tag:blogger.com,1999:blog-2149523431587168680.post911447993099330618..comments2024-01-16T00:12:23.220-05:00Comments on Oddball Stocks: My letter to Solitron's Board of DirectorsNate Tobikhttp://www.blogger.com/profile/05660387777171986124noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2149523431587168680.post-67969866335080155252012-10-08T21:26:51.933-04:002012-10-08T21:26:51.933-04:00Aashiq,
Thanks for the comment, I'll take a s...Aashiq,<br /><br />Thanks for the comment, I'll take a stab at both of your questions.<br /><br />1. Yes, but in two parts. The first is some government contracts have inflation adjustments built in. The second answer is most of these contracts are short enough that if inflation were to ramp up Solitron would be continually signing new contracts at potentially higher rates.<br />2. This is correct, a lot of companies don't explicitly call out depreciation on the income statement, depreciation is usually included in cost of goods sold.<br /><br />NateNate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-3128815553895431192012-10-08T19:17:01.098-04:002012-10-08T19:17:01.098-04:00Nate,
This a great letter. Hopefully, SODI will ta...Nate,<br />This a great letter. Hopefully, SODI will take the necessary steps to increase shareholder value.<br /><br />I had 2 questions, hopefully you can shed some light.<br />1. They mention in their 10K that:"The rate of inflation has not had a material effect on the Company’s revenues and costs and expenses, and it is not anticipated that inflation will have a material effect on the Company in the near future. However, sharp increases in the cost of precious metals has had an adverse impact on the Company’s cost of raw materials." I could not find any explanation as to why. Do government grants/subcontracts adjust for inflation?<br /><br />2. Their income statement does not show depreciation but it gets added back in the cash flow statement. Do you know if the income is inflated? I know these are audited statements but wanted to get a second opinion as to why this is the case.Anonymoushttps://www.blogger.com/profile/16424089589990616938noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-9622264815839696012012-06-11T13:27:21.891-04:002012-06-11T13:27:21.891-04:00Great Letter Nate, I Fully support it (with my tin...Great Letter Nate, I Fully support it (with my tiny position). Thanks a lot!<br /><br />REg<br /><br />FlorisFlorisnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-49785251488638668512012-06-11T08:49:07.300-04:002012-06-11T08:49:07.300-04:00Seems a good letter to me. Wondering how they will...Seems a good letter to me. Wondering how they will respond.Hielkonoreply@blogger.com