RE:RE:RE:Rock Solid Q1 😀🤩😎Investors are simpy scared to ante up at much above $6 since the share price was $2 just three years ago.
I think they realize the company has grown into this new valuation, with strong and growing earnings. But for value investors, it is still hard to pay $8 or $10 for a stock that could have been bought for so much less a few years ago. As time passes, even these skinflints will resign themselves to the fact that a stock price of $6 is an extreme bargain and it will not be dropping. At that point they will start worrying about missing out on the next leg up and will get off the sidelines.
And that next leg up may not be far off. The Palmerston Manufacturing facility should be done commissioning and ready to start production this month. There will no doubt be a few months of de-bugging and ramp-up, but by Q4 of this year I expect this facility to contribute meaningfully to increasing sales and profits.
Hammond received plenty of excellent applications during the hiring process a couple months ago, validating the decision to locate away from the crowded Guelph/Kitchener corridor. For those who want to follow the progress, the new facility has a Linkedin page shown here ...
https://www.linkedin.com/company/palmerston-manufacturing/posts/?feedView=all