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

Underpriced Optionality At Tel-Instrument Electronics

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

    The recent rise in Tel-Instrument Electronics (NYSEMKT:TIK) does not fully reflect the resumption of shipments on the CRAFT program or the expected near term catalyst in the form of a full production release from the U.S. Army on the TS-4530A program. The significant optionality in these two programs (including high margin follow-on CRAFT sales) has been consistently underpriced after a temporary hold on CRAFT shipments in March 2012 despite subsequent positive news flow. The lack of analyst coverage compounds this mispricing resulting in more investor reaction ...
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