generally afforded them premium sales and earnings multiples. They also quote numbers in US$ so the conversion to Cdn$ makes them even that much more attractive.
Omni-Lite has laid forward an aggressive growth strategy for the next 3 to 5 years and is just finishing on a number of long-term testing procedures which should proceed some significant orders that would likely lead to a much higher and more profitable growth phase. I think this is a company that investors should be completing some further due diligence on during this downcycle. Omni-Lite will be presenting at The Small-Cap Conference in Vancouver on November 7-8.