Tuesday, May 31, 2005
Ballistic Recovery Systems
Other than the legal issues, it seems like an interesting business that pays a hefty dividend: relative to cash flow, not relative to price. The dividend for 2004 was $0.08 while the recent stock price was $2.9. However, they are growing fast.
Given the uncertainty of the legal issues, the patent running out of time, and the single large customer, I have to wonder how a pink sheet company rates such a high price? Perhaps I'll dig some more later on. The news items show that Cirrus is buying big chunks of this company. That's a good sign.
UPDATE: They lost one lawsuit for $3.4 million, which coincidentally happens to be exactly the amount of equity on the books. And within a couple of days they saved another life.