January 06 2021 2 DEPRESSED PICKS FOR THE NEW YEAR

S.A. Advisory E-Mail Update

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2 DEPRESSED PICKS FOR THE NEW YEAR


January 06 2021


January 06, 2021

2 DEPRESSED PICKS FOR THE NEW YEAR

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52 WEEK RANGE

CVU~~~~~$2.72 ****************** $2.17~~~~~~~$7.00

WYY~~~~~$4.00 *******************$3.75~~~~~~~$14.90

Food for thought about the "mask"! Did you know that 3.4 billion face masks are thrown away every day! This results in a total of 1.5 trillion masks/year world wide and then the best for last. Once in the landfill scientists estimate it will take around 450 years to degrade mask ! This of course does not take into account the masks that find there way into our lakes, streams and oceans. It is only a matter of time before a giant whale is cut up and they find a large cache of "covid" masks! You have to wonder why the Environmentalists are not screaming about this major issue ? I guess it does not fit the EV agenda and climate terror!

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CPI Aerostructures, Inc. (CVU) $2.72

CVU is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance and Electronic Warfare pod systems, primarily for national security markets. Within the global aerostructure supply chain, CVU is either a Tier 1 supplier to aircraft OEMS or a Tier 2 subcontractor to major Tier 1 manufacturers. CVU also is a prime contractor to the U.S. DOD, primarily the Air Force.

website: www.cpiaero.com

phone numer: 631 586 5200

CVU~ included in the Russell Microcap Index shares outstanding~~~~12.3 million

Visit the website and review the August 2021 presentation ( stale with respect to numbers, but an excellent overview of the company's business model and extreme ties to the military industrial complex.

On or about the 27th of Dec 2021 the company re-stated the 1st Q 2021 results and gave extremely positive revenue and net income for the year ending Dec 31, 2021

For the 1st Q rev exploded to $31 million vs $17 million as compared to prior 1st Q of 2020.

Gross profit of $4.9 million vs .2 million.

Net income of $1.2 million vs net loss of ($3.4 million)

Earnings/sh of .10 vs loss of (.29)

Backlog according to management Dec 31, 2021 slightly increased over 2020~~ $500 million ( mostly DOD)

Management quote, " We believe the defense market remains strong and we have a robust pipeline of opportunities for military applications in key strategic sectors including warfare, hypersonics and unmanned systems. We have been notified by customers that we were successful on winning several new contracts that we plan to announce if and when permitted by our customers. This gives me confidence to believe that we are on track to end 2021 with approximately $500 million in total backlog."

Management expresses strong optimism that rev for 2021 will easily surpass that of 2020. Management indicates in excess of $100 million vs $87 million.

Important; Management believes that net income will exceed $4 million~ this does not include the $4.8 million forgiveness of PPP.

Re-stated 1st of 2021 10Q the shareholders equity was a negative $11.4 million . When we subtract the $4.8 million forgiveness and the total of say $4.5 million net income our negative equity surely begins to take on a different shade. Year end negative equity for 2021 will only be $2.1 million. A far cry from 1st Q of 2021.

Based upon net income of .395 (we assume $4.5 million income) and using 12.3 million shares outstanding we currently have a stated PE of 6.9X. When you consider the rich multiples that stretch from every industrial segment and the endless froth in valuations that CVU could easily be a $10.00.

The PSR is also an interesting measurement of value. We estimate that revenue for 2021 ending Dec 31, 2021 will "ring in" at around $110 million. Based upon the 12.3 million shares outstanding and a share price of $2.73 we calculate a PSR of .30 ( a value of 1 is consider cheap and undervalued) For CVU to just trade @ a PSR of 1 the stock would trade at $10.00!

The average PE ratio for the Russell 2000 index 12/10/21 is a "out of this world 30.23. A far cry from CVU's 6.9X.

The average PSR for the NASDAQ ending 12/31/2021 is another mind boggling 6!

We believe that most of the market is built for perfection and the bubble will burst.

SIDEBAR : Many companies have fallen by more than 50% from recent peaks and many stocks haven't participated in the broader market's ascent in recent months. Many lower priced investments collapsed during March 2021 after the "moon shot" by many opportunities during Jan/Feb 2021. The slide for many continued during the balance of the year and accelerated during the Nov/Dec tax selling season. This year was much worse for microcaps in general. We generally believe that a strong bounce during Jan/Feb 2022 should develop for many slaughtered microcaps and "penny stocks". The 2 stocks mentioned within this E-mail Alert are just a few that should reward investors short term.

We rate CVU with a strong BUY recommendation at current levels for exceptional appreciation during the next few quarters and beyond.

It is very possible that CVU could be bought out because it is so cheap. With a current backlog of $500 million and a market cap of $33.5 million it looks like a juicy candidate for a company that wants cheap growth on a silver platter.

