John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Forward Industries Is A Stealth Diabetes Play

This article covers stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Key takeaways

  • Forward Industries (NASDAQ:FORD) is attractive as the seemingly high multiple should come down due to strong secular demand and significant margin expansion.
  • The recent swing to profitability on an operating income basis and consistently low capex requirements result in growing free cash flow, which should continue due to an overlooked deferred tax asset.
  • The downside is limited by the debt free balance sheet and large cash balance.

Company overview

FORD sells carry and protective solutions primarily for hand held electronic devices primarily to original equipment manufacturers...

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