Launch It.
Conversation with the Company
Hello,
In 2022 I invested 29% of my portfolio into Solitron Devices. At the time the thesis was based on realocation of property which temporary decreased earnings power. The thesis played out as expected in late 2023 and early 2024. Then, almost nothing happened for two years. The sales were stagnating, margins got under pressure from inputs increase and it looks like the thesis will go sideways. Yet something was brewing and despite I hate to say it the something was geopolitical conflicts. And despite I have my own opinion on why people fight wars or are pushed to fight wars it resulted in massive defense spending all over the world. Solitron started to finally see new and accelerated bookings coming through.
In early 2026, the right time to revisit this neat little company arrived. The bookings and backlog skyrocketed and the company announced strategic alternatives—potential exit liquidity after one of the most glamorous turn arounds I have seen in my short career. That is when I invested in Solitron in April. I took advantage of people getting too excited initially and sold on one spike. Once the situation cooled off a bit—as people speculating on the sale got sceptical it won’t go through—I reentered my position with over >5% of my portfolio in early June.
My thesis is simple. I think Solitron or rather the programs are at significant inflection point—probably the most significant inflection point in its history and that Solitron trades at less than <10x forward earnings—or at least at the price I bought in. As I always do, I like to speak with management teams and ask thorough questions about the competitive environment, current situation and generally core things that I believe are materially important to the thesis.
So with that being clear, I am sharing my notes from the 1x1 conversation with the CEO of the things I learned as it helped me connect dots together and there are few things that are being launched, which I think market might miss, but could become material going forward.