after selling vast majority of my sp3 holdings last year, I used to keep a small parcel of it just to track how it performs, and after seeing this latest quarterly I finally decided that there's no point doing this anymore, at least for the remaining months of calendar year 22.
as a result I'm currently a non holder, although it will remain on my watchlist.
I'd reemphasise that, sp3 is a hardware manufacturing business. That is before everything else, IT platform or leasing equipment, it is a manufacturing business first, and the economic environment is currently against them.
they needed much better performance than they achieved, and moving forward they'll have to achieve much better and spectacular performance to be viable.
Inventory reduction has been mentioned in posts above, and to get more inventories you'll need labour, raw material, and overhead etc., and let's look at that inflation figure again? and labour shortage, and global supply issue if anyone else here has anything to do with manufacturing?
how expensive are sp3 products already? how much do they need to spike the price, and how much could they afford to spike it before the commercial customers turn away?
I'd very much like to see they get more contracts from government and defence etc. which tends to waste the tax payers' money, and I haven't seen many in the past year or so.
if you insist on that technology company identity and want to proudly elaborate, Monday could prove interesting considering what happened last night at nasdaq.
GLTA.
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