MIND Technology: Iceberg starting to melt

MIND Technology has had a tough 2 years. Before COVID the company was on verge of getting the Navy orders. The company was waiting on Navy wrapping up its testing and then the orders for the company’s gap filler would be fortune changer for the company. Since COVID the Navy testing has been delayed and the orders are likely not coming till 2022.

The company put out a press release today pre-announcing their quarterly sales numbers. For a company that hardly puts out press releases, pre-announcing is a clear sign the management is extremely happy with the numbers and the order activity it is seeing.

We are pleased to see that the expected ramp in operations and activity is starting to materialize. As evidenced by the increase in revenues and the strong backlog, we are experiencing an uptick in orders and proposal activity. Our backlog includes orders for commercial sonar and source controller products, but also sonar systems for military applications, including mine counter measure missions. Based on inquiries and active discussions with customers, we expect further activity in all of these segments in the coming weeks.

Although I think we still have to wait till 2022 for the major Navy orders to come through. We have waited a long time for this and a few more months won’t matter much. Although today’s press release is a good sign that order activity is starting to pick up.

I’ve been buying up the stock in the last few weeks. At these prices, I’m a buyer.

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