BRM has done very well thus far in 2024, with the stock more than doubling. The run-up appears to be fundementally driven with revenue growth of 86% and 70% year-over-year in the last two quarters. BRM booked $13M in new orders in Q2 for a total order backlog of $57M at quarter-end compared $51.5M in the year prior. Gross profit was 22.7% in the quarter which was a big dip from Q1 due to higher operating expenses driven by increased commission expenses. Net earnings in Q2 was $0.340M. Cash flows are small and it has some debt on the balance sheet. BRM trades at 11.7x trailing earnings, so pretty cheap. We think it is worth watching to see how the rest of the year plays out but we also do not want to overreact to two good quarters of revenue growth which has historically been volatile. It is very risky and we did not like the higher expenses in Q2.
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