Is Solitron Devices (SODI) A Great Long-Term Investment?

Cedar Creek Partners LLC, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of 0.5% was recorded by the fund for the third quarter of 2021, outperforming the NASDAQ Index, which delivered a -0.4% return for the same period. The fund also outperformed the S&P 500 (SPY) Index’s 0.6% return and the Russell Micro Cap’s -5.0%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Cedar Creek Partners, in its Q3 2021 investor letter, mentioned Solitron Devices, Inc. (NYSE: SODI) and discussed its stance on the firm. Solitron Devices, Inc. is a West Palm Beach, Florida-based manufacturing company with a $19.6 million market capitalization. SODI delivered a 63.65% return since the beginning of the year, while its 12-month returns are up by 128.12%. The stock closed at $9.41 per share on November 26, 2021.

Here is what Cedar Creek Partners  has to say about Solitron Devices, Inc.  in its Q3 2021 investor letter:

“Solitron Devices (SODI),where I am the CEO, the bid price for shares declined by 3% in the quarter from $8.51 per share to $8.25. On July 20 we reported fiscal first quarter net income of just over $1 million, or $0.49 per share, versus $369,000 or $0.18 per share in the prior year fiscal first quarter. Subsequent to quarter end, on October 11 we filed fiscal second quarter results. Net sales in the quarter of $4.2 million versus $3.2 million in the prior year quarter and net income of $2.45 million, or $1.18 per share versus $0.64 million or $0.31 per share in the prior year quarter. The quarter included other income from PPP loan forgiveness and scrap income. Revenue was higher in part due to accelerated production and shipping knowing that we would have a soft period during our upcoming facility relocation.”

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Based on our calculations, Solitron Devices, Inc. (NYSE: SODI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. Solitron Devices, Inc. (NYSE: SODI) delivered a -0.53% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.