Q: Could you comment on SWP most recent results, Would you consider it a buy?
5i Research Answer:
No analysts follow SWP, so there are no estimates. Sales volumes increased 12% as the new line contributed. But sales in dollar terms were flat at $43.3M. Net income per share was 7c vs a loss of 6c last year. EBITDA more than doubled to $4.4M. 50% of business was to US customers. The quarter was OK, but the first half was weak overall, as last year customers pre-orders prior to the capacity constraints expected. The company is very small at $31M and has shown very little long-term growth, and this makes us reluctant to give it a strong endorsement.