Tuesday, May 19, 2015

The Growth of IEHC

IEH Corporation (IEHC) is a $14M market cap company that makes electrical connectors.  They have been written up a few times by OTC Adventures here and Whopper Investments here, here, and here.  Bull, Bear and Value has a number of posts here including a write up on his trip to the annual meeting.  I recommend you start by reading those posts and then I will just add a little bit on top.  Let's begin with a summary and some bullet points from these prior posts.

The company was founded by Louis Offerman in 1937 and is now run by Michael Offerman who owns 40% of the company.  The CEO's son, David Offerman, is VP of Sales and Marketing.

Thursday, May 7, 2015

Why is TIK so cheap?

Tel-Instrument Electronics (TIK) is extremely undervalued based on the most recent quarter, pre-announced next quarter, and order backlog.  Let's take a deeper look to see if it's still cheap.

TIK is a high growth microcap company that designs and manufactures avionics test equipment.  Their largest customer is the US military, accounting for 89% of the most recent quarter's revenue.  TIK has three major programs:  CRAFT for the Navy, TS-4530A for the Army, and ITATS for the Navy.  The TS-4530A program is split up in two parts: SETS which are a complete new units and KITS which are an upgrade of an old unit.  The CRAFT project also has two parts: the 708 product and the 719 which is a subset.  I will let you visit the TIK website to learn more about these products but basically they are Mode 5 avionics test equipment.  Mode 5 is the latest standard that the US Military is migrating to as we speak; in the past there was Mode 1, 2, 3, etc.  TIK has only one competitor in the Mode 5 space, Aeroflex, but TIK has the upper hand since they have all the big U.S. government contracts.