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WYY WidePoint Corp ($4.00)

website: www.widepoint.com

phone number 703 349 2577

WYY is a leading provider of managed mobility services, telecommunications lifecycle management, and cybersecurity solutions. The company delivers secure, cloud based, enterprise-wide information technology-based solutions that can enable commercial enterprises and government agencies to deploy fully compliant IT services in accordance with government mandated regulations and advanced system requirements. The company offers unique solutions in certificate-based security solutions, wireless telecommunications expense management systems and associated services.

webcast Dec 9th 2021 ( worth listening )

https://sidoti.zoom.us/webinar/register/WN_h2RESSjpQfGlnFXDsHIAaA

52 week range~$3.76-$14.99

split~ RS 10 for 1 Nov 09, 2020

Total shares outstanding~ 9.14 million

CEO~ insider buying $4.65 ~ 2 months ago

book value~$4.72

book value minus goodwill and intangible =$2.40

cash/share ~$2.00

9 months ending September 30, 2021 revenue $63 million and

net income/sh .10 ( 9 months ending 2020 revenue $152 million and

net income/sh .24) Noted completion of large gov project)

PPP~$1.3 million

87% business from Federal Government

NOL~$36.1 million~~$4.00 per share ( will not be paying taxes for a very long time) Add attractive element to discounted value of WYY.

Debt=0

Complete acquisition Oct 2021 for ITA (cybersecuirty )

Listen to the 9 month conference call or read the call located within the 8K filing 11/16/2021

November 2021 management announced a $5 million stock buy-back program.

Mr. Kang. President and CEO, " our strategy for growth through organic and inorganic". "We are focused and continue to look for quality companies that are immediately creative to help us expand our solutions and customer base, again, the vertical and horizontal integration opportunities." 4th Q and year results anticipated according to management in the range of $80-$84 million.

The company operates in a $23 billion management ability market.

The market is large and continues to grow, the pandemic environment has accelerated the growth model. 95% revenue is recurring. The company is profitable and has free cash flow. Potentially their DHS contract can be extended and add up to $500 in near term revenue. I assume their $1.3 PPP has been forgiven, but have not seen the press release. It may appear in the 10K.

We believe that there is plenty of upside in WYY near as well as long term. The company has developed a secure as well as long term relationship with the Federal Gov that offers not only a consistent revenue stream, but also many new avenues of revenue. We have growth, cash, no debt, steady rev, proven management, profitability, acquisition oriented,insider buying, share buyback, operates within a $23 billion dollar industry, looks like a juicy takeover candidate because of the attractive fundamentals and trades close to its 52 week low.

We rate WYY with a Strong Buy at current levels. Management stated their year-end numbers of around $84 million in rev and we assume .15 net per share~ a PRS value of .43 based upon 2021. Someone could easily come along and buy the company on the cheap. WYY could easily trade with a PSR of 3! Do the math and understand the possibilities.

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Is 2022 the year of bubble deflater? The housing bubble, the stock market bubble, the SPAC bubble, the EV bubble, the grand daddy bubble of them all~ Cryptocurrency ?( currently 8000~ many have little value)

What event is going to trigger a major correction? Israel decides to finally address Iran's Nuclear ambitions? ( Biden surely is not) After the Winter Olympics does China invade Taiwan? Does Russia invade Ukraine? Does North Korea continue to test Ballistic missiles ? Does a more virulent Covid variant develop into a 5th or even 6th wave?

We live in very dangerous times!

Food for thought: California has banned Bacon sales if the "pigs' do not have a specific living environment. The politicians are more concerned with farm animals than the epidemic of homeless in the state!

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Predictive Technology Group (PRED) .058

Jan 6th 2022 PRED and HLTT entered into a binding term sheet.

The agreement calls for the formation of a subsidiary (Newco) that will acquire the assets of the Biotech Division related to wound care. The transfer of the wound care asset to (Newco) , PRED will receive shares representing 30% of the equity in Newco. Various amounts of $ will be loaned to PRED as numerous milestones near term are met.

Loan will be paid back from gross income from sales of Wound Care products.

Please visit HLTT and review the 8K that was released by Healthtech Solutions (HLTT).

There are additional options that are mentioned within the just released document. The newly formed company (Newco) can purchase additional assets from the Biotech Division, but does not include Stem Cells.

We assume additional info will be forthcoming near term as additional terms becomes available with a week or so.

We believe that this development is a very important development for PRED not only to survive, but to thrive.

THE GLOBAL WOUND CARE MARKET IS EXPECTED TO REACH NEARLY US$34 BILLION BY 2026!

The potential for PRED to turn itself around from this newly formed agreement could easily be a game changer. This could allow PRED to pursue continued development of their Endometriosis and Infertility test kits and potentially take their Stem Cell products Internationally.

It has been a disappointing ride with PRED over the past 2 years, but the game is not over. If you still believe and still own this "fallen Angel" one might considering to average down. If new to this situation it might be an excellent price point to enter for a trade or even a longer term speculation.

The Newco wound care product, Amniobind, next generation Amniobind and injectable regenerative medicine products are the only assets being acquired. If you have interest in reviewing information concerning Amniobind please visit www.predtechgroup.com

PS: We have heard that the company will compy with SEC filings in order to stay current. They also just filed their 8K concerning this noted transaction. (2 pm MST Jan 6th 2022)


WE MAY BUY, SELL AND OR HOLD AT OUR OWN DISCRETION .We currently own shares in all stocks mentioned..

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