RE:RE:Q4 Out: Continued Revenue Growth, Balance Sheet Strong
Agree with your comments on the prototype costs. Also note they expect more new business in fiscal 2017, though less than last year which was quite high.
This stock has an unusually low multiple despite a very strong growth rate. The attractiveness here is the low multiple given that growth, meaning a very high PEG ratio. I believe being in the cyclical auto industry is almost incidental to what the company is actually doing and that is penetrating a virtually unlimited market, given its tiny size in relation to the huge market it is addressing.
Once their market value rises consistently above the threshold for analysts to start following them I would expect to see the multiple expand significantly