[NEW] Cliff Note #141: Record Quarter, Tripling Backlog, Defense Tailwinds, and below 10.0X P/E

Multibagger Themes: GARP - Tripling Backlog - Defense Exposure - New Product Cycle - Reshoring Tailwinds

A tiny manufacturer with under $20M in revenue just printed a record quarter, with sales up over 100% year-over-year and order backlog nearly tripling in three months. The CEO is openly talking up domestic-manufacturing tailwinds, defense exposure, and a brand-new push into 3D printing materials for aerospace and medical implants.

It appears that a multi-year strategy to introduce new products and enter new markets to reduce the cyclicality of the business is finally inflecting. These situations, when boring companies find ways to reduce the risk of their business, can lead to situations where you get an expansion in the P/E ratio at the same time earnings-per-share is expanding.

The stock trades at a run-rate P/E of around 7x with zero debt and cash exceeding all liabilities. We're making it the first stock we are adding to the Microcap Quality Index in May. Remember, we add about 1 to 3 stocks to our index every month.