12d • General discussion
Lesson 7
I screened Optex Systems Holdings, Inc. (Optex)
Recommendation: BUY
Optex Systems represents a classic "picks and shovels" play on the re-arming of the Western world. While the headline risk of a declining backlog must be monitored, the contextual factors—specifically the temporary nature of budgetary delays—suggest this is a timing mismatch rather than a demand collapse. The fundamental economics of the business are stronger than they have been in a decade. Investors are effectively buying a profitable, growing, debt-free defense supplier at a discount, with a free option on the massive potential of the XM30 program.
Confidence Level: High
The combination of tangible assets ("heavy metal" backlog), verified financial performance (audited FY2025 results), and specific geopolitical tailwinds provides a high degree of certainty regarding the company's floor. The "High" confidence is tempered only by the inherent liquidity risks of a small-cap stock and the binary nature of government contracting.
Analysis done using google gemini pro
1
1 comment
Lesson 7
powered by
skool.com/basquiat-university-5261
Teaching How To Turn $100 into $100K through global stocks.
Suggested communities
Powered by