A new dividend payment makes our Top Pick very attractive, and our contributor has added a new Mid-Year Top Pick.
Top Picks Update
Optex Systems (OPXS) & (OPXXW)
From S.A. Advisory
Optex Systems (OPXS) & (OPXXW) The common shares were our stock pick of the year featured in the Wall Street’s Best Investments newsletter in January 2017.
Recently, the company declared a cash dividend of .08 during the next 4 (.02/q) quarters for both the common & common stock purchase warrants. We firmly continue our recommendation as we look for even greater appreciation short & long term.
Not only looking for capital appreciation, but now we have a very juicy dividend that serious investors should not overlook while we wait for corporate growth. The company is certified ISO 9001 2008. OPXS manufactures optical sighting systems for DOD. It provides these systems for Abram tanks, Bradley’s, LAV & SAV & the Stryker family of vehicles. OPXS also manufactures periscopes, rifle & surveillance sights & night vision optics.
We rate both investment vehicles with a Strong Buy, but strongly favor the warrants because of the super juicy 26% yield. The warrants are non-callable, expire 2021, exercise price is $1.50 (only .50 out-of-the-money). The available leverage owning the warrants offer the “cherry-on-top” scenario.
Management and the corporation have recently purchased large blocks of stock. The corporation has also retired a large block (700K shares).
Business has been booming for both the DOD & the consumer side products. Current backlog is around $18 million and sales for current year should easily reach $20 million. At present, there are 10 million fully diluted & outstanding shares.
If you desire exceptional yield, amazing leverage, short and long-term capital appreciation, then OPXXW is the only “pick-of-the-litter”!
William Velmer, S.A. Advisory, www.saadvisory.com, 949-922-9986, June 24, 2017
WSBI Editor’s Note: While Mr. Velmer’s picks are speculative in nature, he holds a very compelling track record. His January 2016 Top Pick—Hemacare (HEMA)—was recommended at $0.44, and is now trading at $2.65. He continues to rate the stock a strong buy, and by year end, anticipates a share price of $5.00.