Is it a Great Move to Acquire Solitron Devices (SODI) Shares?
Cedar Creek Partners, an investment management firm, released its third quarter 2023 investor letter, a copy of which can be downloaded here. Cedar Creek has achieved an average annual return of 14.5% over its 17-year history, considering fees and expenses. Since its inception, Cedar Creek has delivered cumulative returns of 1,006.6%, net of fees and expenses. As of the end of September 2023, the fund's holdings were trading at 6.2 times its earnings estimate for the upcoming year and 5.1 times expected earnings, factoring in cash at the respective businesses. Take a moment to review the fund's top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Cedar Creek Partners mentioned Solitron Devices, Inc. (OTC:SODI) and explained its insights for the company. Solitron Devices, Inc. (OTC:SODI) is a West Palm Beach, Florida-based semiconductor company with a $29.16 million market capitalization. Solitron Devices, Inc. (OTC:SODI) delivered a 55.56% return since the beginning of the year, while its 12-month returns are up by 42.86%. The stock closed at $14 per share on November 3, 2023.
Here is what Cedar Creek Partners has to say about Solitron Devices, Inc. (OTC:SODI) in its Q3 2023 investor letter:
"Solitron Devices (SODI) - the bid price for shares decreased by 7% in the third quarter of 2023 from $10.70 per share to $10.00 per share. As a reminder, I am CEO and CFO of Solitron. During the quarter, Solitron closed its acquisition of Micro Engineering Inc. (MEI). MEI produces electronic components primarily for the medical industry. 2022 revenue was approximately $5.9 million with operating income of $1.3 million, as compared to 2021 revenue of $5.5 million and operating income of $1,2 million. Subsequent to quarter end, we filed a Form 4 noting the fund purchased an additional 35,000 shares for $10.70 per share in a private transaction. The share price increased to as high as $12 per share after the filing of the fund’s purchase.
A technician looking at a circuit board of analog semiconductor products.
Our calculations show that Solitron Devices, Inc. (OTC:SODI) failed to make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Solitron Devices, Inc. (OTC:SODI) delivered a 30.23% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
