Q: What are your thoughts on Omni-Lite?
5i Research Answer:
OML is still only $18M market cap, even after its 125% one-year stock gain. It is cheap on valuation and now profitable after several years of losses. The Q2 was strong with 42% sales growth. Business tends to be 'chunky' but is good right now. Insiders own 16% and the company has a very long history. The stock is about 60% lower than it was in 2006. The stock tends to go on 'runs' with good news and then goes quiet. We generally do not endorse such small companies due to their risk and capital needs. OML does have about $4M in net obligations. We would not endorse it after its big run, on size risk primarily.