Taking Another Look at Smith-Midland
We have been tracking SMID ($2.35) for the last several years. Financial results from time to time have given us false hope that the company had recovered from the great recession of 2008. However, it appears that commentary from the Q2 2015 release indicates that the company may now be able to embark on a new period of growth. We may establish a trading position as we delve deeper into the story and draw up valuation scenarios.
Smith Midland Management Bullish Commentary
Here are some of the notable quotes from the company’s Q2 release:
“The company’s most important news today is for the month of July, 2015 (the first month of the third quarter), the company’s net income was almost comparable to the total earnings of the second quarter. Management believes that the third quarter of 2015 will show a significant increase over that of the second quarter of the year.
The Company continues to receive orders on a weekly basis, most of which will be put into production during 2015 with the remaining orders to be produced in 2016. At this point, we have enough orders to be profitable until the end of June 2016.
We have begun to make great strides in our journey to become a fully lean company which is making us a much more efficient and effective company for our customers, our associates and our shareholders. As always, the goal of management, our associates and our board of directors is to increase the value of the Company each and every day.”
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